Visit XTB79% of retail investor accounts lose money
Visit IC Markets74-89% of retail CFD accounts lose money
Visit eToro76% of retail CFD accounts lose money
Visit XM72,82% of retail investor accounts lose money
Visit FBS74-89% of retail CFD accounts lose money
Visit FxPro72.87% of retail investor accounts lose money
Visit HF Markets70.51% of retail investor accounts lose money
Visit Plus50077% of retail investor accounts lose money
Visit Markets.com79,90% of retail investor accounts lose money
Visit CMC Markets78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
The best Forex demo accounts, according to our research, are:
- IC Markets
- HF Markets
- CMC Markets
The factors we have considered in compiling this list of the best Forex demo accounts are listed below:
- Availability of demo accounts
- The time of the trial (limited or unlimited)
- The initial virtual balance and the possibility to reset it
- Number of forex pairs and spreads
- Type of assets available
- Number of platforms available in demo version
What are the best Forex demo accounts?
The following are 10 of the best Forex trading practice accounts with unlimited duration, meaning that they allow you to use your free demo account for however long you need until you feel ready to use your newly-learned forex trading strategies with a real money account.
How to choose a forex demo account
When considering a forex demo account, you must be selective to ensure it best suits your trading needs. Here are some pointers to help you in your selection process:
- Choosing a regulated forex broker is of utmost importance for two primary reasons. Firstly, when you decide to transition to a live account, you want a broker that’s reliable and operates transparently. Secondly, you need to protect the personal data you provide for the demo account, such as your email or phone number. Regulated forex brokerages have a responsibility to protect this data and cannot sell it to third parties.
- If you’re new to the forex market, it’s advisable to opt for a demo account without an expiration date. However, if your goal is to simply gauge the broker’s platform and services, you might consider a time-limited demo account. These typically last between 30 to 90 days.
- Ensure that the broker offers a demo version for the specific account type or trading strategy you’re interested in. It’s worth noting that not all brokers provide demo accounts for every type of account they have. Also, certain trading strategies, like algorithmic trading, may not be permissible on all demo platforms. It’s always best to clarify with the broker beforehand.
How can I open a Forex demo account?
Opening a forex demo account is generally straightforward, though the process can slightly vary from one broker to another. Here are the general steps to follow:
- Open a profile: Begin by providing an email and password. Some brokers might also ask for your phone number and a username.
- Choose the account type: Most brokers allow you to select the kind of account you want from their dashboard. Opt for the “demo” option.
- Get login details: Upon registration, the broker will supply you with login credentials for the trading platform.
- Download the trading platform: Most brokers support platforms like MetaTrader 4, MetaTrader 5, and cTrader. After downloading, proceed with the installation.
- Login: Once the platform is installed, open it and input your login details to start.
However, brokers like eToro have simplified this process even further. With just an email, password, and username, you can set up a demo account in a few clicks.
How do forex demo accounts work?
Forex demo accounts are trial accounts that grant users a risk-free opportunity to evaluate a broker’s platform and offerings. This account type is powered by virtual funds, and therefore everything that happens on the platform (including gains and losses) is fictitious.
These accounts are invaluable for newcomers aiming to get a feel for forex trading. Moreover, seasoned traders use them to test novel strategies without risking real funds.
Generally, there are two types of forex demo accounts: unlimited and time-based. The former offers unrestricted access, while the latter typically expires after 30 to 90 days.
Are forex demo accounts accurate?
Forex demo accounts replicate real market conditions. However, due to their simulative nature, they cannot replicate technical aspects such as slippage or the emotional impact of a positive or negative trade.
For instance, when a trade is placed on a demo account, the trading order doesn’t genuinely reach the broker since it’s merely a simulation. Consequently, nuances like slippage or requotes can’t be experienced in such an environment.
Another factor is the emotional component. The psychological repercussions of gaining or losing money are profound, and these feelings aren’t genuinely evoked with virtual funds. The stark difference between losing $100 of virtual money versus $100 of real funds can impact a trader’s decision-making process.
How to make the best out of your CFD forex demo account
Maximizing the benefits of your CFD forex demo account involves approaching it with a disciplined mindset. Here’s how to get the most out of your demo experience:
- Trade Realistically: To get a genuine feel for potential profits and losses, trade in the demo account with an amount akin to what you’d invest in a live account. In other words, if you think that in the future you’re going to deposit $200 at most, then try to trade accordingly on your demo account.
- Experiment but Stay Grounded: While it’s an excellent platform to test strategies, always trade as if you’re using real money. For instance, don’t open risky trades if you think you wouldn’t do that if it was your own money.
- Transition Wisely: Once you’ve grasped risk management, consider moving to a live account to experience aspects like psychological responses and slippage. Start with a low-deposit account (under $10) to minimize potential losses.
After demo, trade under real conditions with less than $10
Many of the top forex brokers offer excellent value in terms of minimum deposits that can be as low as $100. This is not a no-risk situation, it is your opportunity to become or develop your career as a forex trader.
If you are still unsure, a great, low-risk option is to try trading with a micro-trading account offered by many of the best forex brokers, or even some with a minimum deposit that can be as low as $10.
This combined with the great value spreads and commission-free trading on offer from many, means that there is no reason not to trade!
Demo account Pros and Cons
Naturally, as a forex trader or in CFD trading, there are pros and cons to everything. This also applies when you are considering demo trading accounts with each broker. Below are a few of what we consider to be the pros and cons of trading on a demo account:
One of the biggest pros when it comes to trading online through a demo trading account is the fact you are using virtual money. This means absolutely no risk to you as a forex trader or in CFD trading. You can trade anything you like with complete confidence and no fear.
This kind of no-risk situation where you do not have to worry at all about losing your money is perfect for new traders who want to learn the ropes as a forex trader or in other markets.
Not only beginners can benefit though – professional traders too can use demo trading accounts. This can allow them the opportunity to perfect forex or CFD trading strategy without risk.
Finally, opening a demo trading account also allows you to fully test the broker’s trading platforms, get to know their systems and fees, and really understand the trading markets that they are offering. All of these things help you get to know if that broker is the best choice for you to trade with.
While it may seem like there are only positive points to trading with a demo trading account, that is not exactly the case. There are a couple of areas to watch out for as a forex trader where you could be led astray through trading on these accounts.
The most common point to remember when trading with a forex demo trading account is that your profits and losses are not real. You are trading with virtual currency, and psychologically when you cannot lose your money, you may not engage in forex and CFD trading with the same attitude that you will in a real money account.
The rates quoted in a demo account do not factor in slippage or requotes where the prices of a trade may change between order and execution. Top forex brokers do try to limit this, but it is something that can happen in periods of high volume or volatility in the markets.
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