The Interactive Brokers demo account provides a simulated trading environment with virtual funds, allowing users to practice trading without financial risk. This account replicates real-world market conditions, enabling traders to familiarize themselves with the broker’s platform, tools, and order execution. Interactive Brokers offers this demo account for free, granting access to various financial instruments, including stocks, options, futures, forex, and cryptocurrencies.
The demo account includes multiple trading platforms such as IBKR Desktop, Trader Workstation (TWS), and IBKR Mobile. It provides users with $1,000,000 in virtual funds, real-time market data, and customizable settings. Traders can test different strategies, access educational resources, and use trading APIs for automation. This account operates as a margin account by default, mirroring live trading functionalities, excluding slippage and real transaction costs. Users can reset their account balance at any time, removing all trade history and positions.
Interactive Brokers does not impose a time limit on the demo account, allowing users to practice indefinitely. Traders retain access to their demo account even after transitioning to a live account. This extended availability helps users refine strategies and gain confidence before engaging in live trading with real capital.
How to open an Interactive Brokers demo account?
There are five steps to open an Interactive Brokers demo account. These are to visit the Interactive Brokers’ website, fill the registration form, customize the demo account, verify your profile and login into the demo account. The different steps to open an Interactive Brokers demo account are listed below.
First, visit the Interactive Brokers’ website. A demo account, also known as a ‘Paper Trading Account’ is an ideal place to get started whether you are new to a broker or to trading. With IB, simply head to the broker’s website to get started. Once you are there you will find a “free trial” button at the top of the page. Once clicked, you will be taken to the demo account information page. Click “free trial” again here to move on to the next step.
(74-89% of retail CFD accounts lose money)
Second, fill the Interactive Brokers registration form. Opening a demo account you will not need much information at all. Just enter your email address and a valid telephone number to get going. With a live account of course you will need a passport or ID, and a bank statement or utility bill to verify your account. The next step is to complete the registration form. To do this, you will need to fill in your email address, name, choose a password, and select your country of residence. You will also choose your marketing preferences at this point.
Third, customize the demo account With your information entered and the registration form complete, on the next page, you will be able to download the TWS platform. The platform is available for Windows, Mac, and Linux. When you have it installed, the TWS icon will be on your desktop. If you have any issues then a tutorial page will open that you can follow to finish downloading. Besides being able to choose the Desktop TWS, the full-featured trading platform, which you can download directly from the site, you can also choose the Client Portal, web trader trading app, and account management. You will not need to complete a download for these. On mobile, you will have access to IBKR Mobile, available both for iOS and Android, and the IBKR APIs, a platform where you automate your trading or create your own custom trading solution using their own APIs.
Fourth, verify your profile. You will receive an email from Interactive Brokers with your login details. You will also find a link to confirm your trading account. Click on the linkto verify your account and start trading.
Last step, login into the demo account. In the Login box that appears, click the link in the top right corner that says “No username? Try the demo” and enter your email address.
What are the features of the Interactive Brokers demo account?
The features of the Interactive Brokers demo account are listed below.
- Trading Platforms: The Interactive Brokers demo account provides access to the IBKR Desktop, Trader Workstation (TWS), and IBKR Mobile platforms. These platforms enable users to test new products, strategies, markets, and order types.
- Virtual Funds: The Interactive Brokers demo account provides $1,000,000 in virtual funds for users to practice trading and test the broker’s features. All paper trading accounts start with this amount of virtual equity.
- Tradable Instruments: Users can choose from stocks, options, futures, futures options, warrants, CFDs, mutual funds, bonds, commodities, forex, and crypto in their virtual trading account.
- Leverage: The free demo account offered by Interactive Brokers is a margin account by default.
- Real-Time Market Data: Real-time market data is included in the Interactive Brokers demo account. This feature allows users to experience live market conditions as they practice their trading strategies.
- Trial Period: The Interactive Brokers demo account has an unlimited trial period.
- Account Reset: Traders can reset your paper trading account. To do this, navigate to the User menu, which is the head and shoulders icon, then select Account Settings, and finally, Paper Trading Account Reset. It is possible to reset the starting cash amount in the reset dialog box. Note that doing so will remove all positions and history from the simulated account.
- Educational Resources: Interactive Brokers clients can access dozens of free and premium market research and news providers with a demo account.
- Trading Strategies: The demo account allows users to practice trading strategies and evaluate platform features without risking real money. It attempts to simulate the trading experience without the involvement of real money.
- Customer Support: Customer support is available for users of the Interactive Brokers demo account. Traders can reach out for assistance regarding their accounts or any issues they may encounter while using the platform.
The Interactive Brokers demo account main features and characteristics are detailed in the table below.
| Interactive Brokers demo account | Characteristics |
|---|---|
| Demo available | Yes |
| Trial duration | Unlimited |
| Demo platforms | IBKR GlobalTrader, Client Portal, IBKR Mobile, Trader WorkStation, IBKR API |
| Virtual money amount | $1,000,000 |
| Customizable features | Yes |
What is the difference between a live and demo Interactive Brokers account?
The differences between Interactive Brokers demo and live accounts include the absence of trading psychology exposure in the demo account. The Interactive Brokers demo account also lacks slippage, commissions and transaction costs. Live accounts involve real money, while Interactive Brokers demo accounts use virtual funds.
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.
How to switch from an Interactive Brokers demo to an Interactive Brokers live account?
There are three steps to switch from an Interactive Brokers demo to an Interactive Brokers live account. These are to provide proof of your identity, verify your account and make the first deposit. The different steps to switch from an Interactive Brokers demo to an Interactive Brokers live account are listed below.
First, provide proof of your identity (Passport, ID or Driver License) and proof of your residence (Bill utility or bank statement) to get verified. Depending on the country, Interactive Brokers may ask more questions to check your trading experience.
Second, Interactive Brokers will verify your account. This step confirms that your identity and residence have been authenticated.
Finally, after Interactive Brokers verification, make your first deposit and start trading. When switching to a live account, your demo will still be available.
How to best use an Interactive Brokers demo account?
To best use an Interactive Brokers demo account you have to set up the demo account as you would set up a real account, avoid opening large positions, treat money as if it were real, practice daily and use the learning materials offered by the broker.
Set up your demo account exactly as you would a real one, matching platform, currency, balance, and account type to your live trading intentions. This ensures a realistic environment. Consistency in your initial setup builds a strong foundation for learning.
Avoid opening large positions if you don’t plan on trading significant funds later. Oversized trades can give you a misleading sense of security. Keeping position sizes reasonable fosters more disciplined habits.
Treat your demo funds as if they were real. This mindset prevents you from taking risks you wouldn’t normally take. Respecting your virtual balance encourages responsible decision-making.
Practice daily to sharpen your skills. Regular trading will help you understand market movements, refine your strategies, and improve decision-making under different conditions.
Make use of all the features and support offered by Interactive Brokers. Explore tools, educational resources, and customer support to maximize your learning and get the most out of your demo experience.
What are the advantages of an Interactive Brokers demo account?
The advantages of an Interactive Brokers demo account are listed below.
- Unlimited Accounts: you can open as many demo accounts as you need
- Trial duration: the Interactive Brokers demo account is unlimited
- Good choice of trading platforms: allows traders to choose between IBKR Desktop, Trader Workstation (TWS), and IBKR Mobile platforms
- Easy to open: it is a quick procedure, which takes a few minutes
- Knowing the platform: allows traders to learn and familiarize themselves with the platform offered by broker
What are the disadvantages of an Interactive Brokers demo account?
The disadvantages of an Interactive Brokers demo account are listed below.
- IBKR Account: traders can open only one Paper Trading Account for IBKR Account
- Lack of the psychological factor: it can lead to a false sense of security
- No slippage: demo accounts allow you to execute orders at the requested price and can lead to unrealistic expectations of the markets
- Ignoring risk management: traders use virtual money and may not fully understand the importance of risk management
To find out more about Interactive Brokers’ characteristics, features, pros and cons and opinions, check out our “Interactive Brokers review“.