The 5 Best Forex Demo Accounts in 2024
This article includes affiliate links. If you use these links to buy something we may earn a commission. Every service or product is selected independently by Forex-uk.co.uk.
Many people are looking to make additional income, and some turn to foreign exchange trading after researching its potential. Forex trading can be done full-time or part-time, depending on the trader as an individual. Most professional traders always recommend that new traders start with a demo trading account, to understand the dynamics of the market before investing real money.
A forex trading demo account is the best and safest way to enter the forex market without any form of risk. A forex trading demo account can also be referred to as a forex practice account. It is ideal for beginners who are new to the forex market or professionals who want to test out a new strategy.
There are so many platforms offering free forex demo account services. Some new traders encounter difficulties choosing a platform for their forex trading practice accounts. We have done the research, and we will go through the platforms with the best forex demo account.
What is a Demo Trading Account
A demo account in forex trading or a demo trading account is a type of forex trading account offered by online trading platforms. It allows traders to trade in the foreign exchange market with no monetary risk or reward. All trades taken in a forex practice account have the outcome of a live or real account but with virtual or non-existing money.
A demo trading accountis the starting point for all new traders to practice and understand the world’s largest financial market. It gives room for trial and error in real situations in order to perfect a profitable way to navigate the market.
The Pros and Cons of Demo Trading Platform
Switching your demo account to a real trading account, you may discover that things don’t work out exactly as you expected. If you don’t want to get a puzzled look when you take the steps of real trading, you need to get familiar with not only the benefits of demo trading but also how it can manipulate you. Here are the main highs and lows of online demo trading.
What are the Advantages of Demo Trading?
It’s free and easy to use. You don’t need to deposit any funds on the brokerage platform to use its demo trading account. Things work quite simply - you create an account, get your virtual money and start demo trading.
You get familiar with the design of the platform, and the trading instruments it provides. At first sight, trading platforms can seem strange and the unfamiliarity of the platform may confuse you leading to many wrong actions. Not to feel like a fish out of water, you can use a demo account to learn the pros and hidden cons of the broker, test out its features, and decide on whether you want to use it or not.
It doesn’t involve any risks of losing money. Perhaps, this is the best thing about demo account trading, which also gives you a sense of freedom. You don’t feel like you are dependent on something and can confidently test your trading plans.
It boosts your trading skills. As it says, failure makes perfect, and with every failure, you build stronger skills. So, demo accounts enable you to experience those failures and learn from them without losing your capital.
What are the Disadvantages of Demo Trading?
Demo trading involves no emotions in contrast to real trading. When you are trading demo, you don’t have any fear of losing money, so it’s all the same to you how your strategy will work. Plus, you can be as greedy as possible, and it won’t ruin your capital. However, these emotions spring out during live trading and greatly affect how you open or close positions.
The lack of risk may lead to testing trading strategies inappropriately. As mentioned already, if it does not involve any risks of losing money, you can test out whatever you want - and even execute trades that you will never do during the live trading. Hence, testing inappropriate strategies won’t benefit you during live trading.
No price slippage in demo trading. It’s a technical disadvantage though, so you may also consider the differences between demo accounts and real accounts. There are no price slippages, lack of liquidity and other similar factors that can influence your trades in demo practice but will greatly affect your real trading.
Demo accounts can expire. Some brokerage platforms set limits on how long you can use the same demo account.
Best Forex Demo Trading Platforms
Most of the time, forex demo trading platforms are run by forex brokers. They serve as an intermediary between the traders and the forex market. The demo trading accounts function based on the instructions given by the traders, and they execute orders and transactions on behalf of the traders.
There are a lot of amazing trading platforms that offer free Forex demo account services. Each demo trading platform is unique in its own way. They all have varying pros and cons, and after weighing all these factors, we have selected the platforms with the best forex demo account for beginners.
eToro Demo Account
eToro is popularly known as the best broker in the world because of its social trading and copy trading services. This broker's trading interface has become one of the most comprehensive and user-friendly in the market. This makes them the ideal platform to open a free Forex demo account with. New users can open an unlimited number of real and demo accounts on eToro for free.
eToro offers a wide range of tradable assets (more than 2000 assets) to their clients, and demo account traders get 100,000 worth of virtual cash for free. There is no time limit when using a free forex demo account on eToro, and traders pay no commission. Anyone can open a free demo account on this platform by using the demo trading account app or by visiting their website.
This platform has a high spread and does not support the forex demo account MetaTrader 4, meaning that traders can only execute trades on their forex trading demo app. If Metatrader 4 is not a deal-breaker for you, and you are looking to demo trade, try out social trading, or copy trading. eToro demo account is the best Forex demo account for you.
XTB Demo Account
XTB online trading offers various types of accounts to traders, and amongst these accounts is a free demo forex account. The demo trading accounts offered on some other platforms come with an expiration period, but that isn’t the case with demo accounts on XTB. They also offer over 45 currency pairs to both demo traders and real money traders.
XTB traders get access to a lot of trading instruments and indicators to enable them to perform better in the financial market. XTB executes trades at light speed and also features very competitive spreads. XTB is not only effective, but they offer additional services to traders. These services include educational materials, webinars, tutorials, and lots more to aid the development of traders.
XTB demo account uses a mobile application called xStation. Some functionalities are limited to the mobile app. Opening a free forex trading account with real money or a demo trading account on this platform will require a mobile application.
Plus500 Demo Account
When it comes to Contract for Difference (CFD) trading, Plus500 is everyone’s choice. They offer over 1,000 tradeable assets for demo traders; 70 of these assets are forex currency pairs. Other assets include indices, binary options, ETFs, securities, and even cryptocurrency.
Plus500 offers traders lots of forex trading tools to trade both minor and major currency pairs. They do not charge commissions on trades, and they have very low spreads for more accurate trading. The standard free forex demo account on Plus500 comes with a starting balance of 40,000 euros.
This platform features a desktop and mobile application, and its interactions on both operating systems are easy to navigate and understand. A demo trading account with no time limit on this platform makes it possible for traders to track their progress in the long run.
Plus500 demo account is off-limits to citizens of the United States.
FXCM Demo Account
FXCM is an international online organization. It was created in 1999 and has its main office in London. This platform is well known by lots of traders and offers integration with Trading Station, MetaTrader 4, Ninja Trader, and TradingView. They provide one of the best services for automated traders using MetaTrader 4. A trader can only open a single account of each available type of account.
When it comes to transparency, FXCM is at the top because they provide the public with trading performance reports. Traders can open a forex practice account with virtual balances of $5000, $20,000, and $50,000.
FXCM demo account provides in-depth training and market analysis to assist users. This trading firm is regulated by ASIC, the FCA, and the FSCA. They do not allow users from the USA.
Markets.com Demo Account
Markets.com offers one of the best forex demo accounts for beginners, its accounts can be used on Metatrader 4, Metatrader 5, and Marketsx. A demo account on market.com expires after 3 months, but they give users unlimited virtual money for demo trading. Traders can choose to open a free forex trading account with real money ($250 minimum) or a free demo trading account with virtual cash.
Markets.com features about 80 tradeable currency pairs. They offer traders very high leverage and fast trade executions. Markets.com only allows traders to have one of each type of trading account. This platform is regulated by the FSC, CySec, the FCA, and ASIC.
Why Use a Demo Account?
You might be eager to start trading on Forex. However, there are good reasons why you should go with a demo account first. These include the following:
Get familiar with the trading options. Exploring the live trading environment can help you uncover potential additions to your portfolio. You can test trading different currencies and assets you haven’t been familiar with up to that point.
Try different strategies. A risk-free environment ensures you can test different trading styles without worrying about financial loss. You can come up with various approaches and see which best fits your preferences.
Ensure you know where each action is. In situations where you need to act fast, it helps when you are comfortable with the platform. Practicing on a demo account will ensure you don’t get confused regarding where you should click to execute a trade or another desired action.
How to Use a Demo Account?
Here are the steps to follow to register a Forex demo account:
Pick the desired platform. Stick to reputable brands, such as the ones recommended on this page. Choose your favorite and visit the website.
Register an account. A Forex demo account is free, but it’s necessary to complete a sign-up form. It will require basic details, such as your email and phone number.
Log in with your credentials. Use the credentials picked during the registration process to access the platform.
Begin trading. You can now browse the platform to see how it works. Virtual funds should appear in your balance – you can use them to conduct trades to test the environment.
How Long to Demo Test Forex?
It depends on who you ask, but here’s one thing that experts agree on – give it at least several weeks. You can’t familiarize yourself with the market and understand how the platform works in a day or two. It takes a while to boost your experience and test different strategies.
Another great tip is not to go live until you are ready. We suggest analyzing relevant factors after your first demo account expires. If you don’t feel ready to go live, you can always open a new demo account at another trading platform. Another reason why testing different platforms is a good idea is that it’s the best way to know which best meets your preferences.
Final Thoughts
Demo trading is an essential part of every trader’s development. It comes with a lot of advantages and few to no disadvantages. Every individual looking to get into forex trading should try trading with a free demo account to find out how they would fair with real live trading.
The forex market is a very unforgiving place, and without proper training and practice, you could end up like the 90% of people who give up. Open a forex demo account with your desired broker and practice various strategies till you find one that makes you a profitable trader.
FAQ
-
There is no specific best forex demo account because each account on various platforms comes with its own benefits and pitfalls. Traders should identify their own areas of interest and what they want from a broker while weighing the pros and cons of each broker. This would enable them to choose the broker that is most appropriate for them. There are some highly recommended brokers that meet the needs of most traders. They include: eToro, XTB, Plus500, FXCM, and markets.com.
-
Opening a forex demo account is a very easy process. After identifying the broker, you want to trade with, visit their website and fill out their registration form. There is usually an option to select the type of account you wish to open. Choose a demo account. Follow the process until you are given login details (which are often sent to your email). Now you can log in on MetaTrader with the provided information. You can also open a free forex demo account on the Metatrader 4 application.
-
Yes, forex demo accounts are free on all platforms. Traders are charged no initial fees and aren’t required to make any deposits.
-
If you are trading with a safe broker, you have nothing to worry about. Your information would be kept confidential and safe, and since you aren’t required to make any payments on a forex demo account, you are free of any financial risk. Conduct proper research on your broker, so you will get the level of confidence needed to trade with them.
-
A forex demo account can be opened with any of your desired brokers. All brokers offer demo trading services.