It is often recommended that the beginning Forex trader holds back from trading with real money for some time and instead trades with a demo account with the broker of his choice. While this is certainly a better choice than jumping right in with the sharks, it is not always the best choice. There are several reasons for this. One of them being that some Forex brokers have been known to manipulate their demo accounts to inflate the winnings of their traders. The goal is of course to get their customer to substitute the free demo account with an actual funded money account. Its hard to prove that this practice goes on, but I have known many people who have come across inconsistensies in their demo accounts.
Another reason for why demo accounts really are not that good on their own is the lack of feedback. You won’t really learn much about your strategy from trading alone. You need quality feedback! I often felt this is one of the main reasons why most Forex traders struggle. Most traders don’t have access to qualified professional tutoring though. Thats were a piece of software like Forex Tester comes in handy.
Forex Tester is a Forex software trading simulator. It gives you the opportunity to test your trading skills and develop new strategies without risking your money at any time. You can do testing on a new strategy within hours or even minutes without having to wait for weeks to see if your new strategy will prove successful. Forex Tester allows you to trade on historical data, what is known as backtesting. This is the same method that professionals use to test a hypothesis about a new strategy. Forex Tester uses advanced drawing tools that allow you to do technical analysis on trading strategies such as Fibonacci Fan, Fibonacci Retracement, Fibonacci Arcs, Andrews Pitchfork and many more. It also include the most popular indicators and oscillators.
So, enough with the product description. What did I think of this software? Was it worth the price? I will have to start by saying that I think this is a highly useful tool for most traders at the beginning and intermediate level. When I started out forex trading I spent a ton of time and money on books and forex courses. Not to mention all the hours I put in trading my demo account. I learned a lot from this, but now I really wish I had been able to use a tool such as this. When I loaded up Forex Tester I was able to test several strategies I had been considering over the weekend. The real advantage here is the ability to control the market speed since Forex Tester uses historical data. This means that we can test our skills or systems much faster than usual. I found the software to have all the studies I could ask for. The interface is very similar to MetaTrader 4, so I didn’t have to spend a lot of time familiarising myself with the product. In conclusion I would recommend Forex Tester to beginning traders and intermediate traders.