Best Forex Demo Account Brokers

Demo accounts remain a controversial topic, and a Forex demo account is no exception. The majority favors them as an educational tool, while a growing minority of profitable traders advises against it.  We have researched hundreds of brokers and identified some of the best Forex demo account brokers below.

1
FXTM
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.
Best all around broker
High floating leverage + fast execution
2
FP Markets
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.
ECN-style trading
Daily market research and Autochartist access
3
AvaTrade
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.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
4
Plus500
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.
Best platform for new Forex traders
Trailing stop losses
5
eToro
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.
Best social trading platform on the market
Excellent choice of options for crypto traders

FXTM
5.0/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

We have made FXTM our top-rated broker because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.

Unique Features

Headquarters

Cyprus

Regulation

CySEC, FCA, FSC, CMA

Year Founded

2011

Type of Broker

Instant/Market Execution

Minimum Deposit

$10

Maximum Leverage

Flexible

Type of Platform

MetaTrader 4, MetaTrader 5

FXTM, or “ForexTime”, has been around for a long time: they were founded in 2011. Recent years have seen them continue to steadily expand their business, and they are well- regulated by the U.K., Cyprus, Mauritius, and South Africa. The brand is owned by private companies incorporated in the U.K., Cyprus, and Mauritius. Customers of FXTM have access to more than 57 Forex currency pairs and crosses, precious metals, the major energies, equity indices, big cryptocurrencies, and a few individual American stocks. Talking of stocks, FXTM are quite unique in the area of trading stocks, as they enable direct trading through real legal ownership, not just wrapped as CFDs like almost every other similar brokerage offers.

FXTM offers traders a choice between two of the most popular execution models: customers may open either an ECN-type account, or one that trades by “straight-through processing”. Clients have a straight choice between two trading platforms, with both MetaTrader 4 and MetaTrader 5 on offer.

Through their Mauritius regulator, FXTM offer leverage as high as 1000 to 1. In the U.K. and Cyprus, they are limited by law from offering more than 30 to 1.

If you are looking for a broker with a good copy trading program, it is worth taking a serious look at FXTM’s “FXTM Invest” copy trading program.

FXTM Pros & Cons

Pros

Cons

Excellent client deposit protection

No cryptocurrencies or exotic currencies

 

Low minimum deposit

Low leverage for retail traders

 

Free MT4 add-ons and VPS hosting

Internal withdrawal fees and an inactivity fee

Good educational tools

 

 

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

fpmarkets is an Australian brokerage which launched in 2005. Headquartered in Sydney, Australia’s financial capitol, they have carved out a solid niche for themselves as the best Forex / CFD broker enjoying ASIC regulation. Australian regulators are much more relaxed about leverage than their counterparts in the U.S.A., U.K., and the E.U. and so fpmarkets can offer a maximum leverage as high as 500 to 1.

For most traders, the standout unique selling point of this broker lies in the incredibly wide range of tradable assets offered, providing an opportunity to trade over ten thousand individual stocks and shares. These go beyond the typical U.S.A. and U.K. companies and include a good selection of publicly traded shares on the Hong Kong and Sydney exchanges, as you might expect from an Australasian-facing broker like fpmarkets. Also, over 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin are also on the menu here.

Unique Features

Headquarters

Australia

Regulation

CySEC, ASIC

Year Founded

2005

Type of Broker

No Dealing Desk

Minimum Deposit

$100

Maximum Leverage

1:500

Type of Platform

MetaTrader 4, MetaTrader 5, IRESS

They offer an unusual hybrid ECN/STP execution model which means that their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.

 

Traders can scalp and hedge at this broker, whose fast ECN execution speed makes it a natural home for scalpers. Clients may choose between the MetaTrader 4 and MetaTrader 5 platforms, and shares can be traded through the IRESS trading platform which includes access to level 2 exchange data.

Pros

Cons

Choice of trading platforms and auxiliary
trading tools

Availability of Iress geographically restricted

Very competitive cost structure and excellent asset selection

Limited commodities and metals selection

Low minimum deposit requirement and
leverage of up to 1:500
 
Well-regulated and trustworthy

 

AvaTrade
5.0/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade was founded in 2006 in Dublin, Ireland. They are one of the largest and most famous Forex / CFD brokers in the world and became well-known for offering their clients a choice of fixed or floating spread cost of trading models. They enjoy an extremely high and strong level of regulation, making them a favorite for traders who are extremely nervous about the security of their deposit, which in Ireland can be protected by a strong investor deposit protection provision. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava’s maximum leverage offered runs as high as 400 to 1.

Unique Features

Headquarters

Ireland

Year Founded

2006

Type of Broker

ECN/STP

Minimum Deposit

$100

Maximum Leverage

1:400

Type of Platform

MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based

In addition to their longevity and safe reputation, clients know that through AvaTrade they have access to a broad range of asset classes through which diversification can be achieved successfully: AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. Even better, and unusually, 2 bonds and 6 ETFs are also on the menu. The diversity offered here stands out.

Whether you are located within the European Union or not, all branches of AvaTrade will offer you negative balance protection, above and beyond what is mandated by the law. This means that under no circumstances will any client of AvaTrade ever be held liable by the firm for an amount larger than their deposit.

 

AvaTrade Pros & Cons

 

Pros

Cons

Well-regulated globally, with the Bank of Ireland, the primary regulator

Low leverage for retail traders

 

Low minimum deposit and in-depth educational tools

High quarterly inactivity fee

 

Wide asset choice across seven sectors

Unacceptable cost for AvaProtect

 

Superior mobile trading platform

 

 

Plus500
4.5/5 in this category
In Summary
Wide range of CFDs + trailing stop losses

Plus 500 offers a wide choice of Forex pairs and non-Forex assets as commission-free CFDs. While this broker neither supports automated trading solutions nor social trading, manual traders have a clean user-interface, guaranteed stop-loss orders at an additional cost, alerts on price movements, and a trader sentiment indicator. This FTSE 250 listed broker maintains a safe and secure trading environment and offers a wide range of equity CFDs and an extensive selection of options contracts, allowing more sophisticated trading strategies. Plus 500 takes an opportunistic approach to Bitcoin and cryptocurrencies, offering a choice of 14 crypto pairs for traders.

Unique Features

Headquarters

Israel

Regulation

CySEC, FCA, ASIC, FMA, FSB, MAS

Year Founded

2008

Type of Broker

Market Maker

Minimum Deposit

$100

Maximum Leverage

1:30

Type of Platform

Proprietary platform, Web-based

Traders using smartphones or tablets will feel at home at Plus 500, where a report suggests mobile devices account for over 40% of all executed trades. Plus 500 does not offer in-house research and does not source it from third-parties, while the limited educational content is below average. It does maintain a News and Market Insights section, where it uploads commentary several times per week, but not necessarily daily. Despite its few shortfalls, it remains a highly ranked CFD provider on Google Play and Apple App Store, particularly with millennial traders.

 

Plus500 Pros & Cons

Pros

Cons

Well-regulated globally

Low leverage for retail traders

 

Broad asset selection in equities and options

Sub-standard trading platform without support for automated or social trading

Guaranteed stop-loss order

No research and limited, below-average educational content

 

Lack of trading tools

 

eToro
4.5/5 in this category
In Summary
Best broker for social traders and crypto traders : 75% of retail CFD accounts lose money

eToro was founded in the early days of the online retail Forex era, in 2007 – this broker occupies a unique space as the king of social and copy trading. eToro has a long track record and unique reputation to protect, although this image is more focused on its copy trading model than on any other individual feature, except maybe its special relationship with cryptocurrencies. 

Unique Features

Headquarters

Cyprus

Regulation

CySEC, FCA, ASIC

Year Founded

2007

Type of Broker

Market Maker

Minimum Deposit

$200

Maximum Leverage

1:30

Type of Platform

Proprietary platform

eToro is regulated in Cyprus, the U.K., Australia, and the United States although its U.S. offering is firmly differentiated from its offering to the rest of the world.  

eToro guarantees several benefits to anyone opening an Islamic account: no rollover interest or commissions on any trade contracts lasting for longer than 24 hours will be charged, and no commissions or fees are charged to Islamic accounts for account management. Notably, interest-free leverage is also offered to Islamic account holders. 

eToro is a leading cryptocurrencies CFD broker. Following its 2019 acquisition of Danish blockchain company Firmo and Belgian crypto portfolio tracker application Delta, it released its cryptocurrency wallet for mobile devices. The proprietary sentiment indicator for digital assets based on Twitter activity presents a social trading tool millennials favor.

eToro Pros & Cons

Pros

Cons

Excellent equity asset selection and broad cryptocurrency choices

Low leverage and higher minimum deposit

 

Cryptocurrency wallet for Android and iOS

MT4 trading platform not supported

 

Twitter-based digital asset sentiment indicator

Internal withdrawal fees plus higher

core trading costs

Simple social trading procedure

Below average educational resources

 

Using a demo account to learn how to trade is like playing a flight simulator and believing it will teach one how to fly a plane. There are beneficial uses of a Forex demo account. They include testing a trading environment. It is also ideal for evaluating automated trading solutions and for trying new strategies. Developers also use demo accounts to identify errors and fix bugs. New traders who wish to practice trading with a free demo Forex account should select an account size like their planned live deposit. They must also understand that trading in a demo environment and live markets is different.

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.

What is a Forex Trading Demo Account?

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.

Are Forex Demo Accounts Accurate?

Most brokers aim to simulate live trading as close as possible but trading psychology will always remain missing from the equation. Therefore, even the trading results in the best demo trading account will not display accuracy unless traders tested an automated trading system.

How Does a Forex Trading Demo Account Work?

It offers traders 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.

The Advantages of a Forex Demo Account

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 Forex 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.

What You Should Look for in a Forex Demo Account

A Forex demo account should reflect a live trading account as closely as possible and should be unlimited.

Basic Layout vs. Integrated Layout 

Traders can experience both and learn why most profitable traders prefer an integrated layout.

Orders Placement

A demo account allows traders to understand the different order types and how to use them.

Trade Reports

Trade reports offer a detailed analysis of placed trades and allow traders to fine-tune trading strategies.

How to Open a Risk-Free Forex Demo Account

Almost all brokers offer it as an option on their website and require limited information.

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.

Tips for Successful Forex Practice Account Use

Here are some tips to get the most benefit from a practice trading account:

  • Testing all order types allows traders to pick the ones most suitable for their strategy.
  • Familiarity with the platform's features remains a requirement before trading live.
  • Leverage level selection will display the importance of risk management. It also aids in the fine-tuning of a trading strategy.
  • Instrument selection offers traders to learn the importance of cross-asset diversification.
  • Lot size management is one of the most underappreciated aspects of trading.
  • Trading strategy testing, evaluating, and fine-tuning in a demo account remains one of the most-used reasons why experienced traders maintain a demo 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

A Forex demo trading account cannot expose new traders to trading psychology, and therefore fails as a learning tool.

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.

Opening a Demo Account Helps You Choose a Broker

Trading in a free demo Forex account grants trader’s exposure to the trading environment of the broker. It includes execution speed, spreads, swap rates and asset selection.

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.

Final Thoughts

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.

Huzefa Hamid

I’m a retail Forex trader and I exclusively use Technical Analysis to trade. I believe that Technical Analysis offers the cleanest way to predict the future direction of price movements. The fundamentals and news create the market sentiment and emotions, and that in turn is reflected in the price chart. Your bet as a trader is not on the fundamentals – it’s on what happens to the price as a result of those fundamentals.