Demo accounts are being broadly used nowadays throughout the Forex industry. They're popular because they're easy to use and often free. Typically, when you partner with a brokerage company, you will receive a demo account already active and ready to go. I always suggest finding a demo account through a brokerage company so you can have access to trading education, advice and guidance.
You want to learn about the Forex market with as many tools and outlets as possible, which is just some of your benefits if you join with a group such as The Apiary Fund. I am teamed up with them, and Shawn Lucas, their head trader, does a ton of informal videos that truly help you understand how to navigate the market. Demo accounts are not only helpful for beginner traders, but experienced traders, as well. Being a funded trader myself, I can’t tell you how many times I have gone back into my demo account to tweak my strategies or get some confidence back after a loss.
On the other hand, beginner traders can use their demo accounts to expedite their Forex education and journey. Demo accounts are considered somewhat of a trial and error stage with the Forex market, so they’re the best option when you’re in the initial stages of Forex learning curve, as they expose you to the lowest risk possible.
Shawn Lucas is a huge advocate for using your demo account tremendously before you get funded because your demo account is a perfect training ground to develop skills and trading systems and strategies. The Forex market is a big market that’s open for 24 hours. If you jump into the Forex industry without having any training, practice, or basic knowledge or skills, you will find yourself not getting anywhere! So, my advice is to really take your trading training seriously, you will want to be very familiar with time zones, volatility, the most active trading hours and you will want to schedule your trading times appropriately. You should know the busiest trading hours, which are when the European market and the North American market are both still open. Also, while using your demo account, you will be doing a lot of practice trading and learning so much about Forex trading. You need to keep a record of all your trades as well as take notes on them. This is basic journaling of your trading strategy that can come in handy when you find yourself in a bad situation.