Forex Trading Demo Accounts

Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

A Forex demo account is a capital-risk-free account but risks misplaced confidence for manual traders. Traders can test the trading environments of brokers or try different trading strategies. It is also necessary to evaluate automated trading systems.

Read on to view my selected shortlist of the best Forex demo account brokers below, and tips on how to pick the best demo account and get the most out of it.

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Fully customizable and unlimited MT4/MT5 demo accounts
Quality research, including actionable trading signals & proprietary mobile app
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Unlimited MT4/MT5 demo accounts with customization options
Quality educational content for beginners
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Upgrades to the 30-day default time limit on the customizable MT4/MT5 accounts
Trading education & dedicated content on trading strategies
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Quality educational content
No minimum deposit requirement
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Seamless switching between demo and live trading within the web-based platform
Superb educational content

  • FXTM, Best all-around broker with high floating leverage and fast execution.
  • FP Markets, ECN trading with leverage up to 1:500.
  • Eightcap, Competitive pricing + excellent daily videos.
  • BlackBull Markets, Best ECN trading environment, with scalping and hedging.
  • AvaTrade, Highly regulated, choice of fixed or floating spreads.

Best Demo Brokers Comparison

< scroll for more details >
Regulators
CMA, CySEC, FCA, FSC Mauritius, FSCA ASIC, CySEC, FSCA ASIC, CySEC, FCA, SCB FMA, FSA ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID
Year Established
2011 2005 2009 2014 2006
Execution Type(s)
ECN/STP, Market Maker ECN/STP ECN/STP, Market Maker ECN/STP, No Dealing Desk Market Maker
Minimum Deposit
$500 $100 $100 $0 $100
Average Trading Cost EUR/USD
0.1 pips 1.1 pips 1.0 pips 1.3 pips 0.9 pips
Average Trading Cost GBP/USD
0.2 pips 1.4 pips 1.2 pips 2.0 pips 1.5 pips
Average Trading Cost Gold
$0.18 $0.21 $0.12 $0.90 $0.29
Trading Platform(s)
MetaTrader 4, MetaTrader 5, Proprietary platform MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based MetaTrader 4, MetaTrader 5, Trading View MetaTrader 4, MetaTrader 5, Trading View Other, MetaTrader 4, MetaTrader 5, Web-based+
Islamic Account
Negative Balance Protection
Visit Website Visit Website Visit Website Visit Website Visit Website

FXTM

5.0/5 in this category
In Summary
Best all-around broker with high floating leverage and fast execution

FXTM is a global broker specialising in CFDs and FX and was established in 2011. The company is considered reliable and trustworthy since it features regulation through the UK Financial Conduct Authority (FCA), as well as through Cypress Securities and Exchange Commission (CySEC). FXTM offers potential users several account options including live and demo account options. The FXTM Demo account offers traders a 100% risk-free trading environment and mimics their live trader accounts perfectly. The FXTM Demo account gives you all of the exact same features and financial instruments (including live quotes) that you would get when opening (or migrating to) an FXTM Live trader account.

FXTM Pros & Cons

Pros
  • Excellent commission-based Forex pricing environment and transparency

  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app

  • Quality market research and educational content for beginner traders

  • A highly regulated broker with a tier-1 license

Cons
  •  No cryptocurrencies and limited choice of commodities

FP Markets

5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500

Founded in 2005, FP Markets is a well-established and well-regulated CFD and forex broker based in Australia. The company is primarily regulated through the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC), with additional regulation through the Financial Services Authority of St. Vincent and the Grenadines. FP Markets offers plenty in terms of education tools such as their free demo account and eBook resources. Users are able to enjoy all of the tools and features of a live account, with an easy sign up process. However, it’s important to note that your demo account will only be available for 30 days from the time that you set it up.

FP Markets Pros & Cons
Pros
  • Choice of trading platforms and auxiliary trading tools

  • Very competitive cost structure and excellent asset selection

  • Low minimum deposit requirement and leverage of up to 1:500

  • Well-regulated and trustworthy

Cons
  • Availability of Iress geographically restricted

Eightcap

5.0/5 in this category
In Summary
Competitive pricing + excellent daily videos

While the Eightcap demo account has a default restriction of 30 days, traders can contact customer support to request necessary extensions, which unlock the full potential of demo trading. Eightcap offers complete flexibility during the account registration process for its MT4 and MT5 demo accounts, allowing traders to select parameters like account type, leverage, and demo account balance similar to planned live portfolios. It ensures that demo trading results are as close as possible to live accounts.

Eightcap also maintains quality educational content, allowing beginners to incorporate lessons while using Eightcap demo accounts for educational purposes, shortening the learning curve.

Pros
  • Low minimum deposit and high leverage of up to 1:500

  • Competitive cost structure

  • Excellent technology infrastructure and seasoned management team

  • Daily research and quality educational content

Cons
  • Limited leverage in some areas

BlackBull Markets

4.5/5 in this category
In Summary
Best ECN trading environment, with scalping and hedging

BlackBull Markets was founded in 2014 in New Zealand. Like many good demo account Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. It is regulated in New Zealand by the Financial Services Providers Register (FSPR). In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.

Pros
  • ECN/NDD execution model with deep liquidity

  • Institution-grade pricing for retail traders via proprietary price aggregation

  • ZuluTrade and Myfxbook for social trading

  • Leverage of up to 1:500

Cons
  •  Limited deposit options

AvaTrade

4.5/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade is one of the leading CFD and forex brokers in the world, and enjoys regulation in Ireland, Australia, Japan, South Africa, Abu Dhabi, British Virgin Islands, and Israel. First time users have the option of signing up for a live account or a free demo account. The demo account is very easy to set up, and offers all of the same features and tools that you would get when creating your live AvaTrade account. This includes all technical indicators and prices in real time. The AvaTrade Demo account equips users with $100,000 in virtual funds, allowing users to trade in real time and in a real world environment, and all trades are 100% risk-free.

AvaTrade Pros & Cons

Pros
  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

Cons
  • Trading costs competitive but nothing special

How to Find the Best Forex Trading Demo Account for You

The best Forex demo account is unlimited and without restrictions. It offers the same trading environment as a live account without the broker pressuring new traders to open a live trading account.

How to Open a Risk-Free Forex Demo Account

Almost all Forex and CFD brokers offer free demo accounts through their websites lasting at least 30 days. Usually, you must provide limited information to open the demo account, such as your email address, name, and telephone number.

Which Platforms Offer a Demo Account?

All commonly used trading platforms offer a demo account. Some proprietary alternatives may lack it, which depends on the broker.

Real Trading Account vs. Forex Demo Account

The most significant differences are the absence of trading psychology and false optimism. It can lead to counterproductive trading habits and losses in a live trading account.

Why Are Forex Practice Accounts So Important for Beginners?

They offer an opportunity to get to know a trading platform and a new trading environment. Traders can also test trading strategies, manual and automated ones.

Opening a Demo Account Helps You Choose a Broker

Trading a free demo Forex account can give you a partial exposure to the broker’s trading environment, such as the asset selection, policies and procedures, and the trading platform. It is likely that the quoted spreads, swap rates, and execution speeds will be less favorable in the broker’s real account.

Demo Account Alternatives

Traders may use pen and paper and conduct their testing that way. For learning purposes, a micro trading account with a $100 deposit remains the best choice.

Demo Accounts and Trading Psychology

To almost every trader, trading a Forex demo account and a live Forex real money account are two very different psychological experiences. As there is no real gain or risk possible in a demo account, the emotions of hope and fear that traders go through in the real market, cannot be fully replicated in a demo account. However, a Forex demo account still works as a learning tool, despite its psychological inauthenticity for most.

Demo Accounts and Account Size Management

Traders must select a demo account size that corresponds with their desired initial deposit to make the simulation realistic.

Moving from Demo to Real Money

After deciding on a broker, demo traders should take small steps. Using a micro or mini account with a small initial deposit is the smart next step to take. Patience holds the key to becoming a successful trader.

The Advantages of a Free Demo Account For Forex Trading

Understanding the advantages of a Forex demo account, also known as a practice trading account or paper trading, will allow traders to benefit from them. I recommend that new traders consider the below aspects:

  • A Forex demo account allows traders to test the trading environment of brokers.

  • It also offers an opportunity to experience the trading platform and learn its functionalities.

  • Another benefit is that traders can experience how trading costs impact profitability.

  • Traders can also test new strategies or tweak existing ones to see the difference.

  • A demo account is ideal for testing automated trading solutions before taking them live.

  • Developers use a Forex trading demo account to test their solutions and fix bugs.

The Disadvantages of a Trading Demo Account

Before blindly following the commonly accepted advice that one can learn how to trade in a demo account, I urge new traders to consider the below disadvantages.

  • It is impossible to simulate trading psychology, the most defining attribute that separates profitable traders from those who face losses.

  • The trading results of manual trading in a demo account will differ from those achieved in live trading.

  • A demo account creates a misleading sense of accomplishment and false confidence.

  • Most traders use a demo account and believe they learned how to trade, then make a deposit and lose money using the same approach, as trading psychology now takes control.

  • Many brokers do not offer traders to select a preferred account balance that reflects their desired deposit size. It adds to misleading trading results.

Final Thoughts

A demo account offers traders with a simulated trading environment, and the broker does not send placed orders to the market. Traders get exposure to price movements and trading costs without trading. It is ideal for new traders to experience how trading costs can impact profitability.

Forex demo trading is a great way to road test a Forex broker before making a deposit, and a useful tool to help you learn how to trade Forex profitably – all at zero risk, without having to deposit any real money or risk any losses.

Testing in the best demo trading account offers numerous benefits to all types of traders but learning how to trade is not one of them. The lack of exposure to trading psychology negates the learning process, as it remains the most defining part to master. A smarter choice to learn how to trade is a micro account with a small deposit and a 0.01 lot size.

FAQs

What is the best Forex demo account?

The best Forex demo account is unlimited and offers traders to select their account balance.

What is a demo account in Forex?

A demo account in Forex allows traders to test various aspects of the trading environment, trading strategies and automated trading solutions.

How do I open a Forex demo account?

Most brokers offer it on their website free of charge.

Which broker has the highest leverage in Australia?

There are several Forex and CFD brokers in Australia offering the highest leverage allowable under Australian law. The leverage is currently capped at a maximum of 30:1 for Forex currency pairs and 20:1 on other CFDs.

Can I use MT4 in Australia?

Yes, you can easily use MT4 as this trading platform is offered by almost every Forex and CFD broker in Australia, just as it is in the rest of the world.

Are Forex demo accounts safe?

Forex demo accounts are very safe because they hold no real money, but only virtual funds.

Can you withdraw money from a Forex demo account?

No, you cannot withdraw money from a Forex demo account, as demo accounts do not hold any real funds.

Are Forex demo accounts free?

Yes, Forex demo accounts are free, but registration is usually required to open one which means providing a telephone number and email address.

How do I start a demo trade?

Opening a demo trade is done through the trading platform which you are using to access the demo account. You open a trade by placing an order to go long or short at the market price, or at another price away from the current market price.

How long should I trade demo?

A good rule of thumb about how long you should trade demo is until you have been profitable over six consecutive months. At that point, you should move to a small real money account.

Is a demo account same as a real account?

Demo accounts and real accounts do not behave the same way. When you trade a real account, you and your broker are undertaking some risk, so wide spreads, slippage, or even requotes are possible. You will not see any of those three things happening in a demo account. A realistic trading simulator would include them.

Is demo trading accurate?

As trading conditions in real money accounts are always worse than in demo accounts, demo trading is not accurate as it tends to overestimate profits and underestimate losses. For scalping or other retail high-frequency trading, demo accounts are especially inaccurate, but longer-term traders who are profitable in demo.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.