What are Forex Demo Contests?
Forex Demo trading Contests are competitions offered by many brokers to new traders, in order to encourage them to start trading on their site. These contests usually cost nothing to enter and offer either prize money or some other type of incentive to the winner of the Forex Demo Competition. Any new or experienced trader is eligible to enter the contest as long as the rules and regulations of the contest is followed. Even though these Forex demo trading competitions are mainly set up for new users to get a good feel for trading, you will often find many expert traders in these contests as well, since there is often a good prize offered.
What are the rules?
Forex Brokers Contests all have their own unique rules and regulations that should be followed, so checking out the rules carefully is necessary in order to not be disqualified from the Forex Demo Trading Contest. Most of the rules are common sense rules to keep the Forex Demo Trading Contests fair for all participants, such as not having more than one account on their site. This also means you should only have one account per IP address. If you share your computer with another person who may also have an account with the Forex Broker, you may end up being disqualified from the Forex Demo Trading Contest, due to the multiple account rules. I know this sounds unfair, but in the long run it keeps people from cheating and helps everyone have a fair shot at the prize.
One of the main rules (or prerequisites) for entering most Forex Demo Trading Contests is that you must set up a Demo Account with that particular broker before entering the contest. This usually takes only a few moments and usually involves a process of filling out a form with your name and other pertinent information. Some brokers also require you to fill out a more compete profile before you may enter a Forex Demo Trading Competition, but again this should only take a few moments.
A common rule to most Forex Demo trading Contests is that you may not make any withdraw requests before the contest has ended. This is very important, as many times new traders who enter the Forex Demo trading contest may accidently make a withdraw request and end up disqualifying themselves from the contest which they may have won.
Another rule common to Forex Demo Competitions is that you may not use certain professional trading software or trading platforms, while some Forex Brokers contests also prohibit your from receiving professional help with your trading. Remember these Forex Demo Trading Competitions are mainly geared toward the new traders and the hosts of these contests are endeavoring to keep the contest fair for everyone involved.
There may be other rules involved, as each Forex Demo trading completion is unique, so it is highly recommended to read all of the rules before entering the contest to ensure you do not accidently disqualify yourself. These rules are usually very clearly written out and should be fairly simple to follow, but if you have any questions, in most cases you can email the support personal of the broker hosting the Forex Demo Trading Contest and they will be happy to clarify the rules for you.
Also read : The Best Forex No deposit Bonus of 2015
Where do I start in trading Contests ?
A simple perfunctory search on the internet with the key words “Forex Demo Trading Contests” or “Forex Demo Trading Competition” will often provide you with abundant sources of Forex Demo Trading Contests, as well as sites that list these contests, with basic rules and information. If you are already trading, you might check your broker to see if they run any kind of Forex Demo Trading Contests, as well.
Once you have found the contests, which (as mentioned above) are pretty simple and easy to do, you might be tempted to enter several Forex Demo Trading Contests at once, but it is inadvisable to enter more than one Forex Demo Trading competition at a time. The reason being that by entering more than one Forex Demo Trading Competition you will not be able to focus your time and resources on each contest and will end up not being able to trade as much on each contest as you would otherwise.
Hints, Tips and Advice for winning Forex Demo Trading Contests
As each Forex Demo Trading Competition is unique, there isn’t any single strategy that will work for all of Forex Demo Trading Contests, but there are certain strategies that you can use to increase your chances in most of these contests.
The key point in all Forex Demo Trading Competitions is that you are trying to earn as much money (Demo money, of course) as possible in the shortest amount of time possible. Depending on the duration of the contest, one of the best strategies is to NOT play it safe. Open trades with very high stakes and try to make the fewest trades with the highest profit potentials. While it is possible open losing trades right from the start in Forex Demo Trading Competitions, you are better off just losing all your trading money at the gate than to try to play it safe and waste your time by making smaller trades and being ousted by those traders who have risked it all in order to double, triple and quadruple their investments.
As mentioned above, however, how much risk you want to take depends also on the duration of the contest. The shorter the duration, the greater the risk you will want to take. Some contests are for a week, some are longer and some are as short as 15 minutes. If you are in a 15 minute Forex Demo Trading Competition, you will want to have an all or nothing attitude, whereas if you are entered in a Forex Demo Trading Competition that last for a week or more, you might want to be a bit (but not too much) more conservative.
As you enter more Forex Demo Trading Competitions, you will become more familiar with the process and get a feel for how much you should invest from the get go, but remember that the more you invest the more you will win and the greater your chances will be to come out on top.
Also keep in mind, many Forex Demo Trading Contests allow for more than just a first place winner, with some offering prizes for up to 20 or even 50 top traders. So, even if you aren’t the best of the best, you still stand a good chance to win a prize if you play in these types of Forex Demo Trading Competitions.
The main objective, however, to entering the Forex Demo trading contests isn’t just winning the prize (though that’s a great incentive) but to learn the ins and outs of Forex Trading. By playing you are learning and by learning you will become a better and more informed Forex Trader, and that’s really what these contests are all about: Learning how to trade in Forex Markets and having a great time while doing so.