Best Forex Demo Accounts for 2024 • Trade Forex • Benzinga - Benzinga
Trading forex in a demo account offers a great way to get started operating in the world's largest financial market. Forex demo accounts let you practice different trading strategies without risking any real money. They also allow you to test out the functionality of different brokers before committing to one.
In this article, Benzinga discusses the best forex demo accounts available in the market. Whether you are a novice trader looking to hone your skills or an experienced trader wanting to try out new strategies, a demo account can be a valuable tool in your trading arsenal. So let's explore the top options and find the perfect fit for your trading needs.
Quick Look: Best Forex Demo Trading Accounts
Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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 strict U.S. regulatory restrictions that often discourage online brokers from participating in that market.
Below you will find the top forex, contract for difference (CFD) and/or spread betting brokers that offer a trading demo account in 8 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.
1. Best Overall: FOREX.com
Best For:
U.S. and Global Forex Traders
securely through Forex.com's website
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account
FOREX.com offers a demo trading account to prospective clients and ranks as the best forex broker overall. You can practice trading up to 80 currency pairs on FOREX.com's advanced trading platforms, even if you live in the U.S.
Non-U.S. residents can also use the popular MetaTrader platform that allows you to automate your trading plans and backtest new strategies. You can check out Benzinga's FOREX.com Review for more information about this excellent broker.
- Available for forex trader in the U.S.
- You can use this platform to make the most of your portfolio and improve it quickly
- You can also study how the forex market works before you ever invest
- Excellent educational resources
- You may feel as though there's too much going on on this platform, especially if you're a newer investor
2. Best for Unlimited Demo Time: Plus500
Plus500 (86% of retail CFD accounts lose money) is a specialist CFD broker and offers CFD trading for stocks, forex, commodities, exchange-traded funds (ETFs), options, indices and cryptocurrencies. It provides a portfolio of over 2,000 instruments.
Plus500 has over 1,000 assets available for trading in a demo account that includes 70 forex currency pairs, as well as stocks, cryptocurrencies, exchange-traded funds (ETFs), indices and options. The broker does not accept U.S. clients.
Plus500 desktop and mobile trading platforms have an intuitive interface that both novices and experienced traders will find very accessible to use for demo account trading. The broker also offers unlimited time on its demo accounts, which makes them ideal for building a long-term performance track record.
- Uniquely, Plus500 allows you to invest in futures, forex and more
- You can use the platform to grow a portfolio that includes all the assets most investors would prefer
- Not all trading tools may be available in your jurisdiction
3. Best for Trading Experience: Pepperstone
Best For:
Trading Experience
securely through Pepperstone FX's website
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Well-regulated and offering the best trading experience, Pepperstone is a place where you can learn to trade in a unique demo account setup. You can try algo trading, Autochartist, API trading and more strategies if you like. This means that you can test your trading plans in a demo account and decide what's best for you when you plan to invest your money fully.
Once you get started, you can go in with no minimum deposit, try over 60 currency pairs and invest on the platform that's right for you, like MT4, MT5, cTrader, web trading, the mobile app and more.
- You can trade on a platform that makes sense to you
- Algo trading, API trading, etc are all available to you so that you can choose the right strategy
- Demo accounts on this platform help you practice
- You may prefer to practice trading somewhere else
4. Best for Copy Trading: eToro
Best For:
Copy Trading
securely through eToro Forex's website
CFD trading is not available to U.S. users. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
eToro specializes in social or copy trading that allows you to follow and duplicate in your own account the trades of expert traders who have an established track record with proven profitability.
eToro also lets you trade more than 2,000 different assets in a demo account, and virtually any trader should find its intuitive forex platforms and apps easy to use, although it does not support the popular MetaTrader platforms.
eToro also has excellent educational resources and it accepts U.S. residents of most states as clients.
- eToro makes it easier to learn before you invest
- You can get started with little money and without a long setup process
- Yes, eToro allows you to start simply and with low minimums, but the platform may not align with your personal strategy
Disclaimer: 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
5. Best for Forex Traders Who Want Choices in Trading Markets: FxPro
Best For:
Excellent Trading Conditions
securely through FxPro International's website
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FxPro offers traders access to the forex and contracts for difference (CFD) market where they can access hundreds of assets, including forex, metals, indices, shares and cryptocurrencies. Their demo account comes with no financial risk and real-time pricing allowing you to try different strategies and test all of the functionality the platform has.
There are 8 base currencies. You save money because there are no account or transaction fees. Inactivity fees only apply after 6 months of no trading, and there are no commissions along with tight spreads. Finally, the platforms' customer support team works 24/5 and offers service in multiple languages.
- MT4 and 5 access
- Multilingual support
- Great educational resources
- Leverage up to 500:1
- Great customer support
- Exclusive trading tools, news and analysis
- You may want to invest in more types of assets
- 180-day life span (one demo account is active only for 180 day)
6. Best for High Volume Traders: Tickmill
Tickmill's forex demo account is a valuable tool for traders looking to practice their skills in the world of currency trading. Tickmill's demo account provides a realistic trading environment with live market data, allowing traders to practice their strategies without risking real money. One of the significant advantages is that traders can gain experience and test their trading strategies without any financial risk. It's an excellent platform for beginners to get started.
Tickmill offers a wide range of trading instruments, including forex currency pairs, commodities, and indices, which allows traders to explore various markets and assets. The platform is user-friendly and intuitive, making it suitable for traders of all levels. It's easy to navigate and offers various trading tools and indicators.
- Realistic trading environment
- No financial risk
- Multiple trading instruments are available
- User-friendly platform
- Great educational resources
- Limited customer support
- Limited tradable assets compared to other brokers
7. Best for Multiple Trading Platforms: IG Markets
Best For:
Forex Execution
securely through IG Markets's website
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
IG Group is a comprehensive online forex and CFD broker that offers full access to the currency market via multiple trading platforms and supports trading in almost 90 currency pairs. The broker does take U.S. customers and requires a $250 minimum deposit to open a live account. For those learning how to trade currencies, IG offers free online courses, webinars and seminars as part of its IG Academy.
Novice traders will like IG's intuitive mobile, web and desktop platforms that are available to demo account users and include the popular MetaTrader 4 suite. More experienced traders will appreciate the platform's wide choice of technical indicators and charting tools, including its ProRealTime online charting software aimed at advanced technical traders.
While IG could improve its customer service, the broker offers tight dealing spreads and can suit traders who prefer a streamlined interface and/or like to trade on a tablet device.
- Available for forex trader in the U.S.
- You can easily start on this platform and invest in a range of unique assets
- You can learn how to trade before getting started
- There are several trading platforms available
- This platform may not work well for the type of trading you prefer to do
8. Best for Virtual Funding Amount: AvaTrade
If you want a substantial amount of virtual money to practice trading with, then AvaTrade offers an impressive sum of $100,000 to initially fund your demo account.
That makes this broker our top pick from a virtual funding standpoint.
AvaTrade also excels when it comes to the number and variety of trading platforms supported, which include MetaTrader, ZuluTrade and an impressive forex and options trading platform called AvaOptions.
- You can mix options and forex as you learn
- You can learn as you go so that you're not investing until you're ready to start
- You may not prefer to use this mobile app given its design
9. Best for Beginners: Capital.com
Best For:
Market-Leading Spreads
Disclaimer: 84% of retail CFD accounts lose money.
80.84% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Capital.com is regulated by the Securities and Commodities Authority.
Capital.com is an award-winning CFD broker offering over 6,000 tradable assets including almost 140 currency pairs and numerous cryptocurrencies. You can also enter into spread bets if you're a U.K. client, and those from the U.K and some EU countries can buy shares in major companies.
Capital.com offers mobile apps, and commission-free trading on decent dealing spreads. If you're just starting out as a forex trader, then you will really appreciate the broker's 24/7 customer service and its extensive offering of trading guides and other educational materials, so this broker is our top choice for beginners to open a demo account with.
- There's a massive number of currency pairs which can easily help diversify your portfolio
- You can use this platform to build watchlists that help you keep track of your future investing plans
- Remember that CFDs are not legal in the U.S. and may not be available where you live
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 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. A demo trading account can also be useful to practice in and improve your trading skills in different market conditions.
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.
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.
Risk and Reward in Currency Trading
Forex traders make money just like stock traders do by taking positions that rise in value. They can also lose money by taking positions that depreciate in value. When trading positions remain open, any profits or losses stay unrealized, but they become realized when the position is closed out.
Almost all online forex brokers let traders increase the risk they can take and potentially magnify their profits by leveraging. Leverage is generally expressed as a ratio of the size of the position you can control when you place 1 base currency unit on a deposit to use as margin. A 200:1 leverage ratio, therefore, means you can control a $200 position by placing just $1 on deposit as margin.
To trade successfully, typically only consider making transactions that meet a certain minimum risk/reward ratio that you find acceptable. For instance, you could risk 100 pips on 1 trade to potentially gain 300 pips if your market view turns out to be correct. This results in an estimated risk/reward ratio of 100:300 or 1:3 on that trade.
No matter what you decide to do, you must be prepared to lose all the money you put up as margin when trading forex, so do not trade with funds you cannot afford to lose. If you are mentally prepared for a loss, you will not be shocked if a trade doesn't work out. Keeping mentally prepared lets you think through all your options instead of viewing the forex market as a get-rich-quick scheme, which it most definitely is not since most retail traders lose money.
A demo account gives you a real-time accounting of the profits and losses on your simulated trading positions without you incurring any actual financial risk or rewards. Ultimately, it is the best way to learn how to trade forex by practicing in a risk-free environment.
Opening a Demo Account Helps You Choose a Forex Broker
Selecting the right forex broker is one of the most important decisions you will make as a forex trader, so choose wisely. In addition to finding one that fits your trading requirements, you'll also want a reliable and reputable broker that submits to a strong regulatory agency for oversight.
Opening a forex trading demo account with any online broker that you would consider using makes total sense. You can use a demo trading account to learn how to use the broker's trading platform to practice trading and test out new trading strategies in a real-time trading environment without the risk of actual financial loss.
Best For:
U.S. and Global Forex Traders
securely through Forex.com's website
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account
Best For:
CFD Trading for Mobile Users
securely through Plus500 Forex's website
Best For:
CFD Trading
securely through City Index's website
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Best For:
Fixed Spreads
securely through FxGlory's website
Best For:
Non U.S. Forex & CFD Traders
securely through AvaTrade's website
Best For:
Copy Trading
securely through eToro Forex's website
CFD trading is not available to U.S. users. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Frequently Asked Questions
A
Forex demo accounts allow you to practice trading currency pairs in a real-time environment using actual market exchange rates. The main deficit with demo account trading is that you are not risking actual money, so your emotional responses may differ from those you experience in a live trading scenario.
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Yes, most forex brokers offer free demo accounts for users to practice trading with virtual money before they start trading with real funds. This allows traders to familiarize themselves with the platform and test their strategies without any financial risk.
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FOREX.com, AvaTrade, IG Markets and Plus500 offer good demo accounts suitable for most purposes. Beginners will probably find eToro and Capital.com easiest to use for demo account trading.
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