Most forex traders start trading rather conservatively, starting small and working up in volume and size of capital. For the new trader breaking into the market, free forex demo accounts offered by brokerage companies are a great way to trade the forex without a huge risk. A demo account is a forex training account loaded with fake money that works just like a real account. The new trader is trading the live market just like when trading with real funds, but there is no risk involved. And, just like live accounts, forex demo accounts are available in various sizes, from standard forex accounts ($100,000 or more), mini forex ($10,000 or more), to micro forex accounts ($1,000 or more).
Some brokerage firms also offer charting software. However, the free forex chart software most companies offer only provides very basic charting and requires paying an additional fee for an upgrade to the more comprehensive charts. The major differences in free and paid charting software are the features offered. Most free charting software have only a live data feed and don’t have the advanced tools needed to plot market analysis.
Signal software is an important part of the successful forex trader’s arsenal. Plenty of brokerages offer software that create free forex signals, but like the free charting software, you get what you pay for. The basic lesson here is to research each provider of software carefully and determine that what they offer is exactly what you need and can use – whether it’s free or not.
Take advantage of some of the free forex training sites available to new traders. A number of sites are quite good at teaching the very basics of the forex market – some in great detail. Keep in mind that most of the free forex training sites will give the new trader only a basic understanding of the forex market, and not be extensive enough to advance in skill level.
Relying on only the free tools offered by some sites is a great start, but not the way to become a successful forex trader. The free information is really just the tip of the iceberg of all of the knowledge available to learn about the forex market. Once you have a basic understanding, it really pays to buy into a training class or subscription offering advanced levels of teaching.
Forextips.com is committed to educating the forex trader in all aspects of foreign currency trading. Click here to get information on a free forex webinar to help you maximize your success in the forex market.