The importance of using demo account in forex trading cannot be over emphasized. There is always better reason why we need to get familiar with the use of demo trading before we start forex trading just to enhance our chance of being a better trader.
The first importance is that it is very cheap. Demo is free and requires no money before it can be used. There is virtual money which will be deposited in the demo account to serve as the money to trade with. This means the traders won't lose anything in real life and won't win anything as well.
It prepares the traders to what they are likely to face . It is just like compendium that a student preparing for exams needs to read to get himself familiar with the kind of questions he's likely to face in his exams. With demo account, the new member will be equipped with some skills like patience, analytical skill and even problem solving skills.
It is not only useful for the new traders as old and existing traders need to perfect what they have learnt and even learn more on demo account. It is not a gainsaying that forex teaches us lessons everyday and to make ourselves relevant, we need to keep updating ourselves with the freshest news.