Forex is a very volatile market. Thanks to high leveraged account you can win big and lose even bigger. So having a practice account with real data is a smart way to get started with your trading career. To plunk down $5000 with a forex broker so you can “figure this thing out” is completely unnecessary. Just like the stock market, you can paper trade forex. Although today, that “paper” has been replaced with sophisticated software that can give you all the technical indicators that you need at your finger tips.
A practice account with real time charts is the best way to get a feel for the ebb and flow of the currency you are trading. Price action has a tendency to consolidate followed by breakouts and rally during certain periods. That is why it is best to practice forex trading with live trade action. You have nothing at stake and only knowledge and skill to gain. Fx Solutions allows you to open an account with no deposit. In addition, you get access to their excellent technical analysis software, Accucharts. Here you can learn the mechanics of placing trades and analyzing charts. Unlike other brokers, there is no charge for the data feeds either. The only downside is that you have to trade with live data which can be quite boring if their is no price action.
A forex trading practice account that uses historical data is the solution for this dilemma. Know as forex simulators, you can pick and chose the time periods you want to trade and “fast forward” through the lulls. What is great about this is that you can practice your forex trading when you want to as opposed to waking up in the middle of the night to trade the London session. Also the added benefit of a practice account with charts is that you can scan trough time frame after time frame to spot all of the high probability trades and candlestick patterns. It is a great research tool to have open while you read your book on technical analysis.
When it comes to a practice account with real time feeds it is important to note the psychological difference between that a real trade. It is easy to place a trade when there is nothing at stake compared to having money ride on a trade. That is why it is important to track your progress on the test account. When you have a 70% success you are ready for prime time.
