Simulated forex trading is a method that forex traders can brush up their skill with. The whole of the trading process does not involve any bit of capital from the trade. A dummy account is create when doing simulated trading. The trader will experiment varies strategies on the simulated account to find out the working ones. A simulated trading is just like a real trading, you are playing base on the real market rates, the process for trades are exactly like what is done in the real trading. The only thing that is fake is the capital. You can suggest a capital from a few amounts options.
Simulated Forex trading can help a beginner to gain confident in their trades because they are playing against the real market. This can get them more exposure to the trading floor and let them practice trade more comfortably. Simulated forex trading not only helps the beginners, they also help the intermediate and professionals to improve or produce their own trading strategies. This is all made possible because you will not need to put in any capital while still can fulfill your goals.
There are many brokers online that provides demo accounts. These demo accounts are what we call simulated account. Were you specifying the capital available inside the account and play with it. Even if it is free, the trading platform given is the exact same as the real account. It can support a lot of advance features and you can trade like the real account. Your analysis skills can be polished with the trading platform while you are trading with the simulation.
However, there is always a difference between simulated forex trading account and a real account. Once you are comfortable with your simulation of trading and consistently profiting from, you can switch to a real account.
Once you use a real account, you will be facing a problem of fear of losing your money. When you are overcome by fear of losing, your way of trading can change drastically and that could cost you to lose.
If you are planning on entering the forex market as a beginner, it is best recommended to use the simulated forex trading and get your skills polish before you put a dim into trading.