The FXCM demo account provides a risk-free trading environment with virtual funds, allowing users to practice trading strategies without financial loss. FXCM offers this demo account as a simulation of live trading conditions, ensuring users gain hands-on experience with market fluctuations, order execution, and platform functionalities. Opening an FXCM demo account requires visiting the FXCM website, completing the registration form, verifying account details, and logging into the trading platform.
The FXCM demo account grants access to multiple trading platforms, including Trading Station, MetaTrader 4 (MT4), TSWeb, and TSMobile. It provides a virtual balance between $20,000 and $50,000, depending on the trader’s location and operating subsidiary. Users can trade forex pairs, CFDs, and other financial instruments with real-time market data. The account settings allow leverage customization through customer support, while platform features include charting tools, technical indicators, and risk management options. Traders can reset account balances or modify settings by contacting FXCM support. Educational resources, strategy testing capabilities, and customer support enhance the learning experience.
FXCM does not impose a strict time limit on demo accounts, but inactivity for 30 consecutive days results in automatic deletion. Users can create multiple demo accounts if needed. The platform permits continuous trading practice as long as the account remains active. Traders looking to transition to live trading must complete identity verification and fund their accounts with a minimum deposit, which varies based on region.
How to open a FXCM demo account?
There are four steps yo open a FXCM demo account. These are visit the FXCM’s website, fill the registration form, verify your profile and login into the demo account. The different steps to open a FXCM demo account are listed below.
First, visit the website of FXCM. Head over to the FXCM homepage (66% of retail CFD accounts lose money) and click ‘open demo account’.
Second, fill the FXCM registration form. Next, you’ll need to fill out a registration form by adding some information and preferences, such as your email address and your country of residence.
Third, verify your profile. Once you have submitted the form, you will receive an email to confirm the account has been created and deliver your account details. Another way you can do this is to wait for the details to pop up on the same page as the registration form and then simply click ‘Launch Web Platform’. Remember to save your login details.
Otherwise, just wait for an email from the broker which should look something like the image below.
Within this email, you will find your personal login details. Directly from the email, you can just click the “Launch Platform” button.
Last step, login into the demo account. Now you can launch the trading platform and enter your login details. Refer back to the email from the previous step, to find the login number, account password, and server connection information.
Following that, the FXCM webtrader and this initial screen will be displayed as you see in the below picture.
You can also open an MT4 demo account as this platform is also offered by the broker. To do this, simply open the platform page on the broker’s website, click ‘Free Practise Account’ and follow the steps.
What are the features of the FXCM demo account?
The features of the FXCM demo account are listed below.
- Trading Platforms: The FXCM demo account offers several trading platforms: Trading Station, MetaTrader 4 (MT4), TSWeb, and TSMobile. This allows users to choose a platform that best fits their trading style and preferences for practicing trading strategies without financial risk.
- Virtual Funds: In the FXCM demo account, traders are provided with $20,000 to $50,000 of virtual money. The exact amount can depend on the operating subsidiary and geographic location of the trader, but the default balance typically falls within this range.
- Available Instruments: The FXCM demo account provides access to all tradable instruments available on the platform. This includes a wide range of forex pairs, CFDs, and other financial products.
- Leverage: Leverage is available in the FXCM demo account; however, traders must contact customer support to customize their leverage settings according to their preferences. This feature is designed to help users simulate a more realistic trading environment based on their planned live deposits.
- Real-Time Market Data: The FXCM demo account includes real-time market data. This feature enhances the realism of the trading experience by providing current market conditions.
- Time Limit: There is no strict time limit on using the FXCM demo account, but accounts will be deleted after 30 days of inactivity. This means that as long as traders actively use their demo account, they can continue practicing indefinitely.
- Account Reset: Traders can reset their FXCM demo accounts by contacting customer support. This allows them to adjust their virtual balance or leverage settings as needed for their practice sessions.
- Educational Resources: The FXCM demo account includes access to various educational resources, which can help traders improve their skills and knowledge about forex trading and market dynamics. These resources are beneficial for both beginners and experienced traders looking to refine their strategies.
- Strategy Testing: Traders can practice trading strategies on the FXCM demo account.
- Customer Support: Customer support is available for FXCM demo account users. They can assist with inquiries related to account setup, customization options, and any other issues that may arise while using the demo platform.
The FXCM demo account main features and characteristics are detailed in the table below.
| FXCM Demo Account | Characteristics |
|---|---|
| Demo available | Yes |
| Trial duration | Unlimited |
| Demo platforms | MT4, Proprietary platform |
| Virtual money amount | $50,000 |
| Customizable features | Yes |
What is the difference between a live and demo FXCM account?
The differences between FXCM demo and live accounts involve real vs. virtual funds. A FXCM demo account provides simulated trading without risking money, while a live FXCM account involves real investments with potential gains or losses. The demo account lacks trading psychology exposure and slippage, which are present in live FXCM accounts.
Demo accounts allow traders to practice in a risk-free environment, while in live accounts, traders trade with real money. This involves financial risks, as losses have a direct impact on traders’ capital.
As for market execution, the main difference between demo and live trading is slippage. Slippage is the difference between your initial requested order price and the actual order’s execution price. Slippage may occur in live trading but does not occur on a demo account as all funds used are virtual.
In live accounts, traders encounter costs, such as commissions, spread and other transaction costs, which affect traders’ earnings, while in the demo account there are no transaction costs and commissions are low or equal to zero. For Live accounts, there is a $50 fee after 12 months of inactivity, while the demo accounts are valid for only 30 days without any cost.
How to switch from a FXCM demo to a FXCM live account?
There are three steps to switch from a FXCM demo to a FXCM live account. These are to provide proof of your identity, verify your account and make the first deposit. The different steps to switch from a FXCM demo to a FXCM live account are listed below.
First, provide proof of your identity (Passport, ID, or Driver’s Licence) and proof of your residence (Bill utility, or bank statement) to become verified by the broker. Depending on your country, the broker may also ask to fill out a questionnaire about your trading knowledge and experience.
Second, FXCM will verify your account. This step confirms that your identity and residence have been authenticated.
Finally, after FXCM verification, your account can be funded to start trading. The FXCM minimum deposit is $50 for non-EU and UK clients.
How to best use a FXCM demo account?
To best use a FXCM demo account you have to avoid opening large positions, treat the account as if it were real, practice daily and use the learning materials offered by the broker.
Avoid opening large positions if you do not intend to trade with substantial funds. Keeping your position sizes small helps you manage risk more realistically. This approach prevents overconfidence and promotes disciplined trading habits.
Treat your demo account as if it contained real money. This mindset encourages you to make cautious decisions and stick to your strategies. Maintaining discipline during practice builds a solid foundation for live trading.
Set aside time each day to practice and familiarize yourself with market movements. Consistent effort allows you to test different approaches and refine your techniques. Regular repetition is key to staying prepared for real market conditions.
Explore the FXCM platform thoroughly and utilize the available tools. Look into charting features, trading signals, and any educational materials at your disposal. These resources can deepen your understanding and enhance your overall trading skills.
What are the advantages of a FXCM demo account?
The advantages of a FXCM demo account are listed below.
- Trial duration: the FXCM demo account is unlimited
- Good choice of trading platforms: allows traders to choose between MT4, TSWeb, and TSMobile
- Backtesting opportunities: allows traders to evaluate and optimize strategies to improve future performance
- Knowing the platform: allows traders to learn and familiarize themselves with the platform offered by broker
- Risk-Free Environment: allows traders to practice trading techniques and strategies without risking real money
What are the disadvantages of a FXCM demo account?
The disadvantages of a FXCM demo account are listed below.
- Trial duration: the FXCM demo accounts will expire if inactive for 30 consecutive days
- Ignoring risk management: traders use virtual money and may not fully understand the importance of risk management
- Lack of the psychological factor: it can lead to a false sense of security
To find out more about FXCM’s characteristics, features, pros and cons and opinions, check out our “FXCM review“.