Finances and business

A forex demo shows you how it works before you jump into it for real(1)

A forex demo shows you how it works before you jump into it for real

Before airplane pilots actually fly on their own, they usually practice in simulators that re-create what flying will be like without any actual risk. Since currency trading is as dangerous financially as flying is physically, it makes sense that there would be a forex demo available, too.

A forex demo is a smart way for a new investor to start. Reading books and taking online courses can teach you the basics, but the best way to learn anything is to get some hands-on experience. However, with forex, hands-on experience could mean losing your shirt. So a demo gives you real-world training with no actual money being involved.

Usually, the demonstration comes courtesy of a brokerage or other financial Web site that has an interest in currying your favor. The plan is that once you’ve tested your skills in the demo, you’ll get into the real thing and take advantage of the paid services the demo provider has to offer -- forex signals, managed accounts, automated trading, etc. The demo is like a free sample, offered in the hopes that you’ll enjoy it so much that you buy something, too.

For that reason, be should be highly suspicious of any Web site that wants to charge for a demo. Considering there are literally dozens of sites that offer free demonstrations, there is absolutely no reason that you should pay for it.

When you sign up for a forex demo, you’re given a username and password and shown how to use the demo system. Sometimes it involves downloading a piece of software unique to the company; other times it’s simply done over the Internet. (Some demos require Macromedia Flash, which most browsers have installed, but which you’ll need the latest version of.) You determine how much imaginary money you want to start with, and off you go!

Once you’re signed in to the forex demo, you do all the things you would do if it were a real-world situation: reading the charts, following the trends, visiting online forums to get other traders’ opinions, and making trades. The trades are recorded in the forex demo only and don’t go anywhere into the actual market since there’s no real money involved. When the market changes, the program determines how much you’d have gained or lost based on the decisions you made. You’re able to say, “Whew! Good thing this was only for practice!” or “Too bad this wasn’t real!” And once you’ve gained some expertise using the forex demo, you can move on to the real thing and start making some money for real.

Loan Insurance Worth The Extra Cost

Loan Insurance – Worth The Extra Cost?

There are many factors, out of your control that can make you unable to repay your loans. You might become sick or get involved in an accident that takes you out of work for an extended period of time. Maybe your employer has to cut back and make wage decreases or lay-offs. If you are working for your self then maybe business is not going well and you are not earning as much as you had hoped. It could even be that your expenses have risen or interest rates have risen and this has made it difficult to make repayments.

Many of us worry about these possible outcomes. Some of us, especially if we have borrowed a lot and are already close to our repayment capacity may be losing sleep over it. People who are elderly and close to retirement, or those with young children also may worry a lot about such issues.

Loan Insurance

It is for this reason that insurers offer loan insurance. Loan insurance is a policy that protects against the possibility that you will not be able to make your repayments. You will usually be offered it every time you take on credit. You should know that you are not obliged to take loan insurance and you cannot be denied credit for not taking it. If you do wish to take it out, you should shop around and not take it from the first insurer you come across. Rates vary widely and it certainly pays to shop around.

If you have loan insurance you can rest a little easier knowing that if certain events outside of your control occur you loans will be repaid by the insurance company. Events included would be illness, accident or job loss not of your fault, among others. You should also be aware of the conditions and exclusions however before you agree to such insurance. It is a fact that many people pay for loan insurance without much prospect of ever benefiting from it; often without even knowing they have it. This is because lenders are anxious to add it to your account as a way of increasing revenues.

Be Aware

Some policies will require for example that you accept the first job you are offered after losing your job. This can be very impractical for a person who may have had a very good job and now is offered a much lower paying one. They know that if they continue their search they will find a better job but their insurance wants them to take up the first one.

Always be aware of what you are paying for with insurance. Be aware of the exclusions and if you don’t want the insurance, don’t buy it. If it has been added to your account without your permission, call your creditor and have it cancelled immediately.