The financial world is not the same anymore. Money is the most important component of the modern economic world. The functions of money keep on changing as per requirement but primarily, money acts as a medium of exchange allowing you to acquire goods and services. From barter to banknotes, we have come a long way and always keep looking for newer alternatives to make trading easier.
The recent trend that marks the evolution of monetary market is the currency trade. Currency trade or Forex trade is one of the largest markets in this world and still continues to expand with an increasing pace. The Forex market is a highly organized market developed for the purpose of trading of currencies. As we know, each country has its own currency, the value of which keeps on fluctuating depending on changes in national and international market. The rate of foreign exchange is fixed by the foreign exchange market and it comprises of all aspects of exchange of currency like buying and selling at prevailing or determined prices.
A foreign exchange market is very different from a traditional market. The following are the key features of a forex market:
- Liquidity- The forex market is the most liquid market in the world with the average values of traded currencies valuing at trillions of dollars per day and includes all of the currency of the world.
- Decentralized functioning- Another important feature of forex exchange is that it has a decentralized functioning as there is no central market for exchange of currency.
- Round the clock- The market is open for 24 hours a day and function on 5 working days in a week in all the major financial centres in London, new York, Hong Kong, Singapore, Paris and Sydney.
In order to get an experienced in foreign trading, one needs to have basic idea about how real markets operate and how one can use them to reap benefits and make profits out of them. A forex demo account is the one that helps you groom yourself in using real trading accounts. Before opening a forex account, it is important to open a demo account and only after the trader has tried out demo accounts with a few dealers, the trader gets a funded account of his own. The following are the features of a forex demo account that make it a reliable choice among people-
- Trading platforms- A demo account can be operated on multiple platforms and this is what makes it easier for a trader to use it. From the most popular trading platform which is MT4/MT5 to Mac MT4 which comes with exactly the same features as its predecessor to Web Trader 4 where you get the choice of placing one or more currencies pairings, a forex demo account allows you to choose any platform as per your preferences and it will give you the same features as any other platform. This makes it easy for beginners as they do not have to get themselves adjusted to a new platform and can learn the norms of foreign exchange trading in their comfort zone.
- Banking options- Another striking feature of the demo trading account is that it gives you the option to choose from a variety of banking options too. This is extremely important as every investor would like to have a safe and common medium to transfer the earned profit in his bank account. These demo accounts provide you with the most convenient methods of payments like credit card, debit card, Neteller, Skrill, Bank-Wire, etc. A convenient and popular banking system ensures that the investor would not face any complications in opening a separate account or put his security at risk. Most of the forex demo companies are equipped with this feature.
- Multi language options- Since a broker has to deal with several clients who can belong to any country and speak any language, therefore a multi language feature is the one that helps you communicate with all of your clients without facing any problems. In order to be a qualified broker and investor, one needs to be deft in dealing with different clients in a professional manner and language should be the least of all things that should stop you in the process. This is very well understood by forex demo account and hence the accounts are accompanied with this feature.
- Customer support- A major benefit of trying your hand at currency trading by means of a demo account is the highly supportive customer service that is available round the clock to help you with any problem. Currency trading is not an easy task at all and although one has the option of learning it through demo accounts, yet there are certain problems that cannot be solved by reading a set of instructions. Hence, the support staff is available 24 hours a day and 7 days a week to solve even the slightest of the queries that come across your mind. Also, the service is available in multiple languages which include Russian, Spanish, Chinese, German and all major languages so that any trader can communicate with the team in the preferred language during any time of the day.
- Leverage- An extremely important part of currency trading is leverage which is something that every forex trader would wish for. The demo forex account even provides you with a leverage that goes as high as 1:1000 to enable higher return on the investment.
- Quick withdrawals- Another major reason for the popularity of the forex accounts is the quick system of withdrawals that is prevalent in all accounts. Whether it is any time of the day or night, you can easily make a withdrawal from a demo account without having to comply with multiple formalities. The fully automated withdrawal system makes it possible to withdraw from your trading account instantly without much ado.
Thus, the forex demo account provides you with a favorable yet real environment to help you get well versed with the basics of currency trading.