Forex Brokers - a Service All Novice Traders Should Consider

By: Kelly Price

If you are new to forex trading you need to start trading with a broker at some point and many forex brokers offer you a demo account to see if you have the skills necessary to enjoy currency trading success - there of no real but the service enclosed is and is much better than a demo account...

A demo account can show you the basics of placing orders and that's about its only use.

Why?

Because when you trade with a demo account emotion is absent - most traders can make money when there is no pressure - the problem is:

Forex trading is a game of pressure and when money is on the line it feels a whole lot different, to trading a dummy account with no money!

So what do you do to decide if you can succeed at forex trading and you don't want to risk too much?

The answer is a protected account which is a new service offered by forex brokers.

You trade a small amount of real money - but you have a pre defined risk and unlimited upside potential.

Here's how a protected account works:

- You place a small sum of money in a trading account.

- You then can trade as many times as you wish (even if you are in debit with a fixed leverage.

- At the end of the period (normally a couple of weeks) if you are in debit the broker takes the loss and if you make any profits there all yours!

The advantages of this type of protected account are obvious; you have set risk and have the incentive that you have limited risk but a lot of profit potential if you get it right. You also get plenty of practice and being able to trade when you're in debit.

These accounts act as a bridge between a demo and a full trading account and give you the feeling of trading real money which matters in terms of profits and losses.

We can all make money with no pressure using a demo account and it's a fact that 95% of traders who make money in them lose in real time trading, because they simply cannot cope with the pressure that comes into play when trading real time.

So learn the basics of order placement with a demo account and use a protected account with a forex broker, to see if you have what it takes to enjoy currency trading success.

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