The forex market isn’t exclusive to big company and hedge fund traders anymore.
These days, anyone can get into the foreign exchange markets, so long as they have the capital to get started and the access to a computer to trade on. However, just because you can rush into something doesn’t mean you should—after you register Valutrades and make a deposit, you shouldn’t be in a hurry to put your money where your mouth is. Smart traders, new and old alike, can understand the value that comes with a forex demo account.
Valutrades allows you to practice your trading skills without risking any capital by using a demo account, with Standard and ECN demo accounts available. Before we look at how to get your own demo account, we would like to remind all traders that CFDs and FX are leveraged products and your capital is at risk. For more information on this, we recommend that you read the Risk Warning on the Valutrades website.
With that out of the way, the following looks at how you can open a forex demo account at Valutrades. We will also outline why it’s important and how it can help make you a more effective trader.
Setting up a Valutrades Forex Demo Account
After visiting Valutrades, click “Free Demo” and proceed to go through the super-quick registration process. Through this, you will also choose the account of interest, between a standard account and an ECN account. If you are not quite sure what account is suitable for you, we recommend that you speak to your Valutrades account manager or any of the support team on live chat, as they will be able to point you in the right direction.
Once your account is set up and successfully validated, you’ll have your password and username, along with a link to download MetaTrader 4 (MT4). MT4, if you weren’t already aware, is a separate program that will need to be installed on your Windows operating system just like any other PC application. Enter your account details—if they aren’t already stored within the program—to login to MT4. From there you can view your account details, overall profile, service choice, and demo mode options.
Demo accounts within MT4 can be set up with parameters of your choosing, but that’s not all. No demo account experience would be complete without smartphone functionality. Simply search for “MT4” on your phone or tablet, and then click “Settings” and “New Account” before selecting “Login to an existing account”. Proceed to finding the right server by simply typing in “Valutrades” in the app, as it should find a server called “Valutrades-Demo.” Select this server and enter the same account number and password as your desktop version. Your phone or tablet will now have access to your account’s quotes and charts, as well as many other features to help monitor your open trades.
Should you need any help in setting up your demo account, don’t hesitate to speak to the Valutrades customer service team via email (firstname.lastname@example.org) or live chat.
The Importance of Using a Forex Demo Account
We’ve explained how you can set up a forex demo account through Valutrades, but you may not yet know what the account is or why you need one. Luckily, there’s a simple answer to that: a forex demo account is an account that allows you to use “virtual” money or funds to trade on the market, just like if it were real. You can place trades in the markets and see how they do. Demo accounts are perfect to see if you’re actually ready to take on the forex market and all the risks that doing so incurs; it’s the perfect tool to add to your trader’s toolbox.
A lot of people don’t see this as a necessary step, but honestly, that’s a mistake. No matter whether you’re new to the game or old hat at forex trading, a demo account can help you hone your skills by allowing you to fine-tune your trading strategies before you let them go live. Ultimately, demo accounts let you become a better trader. In addition, a demo account is the perfect tool for record keeping, as you can mirror trades and keep additional records of any moves that you make.
How to Use a Forex Demo Account
Keep in mind that you never really know what the market’s going to do—it does what it does, and nothing is certain. However, you do have control over what you decide, and in demo trading, you must first recognize that your plans for trading and performance must be realistic. Can you do as well as you hope? Many would-be traders come to forex with the idea that they’re going to get rich instantly, and are easily disappointed when that aren’t the case. However, if you’re willing to stick with it and test out your strategies, you can do very well.
Practically, it’s important that you treat the demo account as realistically as possible—don’t treat it like a game. If you behave in a risky manner in your demo, there’s a good bet you’ll do the same in your real trades as well. This is a technical aspect that can really increase your performance and twist the odds in your favor. Additionally, keep notes and master a routine, while making sure you don’t use all of your capital. Only trade with what can freely commit to in real life, or you’re just wasting time and effort with your demo account.
Forex demo accounts aren’t just a throwaway tool that you can discount as useless. Instead, they represent the ability to allow forex traders to practice and fine-tune skills and strategies before making mistakes that could cost them money. Valutrades opens the door to a forex demo account, so we certainly recommend that you make the best use of it.
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.