Main Features of the FP Markets Demo Account
The FP Markets demo account uses the MT4/MT5 trading platform demo services but offers a sign-up page where traders can register for demo trading without opening a live trading account. While demo accounts aim to replicate live trading conditions, they cannot simulate trading psychology when real money is not at risk. Slippage also does not exist, as no real trading occurs in a demo account, but given the excellent FP Markets technology and order execution, slippage is generally not likely to be an issue.
Unlike many brokers who restrict demo accounts to 21 or 30-day time limits, FP Markets does not list a time limit. Algorithmic traders receive a tool to develop and bug-fix trading solutions, which can take months or years. Seasoned traders can test new strategies, and beginners can evaluate copy trading signal providers without pressure to open a live trading account.
FP Markets Demo Account Overview at a Glance
FP Markets Demo Account
Availability of an FP Markets demo account
FP Markets demo account duration
Unlimited (FP Markets does not list a time restriction like some brokers)
FP Markets demo platforms
FP Markets demo account options
Standard and Raw
Algorithmic trading (EAs) enabled
FP Markets demo account balance
$100K at sign-up, traders may opt for less when using the MT4/MT5 demo sign-up
Number of FP Markets demo accounts
Unlimited (FP Markets provides no information about limits)
How to Open an FP Markets Demo Account: A Step-by-Step Procedure
Traders can open an FP Markets demo via the demo registration form as outlined in our step-by-step procedure below. Follow it, and with the final step, you will have your FP Markets demo account ready for use.
Here is how you open your FP Markets demo account:
1. Visit the FP Markets website, and from the Trading tab, select Forex Account Types, and then select which FP Markets demo account you like.
2. Click on Try a Free Demo and fill out the application form. It asks traders for their name, e-mail, country of residence, phone number, preferred trading platform, desired password, account type, and account base currency.
3. Download and install the MT4 or MT5 trading platform, depending on your selection.
4. The default FP Markets demo account balance is $100,000, but the MT4/MT5 trading platforms support the customization of demo accounts. Should the option be unavailable due to FP Markets preferences, traders can contact the FP Market customer support team to ask about adjustments.
5. Enter the FP Markets demo account details provided by FP Markets, usually via e-mail.
- Use the same account type, account base currency, leverage, and demo account balance that you plan using for live trading.
How to Use the FP Markets Demo Account
Forex tutors and brokers sometimes label a demo account as an educational tool, citing its benefits and sometimes presenting it as a tool to control emotions and learn to deal with trading psychology. It is better to view a demo account as a tool to test a broker and a platform, and to learn the rudiments of trading. The FP Markets demo account mirrors the MT4/MT5 trading platforms and functionality of live trading accounts but of course cannot replicate the trading psychology of real risk.
Beginners should learn how to trade in a live trading account with a small deposit and 0.01 lots, but the FP Markets demo account can serve the following purposes:
1. Algorithmic traders can use it to develop and bug-fix trading solutions. It is a necessary tool, and since FP Markets does not list a time restriction, it shows that it understands the importance of demo trading for algorithmic traders, which account for 80%+ of daily trading volumes.
2. Seasoned traders always look to improve and tweak their strategies, especially the order entry component. Comparing them is ideal in the FP Markets demo account, especially since FP Markets does not list a limit on the number of demo accounts a trader can have. It allows traders to operate various portfolios simultaneously and compare metrics.
3. The resurgence of copy trading and expanding services, like the proprietary FP Markets copy trading service, resulted in many beginners seeking to commit capital to this trading approach. Testing a copy trading signal provider in the FP Markets demo account allows copy traders to evaluate performance rather than rely on past data.
Differences Between Live and Demo FP Markets Accounts
The most defining difference between the FP Markets demo account and live trading is the lack of exposure to trading psychology, which can make or break traders. Traders cannot gain trading experience or generate trading profits and losses in a demo account. Many dismiss the absence of those items and promote the similarities while hailing the inability to lose capital, but they differentiate between successful traders and 75% to 90% who fail.
The demo trap refers to the false sense of security and overconfidence beginners experience in demo trading, evidenced by successful demo trading for months and failure as soon as they switch to live trading accounts. It happens because no simulation can offer exposure to all the necessary aspects of successful trading, with the lack of exposure to psychology being the core variable.
An FP Markets demo account is suitable for algorithmic traders who develop and bug-fix trading solutions, seasoned traders who change strategies to compare metrics, and beginners who want to test copy trading signal providers and the broker and its trading platform.
How to Best Use your FP Markets Demo Account
Traders who use the FP Markets demo account for its intended purposes will benefit from it, and here are some tips on how to make the most out of the FP Markets demo account.
Consider the following when using an FP Markets demo account:
- Always use the account type, account base currency, leverage, and demo account balance you plan for your live trading account, or as close to it as possible, avoiding excessive amounts.
- Execute risk management and trade lot sizes suitable for your demo account balance, as you would in a real money account.
- Avoid replenishing demo balances, which is often possible with a click in the back office.
- Understand that a demo account is best seen as an educational tool, not a simulation.
- The lack of exposure to trading psychology involving real risk is a notable feature of any demo account.
- Use the FP Markers demo account to test EAs or copy trading signal providers for several months and compare metrics and risk profiles.
- Make sure to use your demo account at least once within every month as 30 days of inactivity results in its deletion and loss of trading data.
Pros and Cons of the FP Markets Demo Account
Traders should consider the pros and cons of the FP Markets demo account before opening one.
The pros of the FP Markets demo account are:
- FP Markets lists no time limit
- FP Markets offers unlimited demo accounts
- Algorithmic trading is allowed
- Available for both Standard and Raw accounts using the MT4/MT5 trading platforms
- Easy to register and does not require a live account
The cons of the FP Markets demo account are:
- Beginners mistake the FP Markets demo account for a simulation tool
- Overly high demo account balances (FP Markets has a default demo balance of $100,000)
- Lack of exposure to real trading psychology
- Traders cannot gain trading experience as no trades take place
- False sense of security and accomplishment
- May promote reckless trading and unrealistic expectations
FP Markets does not list a time restriction on the FP Markets demo account. It provides algorithmic traders a necessary tool to develop and bug-fix trading solutions, seasoned traders an opportunity to tweak strategies and compare metrics, and beginners a chance to evaluate copy trading signal providers.
The lack of exposure to trading psychology and trade placement makes demo trading unsuitable as a simulation tool. Beginners cannot fully learn how to trade in a demo account, but they can learn the basics of trading and road test the broker and the trading platform. After using a demo account, beginners should consider opening a live trading account to complete their first learning process.
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