Best Forex Demo Account 2019
FOREX (or foreign exchange) is a huge part of online trading with a massive daily turnover globally. When you trade in Forex, you are trading one currency against another. If you know where a currency is headed, you can hope to make a trade accordingly. Forex is a fluctuating and often volatile space, with currency pairs constantly on the move. That’s why a lot of brokers provide a demo account to traders to practice first without having to deposit funds. Demo accounts are excellent for beginners, or for traders that are new to the broker to test out their platform. It’s also great for intermediate or advanced traders that want to test out their strategies without first committing real capital.
Since Forex is such a huge industry, it makes sense to choose carefully from the available brokers online. There are a number of key features to consider when looking for a broker. We would look for reliability and a good history, plus ideally a strong regulation.
Our reviews are created by our own team of in house experts, who look at all the key factors that matter to traders. The following list is compiled based on the best brokers available that also offer a demo trading account.
The brokers below represent the best Demo accounts features
|Broker||Rating||Official Site||Regulations||Min Deposit||Max Leverage||Trading Platforms||Foundation Year||Publicly Traded||Trading Desk Type||Currencies||Commodities||Indices||Stocks||Crypto||Commission on trades||Fixed spreads||offers promotions||Official Site|
By 7 User Reviews
Your Capital is at Risk
ECN, Market Maker, No dealing desk, STP
Your Capital is at Risk
By 14 User Reviews
By 25 User Reviews
cTrader, MT4, MT5
By 28 User Reviews
90% of retail CFD accounts lose money
CySEC, FCA, FSC
90% of retail CFD accounts lose money
By 46 User Reviews
76.4% of retail CFD accounts lose money
ASIC, CySEC, FCA, FSB, ISA, MAS
No dealing desk
76.4% of retail CFD accounts lose money
By 15 User Reviews
70.96% of retail investor accounts lose money
AMF, ASIC, BaFin, CONSOB, FCA, FSB
No dealing desk
70.96% of retail investor accounts lose money
By 18 User Reviews
ActivTrader, MT4, MT5
No dealing desk
Here’s a list of The Best Demo Brokers
GO Markets Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC) of Australia and has been in operation since 2006. Their head office is located in Melbourne, Australia with offices in London, China, Taiwan and Hong Kong.
With over a decade of experience, GO Markets has grown to become a leading broker with a huge client base from over 150 countries. GO Markets offers forex, share CFDs, indices, metals and commodities for trading on the MT4 and MT5 trading platforms with a live or demo trading account. Check out our full Go Markets review here.
Alpari International is the business name of Exinity Limited, a company that is regulated by the Financial Services Commission (FSC) of the Republic of Mauritius. Clients of Alpari International can trade on more than 250 markets via Spot, CFDs and Futures across Forex, Stocks, Indices, Metals and Cryptocurrencies, on the MetaTrader 4 and MetaTrader 5 Desktop, Web and Mobile platforms.
The services and features offered by Alpari International are designed for both beginner and professional traders, with access to ECN, Pro accounts and demo trading accounts as well as their Alpari Copy Trading programme. Check out our full Alpari International review here.
OctaFX is a Forex and CFD broker with a focus on low, competitively priced spreads. It supports a wide range of popular trading platforms such as MT4, MT5, and cTrader. cTrader offers the lowest costs but does require a bit more experience. Novice traders are best starting off at OctaFX using MetaTrader 4, which supports micro accounts and demo trading accounts.
OctaFX supports 28 currency pairs with leverage up to 500:1 for currencies. Different leverage is available for metals, indices, and crypto trading. OctaFX was founded in 2011 and is based in and licensed in Saint Vincent and the Grenadines. Read our detailed review of OctaFX here.
FXTM, also known as ForexTime, is an ECN/STP broker that was established in 2011 and which is regulated by the UK’s Financial Conduct Authority, among others. CFDs are available on 50+ currency pairs including major, minor, and exotic pairs with the broker specialising in Forex focused trading platforms and tools, as well as demo trading accounts.
Spreads are competitive across all platforms with 24-hour trading open 5 days per week. FXTM is based in Cyprus and as well as being licensed by the FCA, they are also licenced with the International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission, and other regulators in and out of the EU. Check out our full FXTM review here.
Plus500 is a CFD trading platform, allowing users to trade across Forex, Stocks, Indices and Cryptocurrencies. This commission-free brokerage charges very low spread-rates and offers fast trades on a great platform. Plus500 supports complex trades, includes negative balance protection, and makes trading an educational and hopefully profitable venture.
You can start with a free demo trading account to test the platform and any trading strategy. Real money accounts offer leverage of up to 300:1. This broker is based in Israel and regulated by the Financial Conduct Authority (FCA) in the UK. Check out our full Plus500 review here.
Regulated By:AMF, ASIC, BaFin, CONSOB, FCA, FSB
Headquarters:0 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom
70.96% of retail investor accounts lose money70.96% of retail investor accounts lose money
Founded in 1999, the FXCM Group is an international online forex and CFD brokerage firm. In the UK, the FXCM brand is managed by FXCM Ltd and based in London. However, the brokerage firm also maintains offices in several jurisdictions such as Australia and South Africa.
FXCM focuses on catering to the trading needs of both beginner traders and experienced traders by offering the ability to trade on a wide variety of markets such as Forex, Indices, Cryptocurrencies and Commodities. They have a selection of trading platforms, including demo trading accounts, as well as in-depth education and market research. Check out our full FXCM review here.
ActivTrades is an online forex and CFDs broker that was established in 2001. They were originally based in Switzerland but later relocated to London in 2005. As a UK based financial services provider, they are authorized and regulated by the UK’s Financial Conduct Authority (FRN 434413)
ActiveTrades has a demo account for practice trading which gives you one-month free access to all Activtrades products.
Forex Trading Demo Account
Regardless of whether you are a beginner trader with no real world experience of using trading platforms or an experienced trader looking for a new broker, it is always best to start out by opening a Forex demo account where possible. First of all, a Forex demo account lets you try out the broker’s trading platform to see if it is to your liking. But more importantly, a Forex demo account lets you test out your trading knowledge in a totally risk free trading environment. In addition, it lets you try out all other services which the broker is offering. However to find the best forex demo account alone may require some patience as it entails you opening several demo forex accounts with a few different forex brokers. Otherwise you can take a look at our definitive list of best Forex Demo Account Brokers which we have evaluated based on a variety of factors including usability of the demo account, and broker integrity, plus additional broker offering.
What is a forex trading demo account?
A forex demo account is a trading account which allows the account holder to experience trading the forex market using virtual cash instead of real money. It is offered by most forex brokers to give potential clients a simulated experience of what it will be like trading the forex market. Due to the fact that the forex market is a decentralized market, most forex brokers have their own price feeds disseminated through their own trading platforms. Some of these trading platforms are proprietary and have their own specific strengths and weaknesses. Rather than letting their potential clients risk real money in learning the “ins” and “outs” of their trading platforms, forex demo accounts allow potential clients to become acquainted with the way each trading platform functions.
Are forex demo accounts accurate?
Because forex demo accounts are supposed to simulate how trading live will be feel like with a real money trading account, they are basically the same in every aspect as with a real account trading platform with the only exception being the fact that virtual cash is used to make a trade. The price quotes and charts used are as what the traders will be getting when they start to trade the forex market with real money.
How does a forex trading demo account work?
A forex demo account basically is designed to serve 2 primary purposes. First of all, it is meant to give potential clients a feel of how the broker’s trading platform will work. Secondly, it serves as a testing ground for experienced traders to test out their trading strategies before implementing the strategies in a live trading scenario.
What should you look for in a forex demo account?
As mentioned earlier, a demo trading account is supposed to serve as a demonstrator platform. Hence, the layout and various functionalities of the demo platform will be same as what traders will find when they switch to live trading. To properly evaluate a demo trading platform, you should check the demo platform for the following:
Basic Layout Vs. Integrated Layout
Different trading platforms have different ways of presenting the various functionalities of the trading platforms. For example, some trading platforms have a basic layout that focuses on mainly order entries, price quotes and transactions reporting.
Other trading platforms on the other hand may take a more integrated approach where the trading charts, price quotes and trade history are all displayed on a single trading screen.
The trading platform represents your gateway to the forex market. It allows you to buy and sell currency pairs based on the trading parameters that you specify or established. However in order for you to be able to properly gauge the performance of a trading platform, you must at least place a few dozen trades using the demo platform. By doing so, you will be able to be familiar with the way an order is being placed through the trading platform. In other words, it gives you a chance to answer questions such as:
- How to place limit orders
- How to set stop orders
- What are the lot sizes that you can trade with
- Whether it is possible to trade both standard lots and mini lots on the trading platform
- Whether the platform support both limit and stop orders simultaneously
- Whether the trading platform provides you with all the necessary tools to help you collect all the necessary information to make an informed trading decision
- Whether you will be trading with variable or fixed spreads
A typical order ticket on a forex broker demo account webtrader platform
The forex demo account is also an important tool which you can use to evaluate the reporting system of the trading platform. For most beginner traders, the reporting aspect of the trading platform is often overlooked since their primary focus is on how to execute trades. However, it should be remembered that the profits earned from trading the forex market can be liable for taxes. Tax liabilities are the sole responsibility of a trader. The forex broker who operates on an international scale does not provide any information on tax liabilities or handle any tax documentation on behalf of a trader since the tax laws differ from country to country.
Since the trader is required to provide all the necessary documentation to the relevant tax authority, the trader will rely heavily on the trading reports that are supplied by the broker. In order that the job of compiling all the necessary information for the tax authority is as easy as possible, you want the trading platform to be able to provide detailed trade histories in an organized manner. The way the information is reported by the trading platform could easily translate in hours spent trying to reconcile your tax report or simply a minute spent on printing it out. Hence, a platform that can help you to reconcile all the trades that you are going to make can be invaluable when you need to declare the income earned or losses made to the taxman.
How to open a forex demo account?
It is a standard practice in the online forex trading industry for brokers to offer a demo account to their potential clients. To make the process of acquiring a demo account as easy as possible, most brokers only require potential clients to register for the demo account with just a few basic details such as the name and email of the trader. The following diagram below shows the typical signup form which traders have to fill in to gain access to the demo account.
Which platforms offer demo account?
As to the question of which trading platforms offers a demo account, this depends very much on the individual brokers. Some forex brokers supply their clients with a choice of several types of trading platforms. In order to give their clients a proper overall view of the platforms that they offer, the demo account will permit the trader to try out all the different platforms from a single demo account. Nevertheless it should be noted most brokers will tend to conserve resources by allowing the demo account to conduct paper trades only on one specific trading platform.
Real money account vs. Demo account
Although forex demo accounts are able to provide traders with numerous benefits, they do have their own set of limitations.
- Foremost of all, forex demo accounts are not able to provide their users with the same emotional intensity when compared to trading with a real money account. One of the hardest things that a trader has to learn when trading forex is keeping their emotions in check. Hence because of the limitations of the demo account, the only way that a trader can learn to master his emotions is by trading with a real money account.
- Trading with a demo account for a substantial period can also lead to traders picking up new habits which can be extremely difficult to break once a trader starts to trade with a real money account. In fact bad trading habits among beginner traders is one of the primary causes of their failure.
- Another obvious limitation of the forex demo account is the fact that no matter how well you are doing on a demo account, you still won’t be able to generate any trading profits until you start trading live with a real money account.
Why are practice accounts so important for beginners?
Trading currencies is no child’s play. So while it can provide a trader with the opportunity for unlimited profits, it carries with it a enormous level of risk which all forex brokers are required by law to warn their clients about. The risks are increased exponentially when leveraged trading involved. In some cases, it is possible for a trader to lose more money than he initially deposited.
- Hence, it is crucial for beginner traders that they take advantage of the forex demo account as a learning tool as well as a platform for strategy testing.
- The beginner trader must use the demo account to help him learn how to operate the trading platform effectively.
- He must also use it to learn the foundations of trading and use that knowledge to further build on his trading strengths. In short, the demo account provides beginner traders with the necessary experience to help them learn how to limit their trading losses as well as to learn how to control their fears and greed.
- Finally it’s a great way to learn about a broker, by running through the sign up process, checking out the broker’s resources and even potentially speaking to them through live chat or over the phone.
7 tips for successful forex practice account use
In order for a forex demo account to be of any use, you must learn to treat it like a real account. By having such a frame of mind, this will help to ease your transition from a practice account to a live account at a later stage. Nevertheless, to help you get more out of your forex demo account, below are 7 tips on how to maximize the use of the forex demo account.
Familiarize yourself with the platform’s features such as the indicators and charts
Beginner traders often in their zeal to get started trading as soon as possible often neglect to familiarize themselves with all the various features of the trading platform. Instead of making the same mistakes, use the demo account to learn as much as possible of the capabilities of the trading platform. Commit sufficient time so you will be able to understand how the trading platform functions and use it capabilities to your trading advantage.
Testing All the Orders Types
With the risk free environment provided the demo account, use it test out all the trading orders that are supported by the trading platform. Test each order and see which is the best time to use them. For example for risk management, the main trading orders deployed are the “Take Profit” and “Stop Loss” orders. To use these trading orders effectively, learn how to calculate the optimum levels to set these trading orders.
Choosing the Right Leverage Level
With some brokers offering a leverage ratio as high as 1:500, one might be tempted to overtrade. Instead of taking on unnecessary risks, use the demo account to determine the right leverage ratio for your particular trading style. Knowing the right leverage ratio to use is a good risk management tactic especially when the market is extremely volatile.
Most forex brokers offer their traders a wide selection of currency pairs as well as different CFDs to trade with. The danger of having too many instruments to trade with is the fact that you might lose focus. Instead learn to focus your energy and concentration on a few pairs and learn how to master trading them using the demo account.
Determining the Correct Lot Size
Although the standard lot size in forex trading is 100,000 units, most forex brokers offer different trading account types which have different lot sizes that their traders can trade with. For example, the micro account lets traders trade in a lot size of 1000 units whereas the mini account let traders trade in a minimum lot size of 10,000 units. Use the demo account to help you determine what is the ideal lot size that you should trade with.
Trading Strategy Development
To be successful at forex trading, you need to have a trading strategy. Since every individual trader is different, there is no “one size fits all” trading strategy. Instead you need to develop your own trading strategy that will suit your trading personality as well as risk appetite.
Mastery of Emotions
While difficult to achieve with a demo account, the best way to learn how to control your emotions while trading without risking real money is still with the demo account. Learn to treat the demo account like it is a real money account and trade with an amount that you can actually afford. For example if you plan to start trading with $1,000 in real money, set your demo account starting capital with $1000 to give a sense of realism. Pay close attention to how you react to certain situations and learn to keep them in check.