How to trade Forex safe without any money
Many people are afraid of Forex trading, they have never tried it and would not recommend it to others as well. There is a common myth that Forex trading requires a lot of money, and the majority of it will usually be lost. This statement has some degree of truth – if you are trading with a lot of money and without a clear strategy and risk assessment you will most probably lose the money. Some people refuse to start trading even though they have a great interest in it because they simply are scared of losing the money or do not have it. They often ask, what is the minimum amount to start Forex trading? And are surprised when they hear that there is no minimum threshold.
Forex trading is not something that requires a lot of investment, sadly many people think otherwise. Even more, it is absolutely possible to trade without any money at all. There is more than one way to do so. One can use a demo account, no deposit bonus, or enroll in tournaments. All of these methods are unique in their own way and come with different advantages and benefits. By the time you finish reading the guide below, you will have a general idea about what each of them represents, how can you enroll in those programs, and how to start Forex trading free in South Africa.
Demo account
Demo accounts are one of the most popular ways to start Forex without any investment among beginner traders. As it is a very common choice among first-timers almost all brokers are offering it. A demo account is pretty much the same as a real account. Meaning that everything that might happen on the Forex trading market will be shown on the demo account platform as well, like real-time simulation. Also, everything that has an effect on the currencies and their exchange rate will be presented on the demo account in real-time. At the same time trader gets the same tools, signals, and indicators he would be given if trading with the real account. When it comes to the Forex trading demo account South Africa accommodates quite a few traders who prefer it for the starter, as traders get an opportunity to trade Forex for free, at the same time get to know how the market changes and test out their skills.
It is important to point out, however, that European and US traders are often limited in their choice of Forex brokerages to work with, due to various regulations. Out of all the available options, we can highlight Forex.com as one of the best Forex brokers that US traders to work with. So if you are an aspiring trader from the USA, and are looking for a Demo account to start practicing, setting up the Forex.com Demo account is our go-to solution for you, especially if you are looking for ways how to start Forex trading from home without much risk. If you would like to try out a demo account on Forex.com, follow the link below.
Open Forex.com Demo Account Today
How does the Demo account work?
There is only one difference between the real and demo accounts, with the real account you are trading with the real money you deposit, with the demo account you are trading with the virtual money that is given by the broker. Demo accounts might differ from each other, some of them will have a time limitation, which can be up to one week, 30 days, or more. The amount of the virtual money can be different, in some cases, you might get even USD 1,000,000 in other cases brokers display USD 10,000 or so to make it more realistic for you. The main thing you need to consider here is that since you are using virtual money to trade therefore there are no real money benefits, but it still remains as one of the top choices for how to trade Forex without money.
Getting a demo account is possible with almost all existing brokers and is very easy. Once you will go to the broker’s website and find the account types you will see the suggestion of the demo account for each type of account the broker is offering. You need to register as you would do for getting the live account and you are ready to start trading. Click on the button below to get started with the demo account at Exness.
Get a Demo Account With Exness
Advantages of the demo account
Demo accounts have several advantages.
- First of all, you can start Forex trading for free.
- You can have all the same features that are on the real account, therefore, you can test yourself, your strategies and see what can you do to be more profitable when you start trading with the money.
- You can allow yourself to make mistakes and do not worry about them as you are not losing the real money
- You can master forex trading, get to know the broker, and test the platform you are trading on so that you will know what trading with the broker feels like before you start thinking about how to open a Forex trading account in South Africa that deals with real risks and real money.
- If after your demo account expires, you feel like you are ready for the real trading experience then you can continue with a real account if not, there’s always the option of trying another broker with a demo account.
Disadvantages
The main and the only disadvantage is that you cannot get any profits since you are trading with virtual money, therefore you cannot take anything out of it even if you are trading super successful and generating tons of profits.
Demo accounts are most beneficial for the beginner traders who want to start practicing forex trading without investment and for the experienced traders who want to try the broker out without depositing the money.
No deposit bonus
No deposit bonus is another great way to free trading. Unlike demo accounts the no deposit bonuses allow traders to trade on the real account with the broker’s money. No deposit bonus is a welcoming bonus and a nice way for the broker to greet the new customer. Of course, the broker does not give you the money just to be nice or generous. The money given as a bonus is given for trading. Welcoming bonuses offered by the brokers are a great tool for them to attract new customers and motivate them to start trading. The amount of the bonuses are not much it is usually around USD 30 or USD 50. It might not seem much but is absolutely enough to start a free Forex trading account with real money.
How does the no deposit bonus work?
No deposit bonuses work in a very simple way. Once you open an account with the broker you will be offered a no deposit bonus, you may or may not take it but honestly, there is no reason to say no to it as this kind of bonus is one of the great ways to start trading. Every trader who is eligible to open a trading account with the broker is also eligible to get the no deposit bonus. Once you open an account you do not need to deposit any money by yourself and the broker will transfer the bonus money to your account after your confirmation. Usually, it takes up to one hour for the money to appear on the trading account, however, in some cases, it might need one day. When you receive the money you are able to start trading. If your trades will not end up well for you and you will lose the money there are no consequences, however, if you will have successful trades you will be able to withdraw the benefits. Hence, if you were interested in how to start Forex trading without money and get the profits – this is the way!
To offer no deposit bonus a broker must have made significant profits, therefore no deposit bonuses are not suggested by all the brokers. If you want to get one you need to search for the broker that is offering it. However, you must be cautious as this method of attracting customers can also be used by scam brokers, hence, make sure you make a thorough research and choose a reliable brokerage firm with a good reputation.
If you are looking for a broker offering good deposit bonus options, in addition to a Demo account and a possibility to trade without money for practicing your skills, we suggest XM as a great choice for non-US traders to go for. You can find the link to the XM Demo account below.
Advantages of no deposit bonus
- You are trading on the real account with the real money
- You can trade stress-free as it is the money given by the broker as a bonus and if you lose, you do not lose your own money
- You can keep the profits made from it
- It is very easy to qualify for the no deposit bonus
Disadvantages
When taking the bonus money from a reliable, good broker it does not really come with disadvantages, the only thing that can be seen as a disadvantage is that the bonus amount is not really much, but let’s admit, after all, it is actually free money for Free forex trading.
Who can benefit from it
No deposit bonuses can be beneficial for both beginner traders and experienced ones.
Forex trading tournaments
Instead of different kinds of bonuses, some of the brokers offer Forex trading tournaments. These tournaments can be very diverse, some brokers can offer one or several different types at the same time, hence you can choose which one looks better for you. It can be a one-day tournament or it can even last for a month. The short tournaments are the best for beginners that do not usually devote much time to trading, while long tournaments can be enjoyed by experienced traders.
Enrolling in the tournament is another approach to how to start Forex trading without investment and still get some benefits, apart from the practice, of course. Tournaments can have different promotions, it can be money or any other valuable gift such as cars for example. I would strongly advise applying for the tournaments with the cash prize only, as it can be hard to receive other types of prizes especially when the broker is international and is not based in your country.
How does the tournament work?
To take part in the tournament you need to have an account with the broker. There are usually three types of tournaments.
- Free entry tournaments, you simply register as a participant and start trading when the tournament is open
- Free entry tournaments requiring a deposit – for this kind of tournament you do not need to pay any fee, however you need to have a certain amount of money on your account.
- Tournaments with a small entering fee.
The first type of tournaments are more common and obviously more popular among the traders, as it allows participants to basically start trading with no money.
During the tournaments, you are not trading with the real money and instead of trading with the broker, you are trading with other traders who are contestants as well. There is one winner who makes the most profits and therefore qualifies for the prize.
Not many of the brokers are offering such tournaments but you can still find several reliable brokers who hold the tournaments from time to time. Usually, the brokers offering tournaments will not have just one or two but several of them. You will be able to find the schedule beforehand and obviously the information about the rules and prizes, as well.
Advantages of tournaments
- It is undoubtedly fun and entertaining
- You can choose what kind of tournaments you want to take part in based on the length and prize of it.
- It is a way to start Forex trading without investment and get rewarded for it
- You can practice trading more
Disadvantages
To be honest, I do not see any major disadvantages of the tournaments, the only bad thing is that it might not always be available and you would have to wait for the scheduled time. Also, the competition is usually very high at these tournaments, however, most of the participants are first-timers, meaning that the chances of winning a prize are not that low.
Who can benefit from it
It can be beneficial for every kind of trader, both beginners, and experienced ones as well.
Forex trading with minimum investment
As you could see from the following guide to free Forex trading, the means of trading for free is somewhat limited, a demo account can be used for a certain amount of time and it does not give you profits in terms of the money, no deposit bonuses are available only once when you open an account with the certain broker and the tournaments can be offered from time to time.
Even if it was not limited if you enjoy trading eventually you would like to trade without any boundaries and control your trades and benefits by yourself. Again, it does not mean that you need to put a lot of money into it. There is a great that will help you trade with a low amount of money.
Given that you want to reach your trading stage as quickly a possible, with few limitations in place, we generally advise you to look out for brokerage firms that enable you to set up your trading accounts with ease, as it also indicates a generally good approach of brokers towards their traders. One such example is IQ Option, where you can start trading within minutes after going to their website, especially, now, after you know how to trade without money. Follow the link below for a simple sign-up with the IQ option.
You can use a mini account
Some of the brokers offer mini accounts for their customers. A mini account is a real account when you are trading with the real money and receive profits with the real money as well. The only difference between a standard and a mini account is the size of the lot. The size of the lot in the mini account is one-tenth the size of the lot of 100,000 units in a standard account. In a standard lot, one pip of currency pair based in USD equals USD 10, in the mini lot, it is only USD 1. Therefore trading with the mini account requires a small capital from the traders. While mini accounts are most common among the newbies, often experienced traders use them to try out new trading instruments or strategies.
As you can see quite a few methods exist to how to trade without money, which are easy, and accessible by anyone. It does not matter if you are in South Africa or anywhere else if you are just starting trading or have years of experience in it, if you do not have money or just do not want to risk it while trying out the new things – you can trade with 0 on your trading account and still get a profit.
If you are a complete newbie, looking for simpler, easier web platforms to get accustomed to is a great strategy at the initial stages of your trading career. There is a plentitude of options available on the market today to choose from, one such case being a Plus500 Demo account, which has proven to be one of the best solutions for inexperienced, starting traders to go for. Get your free Demo Account with Plus500 below.
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