Understanding the Forex Demo Contests and Tips to Win
Novice traders usually get afraid to invest money in forex trading. Therefore, they tend to search for a reliable broker. Brokers also want to gain trust first. Therefore, brokers arrange forex demo contests for free for potential traders. Traders do not require to put any money to participate in a demo contest arranged by the forex demo contests brokers. But they surely need to have the basic trading skill; else, their winning chances may diminish.
Whether you are really a new trader or even a vastly expert trader, anyone can join a demo contest. You may choose any broker if you don't wish to invest real money, but if you are firm about investing, you should look for the best forex broker that offers a demo contest.
That being said, we will take you through the ins and out of forex demo contests so that you can get a clear idea about everything before joining the contest.
Understand the Forex Demo Contests
Demo contests usually come out with a great opportunity for the traders as they can check their trading skills for free. Besides, they can learn forex trading from scratch too. A demo contest is typically the opposite of a live contest.
Although it is newbie-friendly, sometimes pro traders also to the forex demo contests to check the broker.
How does a Demo Contest Work?
The idea of a demo contest is pretty simple. Whenever you find suitable forex demo contests brokers, you will sign up and ask for participation in the demo contest while registering. After that, the broker will approve your account, and then you will be eligible to trade. But before that, the broker will provide you with some virtual money, which you can use to participate in the contest.
How much virtual money you are getting in your account depends on the broker itself. Each broker has its own rules and policies while conducting the demo trading contest. Hence you should check the details before going for the demo trading contest.
Once you get your account refilled with the virtual money, you are ready to start the trading. The more money you earn from trading, the more your winning opportunity increases. However, you can never withdraw any money from your demo contest account.
If you win a contest, you will be eligible to get the prizes allotted for the winners. The prize can be anything from cash to a premium account with some real money in it.
Basic Rules by the Forex Demo Contests brokers
Though we have mentioned earlier that each broker can have their own rule, which may vary from other brokers, but there are few basic rules that are the same by all brokers for all the contestants. Following are some of the basic rules.
- The broker shall clarify the competition rules.
- All the participants will get the same balance to start the contest. However, the balance may vary on brokers itself.
- Brokers may not allow multiple participants from the same IP.
- A single user may not have multiple accounts for the same demo competition.
- Forex demo contests brokers may not allow a trader to withdraw from the competitions. However, it may vary on the broker.
These are the common ground rules you may keep in your mind. Nevertheless, these cannot be firm but won't harm you, keeping these in mind. Apart from the rules, you should keep in mind to check your intended broker. You can check out our forex broker reviews to judge a broker's reliability.
Benefits of a Demo contest
Since you don't need to put any sort of real money, you may find everything as benefits. Still, we found some core benefits that can encourage anyone to join in a demo contest. Check out the following benefits to enlighten yourself.
- Beginners can understand the psychology of forex trading, which ultimately covers the substantial forex knowledge on everything such as forex pairs, forex trading platforms, instruments, leverage, and more.
- It can be the first step to the forex world, and you can understand real forex trading without putting your money at risk.
- Understand the real market and get updates on that.
- A trader can test their strategies for free of cost. Testing a strategy with real money can incur huge losses if the strategy is failed.
Last but not the least, you are getting an opportunity to earn some free money out of the forex demo contests.Ways to pick the correct demo contest
A broker may offer demo contests in different categories. Therefore, blindly joining any demo contest will not get you the ultimate benefits. Hence you will require to select the right demo contest to get the definitive benefits.
To pick the correct demo contest, you can check the offered instruments, the number of participants, charges and fees, leverage, and other trading-related terms and conditions. Besides, you can also check the prizes and trading hours. However, you can also check the trading platforms. Usually, MT4 and MT5 platforms are the most popular ones. So, you can sign up with the MetaTrader 4 forex brokers as well as MetaTrader 5 forex brokers.
Usually, brokers offer real tradable money in the winner's account. Some may also offer cash benefits which can be withdrawn by the winners. So, know the available prizes before you proceed with the forex demo contests.
Tips to Win a Demo Contest
Although traders will trade with free virtual money, they will get the real competitor. Hence few tricks may increase the winning possibilities for a trader. You may go through the following list to win a forex demo contests.
- Take everything easy and be positive about trading. However, you are investing a cent, so stay calm and quiet during the trading process.
- Keep your eyes open and keep the mind attentive at any stage. This can eventually help you to make decisions while trading.
- Take each decision and trading seriously, even though you are trading with free money. This kind of trading habit will definitely enhance your confidence while trading with real money.
- Start the trading after other participants order their trade. You can set your goal after seeing other contestant’s trade.
This stuff can get you a win in the forex contest.
Forex demo contests are highly beneficial for any trader. As we have mentioned earlier that it is risk-free trading, you can check a broker's authenticity for free. Moreover, brokers offer demo contest to grab new clients. You may go through our top 10 forex brokers list to check each broker if that offers a demo contest.