How to Choose a Demo Trading Account
Before deciding which is the best trading broker to use, you will want to try out a few demo trading accounts to learn the ins and outs of each platform without losing any real capital. For beginners, there are a few points that you may want to be aware of when deciding which trading platform to choose. Below we have listed a few suggestions to help you choose the best broker and trading platform for you:
Some demo trading accounts offer you a specific amount of capital to use while you are learning how to trade. You will want to look at the different capital options offered. Having a significant amount of capital will make small losses easier the recuperate. A small amount of capital will make it harder to recover.
Keep in mind; different demo trading accounts have different time limits. While some demo platforms have a time limit of a week or two, others are unlimited. For beginners, you will, of course, need more time to learn the ins and outs of the fx trading platform, so you will then want to find a demo trading account that offers no time limitations.
Before you decide which broker is best, remember, every country has their own rules and regulations when it comes to online trading. Due to the possible safety concerns regarding deposit, you will want to make sure that your accounts will be properly regulated and your information secured. For example here in the UK, we have the Financial Conduct Authority (FCA). The Regulatory Body controls and protects the integrity of the traders, market, and investors in addition to the brokers, and to help members maintain their regulatory responsibilities.
Because fx trading often takes place up to 24 hours a day, you will want to make sure that the client service department is there when you need them. You may find it more comfortable to speak via chat or telephone rather than awaiting an email reply, which can take time. It could be worth your while to check out the customer support before signing up, and many brokers have a local UK phone number. Find out the wait times and see how the representatives can handle your questions regarding the leverage, spreads and trading volume.
When selecting a broker, many traders just concentrate on stocks. However, you should keep in mind there are many other types of investment alternatives offered. Including Forex (FX), ETFs, CFDs, futures, options as well as precious metals, to just name a few.
For more information on selecting the right trading platform for you, please see our tutorial: What To Look For When Choosing A Trading Platform