If you are like most newcomers to FX you will most likely begin by opening a demo or "game" account with one of the many dealing agents (brokers) you have found on line. These are in fact one of the strongest points FX trading offers: the opportunity to test strategies and tactics in real time before committing actual cash to the market. The one thing to avoid however is the temptation to "play" trade in an effort to maximize gains rather than to use these as test beds for the real thing. This is especially critical as many, although not all, demo/game platforms have time restrictions for use.

Using the Oanda game platform there are not any time restrictions but the negative I see with this platform is the $100,000 USD account starting size. Additional funds can also be added in the same increment. Fun to contemplate trading an FX account this size but rather unrealistic for most of us who will probably start actual trading with a conservative $1000 to $5000 account. Other demo platforms typically begin with $1000 to $10,000 USD accounts.

Using the demo/game account as a test bed I would suggest starting out by concentrating on one or perhaps two currency pairs and simply develop trade entry and exit strategies. I would also suggest NOT using stops when starting out in order that the lesson of risk (loss) potential is magnified when it costs nothing. Once you have refined an entry/exit plan I would then introduce multiple unit trades, again to learn the dangers and pitfalls of highly leveraged FX trading. It is much less painful to experience a loss in "paper" or game money than the real thing!

I would also use the demo/game account to determine such things as ease of use, desireable features and comfort levels. Each platform has similar features but the actual "front end" (what you see once the program is opened and started) will have different means of accessing the information you will find necessary to trade in "real money" mode. If you take the time to test order entry, trade modification and so forth you will find one platform meets you own ease of use criteria while others my seem more awkward.

The final suggestion I will make has to do with the "comfort level" issue I raised above. In my own case I initially approached the entire issue of FX trading from the viewpoint of leverage: the higher the better. I have since modified this opinion to lean toward the lower leverage, greater flexibility end of the spectrum which in fact, along with what I feel is a superior "front end" trading platform, is why I prefer Oanda to the more highly leveraged such as FXCM and MG Financial to name to other fine alternative trading platforms. Both are quite good but at 100:1 leverage and a minimum $100,000 USD trading unit ($10,000 for the FXCM Mini Demo and actual accounts) I find the 20:1 gearing and personally selected trading unit size of Oanda much to my liking.

I also have downloaded software for PFG Forex, a Chicago based futures broker who have initiated FX trading through their BEST online trading interface. It is an interesting option particularly for US based traders who are looking for an NFA registered dealer to trade with. PFG offers the flexibility of trading both FX and US futures contracts through a single platform. They offer small initial balances to open an account and feature tight spreads (typically 3-5 pips), mini-sized trading units and good leverage. You may also enter orders with them via telephone which might be a great security blanket to have in the event of internet problems. Their trading platform is more futures than FX oriented since charts are available only for futures (at least as of this writing) but is very intuitive and easy to use. This would be an excellent choice if the charting and analysis capabilities for futures contracts were mad available for FX pairs. You can find them at PFG Forex.