It might come as a surprise, but you can start trading forex without investing a dime. How is this possible, you might be wondering?
Trading has historically only been available to investors with large budgets. However, this has altered recently as a result of creative business strategies and technological advancements that have reduced the initial startup costs. Considering that account minimums are decreasing almost every year, one may reasonably ask whether the day has come when you may begin trading with no money out of your pocket. And it has!
Read on to find out 5 ways you can start trading without investing money.
1. Create a demo account
With demo accounts, you may begin trading without spending any money. Brokers that specialize in forex and options are often more well-known for providing demo accounts. Even though they are excellent starting points, you can usually only earn a certain amount of money with them.
With a demo account, you use virtual or “fake” money to trade. You cannot take your winnings out of an account like this since you are not risking any real money.
A demo account helps you get ready for real trading, where you risk real money, in addition to letting you trade where you can win real money. You may believe that, as a new trader, you’ve read extensively enough to comprehend concepts like trading terminals, risk analysis, quote dynamics, and so on. However, nothing compares to the real experience of turning a profit or suffering a loss.
Demo accounts are thus, a must for anybody wishing to begin trading. The good news is that almost all brokers provide demo trading accounts. Deriv is one such platform that you can leverage by opening a demo account and starting trading. We recommend them as the best platform for forex.
How to open a demo account on Deriv
- After creating the Deriv account, use the dropdown menu in Trader’s Hub to choose the demo area.
- Under CFD, navigate to Deriv MT5 where three different kinds of demo MT5 accounts will be displayed: Derived, Financial, and SwapFree.
- Select the kind of demo MT5 account want and select the “Get” button
- Choose a password when the “Create a Deriv MT5 password” popup appears, then click “Create.”
- You will get a success popup when the sample account has been successfully created. To see the freshly established sample account on Trader’s Hub, click “Continue.”
- The MT5 sample account has two choices displayed: “Top up” and “Open.” You may use the “top up” button to top up your demo balance if it is less than $1,000. The trade modal will appear when you click the “Open” button, displaying the MT5 demo account data (broker name, server name, login ID, etc.).
- To reset the MT5 password, click the “Forgot password?” link.
2. Open a Bonus Account
These accounts may be referred to as “non-deposit” by some brokers, or as “no-deposit” bonus accounts by others. Whatever their names, they all have the same meaning. Your broker finances your newly opened live trading account with a non-deposit incentive that may range from $10 to $500.
After that is finished, you may begin trading with real money without having to make a deposit.
Your greatest chance to begin trading and have genuine chances of making money without having to deposit any money is with a non-deposit bonus account. Finding a brokerage that provides these is the first step towards enrolling in one of them since not all do. Sites like XM, Tickmill, and Grand Capital offer bonus accounts. Unfortunately, Deriv does not.
After that, visit their website and register by providing the required details. You will often get the incentive practically immediately.
When utilizing a no-deposit incentive to begin trading, there are a few things you should be aware of. The first rule is that you can never withdraw the bonus itself; you can only take trading gains made with the bonus. All brokers have this requirement since it’s how they prevent customers from joining, taking advantage of the incentive, and then leaving without making a single transaction.
Secondly, you may have to trade a certain volume with some brokers to be eligible to withdraw your earnings. This varies from broker to broker and is often represented in lots.
3. Participate in trading competitions
If you’re an ambitious investor with expertise and skills in trading but don’t have the funds to get started, you should consider this rather unconventional route.
Typically, a forex broker will launch a competition with real money up for grabs. The broker determines the prize money as well as the particular terms and circumstances. Winners could have to, for example, log the most transactions or make the most money in a certain amount of time.
Generally, you may use a demo account to enter these competitions.
You should choose a demo account if you wish to take no risks at all. But bear in mind that because other players are investing real money and taking a financial risk, their rewards could be greater. Keep in mind that some brokers could impose a participation fee.
Traders with some experience are most suited for competitions. However, if you do some research, you may find a demo account competition designed especially for inexperienced traders.
For example, Deriv holds trading contests at specific times called the Deriv Trading Contest. Deriv Trading Contest gives traders the chance to put their talents to the test, compete with others, and maybe win eye-catching prizes. Traders get a rare chance to showcase their skills, assess market trends, and make calculated trading choices in this competition.
How to participate in the Deriv Trading contest
- Create an account
- Fund your account
- Navigate to the contest section
- Join the contest
4. Use a free trade simulator
The safest and most risk-free approach to begin trading is using a trading simulator. You may develop imaginary investment portfolios in a very realistic market setting with the greatest trading simulators.
For as long as you’d like, you may enter the world of a freelance trader using simulators. They provide a professional order interface, cutting-edge trading tools, real-time stock pricing, and much more.
5. Benefit from a welcome or referral incentive
Reputable trading sites sometimes conduct promotions whereby they provide welcome incentives to new customers or referral bonuses to current customers who are inclined to promote their goods.
These programs are organized by brokers to increase their clientele, but you may also be eligible for a brokerage fee reduction.
Conclusion
Although you may begin trading forex with no cash, you should be realistic in your expectations. Recognize that it will need time and work to convert your little initial investment into significant returns, let alone launch a successful trading career.
If money was holding you back from starting trading, then you no longer have an excuse as you can now start trading without investing a dime.
