Currency trading, also known as Forex trading, is rapidly gaining popularity in the world of Finance. This high leverage and 24 hour market provides attractive incentives for many retail traders to consider Forex trading over any other form of financial trading. Indeed, one can easily start an account with merely $200, which is impossible in most other capital markets.

A beginner retail trader is always advised to first start out by paper trading. This is another term for demo trading, where you make buying and selling decisions as though you are trading for real, except that you are trading with ‘fake’ or virtual money instead. The aim of demo trading is to allow the trader to familiarize him or herself with the ups and downs of the daily market price action. Demo trading is a great way to get your feet wet!

In this article, I will discuss 2 demo trading tips that you should know of, if you are considering to demo trade, or if you are currently demo trading.

Tip #1 - Don’t be afraid to try different platforms

There are a large variety of demo trading platforms for you to choose from. Don’t be afraid to experiment with various different platforms to see which one you like the most. There is no single ‘best’ trading platform however, only one which caters to your needs. A platform that is suitable for one trader may be unsuitable for another.

Trading is a very personal activity, so you should always select a platform that you’re comfortable with.

Tip #2 - Learn about the broker you’re working with

The reason why you can easily set up a demo account is because the trading platform providers are hoping that you’ll sign up an account with them when you decide to trade ‘live’.

You have to remember that demo trading is only the first step in being able to trade profitably. Eventually, you’ll want to move on to trading your own live account. That’s why it’s crucial that you first do some research about the broker that you’re going to be demo trading with. Familiarize yourself with the terms and conditions, as well as any policies that may affect your trading.

You wouldn’t want to be caught in a situation where you’re used to their platform, but when you start a live trading account you encounter difficulties with their policies and thus have to spend time and money to switch brokers and platforms.