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Taking your first steps in forex with a demo trading account

Trading currencies means mastering a skill set to help you win at the foreign exchange (forex or FX) game. Learn how to conduct fundamental and technical analysis, read the market, and use risk management tools – and you might just end the session a few pips ahead of the pack.

Trades take place between counterparties based anywhere in the planet where forex isn’t banned. For most people, if you have a reliable, fast internet connection, you can be a currency trader.

People often start trading as a side-line. But the taste of success leads many to try it as a career. The benefits are obvious: you make your own hours, you work for yourself, and if you’re good, you’ll make a tidy sum. Money and freedom with a low barrier to entry. What’s not to love?

It’s so attractive and easy to get into that many jump straight into the deep end of full-time trading without getting the experience they need. That creates avoidable risk and leads to losses.

Forex is packed with opportunity, but you have to learn the mechanics of trading, know how to read market moves, see trends, and build a trading strategy. That way, you can go forward with a system rather than relying on instinct or otherwise winging it.

To learn properly, you need to spend time in the classroom. In forex terms that means signing up for a demo account. Demo accounts create a simulated trading environment where you can try your hand – and fail a few times – without risking any real money.

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Demo accounts explained

Demo trading accounts are virtual broker accounts where you can try before you trade. They use real-time data to simulate the real-world conditions you’d face if you were trading live.

The demo gives you real quotes for the currency pairs you choose and provides a selection of financial instruments. It looks and acts like a real account. You can open and close positions. Score gains or suffer losses – but only in virtual funds. No actual cash is ever put at risk.

You don’t need to make a deposit or link your bank details to open a demo. The funds your trade is a sort of play money created by the site for practice purposes.

So you can’t lose, though you can’t really win either. What you can do is have a solid go and learn from your wins and losses. What did I do right, and what did I do less right? Demo accounts give you a safe setting to experiment with different trading methods and see if you can cope mentally with the emotional highs and lows of trading.

How do you start demo trading?

Go to almost any forex broker’s website, and you can register for a demo account within minutes. The broker will ask for some personal data. How much depends on the company and regulated jurisdiction they operate in.

Once confirmed you’ll be given amounts to ‘fund’ your account with – all virtual money.

The majority of demo forex accounts have similar features: buying and selling currencies, quotes for currency pairs, analysis tools, news feeds, and educational resources.

You might also get basic access to a broker’s customer support. Take advantage of these freebies if they’re on offer. They’ll help you get a good sense of what the company will be like to deal with after you’ve signed on for real.

The screen set-ups can vary somewhat, and the execution platforms might differ (MT4 OR MT5 in most cases). That’s another excellent reason to use demo accounts. Even if you’re a seasoned trader, the demo account lets you do a hands-on trial before engaging in trades with that broker.

When does the demo phase finish?

If you’re new to forex trading, most experts agree you should look to make about fifty demo trades before moving over to live trading with real cash. You need at least that much demo time under your belt to understand the mechanics of entering an order, closing a position, or using stops and limits.

Notch up enough virtual trades, and you’ll have a firm idea of whether forex is for you. If it’s going well, you’ll be making profitable trades regularly. Crossing the 50-order border also gives you enough time to sense check if you’re emotionally cut out for the forex life.

Currency markets can be a roller coaster, loaded with hourly highs and lows. To be successful is to be disciplined and mostly immune to the fear, greed, and crushing disappointment that can grip you if a trade goes south. That doesn’t mean you don’t feel emotions, just that you’re trading decisions won’t be unduly influenced by them. As much as possible, you need to trade cold.

If you feel like your feelings won’t be a problem, the next milestone to pass is the ability to form a trading strategy. There are four cornerstones:

Timings. Choose the same daily time slot to learn the action that characterises that session.
Pairs. Decide which currency pairs you want to trade – ideally based on knowledge of what drives the economies of those markets.
Risks. What tools and position limits will you use to minimise losses?
Instruments: Will you trade commodities, indices, CFDs, or currencies?

Pro tip: When your four-part trading plan is ready, test it on the demo account first. That’s what seasoned traders do before attempting any new strategic approach.

Demo accounts are like forex school

There’s no better way to learn the basics of forex and test drive a forex broker’s online trading platform. Demo accounts give you a real sense of what FX trading looks and feels like. Experience all the highs and lows. And never have to put your own cash in peril.

Demo trading is virtually risk-free. Those low stakes make demo accounts the perfect environment to test your trading mettle.

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Forex Trading Knowledge Questions and Answers

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Forex Trading Knowledge Questions and Answers

What Is A Demo Account?

Demo accounts enable new investors to test their ideas and learn how to use trading technologies without risk. Users can use the demo account to trade with simulated money and see what their returns would be if they traded with real money. Demo accounts are often used in schools and universities to teach investing and compete in trading competitions.

Demo accounts are commonly used by stock traders, currency exchange traders, and commodities dealers, but not by long-term investors. A demo account is less effective since the longer it takes to produce earnings from an investment, the more time it takes away from compounding real money.

How Does A Demo Account Work?

Using demo accounts, investors can practice trading on a platform without putting their own money at risk. You will not be exposed to the dangers associated with live trading platforms on a demo account. As a result, you can learn how platforms work without putting your money at danger.

A demo account guarantees that you will not lose money, but it also guarantees that you will not make money. To reduce risk when trading on the real market, traders must learn discipline and establish techniques.

How to Open A Demo Account?

In general, opening a demo trading account is pretty simple. Choose a Broker – Most brokers provide demo trading interfaces to help you become acquainted with the features and create techniques. Choose which broker to use initially.

Registration is necessary, and you must provide your personal information. Name, address, and financial information will be requested. Your identification will almost certainly have to be validated as well.

Once you’ve decided on a broker, you can install MetaTrader4. Once you have decided on a broker, you will require a trading platform. MetaTrader 4 and MetaTrader 5 are the most popular trading platforms.

You will obtain login details after registering with a trading program. You will be able to open an account.

How Long Do Demo Accounts Last?

Traders can use a demo account to test out a program for up to three months before deciding whether to purchase the complete edition. The three-month term is basically offered to guarantee that the prospective buyer has enough information to make them desire to buy.

Why Is It Necessary to Open A Demo Account?

What Are Advantages of A Demo Accounts?

Demo accounts are an excellent method to learn about various trading tactics and software. Paper trading is a lot safer way for a beginner investor to make technical mistakes than real trading. Investors can benefit from the customised trading software provided by each firm.

A demo account lets you to test methods without risking any money, whether you are a novice or an experienced trader. Trading on a demo account allows the trader to test the approach before trading with real money.

Even though many traders begin with equities, commodities and Forex can be profitable. The same strategies, however, may not be applicable in all three asset groups. A demo account allows experienced traders to experiment with several asset classes.

The Differences Between Demo & Live Accounts

A forex demo account is distinct from a genuine account in that it is utilised as a training account for traders to practise trading without putting real money at risk. Real accounts, on the other hand, use actual money, and traders put their own money at risk. A demo account enables users to trade with fictitious money in order to imitate the earnings they would receive if they traded with real money. Demo accounts are often used in colleges and institutions to teach investing and compete in trading competitions.

However, studies have shown that even if a person has obtained extensive trading expertise through the use of virtual accounts, things may turn out differently when real money is involved. Because you are not putting anything at risk is more accessible when dealing with virtual money than when trading with actual money.

Can I have Multiple Forex Demo Accounts?

You may be able to open up to five demo accounts depending on the broker. Some, however, provide up to 19 demo accounts. There is no way to predict how many demo accounts are available at any particular time. All brokers do not limit the number of demo accounts.

If your broker has a demo account limit, you can contact their customer service via email or live chat to request more demo accounts.

There are brokers who will only allow you to open one account of each type per email address.

As a result, you are not able to establish any additional accounts until you give them with another email address or open a new account. Traders do not benefit from this practise because it requires them to spend their resources on opening new accounts rather than allowing them to open as many as they like.

In most circumstances, you won’t need more than five accounts, and depending on your plan, one may enough.

In any case, you should practise on a demo account until you are really proficient.

Is A Demo Trading Account Free?

Demo platforms are usually free. There is no risk of losing money because you will not be dealing with real money. As a result, there are no deposits, withdrawals, or training fees involved.

How to Choose Forex Accounts?

Different accounts have different settings. Before you open a trading account, you should answer the following questions:

How much money do you want to put down? You should keep in mind that trading with money you cannot afford to lose is not a good idea.

What is your level of risk tolerance? If you are a cautious trader, you can open a micro account and trade micro-lots. However, if you wish to trade more aggressively, you should open a regular account.

Do you require any specialised equipment? Many forex brokers provide their best trading tools to its professional clients, which may include cutting-edge news analysis or access to a diverse set of indicators.

Once you’ve determined what kind of trader you are, your trading objectives, and your risk tolerance, you’ll be able to choose which account is best for you.

Can I Take Money Out of a Demo Account?

Unfortunately, the answer is no. Demo accounts are only for practise purposes. You do not deposit anything because the account is not funded with real money.

As a result, any profits you would have made would be ineligible for withdrawal.

Forex Trading Knowledge Questions and Answers

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AvaTrade introducing 3 new crypto pairs

AvaTrade introducing 3 new crypto pairs – updating 3 others

AvaTrade has yet again improved their cryptocurrency trading offering.

AvaTrade is introducing three new cryptocurrency pairs: NEOUSD, EOSUSD & MIOTAUSD in addition to the 15 crypto assets already on offer.

These new pairs have been available since July 1st, 2019 and provide an excellent opportunity to diversify your clients’ portfolios and increase their exposure to this vibrant 24/7 market.

Asset	Typical Spread	Leverage	Margin	Min Nominal Trade Size
NEOUSD	1.5% Over-market	2:01	50%	10
EOSUSD	2% Over-market	2:01	50%	10
MIOTAUSD	1.5% Over-market	2:01	50%	10

To unify their cryptocurrency instrument labels, They are relabeling their existing Ethereum, Ripple & Litecoin instruments, by replacing the existing instruments with new USD labelled ones:

Asset	Old Symbol	New Symbol
RIPPLE	XRP	XRPUSD
ETHEREUM	ETH	ETHUSD
LITECOIN	LTC_Mini	LTCUSD

These new pairs have also been available since July 1st,

The trading conditions for each one is identical to those of the older respective assets they replace.

Effective immediately, new positions are only available on the new pairs.

Avatrade Clients will not be able to open new positions on the old assets, but those already open will remain unaffected until July 29th.

Existing positions on XRP, ETH and Litecoin-mini that remain open on July 29th will be automatically replaced with corresponding positions on the new pairs, , at the same opening price and at no cost to clients.

as any broker that values their clients would do , Avatrade makes sure that the clients will not be affected by the change.

Visit Avatrade NOW

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Neteller Launches Cryptocurrency Exchange Service

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Neteller Launches Cryptocurrency Exchange Service

Neteller one of the most known Digital fiat currency wallet provider , has started allowing its users to buy, sell, and hold cryptocurrencies including BTC, BCH, ETH, ETC, and LTC.

They do this on the large scale with a pilot in 10 countries and soon another 50 countries to join . They understand that if you do this effort it will only succeed if you can do this on a global scale.

Neteller and Cryptocurrencies

Neteller is a service which is operated by Paysafe Financial Services Ltd.,

paysafe

founded in 1999, Paysafe Financial Services entered the market with the mission to provide an online alternative to the known traditional payment methods.

Most of the traders aiming us now neteller as one of the companies through which we made our deposits and if we had any profits also our withdrawals. A couple of years ago they left the Forex and Binary industry behind since the charge-back issue became just too expensive.

But as any companies knows, if you do not adept you die. The binary option market is all but dead and the Forex industry has moved also into the directions of the cryptocurrencies. thus, neteller understands that this is where the future is.

So Lasts week they announced that they are now offering a wallet with buy and sell cryptocurrency options.

As of today, Neteller users can buy, hold and sell cryptocurrencies via a recognized cryptocurrency exchange including bitcoin, bitcoin cash, ethereum, ethereum classic and litecoin, purchased using any one of 28 fiat currencies available in the Neteller wallet.

It may not seem so exciting but for many users that love this service it actually is. More and more currencies will be added making them an true exchange in the near future.

Now one is able to fund their neteller account through many different means (Mobile, Epay, Paysafecard, local bank deposits, and bitcoin)

We think that will make the threshold for many people, who would want to buy or sell cryptocurrencies, lower. This in return is a good thing for the overall acceptance of the cryptocurrencies in the mainstream of every day life.

Conditions for buying and selling cryptocurrencies through Neteller

The rates offered are somewhat in the lower middle of the current market making them go for the save route. The average market rates on the major cryptocurrency exchanges differ all in all not that much anyways, as this is not the main reason to choose to buy Bitcoin through Neteller

The minimum cryptocurrency purchase or sale amount is “approximately equal to 10 EUR,” the firm clarified, adding that the maximum amount depends on the transaction limits associated with each account.

When You open an account with Neteller you have to choose your default currency. This is of course for most people in accordance on their geographical locations, people in Britain will go for the pound most Europeans go for the euro and pretty much the rest of the work goes for the US Dollar, thou other currencies are available

The fee is 1.5 percent for purchasing and selling cryptocurrencies from wallets with EUR or USD as the default currency.

The fee rises to 3 percent for wallets with other default currencies.

Neteller | Why is this a good move for neteller and one that we should expect from other online Payment providers as well ?

At this moment till last week Neteller users can pay, get paid on thousands of sites, and send money around the world through their system.

The company claims to have “millions of point-of-sale, ATM and online locations” for users to withdraw or spend their cash.

Last July 25, Paysafe ( which as you remember is the company that owns Neteller and Skrill) announced that another digital wallet provider in its group, Skrill ( formerly known as moneybookers), started allowing customers to “instantly buy and sell cryptocurrencies, including bitcoin, bitcoin cash, ether and litecoin, using any one of the 40+ fiat currencies available in the Skrill wallet.”

We could now see that this was like their test run on this concept.

We do not know the numbers that Skrill produced since they offered this service but it must have been encouraging enough for Paysafe to include their flagship brand in this endevour.

We will see where this leads but we are hopeful that this is the next step in global acceptance to the cryptocurrency revolution. Let me know what you think