Trading Forex Simulator: The best to Start Profitable Forex Trading - The Profit Score

Trading Forex Simulator: The best to Start Profitable Forex Trading

If you are going to start the forex trading or trying to test new strategies but confuse where to start? Then you are at the right place. With trading forex simulators, you can test your forex trading skills and strategies without putting your real money at risk. Trading with simulator is the best way to start the forex trading career. In this article, we will see, what is forex trading simulator, how it works, what its benefits and how to choose the best simulator software.

Practice makes a man perfect and this is the function of simulator. Forex trading simulators can provide you experience of number of hours which is more important than theoretical knowledge. So, let’s go deep into forex trading simulators understanding and kick start the forex trading as an expert trader.

Trading Forex Simulator: An Introduction

A forex trading simulator is a kind of software that simulates the real market conditions. This helps traders to practice their trading strategies and tricks with virtual money before going in the live market.

There are number of forex trading simulators are available in the market. Some of the simulators provide only limited algorithms. While some of these simulators reflect live market data which are best to experience the live market.

Below are some of the key features that a forex trading simulator must possess.

  1. It should provide risk-free demo account trading
  2. It should have the capability of live simulations and market updates
  3. It can test any forex strategy
  4. It should posses all trading features and functions

Most of the simulators provide a virtual balance of $ 100,000. From this virtual money, traders can trade through a range of forex pairs. These simulator software can be device specific as well like PC trading, iOS trading, MAC trading or android trading simulator. So before starting any simulator, make sure that you are going for the right one as per your trading device.

The forex trading simulator should have the same characteristics as trading in the live market. It should possess the capabilities to open, close or modify trades. It should also cover commissions, spread, swap and other fee that a trader come across while trading the real market.

Trading forex simulator understanding

Trading Forex simulator: Advantages

Forex trading simulators are the best way to start trading with the demo account. Below are some of the advantages that these simulators offer.

1. Experience of trading platform

With the help of simulators, traders learn the functionality of trading simulators with some basic knowledge of how to place order, how to exit, putting stop loss, and how to avoid from placing order accidently.

2. Testing Trading Strategies

These forex trading simulators helps trader to test their trading strategies before trading with real money. In case the forex trading does not work as required, you cannot loose real money by trading on demo account. In this case switch to next trading strategy until you find the right one for you. So, you are learning without any financial loss.

3. Understanding of Forex Market

The traders can understand the forex market in a better way when they trade as like real traders. They can get aware of all the tools, market volatility, trade timing etc. in a better way by using the forex trading simulators.

4. Test Trading Software

A different kinds of automated forex trading software are available in the market that claim huge returns. You can test these automated trading software on trading simulators to confirm their profitability before putting your hard-earned money on trade.

 Trading Forex Simulator: Disadvantages

Along with advantages, the forex trading simulators also come with some disadvantages as given below.

1. Can never Replace the real trading experience

Although forex trading simulators provide the conditions of real market but they cannot completely replace the experience of true real market. When you trade with the real money, there are lot of emotion involved like fear and greed that can dominate your trading style. But such experience remained silent on trading with simulators.

2. Risk tolerance Level

While trading with forex trading simulator, you can trade with larger positions sized as you do not have any risk of loosing the money. So, you real risk tolerance level cannot be identified in demo trading.

3. Initial Capital

Most of the forex trading simulators provide initial balance of $100,000 which is sufficient to trade different currency pairs at the same time. But you real initial capital may be different that may not allow you to take trade as like of trading simulators.

4. Taxation in your Country

The cost of taxation in your country may be different than that of forex trading simulator which can affect on your profitability.

Trading with forex trading simulator allows trader to make different decisions from what that they have to take while trading with the real money. To obtain the best performance in the forex trading simulators, they may take inappropriate risks which may not be possible in the real market. Such forex trading simulator should only be used to check the trading strategies and gain some experience of live market not to obtain to high performance.

Trading forex simulator advantages

How to choose the Best Trading Forex Simulator

If you are ready to start practicing your forex trading with simulator, there consider the below mentioned elements to choose the best forex trading simulator for you.

1. Mirro the Real Market Environment

The forex trading simulator is used to get the live market experience before going into the live market with real money. If will be of on use if it cannot provide the real market experience like price fluctuations, order modifications etc.

It should also provide you the market experience with respect to your trading personality. If you are going for intraday trade, or position trader. It should reflect how a time period effect on your trading account.

After taking a trade, the simulator mirrors the price as in the real market so that you can see how a particular trade has performed in the real market.

2. Flexible Deposit Amount

Most of the forex trading simulators offer you to start trading with $100,000 which is a best opportunity to trade any currency pair with bigger position size. But in fact, this may not be the case when you trade with the real money. So, forex trading simulator should provide you the option to start trading either from $100,000 or $10,000 initial balance which can reflect better your trading position.

If a trading simulator provides very low initial balance i.e. $1,000 then you will not be able to trade for a longer period if any of the trade goes wrong. So, an appropriate initial balance is compulsory to learn the forex trading experience.

3. Features and Tools of simulator software

It is better to go only for those forex trading simulators that offer advanced platforms and tools. This will set your trading foundation better. Some of the software provide basic tools at the start for free but later you have to go for advanced features by purchasing their subscription. So, it is better to start with the advanced platforms like meta trader to save time and effort in the long run.

4. Supplier of  trading forex simulator

Look at the profile of forex broker who is providing the forex trading simulator. Go only for those brokers who have a significant repute in the forex trading world. It means they are well established and can provide forex trading simulator that is very close to real market experience.

Conclusion

Forex trading simulator are the best platform for beginner trader to kick start their forex trading career. With the help of forex trading simulator, you can check your trading strategies without any risk of loosing real money. Go only for those trading simulators that are provided by famous forex brokers. These simulators should have the flexibility of capital, tools and trading style. Trade in the simulator as you want to trade in the ream market so that it can provide realistic results. If you see a profitable performance then you are ready to go in the real market for real profits.

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