Forex Demo Accounts

Written by Jacey Harmon
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Before you buy a car you will likely take it out on a test drive. The test drive allowed you the opportunity to see if you liked how the car handled and if it fit your needs. Taking a test drive is now being applied to the Forex market.

Test Driving Forex Trading Platforms

There are hundreds if not thousands of online currency broker/dealers. These online organizations provide access to the Forex market for their clients. Through software interfaces--also known as trading platforms--an online dealer can give a trader direct access to the market.

Though each platform will offer similar features--real time quotes, easy order placement--they each have their own special features. One notable difference is the number of currency pairs you can track. Some platforms allow traders to follow up to 60 currency pairs, which seems a little extreme. I can't seem to think of any reason why an individual trader would need to follow 60 pairs. Most platforms allow traders to follow 10 pairs at a time, which seems a little more reasonable.

Testing various trading platforms will give you the opportunity to ensure the platform is right for you. Aside from testing the platform, a test drive can also give you the opportunity to test a trading strategy. When you test a platform you will receive a "paper" account where you can actually place trades. You will receive all the same information and follow the same processes as you would if you were trading with real cash. This gives you the opportunity to test various strategies without risking hard earned capital. Before opening an account with an online broker/dealer, be sure to take a test drive of the trading platform.

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