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Loading ...Why is this important?
Because any Forex Demo account only works when the Forex market is open. Which means that any Forex demo is absolutely useless most of the weekend.
For most of us with a day job, this is bad news, because we are usually very busy on workdays. And then on weekends, when we might have time to spare, there is no trading!
The solution to this problem is a special software – Offline Forex Simulator – which imitates the Forex market.
Does Forex demo simulate market well? It depends.
The Simulator plays back historical price data saved on your computer, which enables you to practice any time, anywhere – even without an Internet connection.
How to practice Forex on weekends (when trading is closed)
First of all, we need to check whether the data feed is the same as in real trading. Demo accounts normally don’t connect to the real trading servers but use separate servers.
Some brokers might not send to the demo server all the ticks from the real market. If you are just starting, in currency trading, it can be just OK. You probably won’t even notice the difference.
But what is a catch?
If the market is calm, like it usually is in Asian trading, you won’t see much difference. However, in fast-paced markets, this can be misleading.
For example, when an important news release comes out, there might be a very quick price move and trading during this time heavily depends on getting all quotes.
And this can also happen in Asian trading! See this stop hunt example.
How about order fill on demo?
Again, when you are connected to a Demo server, you can buy or sell whatever you want – without any harm for the broker.
In real trading, your broker must provide liquidity for you. Meaning that if you sell, it must buy from you – and vice versa.
Which means that your interests are opposite to the brokers’. If your trade is a win, then your broker loses.
If you browse Forex forums, you will find a lot of complaints about brokers not filling orders or doing re-quotes. This is when brokers retrospectively change your already confirmed trades.
Under the hood: Demo server connection
We are still working on this page – do check back soon!
In the meantime:
download free Forex Simulator and
practice Forex anytime when Demo account is closed or online.