Good brokers allow either unlimited use of a demo account, or they will enable you to sign up for a new account when the old one expires as long as you use a different email address.
Most brokers require your name and phone number so they can contact you about opening and funding a live account.
There are several benefits of using forex demo accounts:
1. They allow you to try out a broker before opening a live account. You should contact customer support (just make up a question) to see how helpful and responsive they are. The best brokers offer features like forex market news and commentary, technical analysis, trading ideas, and pivot points for the common currency pairs.
2. Forex demo accounts allow you to try out the broker’s trading platform under real market conditions. You can practice placing market orders, stop and limit orders without the pressure of putting your capital at risk.
You can also become familiar with the trading charts and practice plotting trend lines, areas of support and resistance, as well as use indicators like moving averages, MACD, Bollinger bands, etc. A good trading platform will allow you to have multiple charts over multiple time frames open at one time as well as saving the charts, so you do not lose all the indicators and trend lines you have plotted. Forex Test Account
3. One of the greatest benefits of trading forex is the use of leverage. Forex demo accounts allow you to practice responsible use of leverage and see how different leverage ratios affect your trading account balance with each winning and losing trade.
4. Risk management is key to surviving and profiting from the forex markets. With a demo account, you can safely practice sound money management rules and see how various levels of risk affect your account without risking your own money.
5. Every successful trader has a good trading system. Demo accounts allow you to develop and test various trading systems or design your profitable trading system without the risk of losing your own money. Some trading platforms even allow you to backtest a trading system to see how it would perform over time.
Forex demo accounts are crucial to not only learning about trading the forex market but also becoming familiar with various brokers. While you will be trading with virtual money, you should treat your demo account as if you were trading your own money so you can experience the many emotions you will go through when trading your capital. Trading forex brings fear, uncertainty, greed, and joy, and the best way to learn to deal with them is to go out and sign up for a demo account today.