Looking for a Way to Increase the Thrill of Trading? Read all About Live Forex Contests
Nowadays, almost anyone with a reliable internet connection can take part in the world of Forex trading. Individuals can link up with traders all over the world and interact with each other, compete with each other and take part in various Forex events. All of this and more makes for a very exciting and appealing experience. We’ve already touched on the subject of Forex contests and now we’ll be looking at live Forex contests in a little more detail.
What are Forex contests?
There are a number of people that consider Forex contests to be a type of bonus, but this couldn’t be further from the truth. Although contests usually feature on the promotions page of a broker’s website this is really rather misleading. Bonuses are just gifts that brokers give away to their clients. They are aimed at both experienced and new traders. In return, all that is asked is that you sign up for a trading account and keep trading. Forex contests, on the other hand, are a competition that traders are invited to join. The contest takes place on the broker’s website and is a way for traders to compare skills and abilities and compete to win a prize. Obviously, there is going to be a winner, but it isn’t always just one. The winner or winners are those who are able to achieve the best trading results and the reward is a prize. Basically, there are two types of contest. The demo contest and the live trading contest.
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What is the difference between live and demo contests?
In order to appreciate what a live contest is, we thought it best to compare it with a demo contest. It is usually newbie traders that participate in demo contests, as they are the ones most likely to be using a demo account for trading. This is because a demo account allows new traders to practice their skills without risking any real money. Beginners are usually far less confident than the experienced trader and not yet ready to risk their own hard-earned cash. A demo account is far less risky than a live contest because it only involves virtual cash. A live contest, on the other hand involves real money and is therefore considered more risky. When you participate in a live contest the stakes are much higher so it requires far more concentration and focus. If you win a live contest, not only are you making a profit, you also win an added prize. Whereas, with a demo account, you aren’t worried about losing your initial investment. If you win, all the better, but if you lose then you’ve really not lost anything.
What are the benefits of live Forex contests?
There are a number of advantages to participating in Forex contests. These include:
- You get the chance to win a little extra. More than you would hope to gain from your ordinary trading. And some of the prizes are really quite amazing. We’ve seen holidays, cars, Macbooks, and iPads, as well as sizeable amounts of cash.
- By participating in live FX contests you will be making things a little more interesting and exciting. Even with the best will in the world, Forex trading can sometimes become boring and it will be advantageous to have the opportunity to spice things up.
- By joining in with the latest live contest you will be able to judge how you’ve developed and where you stand with regards trading skill.
- You get to have a bit of fun and win a prize as well.
- Taking part in Forex contests will give you the chance to socialize with other traders, although not on a personal level. There is often a bit of banter between traders and it can be entertaining.
- You get the opportunity to show your broker that you’ve become one of the big players and are possibly worthy of some special attention.
- Winning a contest will boost your confidence and encourage you to keep expanding your knowledge and become a better trader.
Is there a downside to live Forex contests?
We spent a lot of time considering this question and have to say we really couldn’t think of any major ones. There are a number of considerations you should bear in mind, however, before registering for a live FX contest.
- Read the terms and conditions very carefully and make sure you fully understand the requirements.
- Live contests will always require a deposit, so be certain you can afford to lose it if you decide to take part
- Be very careful when taking advantage of any leverage
- You may be disqualified if you try to make a withdrawal
- Remember that the allocation of prizes is at the discretion of the Forex broker, so be sure you follow the rules
- If you accept a contest prize you may be liable to pay taxes
- Winners are usually featured on a page of the broker’s website, so prepared to lose your anonymity
- You will be disqualified if the broker suspects you have provided false or fraudulent information
- The terms and conditions are never set in stone. The broker will always reserve the right to modify, change or terminate the contest if they see fit. Without asking for the participants’ consent.
On the whole, we have to say that live Forex contests are a good thing. There are a few points that don’t do it any favors, but nothing that can’t be overcome with good sense and careful thinking.