It is indeed a great way to get started in forex trading. It is used to be known as "paper trading". It allows you to get a taste for what type of events move markets and how they move. It gives traders who are new to forex a chance to get some 1st hand knowledge of all the nuances of live trading.So there are many benefits of paper trading most especially to the newbies. Not only that, demo accounts do not cost anything and you can develop and test a system without a risk. But then, there seem to be found some disadvantages of using Demo Accounts.
1. NO UNDERSTANDING OF REAL RISK - The demo account saves you from potentially massive losses while learning, but does not teach you anything about dealing with the emotions you will feel once you lose.
2. DOES NOT INTRODUCE YOU TO FEAR - There is no fear when you are demo trading. If you start losing badly on a demo account - simply start a new one. So it does not teach you how to handle the emotion of fear.
3. NO SOUND MONEY MANAGEMENT - A demo account comes with a large amount of money deposited in it. These large amounts set up a psychological expectation to make large amounts of profit easily. This can encourage excessive risk taking once you switch to a live account with real money. The big difference is, when you have a live account and lose, it’s for real.
4. INTRODUCE YOU TO THE RAPTURE OF GREED - The whole point of trading is to make money and the more money you make - the stronger the pull of your greed becomes. It is intoxicating and can take complete control of you.
Conclusion:
A Demo Account is the only way one get real, in the trench battle experience without getting burned. You start by getting familiarized with the features and interface on the forex platform. That's all!
So try to familiarize everything you have to know and learn by demo trading and then try going live afterwards. You can try micro and mini accounts, so if you lose then it would not a big deal since you are not trading big money.
Demo Account is just for LEARNING PURPOSE. It's also a good way to test a system/method to see if it works before losing your money.
Excessive paper trading is not a good idea. There is a tendency for newbie traders to remain in demo trading for too long. Eventually you'll have to step out of your comfort zone and start trading with real money.
[ForexGen Introducing Brokers]
Introducing Brokers may be individuals or institutions who gain their income from the commissions and/or rebates by introducing customers to ForexGen trading.WHAT are the advantages of being an INTRODUCING BROKERS with ForexGen?
* Providing the most huge income sharing plan
* Providing several ways for our IB's to charge commission.
* ForexGen IB can also charge commission for each lot the traders execute.
* Moreover, ForexGen IB is able to increase the spread for all or certain clients and have ForexGen Investments rebate the difference.
In case the IB does not increase the spread or charge their clients a commission, ForexGen rebate the IB a minor predefined amount for every client's executed lot.
Commission is paid out every month.
Individualized service
[ForexGen] offers our IB's individualized service created according to the individual needs and specified business situation for each IB.
Our Introducing Broker program provides a highly organized program for individualized services and organizations in order to introduce their clients to the online foreign currency exchange market, moreover they will enjoy the benefits of being a part of the ForexGen family.
ForexGen offers 1 pip spread on 10 pairs with high trading techniques that make ForexGen
incomparable to any other rival.
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