Excellent choice of trading platforms with dedicated support for algorithmic trading
Deep liquidity, transparent order executions, and monthly slippage statistics
Low-cost commission-based cost structure with a volume-based rebate program
Quality research and education via FXCM Plus
Somewhat limited asset selection
FXCM Demo Account Features
The FXCM demo account allows beginners to evaluate the trading environment. Seasoned traders test and tweak new or existing strategies, while copy traders can follow and compare signal providers. Algorithmic traders use it to bug-fix trading strategies and solutions.
FXCM Demo Account Overview at a Glance
FXCM Demo Account
Unlimited (expires after 30 days of inactivity)
MT4, Trading Station, TSWeb, TSMobile
Customizable (requires contacting customer support)
Algorithmic trading (EAs) enabled.
Customizable (the default balance is $20,000 to $50,000)
Number of FXCM demo accounts
How to Open an FXCM Demo Account: Step-by-Step Procedure
Opening an FXCM demo account can take less than 15 seconds. Follow our step-by-step guide below, and you should be able to log into your FXCM demo account with the last step.
Here is how you open your FXCM demo account:
1. Go to the FXCM website and click “Try Demo” in the top right corner of the homepage.
2. The form only asks for a valid e-mail address and country of residence. Traders may offer their consent, revocable at any time, to receive both educational and marketing material from FXCM. Please read the demo disclaimer by clicking the link under the blue “Trade Now” button, which results in a one-paragraph pop-up.
3. Clicking “Trade Now” opens a demo account for the FXCM Trading Station platform with fixed leverage and a balance between $20,000 and $50,000, dependent on the operating subsidiary and geographic location of traders.
4. Traders can open an MT4 FXCM demo account by clicking “Trading” in the top menu bar, navigating to “Platforms,” selecting “MetaTrader 4,” and choosing “Free Practice Account.”
- Traders must contact customer support to change the leverage and balance settings, which should reflect planned live deposits to create a more realistic experience.
How to Use the FXCM Demo Account
The following tips ensure traders get the most from their FXCM demo trading experience while avoiding some of the shortfalls.
Tips on using the FXCM demo account:
- Select FXCM demo account settings similar to planned live portfolios.
- Trade lot sizes appropriate to the demo balance.
- Use the demo account daily or the frequency planned for live trading.
- Never simply replenish the demo account after facing losses, without considering if you would do so with your live portfolio.
- Deploy various risk management settings to identify the most suitable one and avoid excessive risk-taking.
- Consider the demo account limitations, like the change in trading psychology that kicks in when real money is at stake.
- Tweak and test strategies, gather trade data, and compare performances.
- Algorithmic traders should evaluate EAs for several months as most work for short periods before accumulating losses.
- Before committing capital to signal providers, copy traders should evaluate them for a few months.
Differences between Live and Demo Accounts with FXCM
Successful trading requires mastering various aspects of trading in live trading conditions, which a demo account cannot accurately simulate. Demo traders must understand that its vastly different dealing with the mental impact of profits and losses of their live deposits.
The primary differences between live and demo accounts are:
- The FXCM demo account cannot simulate trading psychology factors, which separates up to 90% of unprofitable traders from the profitable ones.
- No slippage, profits, and losses, as no actual trading occurs.
- Demo trading can build a false sense of accomplishment.
- Many traders face live portfolio losses following profitable demo trading amid the relationship between trading psychology and how it influences trading.
- It is impossible to gain complete trading experience in demo accounts, which serve other valuable purposes, but there is no substitute for trading, earning, and losing real money in live trading conditions.
Pros and Cons of the FXCM Demo Account
Before registering for the free FXCM demo account, traders should consider its pros and cons. It will ensure demo traders use the FXCM demo account properly, avoid its shortfalls, and get the most valuable demo trading experience.
The pros of the FXCM demo account are:
- Fast registration process, which takes less than 15 seconds to complete.
- No time restrictions if traders use the FXCM demo account (FXCM deletes demo accounts inactive for 30 days)
- Fully customizable (traders must contact customer support to customize the FXCM demo account)
- Algorithmic trading allowed.
- Evaluation of copy traders and signal providers
- Choice of trading instruments
- Availability of trading platforms and accounts
The cons of the FXCM demo account are:
- High default balance
- Lack of exposure to trading psychology
- False sense of security and accomplishment
- May promote reckless trading, unrealistic expectations, and a wrong mentality.
FXCM Demo Account Bottom Line
The FXCM demo account has a high default balance of $20,000 to $50,000. Fortunately, traders can contact customer support to reset the balance and leverage settings. There are no time restrictions if traders use the FXCM demo. Otherwise, FXCM deletes demo accounts after 30 days of inactivity.
After customizing the FXCM demo account to reflect their planned live portfolios, traders should also consider the lack of exposure to trading psychology as one of the core limitations. The FXCM demo account is ideal for traders to test, tweak, compare, evaluate, and bug-fix trading strategies and solutions.
Read more in our up-to-date FXCM Review.
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