It’s a well-known fact forex is, by far, the largest and most liquid financial market on the planet and continues to attract the interest of virtually everyone. The chance to make astronomical gains are ever-present in the foreign exchange market, but this is in no way diminishing the real risks involved in trading this instrument.
It would not be very reasonable to jump straight into the live markets using real money even if one had all the knowledge in the world. You first have to get your feet wet, which is the point of a forex trading demo account.
All forex brokers offer a forex demo account clients can use to test their platform and execution, get better acquainted with the software, learn about the markets, and try different strategies before choosing one to trade real money in the future.
As expected, there is a seemingly infinite number of brokers to choose from. Fortunately, we’ve minimized the selection to just eight that offer the best forex demo account. Along with these reviews, you’ll also learn more about the benefits and drawbacks of a forex trading demo account and some of the frequently asked questions.
Top 8 Online Brokers Offering The Best Forex Demo Accounts To Learn Trading
|Broker||Founded||HQ||Regulations||Platforms||Markets||Deposit from||Leverage up to||Website|
|2001||Cyprus||NFA, CFTC, FCA, ASIC, CySEC||MT4, MT5, NinjaTrader||Forex, Indices, Commodities, Stocks, ETFs, Options, Bonds, Crypto||$100||1:500||visit|
|2006||Israel||FCA, ASIC, CySEC, FinCEN||eToro||Forex, Commodities, Stocks, Crypto, ETFs, Indices||$200||1:30||visit|
|1974||UK||CFTC, NFA, FCA, FINMA||MT4, IG||Forex, Indices, Commodities, Stocks, Options, Bonds, ETFs||$0||1:50||visit|
|2011||UK||CySEC||MT4, MT5, cTrader||Forex, Indices, Commodities, Crypto||$25||1:500||visit|
|2005||USA||ASIC, BaFin, FMA, CNMV, DFSA, FSC||MT4, MT5||Forex, Indices, Commodities, Shares, Metals, Crypto||$50||1:500||visit|
|2010||Australia||ASIC, FCA, DFSA||MT4, MT5, cTrader||Forex, Commodities, CFDs, Crypto||A$200||1:500||visit|
|1995||USA||CFTC, NFA, IIROC, FCA, ASIC, MAS||MT4, Oanda Trade||Forex, Indices, Commodities, Bonds, Metals||$0||1:50||visit|
|1971||USA||CFTC, SEC, FINRA||thinkorswim||Forex, Options, Crypto, Stocks, Futures, ETFs, Mutual Funds, Bonds, IPOs||$0||1:4||visit|
First, let’s explore more what a forex demo account is, how to choose one, and the benefits of using it.
What is a forex demo account?
A demo account is a simulated account provided by charting software packages funded with virtual money meant to help traders experiment with the platform and ultimately trade the markets.
It is essentially the training ground every trader should go through before funding a real or live account. The markets on the demo accounts move in the exact same way as they do in the live setting. However, the actual trading conditions aren’t technically identical due to minor discrepancies such as different spreads, slippage and other volatility-related issues.
Nonetheless, a demo account has zero financial commitment and allows traders to practice as much as possible and develop their trading strategies holistically. Even when you make mistakes, these are easily irreversible and you have the time luxury to correct such errors to ensure they don’t occur in the live setting.
It is an important stage every trader goes through to minimize the inherent risks of trading the real markets.
How to choose the best forex demo account?
As with any account, you need to consider a few things about demo accounts in forex. Here they are:
Choosing a demo account from a regulated broker
When picking any demo account, traders will want to stick with only properly regulated and reputable brokers in the industry. You’ll need the peace of mind a particular broker can provide the same high standard of service on a demo account as they would in the live stage.
Choose a platform you are comfortable using
Although MT4 is the platform most traders are familiar with, we also have plenty of other equally excellent or better software packages such as cTrader, TradingView, NinjaTrader, etc.
Regardless of choice, you’ll want to be proficient and comfortable with your chosen platform regarding execution (knowing all the available order types, shortcuts, etc.), charting, accessing other useful services, and just the overall navigation.
Understanding the ins and out of the software is a time-consuming process. However, with some dedicated experience, you’ll eventually find what’s comfortable for you.
In the ever-changing and fast-paced markets, execution speed is a deal-breaker. Part of the uses for demo trading is testing a broker’s execution in terms of latency and accuracy. Generally, an acceptable execution speed is anything under 500ms.
It’s important to remember execution cannot always be lightning-quick as it depends on numerous intraday factors like market conditions, server location, etc. Hence, you may need to test a few different brokers and ensure the strongest internet connection before arriving at a sufficient point.
Expiration date of the demo account
Different platforms and brokers have different expiration dates. This period refers to how long the demo account stays active without any executed positions. For instance, most MT4 /5 accounts typically expire after 30 or 60 days (some less) with no trading activity. A few don’t have this limitation, although there usually is a condition to meet first.
Other platforms may have different expiration periods, all of which you need to consider before choosing the demo account. Ideally, you’ll want to commit to demo trading for at least a year or keep a schedule not to let the account expire.
When the account is closed, traders need to open a new one from scratch. The expiration times will also depend on the broker. This information is provided by them when you sign up for a demo account.
Why start with the best forex demo account?
Demo trading is one stage traders should not skimp on as it’s the safest way to prepare yourself thoroughly for the live markets. While your results at this stage do not provide an accurate indication of how you’ll perform in real trading, they still paint some picture nonetheless.
One of the ultimate purposes of demo accounts is for testing out your trading knowledge. At this stage, traders will dabble with several strategies involving numerous indicators, charting tools, entry techniques, and other technical concepts.
Finding a trading strategy optimized for your personality, preferences, and risk tolerance is an iterative, trial and error procedure that can take several months or years to master.
Fortunately, this process is something you can figure out on a demo account. For the basics, you can assess your knowledge of the barebones of forex pips, base and quote currencies, spreads, etc. using a demo account more easily than elsewhere.
What are the best forex demo accounts?
Now that we’ve covered some beneficial information about this topic, we’ll dive into the crux of this article, the choice of brokers delivering the best forex demo account.
FOREX.com: Forex Broker Processing Some Of The Highest Trading Volume Globally
By trading volume, Forex.com is the largest broker in the US and the world, processing at least $15 billion daily. Established in 2001, the multi-regulated derivatives brokerage is now part of the NASDAQ-listed financial services company StoneX Group Inc.
The broker provides access to over 4500 markets in forex, indices, equities, metals, cryptocurrencies, and commodities. As a versatile brand, clients can test their demo trading services on MT4, MT5, and TradingView.
The broker has their clients covered when it comes to lightning-quick execution speed, the best prices, and substantiality liquidity access, making them an excellent consideration for the best demo forex account.
eToro: Best Forex Broker With Social Trading
eToro is considered one of the pioneers and leaders in the social trading realm since 2010. It offers the proprietary CopyTrader™ for anyone to copy expert traders and profit from their trades.
The brand also doubles up as a multi-regulated, multi-asset CFD provider of multiple financial instruments since 2007. eToro now has offices in Israel, the United States, the United Kingdom, Cyprus, and Australia.
eToro provides a $100 000 practice account customers can trade with and explore their offered markets on a browser-based, simple-to-use trading platform. The account is also tradeable on their mobile app, available for both Android and iOS devices.
Overall, eToro is an excellent option if you’re looking to demo trade and perhaps explore social trading at some point in the future.
IG: A 47-Year Old Broker Offering A Brilliant Educational Portal
IG is one of the oldest names in the brokerage industry as it was founded way back in 1974, initially as the Investors Gold Index. The brand has been a listed company on the London Stock Exchange since the turn of the millennium (2000), further enhancing the broker’s respected reputation, capitalization, security, innovation, and customer service.
With multiple offices around the world and regulatory licenses in as many places, IG successfully delivers trading access to tens of thousands of various markets in spot trading and spread betting.
One of the other advantages of trading with IG is the broker’s prioritization of first-class education through the website, DailyFX, one of the most visited webpages for trading worldwide.
Founded in 1999, DailyFX is one of the leading portals for financial markets news, forecasts, analysis, and education. This tool may prove highly beneficial for new traders learning on a demo account and even for experienced live traders.
OctaFX: Some Of The Tightest Spreads In The Industry
OctaFX was formed in 2011 and has gone to open millions of accounts and processed as many trades every day. Traders, both new and experienced, in more than 100 countries benefit from their wide selection of accounts, fee-free deposits and withdrawals, low trading costs, and tight spreads, as low as 0.5 pips on EUR/USD.
The CySEC-licensed brokerage offers a carefully curated selection of 32 pairs, gold and silver, three energies, ten indices, and five cryptocurrencies. Clients can trade all these markets and excellent conditions on a demo account using MT4, MT5, and cTrader for a wider variety of charting platforms.
MultiBank: Excellent Forex Broker Regulated In Multiple Jurisdictions
MultiBank is a Hong Kong-based global CFD broker created in 2005. Initially established in the United States, the brand has successfully established a global presence with headquarters in Hong Kong and 24 other offices worldwide to serve their ever-increasing international clientele.
The brand and its various subsidiaries are regulated across five continents with regulation licenses from Australia, the United Arab Emirates, Cayman Islands, Germany, Austria, and more.
Achieving this quality means clients have the peace of mind of capital security and transparency. MultiBank provides trading access in forex, metals, shares, indices, commodities, crypto, all tradeable on the cutting-edge MT4 and MT5 software packages.
When clients decide to move from the demo stage, they can choose from a variety of accounts with cost-effective trading costs, 500:1 leverage, several payment options, and transparent trading conditions.
Pepperstone: Excellent Broker Offering A Forex Demo Account With MT4/5 And cTrader
If you’re looking for the best forex demo account on world-recognized trading platforms, you may not need to look further than Pepperstone, the Australian multi-licensed and multi-CFD brokerage firm.
Ranked as one of the brokers processing the largest trading volume globally (at over $9 billion daily), Pepperstone is a well-respected name in the industry.
New traders can open a demo forex account on MT4, MT5, and cTrader, providing a sizeable choice of popular and feature-packed charting software to suit their preferences and skills.
Pepperstone was formed in 2010 and has gone on to open offices in Cyprus, London, Germany, and Kenya. The broker aims to provide an enriched trading experience for its +55 000-strong client base of retail and institutional traders.
They offer several accounts types (including fixed spread and copy trading), tight spreads, lightning-quick execution, broad payment choices, and brilliant customer support.
Pepperstone’s demo accounts won’t expire unless the client has a real funded account and requests the broker not to close the demo account.
Oanda: Offers The Best Forex Demo Account On TradingView
OANDA is a US-based derivatives brokerage that began operations as far back as 1996. The firm boasts nine offices across Asia, North America, and Europe. Aside from currencies, the broker also provides trading services in Bitcoin, metals, stocks, indices, and commodities.
Aside from offering MT4, OANDA has partnered with TradingView, a platform revered for its exquisite charting capabilities and thriving social network. Traders can open a demo forex account on this software and gain access to some of the world’s most data-rich, interactive, and visually pleasing charts.
Once clients go live, they will experience favorable trading conditions, different accounts to use, a wide range of markets, and several payment choices from a globally recognized and respected forex broker.
TD Ameritrade: One Of The Leading US-Based Trading And Investing Brokers
TD Ameritrade is a hugely prominent US-based trading and investing broker started 50 years ago. The company has been at the forefront of all innovations ever since. In 2020, the Charles Schwab Corporation acquired the brand.
TD Ameritrade provides trading services in a number of derivatives, including a massive selection of forex markets. Moreover, it specializes in investments in financial products such as mutual funds, annuities, and ETFs.
Clients open demo and live accounts on the brand’s proprietary trading software, thinkorswim, a marvelous state-of-the-art platform that’s been around for several decades. Along with competitive execution, beneficial trading conditions, and on-the-ball customer support, TD Ameritrade may be worth considering, especially if you’re a US citizen.
FAQs about the best forex demo account
Below are some of the most frequently asked questions about demo accounts.
Are forex demo accounts free?
Yes, all regulated and reputable brokers offer demo accounts free of charge. You will only need to commit money when you sign up for a live account.
Can you withdraw money from a demo account?
No, since you are trading virtual money.
Can you learn to trade with the best forex demo account?
Absolutely. New traders need to familiarise themselves with all the technical specifics of the forex markets that can take several months or years to master fully. Aside from getting the basics right, one of the main reasons for demo trading is to perform back-testing and forward-testing.
These two processes ultimately create the trading strategy a trader will utilize in a live account. While demo trading is quite significant, it is hard to learn the psychological side of live trading at this stage. A lot of the online literature suggests demo accounts are useless, which isn’t necessarily true.
You need these accounts to learn trading. Afterward, it’s best to start with minimal capital (preferably in a cent account) and build from there to overcome the psychological barriers in the live account quickly.
Are forex demo accounts accurate?
For the most part, yes. Forex demo accounts are accurate in terms of prices and charts being real-time in line with the live markets. However, keep in mind the trading conditions between the two aren’t always exactly in unison due to volatility, volume, etc.
For instance, you may not notice any slippage or spread widening on a demo account, but you are far likely to witness this on a live account at some stage. These factors don’t always present conducive trading execution in the live setting.
Generally, placing trades on a demo account may seem relatively smooth, though it’s not always the case on a live account.
How does a forex trading demo account work?
The process is quite simple. Clients head over to a broker’s website to find a sign-up link for a demo account, which takes only a few minutes. Depending on the company, some allow you to adjust the balance, typically $100 000 or currency equivalent.
Once you’ve installed the broker’s chosen platform, you will log in with the details created in the sign-up phase just as you would with a live account. At this stage, you will have access to most or all of the markets provided by the broker.
You can learn all there is to know about trading, place multiple positions with no financial risk, and get well-acquainted with navigating the platform. As mentioned in an earlier section, you should note whether the broker has an expiry time for the demo account as it may be automatically closed if you have not performed any trades after a while.