Firstly, it is important to recognize that different platforms may work in different ways in demonstration mode. Most platforms will allow some form of testing so that you can understand how they work. But when we talk about a forex demo account, we mean a system where you have a balance of virtual funds which will increase and decrease as you trade. This allows you to test systems as well as simply getting to know the platform.

So why do brokers offer this type of virtual trading account, and should we be suspicious? Of course, they want you to be able to try out their platform. They hope that you will find it easy to use and perhaps choose their service over others for that reason. They may also hope that if you make money in your demo account, you will be more likely to invest real money with them. All of this makes natural commercial sense.

There are two things to watch out for when you sign up for a currency trading demo account. The first is whether the demo account does actually work in the same way as the real trading platform. In a few cases, it does not. Traders who are comfortable with a broker’s demo system invest money into an account only to have a big surprise, the real platform is not the same and requires a whole new learning curve. It might even be so different that a system worked out in demo mode cannot be put into practice on the live platform. So do check that out before even beginning with a demo account.

Secondly, be aware that there are some big psychological differences between trading in demo and trading for real. Beginners will happily jump into demo trading, often using high leverage and opening trades almost at random, to see if ‘it works’. Long term, this type of trading is destined to fail, but in the short term, some of those traders will profit. They could easily think that forex trading is just a matter of leaping in whenever you think prices might be about to move, without worrying too much about analysis, indicators, plans or systems. Clearly, if they switch to real trading with that mindset, they are heading for a fall.

The other problem can come up even if traders use their demo account responsibly and applying a good system with sound money management. They may not be prepared for the stress of real money trading and find that when they try to apply their system to the live market with real money, they panic and find themselves making irrational decisions.

If this happens to you, it is important not to beat yourself up. Live trading does have stresses that trading in demo mode cannot prepare you for. The answer is to start small when you move to the real market. Reduce your risk to half of what you were using in demo, or even less.

Forex demo accounts are here to stay and used wisely can be a very useful tool for the new forex trader.

Have a look at their training video by clicking on the blue writing. If you’re not browsing from the US then you’ll get to a strange site but it’s maybe still worth having a look.

eToro is for beginners and expert traders alike.
Free practice account,
weekly championships and Up to $500 bonus on your first deposit.

What is EToro Forex Trading Platform? Many forex traders are asking “What is eToro?”. eToro is a forex trading platform that does its best to reduce the complexity of forex investing. A problem that many new forex investors have is that forex is a bit too complicated for them. There are so many things to know and to analyze that it can be too much for someone who isn’t accustomed to that kind of investing. Even stock market investors can have problems learning forex and then trying to trade at a profit. eToro has numerous tools that attempt to make it easier for forex traders to trade currencies. For example, eToro visualizes trades in a way that makes it easier for traders to understand exactly what is going on. Everyone knows that when you can see something as it happens it becomes much easier to understand and process. eToro tries to apply that to forex investing by displaying images and videos that mimic how your trades are progressing. While they look almost silly at first, they are a great way to see what is happening as it happens. Most trading platforms do not have these kinds of features available to their users. eToro also emphasizes community in its platform by enabling traders to chat publicly and privately with each other about anything they feel like talking about. Chat rooms are available for this, and many users have found this feature very helpful and enjoyable. Being able to chat really doesn’t directly relate to forex but it is still a good feature that most platforms do not incorporate. Overall, eToro has taken the idea that simpler is better and applied it to the forex trading industry. This is how it sets itself apart from the other trading platforms out there. While I cannot neccesarily say that this all adds up to a better user experience, I will say that it is an interesting departure from the forex trading norms. Find out more about what is eToro today and discover is this is the right forex trading platform for you. They offer a free download of their forex trading software and a $200 bonus after signing up and making a deposit into your trading account. This is unprecedented in the forex industry and is really the best offer you are going to get. Click here now to discover more about eToro. Article Source: http://EzineArticles.com/?expert=Nnamdi_Iregbulem http://EzineArticles.com/?What-is-EToro-Forex-Trading-Platform?&id=1288325