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Forex trading contest

As the Forex market becomes more competitive, introducing brokers and Forex futures commission merchants have resorted to offering incentives and prizes to attract customers. One common incentive is to offer a monetary bonus of $250 or more to open an account.

Another incentive to give a person to enter the Forex market is a rebate on training or tuition. A good incentive to attract more customers is to offer partial payment for taking a course that is offered by a particular firm. Some Forex contests have recently started offering contests where traders may trade simulated accounts and the winners are awarded cash prizes. There is also the opportunity to trade real money.

Does all of this sound familiar? Remember back in the days when banks offered televisions and toasters for taking out a Certificate of Deposit? Is this what the Forex market is coming to? All of this may simply be a passing fancy for firms that are looking for a competitive edge. However, the real contest in Forex does not lie in participating in some marketing game, but it does lie between Forex traders and themselves.

Each day Forex traders utilize their insight into Forex trading against the market and attempts to achieve winning trades. However, if this daily forex trading contest was actually to be formalized into a series of competitions, what would this look like?

There would first be a simulation phase where the trader would test strategies and skills that would be used to trade in the real Forex market. After this period of simulation, a mini-account would be opened where the trader would use real money. After this, there would be a trading competition. At this level the adrenaline really begins to flow when each pip could result in a win or loss of $10.00. This would certainly add up no matter what size the account is.

For traders who are just beginning their adventure with Forex, they would begin with a demo account. It is at this level where contests can be made that would be designed to offer learning experiences and not just a contest to see which trader can make the most money. Before the trader moves up the ladder to trade with real dollars, the beginning trader should have to reach different levels. Here is an example: A trader tries to maintain a maximum drawdown of 10% for the period of one month. If that can be achieved by a trader in the Forex market, the next step for the Forex trader would be to repeat this performance. If you want to become a Forex trader, you must begin slowly and build up until you can trade with real money.