•  Forex Trading Company
  To trade in Forex market, you need to open forex account with forex trading company. Get the list of the forex trading company that support MetaTrader 4 platform where you can open a forex demo account easily...

Currency trading, also well known as Forex trading is one of the very lucrative investment tools to earn money nowadays as Forex capital markets has become the largest and biggest financial market with turnover close to $4 trillion a day. That is over 7 times larger than all the stock exchange markets in the world combined.

I am not going to cover the forex or currency trading basic here as you can find lot of information at wikipedia.org.

Instead, this article is aim to provide useful guide for those who like to learn more about opening forex demo account correctly before doing forex trading online with live account.

Opening a free forex demo account might seem easy but yet many people do not do it the correctly. Here are 5 useful advices and tips on opening forex demo accounts based on my experience.

You can open forex demo account with free practice money up to $5 million for some of the forex trading platforms but you have to be real to yourself.
It is fun to see big money in our trading account but it is not going to give you realistic reflection of what might happen to your live trading account later.
I recommend you to open a free demo account with initial deposit ranging from $250 to $3000 or the same amount that you going to deposit into your live trading account. If you are using MT4 forex trading software to open a free demo account and the amount of deposit you want is not available in the drop down list, just type in the amount of money you like to start with manually.

If you are new to forex trading, you will be most probably have no idea on how to select a suitable account leverage level like me when I first started to open a forex demo account. To put it simple, account leverage or margin leverage is the ratio of money you can leverage and control. The higher your account leverage level, the more money you can control but it also means higher the risk if you trade aggressively. Typically forex brokers are offering account leverage level from 1:100 to 1:200. Some forex broker like Alpari Forex offer leverage level up to 1:500. I recommend you to use account leverage level of 1:100 for a start if you are doing manual trade and new to forex market. Below is a screen capture of selecting account leverage level when you opening a forex demo account using MetaTrader 4 software.

You need to choose the same account types as your live forex account that you are going to open in future when you open your demo account. Different brokers named their account differently and you need to review the differences in their website. Some brokers offer mini account that allows you to trade micro lots and some only offer standard account where the minimum deposit is higher. Make sure you choose the correct type. If you plan to open live account with deposit less than USD $10,000, I recommend you to choose mini account or standard account that allow you to trade micro lot when opening your demo account. If you unsure of the lot sizes, you can test it out by opening different type of demo account and try placing orders with minimal lot size.

Practice and apply money management even on demo account. Put stop loss and take profit or trailing stop on your demo account like what you would do on your real trading account. If you burn your practice account money easily, chances are you will burn your real forex account easily as well.

There are many types of forex trading platforms available such as web based, java based , mobile version and window based trading software offered by different forex brokers. MT4 is one of the widely used window based forex trading platform software that support automated foreign currency trading using forex robots, which also known as EA or expert advisor.

If you are doing automated trading using EA robots, I strongly recommended you to open free MT4 practice account with at least 3 different forex brokers to test with the EA robots before opening your live trading account as many factors that varies from one broker to another can affect the way the forex robots operate, such as hedging policy, timezone different, scraping policy, trade volumes, 4 or 5 digits pricing, spreads size, slip page, price re-quote frequency…etc.

If you are not a big fan of testing EAs, you can read reviews, join automated forex trading forums and find honest review about difference EA performances in live account.

To open a demo forex account with the brokers that support MT4 platform, you just need to download and install their customized MT4 software. You can open as many demo account as you like for MT4 platforms without filling up free demo application forms online once you install the free MT4 software.

I have compiled a list of forex brokers that support MT4 platform as forex trading tool and their MT4 direct download link so that you can easily download and open free forex MT4 demo account with them.

Comments and feedback are welcome.

regards,

Winter Wong
Winter Wong Forex

Learn Forex Trading Online. Before you take a step into forex trading, check out the 8 Simple Steps to learn forex trading online.