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Forex practice account is only for newbies; that is what the majority of people believe. However, that way of thinking is not 100% correct. In fact, people who have traded forex for years are still utilizing practice account for other purpose. Read below to discover how to use your practice account for other purposes. 1. Learn to trade forex Clearly, this is the basic function of such account (apart from promoting the broker service obviously). In a practice account, a beginner can trade virtual money without worrying on losing anything. It's also a good place to get used and understanding the trading platform of their choice and find out how forex trading works. 2. Testing a broker service Trading platform is your heart in trading foreign currencies, so using a practice account to see the performance of the trading platform is advisable. There are some crucial points to check out here: - Does it have an effective user interface? It is very important that you can access to any function you need in the shortest time possible and with the easiest way possible. You really don't want to click around multiple buttons throughout the screen just to execute 1 order. - How about the features? There are several trading platform that merely provide you with simple charting feature and a few indicators, but you can also find others that offer pretty sophisticated features. It all depends on your trading strategies and the way you analyze the market. A few forex brokers offer identical trading platform (example: MetaTrader4 or MT5). In cases like this, try to check their connection. Can you execute an order without difficulty? Do your stop loss and take profit order were executed correctly? Naturally, the condition may be different in a live account, but it's still a great indicator. 3. Testing strategies, trading signals, and expert advisor Regardless of having trading systems that work, a professional trader will invariably willing to test new techniques and strategies. In a forex practice account, they are free to test as many strategies and automatic trading system that they want. This is really crucial since a simple backtest result can’t ensure 100% that the strategy willl work in the current market. Keep in mind that if you use the practice account to test an expert advisor, you have to invest a few bucks to rent a VPS. Also, don’t be rushed in deciding whether a strategy or robot is profitable; I suggest you test them for at least more than a month before decide anything. Throughout your trader career, you'll use forex practice account multiple times for the things that stated above. Once you realize this and learn to use it wisely, you can reduce your risk from low quality trading platform, bad strategies, or scam expert advisor. Check out forex trading course and sign up for free step by step guide on utilizing MT4 platform. Also, read forex signal service for a few things to consider before you test a signal service.
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