Forex trading can be very lucrative, as long as you know how to place the right trades at the right time.
Well, this is where simulated forex trading comes in, and yes, there are free simulated forex trading apps.
This virtual form of trading makes it easier for traders to practice their strategies and to build up their technique. As you can imagine, though, there is quite a bit more to this imitation trading than this. You can find all of the information and details regarding simulated trading below:
How Does Simulated Trading Work?
When you trade in a real forex market environment, there is a reward as well as risk. Although you stand the chance to make money from a trade, you may also end up losing a certain amount. With simulated trading, though, you are placing trades on a virtual platform. As such, there is no real money involved. So, while you may not make a profit and a return, you will also not end up forfeiting any of your capital either.
You will also find that simulated trading is referred to as demo trading. That’s because this kind of virtual trading is tied to demo accounts. Forex brokers will offer these practice versions when you register for one of their main accounts. With these, you will have the chance to place risk-free trades so that you have a better understanding of how trades work. Depending on the broker, there may be limits to how many trades that you can place within a period of time.
There are many free simulated forex trading apps that you can download.
Here you can open a free simulated trading account.
Simulated Trading Platforms/APPs
As you are aware, each forex trading platform is different from one another. Since these demo platforms mirror the original versions, they too will vary from each other. Thus, when you select a certain simulated platform, you will only be gaining knowledge about how to work that particular platform.
It is also important to be aware that trading platforms can differ in terms of features as well. For example, some may be more sophisticated and therefore, have a greater number of features. The platform design and functions will also be determined by whether they are catering to short-term or long-term traders specifically.
The Rewards of Simulated Trading
Now that you have a better understanding of simulated trading, let’s take a look at some of the advantages associated with it:
As mentioned, the main benefit of simulated trading is that there is no risk involved at all. All of the money that you use is virtual and there is no link to your main account. This frees you up to place trades however you wish without worrying about the consequences.
There is also the fact that these platforms allow you to gain actual experience about what forex trading is like. After all, these platforms are almost identical to the real ones. So, you will have to go through the same steps and procedures as when you want to place a real trade. This gives you the perfect opportunity to practice so that you don’t make any mistakes when trading with real money.
Mimics Real Market Conditions
While forex trading may seem simple enough, there are a lot of external factors at play. Thus, when placing a trade, there is a lot of information that you need to be aware. Most simulated platforms will provide you with all of these details so that you will have as much of a real-life experience as possible. Therefore, when you start really trading, you will not be frazzled by all of the information coming your way.
Who Can Benefit from Simulated Trading?
Most traders believe that demo accounts are for novices of the trading industry. Now, in most cases, this is true. Many people who utilize simulated platforms do so to get some idea of how the real platforms work. These accounts give them an opportunity to familiarize themselves with the process. At the same time, the traders can also create and test out strategies that they want to use in a real-life trading scenario.
This doesn’t mean that seasoned traders can’t use the simulated platforms as well. See, as you begin to trade, you may be curious about new strategies. In this case, the demo account will let you test out your theory to see whether or not it will provide your preferred yields. A simulated platform is also great if you want to trade with a new currency pair but aren’t sure whether you can handle the change. Experienced traders who use demo platforms may find it easier to take up a larger share of the market, with time.
The Best Tips for Choosing Demo Platforms
Below, you will find the top tips for making the best possible decision with your preferred demo platform:
- Select a Complementary Platform: when selecting trading platforms, you will realize that there are two main types – universal and proprietary. Universal platforms are more widely used while proprietary ones have a more customized design. Regardless of which one you select, you will need to make sure that it is identical to the platform that you will eventually be trading on.
- Easy Sign-up Process: the sign-up process for demo accounts will depend on the broker. Some may expect you to sign up for a main account while others will give you free online access. Irrespective of the route that you decide on, you should pick a demo account that you can use without having to deposit any money first.
- Live Price Feeds: to become a good trader, you will need to stay on top of real-life changes in price points. This is why you should always look for a demo account that will provide you with live updates, while you are training. You will then be able to form the best strategies possible and place trades more accurately.
- Flexible Deposits: typically, your demo account should be the same size as your real-life one. Due to this, you should be able to adjust the ‘deposits’ for your demo account as well so that you can create strategies that are better suited to the ones you will use in real trading circumstances.
This all that you need to know about simulated trading with forex accounts. Make sure you check out free forex trading simulated apps.
You can now use these platforms more effectively and thus, become a better trader.