Choosing a broker for Demo account

Beginner Questions
1

Hi.
I’m completely new to forex and i’d like to find a suitable broker for demo trading for a few months.
I would like to open a demo account of 5000$ which is the sum i have for this purpose in reality. I understand that i need a micro account for that?

Also is it necessary to choose an ECN broker?

Here is what I read in a certain website (attached) about the disadvantages of choosing a non-ecn broker:

�
Cons:
� Because they may trade against you, market makers can present a clear conflict of interest in order execution.
� They may display worse bid/ask prices than what you could get from another market maker or ECN.
� It is possible for market makers to manipulate currency prices to run their customers’ stops or not let customers’ trades reach profit objectives. Market makers may also move their currency quotes 10-15 pips away from other market rates.
� A huge amount of slippage can occur when news is released. Market makers’ quote display and order placing systems may also “freeze” during times of high market volatility.
� Many market makers frown on scalping practices and have a tendency to put scalpers on “manual execution”, which means their orders may not get filled at the prices they want.
�

I wonder how much of the above is correct?

Finally i’d like a broker which supports metatrader as i understand it’s the most popular and has programming capabilities.

I’d like to hear from veteran forex traders what they find from experience that works best for new traders

Thank you very much for your help
Rafael

2

Hi,

Sorry to say i trade a none ecn account.

I dont have any of the problems you talk about.

try oanda. Alpari or saxobank in that order!

3

You’re joking, right?

For $5,000 initial margin, your only chance for ECN is… let me guess… MBTrading!

For the rest of ECN crowd, you’ll need at least 10x that.

And if you’re so worried for a demo account, how anxious will you be when you start a live account?

4

Rafael,

at the present stage of larval development you occupy, just go out and do it !

as each day passes, you will learn more and more and see how little very little you knew days before — while there are a few ECN’s out there, IT JUST DOESNT MATTER RIGHT NOW !

whatever broker or ECN you start with is NEVER what you end up with, as you grow and learn and your ideas change over a short period of time.

Once again — forget about what youve heard, true or not, and simply begin the road towards LEARNING to trade — it will take you longer than you can imagine, and less time than some think, but its a journey and a learning experience with a danged good outcome at the end, should you make it.

immerse yourself in the culture, language and teachings of this site and practice on your demo account — its designed for you to TRY different concepts with no cost to yourself, so use it as a pilot uses a simulator, and dont worry whose name is attached to it.

the game is filled with pitfalls along the way, and no promises are handed out, but the surest way to success is learning and learning and practice and practice, much like anything else worth doing !

one thing — DO NOT open a 50K demo account if youre only going to have a few thousand of real money to work with — the large account (and thats why brokers give it to you) provides a cushion that can delude you into believeing forex is “simple” ---- on the lower right side of the downladed for your trading platform will be the amount (usually 50K) — erase that and put in the REAL amount of money you will be using.

once you start using it, dont be afraid to blow the whole wad — finding out what you did wrong is the greatest learning tool there is. Get another and go on with your new learning and sooner or later things work out and the lights go on !

enjoy and trade well

hope to see you in a year

mp

[I][B]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !![/B][/I]

5

why not open a few different demos and just play with the platforms untill you work out which on you like the most.

Once you decide then start demo trading with a $5000 account.

6

VERY solid advice on the demo accounts…

I have anhialated a number of demo accounts (some of them purposely) to get a feel for the entire system. A good friend that worked the oilfields of Northern Canada once told me “You have to test the limits of your machinery in order to know their potential”. Problem is that you usually break some of that machinery in order to find their limits. I have found the same mindset is true in a lot of things…including the forex.

I personally have tried as number of different demo accounts and find each has it’s own quirks. Spend some time on a few and you’ll find the one you’ll want to use live.

7

Stick to it… I’m not gonna quite 'till i crack this sucka! NEva!

 Even if i have to hand-write and take snapshots all day long w/ my print screen button and paste into Paint.. and go look at all the graphs always and keeping my eyes on the numbers.. i think i can finally figure it out someday soon hopefully.   I got 20 i row between 50 dollars to 500 per transaction on my 50k so i think I'm gonna try the 250.00 (i make sure never to exceed an X number of percentage of total.  keeping' the lower n safer margins to start).  My goal is to keep doubling it.

Q1
Where can i read about currencies and how they fluctuate along other currencies on this blog? Who moves with who? Conjunction fluctuation sounds a right way to say it i guess… is there a norm of certain up’s and down’s that move together… and do these change? How often does the Sterling rise w US… etc.

Q2
What causes the entire market to jump 100 points all of the sudden? Does the whole thing ever jump, if so, why… and also, is there a place i can find out what causes those major jumps of the entire chart (maybe not entire, but what I’m trying’ to stress is the difference between a few like 3 or 4 pairs going up at the same time; or just a few staying put while the rest mostly rise… or does it actually ALL EVER rise together? And their differences, etc,
as supposed to just some of them rising, even high… that i know. (that’s the beauty of it?)

So far, here’s what i noticed:

  1. the rules never change
  2. the rules always change
  3. adapting patiently is key (so different / combo techniques are key)

PS: I’m 25 of my last 25 trades on practice now and i make 5 k a day for 2 days… its 61k… and i ate a bad break, both ways bad… same time (US down Yen up) 80-130 points, luckily i cut loss on yen i would have been 29 in a row cause i had three more wins in the other end… glad i did though, kept going up would have doubled my loss (overall graph came in real handy for that call… and it WAS premeditated that it might happen; i have that kinda mindset, u know). Hung on to uncle Sam, he seems to be much more fickle. I did stare at the screen for 18 hours a day for a week and did a lot of note taking and watching… riding it out for hours… half day rides…etc… one overnight… think U have to have a mixed ratio of all… and take breaks too… don’t always be selling, it’s just common sense that sometimes **** happens more than other times, so keep that perspective and learning timing is what I’m praying for right now. Youtube all the vid’s, screw all the bots i say … learn shorthand. Humans have instinct, which this takes… hone my instinct… hone my instinct… hone… I’m trying my best to make my instincts my skills… w/ resources.

PS - don’t get greedy and don’t give up and focus focus focus… (i say this to decrease my odds of being a hypocrite about it!) Know why what number is doing what. And please don’t forget the answers to Q1 n Q2… I wish i had 50k… investors? I can let u log in to my practice acct and see… just need a plane ticket and a room to crash… I’m a chef, ex-Marine 33 single prop 215… j/k… i doubt I’d take it (less it was Pipgod) anyways… but a firm… that would be sick… different theories can be played out… Like window watching and similar movements based on various different times vs % gain lost… look for consistencies… remember billionaire boys club, the 80’s flick… i feel like I’m learning something that could be like that… i keep remembering that flick lately.

Peace. I’m all about sharing… and i respect a place like this! Props fellas and much thanks, human nature breeds greed, but we can fight! Viva la Piprevolucion!

pp

9

Hi.
Thank you all for your helpful advice.
I’ll start playing with the various demo platforms and see what i experience.
I guess i’ll be in touch in less than a year :wink:
Rafael