Discover the Importance of the Forex Demo Account

The foreign exchange market today represents one of the greatest opportunities to build wealth no matter where you are in the world. The first thing you need to do to take part in the amazing world of currency exchange is to sign up with an online forex broker.Most of us know that most good brokers offer 3 kinds of live accounts:Forex Standard AccountThis is the account that most professional forex traders use. One lot in a forex standard account is worth 100,000 currency units. 1 pip in a forex standard account is worth about $10.Forex Mini AccountThis account is for traders who are starting out and do not have such deep pockets yet. One lot in a forex mini account is worth 10,000 currency units and 1 pip in a forex mini account is worth about $1.Forex Micro AccountThe great thing about online forex trading is that you don’t need a lot of capital to start off, unlike other investment vehicles such as trading the stock market. In fact, with a forex micro account, nearly anybody can participate in online forex trading. One lot in a forex micro account is worth 1,000 currency units and 1 pip here is worth about $0.10. How great is that?But do you know that there is another type of account that you should never ignore?If you look carefully, most good online forex brokers include a forex demo account that can be signed up for free. The demo account mimics the interface of the standard account completely, and even gives you real world and real time currency quotes and economic news.Why then should anyone sign up for a forex demo account since it’s not live?Well, before you can rushing into trading live, you need to familiarize yourself with the online forex trading platform. Afterall, you don’t want to panic and wonder where the sell button is when thousands of dollars are at stake.Secondly, you don’t want to test your strategies using real money. That’s a waste of money when the demo account is available for you to test and fine tune your strategy until your hearts content.And finally, trading might be easy. But not many people can deal with the psychological stress of placing and executing buy and sell orders. By signing up for a forex demo account and playing around with play trading, you’ll be able to find out if online forex trading is a suitable option for you.