While receiving special promotional deposits into your Forex account is relatively common, one thing that most people miss out on are Forex demo contests. This in itself is bad luck for you because what we have here is something that could prove to be quite fruitful for you.
What is a Forex Demo Contest?
What you have here are a series of competitions where there will be a prize of either straight cash or some other incentive that would be attractive to someone interested in trading with Forex markets. The one thing to look out for is that these contests are often aimed primarily at those individuals that are brand new to this type of trading.
In short, they use demo contests to draw people in, but there are a number of huge benefits associated with doing so. However, you should be aware that there are times where experienced traders also take part in the demo contests as they want to win the prize rather than to see it as a potential learning experience for them.
This is really a case of you being able to learn so much while also having that bit of pressure due to it being a contest. It may not directly replicate the pressures of real trading, but it will certainly give you a sense of what it will be like when you get started with your real account.
How the Forex Demo Contest Works.
The key here is the inclusion of the word ‘demo’ as that alone offers a strong hint as to what these contests are all about.
A number of Forex websites will allow people new to this form of trading to run a demo account with imaginary money which they can then use to make virtual trades. The idea here is that it allows a person to get to grips with the intricacies of making a Forex trade while, at the same time, they do not have to worry about losing money as nothing is actually real.
A demo contest is where the broker website that runs the contest awards a prize to the individual that would have made the greatest profits if their demo trading account had been real. Everybody that takes part in the Forex demo contest will start with the same amount of money. The competition then runs for a set period of time in order for the winner to then be decided.
The Rules and Regulations.
The rules and regulations for Forex demo contests will vary from site to site. However, they will all be explained to you in a clear and concise manner before you begin.
Often, there will be no fee for you to join the contest. Also, you stand to lose nothing from a financial point of view even if you end up losing all of your invented cash.
A failure to correctly read the rules may lead to you being disqualified from the contest. Also, the brokers do tend to be quite strict on them, so if you feel that you can circumvent the rules, then think again.
The most common rules include only having one account with that broker, one account per IP address, and no ‘withdrawals’ are able to be processed by the participants in the contest until it is over. Aside from that, it then follows the normal rules of Forex trading but, as we said, you should check with each individual broker before the competition kicks off.
Tips for Winning
So, how do you win? Well, even if you are new to this form of trading, there are some tips that may very well make a difference and improve your chances of winning.
First, there’s no need for you to be careful and always play it safe. In all honesty, you should avoid doing this and take some risks. Keep in mind that the main aim is to make as much money as possible and in the shortest time. You will never win if you take your time and don’t take those risks.
At the same time, the level of risk will depend on the actual duration of the contest. If the contest is for a very short period of time, then greater risks are required. However, for those that are more drawn out, then you need to weigh up the risk against not losing all of your cash in an instant.
Also, keep in mind that a number of brokers will not have just the one single prize. Instead, they may offer some kind of prize to as many as the top 50 traders. Obviously, the person at the top wins the biggest prize, but it does help you to understand that there are additional incentives that you need to keep in mind even if you can’t quite reach the number one position.
How Much Can You Win?
So, how much can you win? This is where things will vary by a huge amount. Also, keep in mind that sliding scale of prizes that do exist on a number of broker websites.
Each website will very clearly display the prizes in advance, but don’t simply go for those contests that offer the greatest rewards. Remember, this is primarily an exercise in learning the ropes when it comes to this type of trading.
What we recommend is you checking out the different Forex demo contests and decide which one, or ones, will appeal to you the most. Just pay attention to the small print so you know what you need to do to win along with the time scale. Once you do this, it’s just a case of getting started with your trading and to see how successful you may turn out to be with Forex trading.