Editor’s Verdict

Demo trading is essential for all traders. Almost all brokers offer demo accounts, but many do not allow customization features for leverage settings and account balances or impose time restrictions. We have reviewed the FXCM demo account to help traders understand what to expect. Besides covering the features, we highlight the differences between demo and live trading accounts and include how traders can benefit by making sure they get the most from their FXCM demo account.

bage-icon
Overall
star-icon star-icon star-icon star-icon star-icon
Fees
star-icon star-icon star-icon star-icon star-icon
Deposit and withdrawal
star-icon star-icon star-icon star-icon star-icon
Asset selection
star-icon star-icon star-icon star-icon star-icon
Ease of account opening
star-icon star-icon star-icon star-icon star-icon
Regulation and security
star-icon star-icon star-icon star-icon star-icon
Pros
  • 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

Cons
  • 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
Features
Availability
Yes
Account duration
Unlimited (expires after 30 days of inactivity)
Demo platforms
MT4, Trading Station, TSWeb, TSMobile
Account options
Customizable (requires contacting customer support)
Algorithmic trading (EAs) enabled.
Yes
Account balance
Customizable (the default balance is $20,000 to $50,000)
Number of FXCM demo accounts
Unlimited

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.”

Noteworthy:

  • 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.

Noteworthy:

  • 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.

Broker Comparison

FAQs

What is the difference between FXCM demo and real money accounts?

expand.png
The primary differences are the lack of exposure to trading psychology and the absence of actual trading, profits, and losses.

How much virtual money do you get in an FXCM Demo Account?

expand.png
The default FXCM demo balance is between $20,000 and $50,000. Traders can customize it by contacting support.

Is the FXCM demo account one of the best?

expand.png
Yes, the lack of time restrictions and customization rank the FXCM demo account among the best available.

Does FXCM charge a demo account opening fee?

expand.png
No, the FXCM demo account is free.

How to delete the FXCM demo account?

expand.png
FXCM deletes demo accounts after 30 days of inactivity.

How do I open a demo account with FXCM?

expand.png
Traders can open an FXCM demo account via an online application.

Does FXCM have a demo account?

expand.png
Yes, FXCM offers demo accounts for all its trading platforms.

About the Author

DailyForex.com Team
The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.