Demo Forex Accounts

Anyone, even a newcomer to the financial markets, understands that forex trading is always risky. That's why we offer a Demo account - a free and extremely useful tool to help you test the functionality of the trading platform and test your strategies before applying them to real trading. 

What is a demo trading account?

A demo trading account is an account type that is fully funded with virtual capital, but still has all the same functions and technical indicators as a real account. This makes it a perfect tool for new traders, as you can use it to familiarize yourself with the trading platform and financial markets before trading with real money.

Related: Is Forex Multi-Level Marketing? (MLM Forex)

Why Choose a Demo Account?

Trading in a demo account can really help forex beginners who might otherwise have to learn how to trade forex using real money and the financial risks that come with it. While demo trading lacks the emotional rush involved in risking real funds, it does train you to watch the market. It can also give you a good feel for how exchange rates move without risking any real money.

Virtual trading removes the key psychological element involved in risk-taking that can make or break a trader. Even though it does not accurately assess your trading abilities, it can help you practice. You can also use demo account trading to assess the historical performance of your trade plan and train yourself to use a trading platform.

While you are learning how to trade in foreign currency, you are also learning how to read and interpret market fluctuations. Not only can you see the performance of your trades, but you can compare that performance to the global markets, current events and other factors that influence currency values. While research is key and you should study how successful investors manage their funds, this is a good place to start.

Basically, a forex demo account offers an educational tool for novices to begin trading forex and test their strategies in a real-time trading environment without taking the associated financial risks involved in trading a real money account.

Best Forex Demo Accounts

These days you have a lot of options to choose from among the various online forex brokers to trade currencies through, although traders based in the U.S. have fewer choices as a result of regulatory restrictions.

Below you will find Benzinga’s picks for the top forex and/or contract for difference (CFD) brokers that offer demo accounts in 5 key categories. You will also find details about each broker along with a screenshot of the trading platform you can check out via demo account trading. After deciding on a reputable broker, you can get in touch with them directly to open and start trading in a demo account.

Here’s a list of the best forex demo account and the top alternatives available right now.

1. eToro: https://www.etoro.com/
2. Plus500: https://www.plus500.com/
3. FXCM: https://www.fxcm.com/
4. IG: https://www.ig.com/en
5. AvaTrade: https://www.avatrade.com/
6. FBS: https://fbs.eu/en
7. EasyMarkets: https://www.easymarkets.com/int/
8. ETX Capital: https://www.etxcapital.com/en/home

Forex Demo Accounts for Beginners And Experienced Traders

FAQs

What is a forex demo account?

A forex demo account is a non-real trading account provided by a forex broker to a prospective trader. It is aimed at helping the trader gain a deeper understanding of the real trading market. And this happens in a risk-free environment where they don't have to risk their actual cash.

How does a demo forex account work?

It starts with opening a free demo account with your preferred broker who gives you free trading cash. They also present you with a platform – either the universal MT4 or proprietary trading area – where you enter into trades as if you were trading live. You will also get to win trades and lose others depending on the correctness of your analysis and the prevailing market conditions.

How can I open a forex demo account?

Different brokers have different rules when it comes to opening a forex demo account. Some will need you to open a real account alongside the demo. While others demand that the demo be opened and run a separate entity. The bottom line, however, is that a demo account should be free.

For how long can I trade on a forex demo account?

This depends on your preferred broker’s policy. Looking at our list of best demo brokers, however, you realize most – like Go Markets – give you 30-day trial free trial period while others – like PLUS 500 - allow for the unlimited use of the account and its virtual currencies.

What is the difference between a demo and a real money forex account?

There are several distinct differences between a demo and a real forex account. The two most significant however involve the type of currency and the trading data. A demo account uses virtual ‘fake’ currency to enter into trades that use recorded trade data. This implies that trading in a demo environment carries no risk. A real trading account, on the other hand, draws its name from the fact that it uses both real cash and live forex market data to enter and into trades.

Do all forex brokerage firms offer demo account services?

Yes, it is the unwritten rule of the thumb that every reputable brokerage firm gives its clients an opportunity to trade in a risk-free environment. Otherwise, how would you test the broker’s efficiency or learn about their trading features. There is however no standard time or volume of trades that the broker should give their demo traders. It is at the broker's discretion to determine whether to provide 30-day, 60-day or unlimited demo accounts.

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