Beginners should always start with a demo account or practice account. Most of the leading currency brokers dealing in fx online trading offer demo account. Account opening is simple – Register on the website of the broker and download currency trading software. It hardly takes few minutes to start trading currencies.

1. What is a Demo account?

Demo account is essentially a practice account where you can do everything that fx trader does in a live fx market.

2. How does a Demo account work?

When you open a demo account, you are allotted a notional sum of 50,000$. Sum varies from broker to broker. Validity of demo account varies from 30 days to 60 days. With this virtual money of 50,000$ you can buy/sell foreign currency in a real fx market without any fear of loss of money.

3. What are the major benefits of a Demo Account?

Demo account is a great way to get a real handle on the features and functionality of fx trading platform of the broker. Demo account is the best option to learn A to Z of foreign exchange trading right from the types of orders up to the technical analysis and currency trading strategies.

Demo account is an ideal solution to get rid of the phobia of getting started with foreign exchange trading.

Success in your forex trading venture depends a lot on right forex broker. Read our Forex Broker Reviews and Comparisons to choose a good forex broker to getting started with a Demo account.

1. Understand the fundamental factors that move fx market. Most important factor that can influence foreign currency revolves around country specific Macro-Economic aspects such as geopolitical events, monetary policy decisions, speeches of central bank chairmen and data releases on various economic parameters. Based on the economic indicators, the economist’s viewpoints on the overall economy of a particular country may change considerably. It can drastically affect the valuation of foreign currency.

2. Besides the Macro-Economic factors, there are technical factors that can greatly influence currency trading. Interest rates, stock market and crude oil prices are capable of causing wide fluctuations in fx.

3. Make up your mind on your currency trading style and strategies. Fundamental Macro-Economic factors, technical factors or tools based on technical analysis. If you are driven by the first two factors then try to understand the likely impact of fundamental factors before taking any decisions on your trade.

4. If you intend to rely on technical analysis tools then get a hold on chart patterns, market trends, trend reversal signals, support, resistance and other commonly used approaches. Plan your fx trading well in advance and stick to target profits and loss decisions.

5. Risk management is the most important aspect. Accept loss as a lesson well learnt. You can not be winner in every trade. Concentrate only on 2 to 3 currency at the most. Never attempt currency trading with multiple pairs. Have conviction on your decisions. Control your emotions.

6. Update yourself on current events related with fx market and research and research.