Will a Forex Demo Account make you a successful trader? Well, NO ! And I mean a big f.cking NO. Is shooting with blind bullets gonna teach you how to shoot? Is playing Monopoly gonna teach you how to start a successful real estate business? Of course not.
BUT, its gonna show you how to hold the gun or that each building has its value, right? And this is exactly what Forex demo accounts are about. Its a a simple and free way of learning the trading basics, the currency values, how much real money a certain fluctuation means etc …
In case you are considering starting with real money straight away … well … DO NOT DO IT !!! Pretty much any broker offers a free demo account, so make sure you use it to get familiar with their system. Do a few FREE Forex trades, try to place buy/sell orders, setup stop losses, see how they execute… make sure you understand the system in and out.
You can not risk mistakes when real money is involved, there will be enough stress anyways, do not make yourself think about what to click and when.
Only, and I mean ONLY !!! once you are completely familiar with the trading system/platform you are going to use, comes the time to start a real money forex trade. Forex Demo accounts are a perfect way to try walking in a traders shoes, do not miss this opportunity. Even thou its miles away from real money trades, its still a step you should not miss taking.
Pretty often there are contests held by big brokerage companies, giving you the option to test forex trading and have the possibility to win a prize at the same time.
Trading for a prize ads a lot of sense to the learning activity, simply because you will start to feel the value involved and wont treat the trading as a game all together.
Joining a contest or simply trading any forex demo account is always a good idea, never underestimate this phase. Its not gonna make you a perfect trader but it will certainly help you get used to the platform and feel more comfortable while using it.