Well, if the competition is playing with demo money, I don’t see why not. You get to see other trader’s ROI, and it may blow your mind.
Trading competition is like playing in a poker tournament. You only get payoff, when you are in the top few positions. The structure of the game only favor the foolish and lucky ones. It is the broker’s way of luring people into the money game. To get into the money placing, more often than not, you will be force to take trades that can blow your account. If you lose, there is always another competition just around the corner.
Sometimes, you see traders that can consistently get into the top few placing. They are usually intraday scalpers or momentum traders, who have found their edge with their own methodology and eons of deliberate practice. Scalping is an extremely high risk and exhausting form of trading style, but if you manage to master it, can be pretty rewarding. Not everyone is suitable for this kind of style, as it can literally suck the life force out of you, and will feel like you are in a living hell.
There is almost a total disregard for money management when it comes to FX trading competition. You don’t get to learn about money management at all, unless you don’t care about the money placing and just want to get some experience and see how well you can fare against others with your own methodology. Nonetheless, any kind of experience in trading is good experience. If you never try, you’ll never know.
Ultimately, if your wish is to become a full-time trader one day. Risk management is still the key to survival in the long run. Competition is only good for some fun experience.