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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.
Thats 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.
Its 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
Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.
Headquarters:Level 22, 600 Bourke Street, Melbourne, VIC 3000, Australia
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.
GO Markets is a regulated brokerage entity, which is a factor that ensures transparent trading conditions.
Ultra fast trade executions courtesy of innovative technology and powerful servers located in London.
Availability of trading and analysis tools like Autochartist and Trading central.
Clients from over 35 countries are not accepted, which is a lot.
No traders contests, welcome bonus and other promos.
Only two account types available for all traders.
The Broker offers a diverse range of trading instruments such as shares, FX pairs, indices, cryptocurrencies, commodities, and treasuries. These instruments total to over 10,000. Known for its exceptional bespoke trading platform, the company attracts all types of traders, both newbies, and veteran traders. Besides the trading platform, the broker claims to offer reliable customer support, competitive spreads, fast deposit and withdrawal times and much more.
Headquarters:Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St. Vincent and the Grenadines
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.
Headquarters:1 Fore Street, EC2Y 9DT, London, United Kingdom
Tickmill offers various deposit options, all of which are based on fiat currency. Cryptocurrency-based deposits are not supported.
Tickmills business model is that of an NDD broker that means a Non-Dealing Desk broker. Rather than taking on the other side of the trades themselves they pass them on to third party liquidity providers, who provide the liquidity and take the exposure. This means that Tickmill never has a conflict of interest with their clients.
Headquarters:First Floor, First St. Vincent Bank Ltd Building, P.O. Box 1574, James Street, Kingstown, St. Vincent & the Grenadines
NBHM has solid roots in gold trading and investment and is the only brokerage firm with gold-backed stability offered by the National Bullion House.
The broker offers leverage up to 1:500 across a range of different asset classes including Forex, CFDs, Cash Indices, Precious Metals and Commodities. Clients can choose from three account types called Standard, Pro and Elite which can be funded with USD currency.
The account types offer a range of commission-free and fee-based trading using the MetaTrader 4 and the MetaTrader5 trading platforms.
Can trade on MetaTrader 4 or MetaTrader 5 trading platforms.
Forex, Indices, Precious Metals and Energies available to trade on.
The minimum bank wire transfer amount is $25,000
Regulated By:BaFin, CNMV in Spain, CySEC, FCA, IFSC
Headquarters:Level 34, One Canada Square, Canary Wharf, E14 5AA, London, United Kingdom
XTB is an award-winning CFD platform that supports Forex, indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies. For Forex, XTB supports 48 currency pairs with low-cost spreads. Customers of XTB can choose between trading on the xStation 5 or MT4 platforms. For leverage accounts, this brokerage offers leverage of up to 200:1.
Stock and ETF CFDs all attract a fixed commission of 0.08% per lot across the two types of accounts.
XTB was founded in 2002 with headquarters in Warsaw. It is regulated in markets across Europe by the IFSC, FCA, KNF, and CySec. XTB has a free demo account and a Trading Academy set of courses for beginner and intermediate traders.
Choose between two excellent trading platforms (xStation 5 or MT4 platforms)
A collection of 3000+ trading instruments across six asset classes
Headquarters:Building 25, MATAM, Haifa, Israel
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.
Headquarters:1 Thomas More Square London E1W 1YN United Kingdom
ActivTrades was founded in 2001 and was recognised by the Sunday Times Fast Track 100 as the 90th fastest growing company in the UK for 2017. The company is regulated by the UK Financial Conduct Authority (FCA), as well as the Securities Commission of the Bahamas and offers CFD and Spread Betting trading accounts with direct execution (non-dealing desk).
Segregated client funds and additional insurance protections.
500+ tradable assets across Forex, Indices, Shares, Commodities, ETFs and Cryptocurrencies.
Free advanced trading tools such as Smart Pattern, Smart Order and Smart Forecast.
Regulated By:AMF, ASIC, BaFin, CONSOB, FCA, FSB
Headquarters:0 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom
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.
Headquarters:FXTM Tower, 35 Lamprou Konstantara, Kato Polemidia, 4156, Limassol, Cyprus
FXTM, also known as ForexTime, is an ECN/STP broker that was established in 2011 and which is regulated by the UKs 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.
Support for 250+ products to trade across global markets, including Forex, commodities, shares, indices and cryptocurrency CFDs
MetaTrader 4 and MetaTrader 5 platform support
How to Choose the Best 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 brokers 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.
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.
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.
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 brokers 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.
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:
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:
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.
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.
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.
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 wont 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 childs 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 its a great way to learn about a broker, by running through the sign up process, checking out the brokers 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.
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.
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.
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.
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.
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.
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.
The Full Guide to Day Trading Using MetaTrader 5 (MT5)
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