While participating in a forex demo competition, traders are required to try and earn profit from the demo funds. Many brokers have different competitions, each with its own rules. The rules can vary from leverage limits to automated trading, assets, and taxation.
Participating in a forex demo competition is a great way to test your trading skills. While real money can be risky, the virtual trades will help you understand what to expect. Once the competition ends, all open trades will be closed. The amount remaining in the account will be the final amount that determines the winner’s leaderboard position and prize eligibility. However, before participating in a demo competition, you should consider the risks involved.
Join Forex Demo Competition Before Live Trading
Forex demo competitions are a great way to practice your trading skills while getting a financial reward. Many brokers offer demo accounts with real-world market data and virtual capital. This guide explains how these competitions work and what the prizes are. Instaforex, for example, offers demo trading competitions every week and monthly. Besides, the prizes are also withdrawable.
In some competitions, you have to prove your identity. Most of these contests detect participants by their IP address. You can hide your identity by installing proxy software and sharing the link with other participants. You can also share your winning trades with other participants through social networking. Profitable trades in forex demo competitions can be lucrative if you can identify the right trading strategy for you. Aside from being profitable, a forex demo competition is a great way to gain experience and knowledge.
When it comes to taxation, the prize money from Forex demo competitions is murky. Some countries consider winnings as gambling rewards and require the trader to pay tax on them. Other brokers may require that prize winners manually claim the prizes. A legit forex broker will always disclose their percentage of the bonus in the terms and conditions for new trading accounts. A forex broker who gives out this type of bonus is likely to be a good broker.
Before taking part in a forex demo competition, it is important to remember that this is not a real account. Trading with a demo account is safer than using a live account. Using leverage in a demo contest will expose traders to the high risk of losing money. Traders who are familiar with the market risk may take advantage of this competition. However, they should keep in mind that the competitions are not suitable for newbie traders, as they will break the rules of money management.
Often, trading demo competitions require that contestants use specific platforms. Although some brokers offer these services to newbies, others aren’t. Therefore, competitors must prepare themselves to learn a new trading platform during a competition. Some brokers may restrict the number of trades a trader can make or use leverage, EAs, or available trading assets. To avoid any problems, competitions usually have a signup window.
Signing Up For A Forex Demo Competition
A few rules should be kept in mind before signing up for a forex demo competition. You can only put forward one demo account during the competition. In addition, the demo account cannot be traded during the contest. Also, participants must provide their real personal information upon registration. Winners will be those who have the highest balance in their demo accounts at the end of the competition.
The rules of a forex demo competition are simple. Traders who are new to forex trading need to gain some experience before they invest their money. In this way, brokers are encouraging new traders by organizing demo contests for them for free. The contests are a great way to gain experience in the forex market without risking any money. To participate in a forex demo competition, traders must have some basic trading knowledge and experience.
Conclusion
Once a demo competition is over, all open trades will be closed automatically. This means that no more trading can be done for that particular demo account. The amount in the demo account will be the final amount. The amount will be used to calculate the trader’s leaderboard position and prize eligibility. While a forex demo competition is a great way to gain knowledge of the forex market, it should never be used as a real-life trading account.
