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Before airplane pilots really fly on their own, they usually train in simulators that re-create flying conditions free of any de facto danger. As foreign exchange trading can be as dangerous financially as flying is physically, it makes sense that there would be a forex demo available, too.

A currency trading demo platform is a an intelligent approach for newbie investors to start. Reading books and taking online courses can teach you the basics, but the best way to gain knowledge of anything is to get some hands-on experience. However, with foreign exchange, real experience could mean losing your shirt. So a simulator gives you real environment practice opportunity with no actual money being involved.

Generally, the simulator comes courtesy of a brokerage or other forex service provider that has an interest in currying your favor. The plan is that once you've tried your skills in virtual trading, you'll get into the real thing and make use of the paid services the demo provider has to offer -- forex signals, managed accounts, automated trading, etc. The demo is like a free sample, offered in the hopes that you'll enjoy it so much that you buy something, too.

For that reason, be should be very distrustful of any website that wants to charge for a demo. Considering there are literally dozens of sites that offer free demonstrations, there is clearly no reason that you should pay for it.

When you sign up for a forex demo, you're given a username and password and shown how to use the demo system. Sometimes it involves downloading a piece of software unique to the company; other times it's simply done online. (Some demos require Macromedia Flash, which most browsers have installed, but which you'll need to have the most recent version of.) It is up to you how much virtual cash you want to start with, and off you go!

Once you're signed in to the forex demo, you do all the things you would do if it were a real-world trading environment: reading the graphs, watching the trends, going to online forums to get other traders' opinions, and executing transactions. The trades are recorded in the forex demo only and don't go anywhere into the real-world market since there's no real cash involved. When the market moves, the software determines how much you'd have gained or lost depending on the trades you made. You're able to say, "Whew! Good thing this was just for practice!" or "Too bad this wasn't real!" And once you've gained some expertise using the forex demo, you can move on to the real thing and start making some money for real. Or if you want to cut the learning curve, you can find a reliable forex signal provider. A forex signal is a market forecast and trading recommendation. Using such a service you would be able to start make real money sooner.