FXCM Demo Trading Accounts
Most new investors at FXCM UK start off with a demo account first, in order to get acclimated with the unique Forex trading platform. This is a very important step at the beginning of your investing journey. You need to properly understand the way that their software works, so that you will not be stuck when you are ready to invest or make a trade.
It is a good thing that FXCM offers all their new customers a free practice trading account. You will be able to see order types, margin requirements, stop loss and take profit settings.
Advanced traders and investors will need to plug in their Expert Advisor robot, and maybe even setup an API connection to their VPS. Latency is an issue with all brokers, so therefore, people usually focus on a local company to trade with.
Practice Accounts vs. Real Accounts.
A Demo Trading Account is the perfect way to test out your newest trading strategy. If you are building an algorithm, you would have to be crazy to not first test it on a demo account.
There are a few differences in a demo account, as opposed to a real account.
- The money is virtual, or paper money. This way, if you lose the $50K, you can start again.
- Psychologically investors are not as cautious when using a demo account. This causes them to place riskier trades, and sometimes gain huge profits, which are fake.
- All trades will execute on a demo account, but in a real account there are sometimes liquidity issues which will prevent an execution.
- The market price on a demo account many times is not 100% accurate. Spreads may be show as being tighter than in real market conditions.
- Some brokers do not show all available underlying assets in the demo account.
How to Open a FXCM Demo Account?
In order to open a demo trading account at FXCM, you will need a valid phone number and an email address.
Go to: https://www.fxcm.com/uk/forex-trading-demo/
Once you are there; Fill in your Name, Email Address and Phone Number, and select the Currency for your account to be in. Either Pounds, Dollars or Euro.
And that is all you will need to do to get your account opened. You will be able to play with their proprietary Trading station software, or their MetaTrader 4 (MT4) software.
Comparing Online Brokers
Online brokers in general are international companies, handling clients from all over the world. Some have restrictions on the accepting clients from sanctioned countries, and others do not accept from leading countries. For instance, Australian brokers do not accept clients from the United States and vice versus. So, it is always important to find a broker that is licensed by your local government’s monetary authority.
Local brokers are better because of a few reasons.
- They are licensed in your country, and your money is secure.
- Spreads on Forex pairs with your local currency are tighter. For example; Australian brokers have tighter spreads on AUD/USD than a British or South African broker.
- Latency, which is the amount of time it takes to confirm an order, happens faster. Although the internet is very fast, there exists latency issues when connecting from Germany to Australia.
FXCM Broker Review Summary
FXCM is a popular Forex broker offering new investors the ability to invest online.
They offer a wide range of products to trade CFD’s. You will find Forex Currency Pairs, Commodities (Oil, Natural Gas), Precious Metals (Gold, Silver, Platinum etc.) and Market Indexes (S&P 500, Nikkei, Nasdaq).
FXCM UK is licensed and regulated by the Financial Conduct Authority. They are also regulated in Australia by ASIC, and in South Africa.