HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
NordFX information and reviews
NordFX
86%

Should You Use Forex Simulators?


In 2018 we have simulators for everything. Cooking simulators, airplane ones for pilots, simulators for the military – even sexy time simulators. The simulators that we care about (well, beyond the aforementioned sexy time ones) are Forex simulators. Let’s see what they are, what they do and if you should actually give a red pixel’s care about them.

What is a Forex Simulator?


A Forex simulator is a piece of software, either offline or online that provides you with a virtual environment to trade in. This is usually bundled with a demo account with virtual credit (yeah! Fake money!) to test your abilities. Therein lies the value of a Forex simulator – it gives new traders a safe place with no financial risk to get used both their brokers trading platform and trading with live rate. Many new traders (or even experienced ones actually) use these environments to test new strategies.

 New traders have the tendency to read everything when they start their careers trading, get over-confident, trade way too early causing losses. Many trading educators will recommend that you shouldn’t go live if you can not create consistent returns in a virtual environment for an extended period of time some say 3 months others cite 6 months.

Hallmarks of a Good Simulator


To be fair you aren’t exactly looking for a simulator per se but more the best Forex platform and broker available. So, what are you looking for? First and foremost: transparency. If you visit your broker’s website and can’t find their funding and withdrawal fees, forex spreads (or their method of calculating variable spread) and other broker fees – that might mean they will charge you hidden fees when you really start trading.

You might be wondering why I am referring to trading conditions when referring to a risk-free simulator – it’s a simple explanation, the spread and fees your broker charges you once you go live need to be calculated into your bottom-line or “break-even” level. If there are fees you are unaware of it might diminish or complete destroy your profits. If you are trading with a forex simulator, unaware of all the variables, all the costs that are cutting into your profits, then you aren’t getting the full picture. You will be ill-prepared and miscalculated strategies will derail your investment goals.

When should you use it?


Its most obvious use is to help you learn about trading, testing your strategies and familiarizing yourself with the tools and conditions your broker offers. Another function of a forex simulator is the ability to test EAs (Expert Advisors – a type of software that automates trading) – which is beneficial for more experienced traders.

This is where forex simulators are slightly misunderstood – they are usually considered a tool for the novice trader but it can be an equally powerful tool for an experience trader. They can use it to pilot new strategies, problem shoot them and fix bugs they may have.  The most unexpected use is for people that don’t even trade. For example EA developers can use Forex simulators to test their systems, show repeatability or even performance.

#source


RELATED

A Complete Guide to Online Indices Trading

An increasing number of traders is interested in indices markets and CFD trading. Indices measure how a group of stocks performs. The idea is to focus on how strong...

Best Forex Expert Advisors for Profitable Trading in 2022

As many of you know, the foreign currency markets are open for trading 24/5, which makes it very hard for a human to keep track of everything that's going...

How to Make the Most of the Crypto Drop with Shorting?

The crypto market undergoes a clear negative trend that is expected to last for a while. Bitcoin has plummeted by 33% this week and reached the 18-month low...

Cyber Monday and the Stock Markets: Friends or Enemies?

The first Monday coming after Thanksgiving is called Cyber Monday and it is very similar to Black Friday only that the former mainly occurs online. Cyber Monday...

MetaTrader 4 vs MetaTrader 5: Which is Better in 2022?

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the world’s most popular trading platforms, developed by MetaQuotes Software Corp. Millions of traders all over the world...

Forget About Sweating Over Trading Charts And Earn Passive Income With Cryptocurrencies

No one is going to argue the fact that cryptocurrencies are among the most profit-bearing assets on the contemporary financial market while also being designed to be easily...

What is the Bitcoin Fear and Greed Index?

As a cryptocurrency trader, you will eventually encounter the “Crypto Fear and Greed Index.” This article explores this valuable tool, provides insights on how to utilize it, and outlines its significance...

Top 5 undervalued stocks CFDs right now

During the pandemic, we saw some of the most vigorous equities growth since the 1920s. A great number of companies had their valuation treble, quadruple or increase...

Which Cryptocurrency can you realistically trade online?

The financial crisis led to the worldwide distrust in the financial system. To help solve this problem, an anonymous person...

How To Cut Losses Trading Cryptocurrencies

Even good trading and investment strategies can lead to portfolio losses if the basic rules of money management are neglected. In addition to the basic rules typical for investing...

What is Decentralized Finance, or DeFi?

Decentralized finance, or DeFi, is similar to but not identical to Bitcoin (BTC). The term "DeFi" refers to financial systems enabled by decentralized blockchain technology. DeFi is mostly linked to the Ethereum (ETH) blockchain...

Top 7 forex trading strategies in 2020

The foreign exchange (forex) market is a global marketplace where the participants exchange one national currency for another. According to Wikipedia...

Crypto Staking Explained And In-Depth Guide

Crypto staking has become more of a buzzword recently in the industry, however, it isn't exactly a new term when it comes to cryptocurrencies. The recent hype surrounding...

A concise guide on investing in Ripple CFDs

Before the advent of digital currencies, man has been using paper or fiat currencies which are controlled by governments or central banks, restricted by location...

Step-by-step guide about bitcoin trading

When Satoshi Nakamoto created bitcoin in 2009, nobody taught it would be a worthy coin, let alone being recognized and accepted as a means of transaction worldwide...

Forex VS Stocks: Which one should you choose?

People involved in the financial industry should know that trading in the forex market is different to trading in the stock market, although they are both parts of the broader financial market...

The Art of Trading Forex With Stop Loss (Or Without It)

One can't overstate the importance of mastering the art of stop loss placement when trading Forex or any other financial market for that matter. Stop loss is an...

How to boost your trading efficiency and pave the road to success

Trading offers unique opportunities to earn additional income and establish a profitable business. A strategic mindset is imperative to distinguish yourself from those who squander financial resources...

Discover how to trade commodities CFDs in 2020

Learn the basics of how to trade commodities CFDs. Discover types of commodities trading (precious metals, energy, food crops) and commodity brokers...

How to trade stocks

If you are unfamiliar with the stock market, then this trader's guide will assist you in understanding this market and how you can easily trade stocks...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Exness information and reviews
Exness
76%
Just2Trade information and reviews
Just2Trade
76%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.