Forex demo accounts can be an excellent way to begin trading as a beginner. Due to its liquidity, Forex trading has advantages over the stocks. It also is decentralized and has an operating schedule that runs 24-hours-a-day, five days a week. This type of trading is riskier than others, due to the rapidity with which the currency market shifts and the fact that you’ll have to trade on a margin account. Investors who want to be active in the Forex market should be comfortable with stock trading overall, as well as the platform of their choosing with which they execute trades.
With a demo account, you can test a forex broker’s platform. Forex demo accounts give players virtual, fake money in order to test strategies and execute trades. A good demo account allows traders to enact important trade functions, like creating stop-loss orders and setting up trade alerts. While you experiment with this demo/training account, take the time to decide whether the controls are intuitive, the ease of use, the understandability of the charts and whether you are able to receive the information you need to make good trades.
A great forex demo account won’t just sell you using the system, however. This account should educate traders on the market, allow them to test out different trade strategies, and simulate real-world trading experiences. Forex demo accounts let traders develop and master their own style. For example, with a demo account, you can decide whether you are more comfortable with longer-term positions or intraday movements.
The Four Best Forex Demo Accounts
Great forex trading platforms always offer forex demo accounts. On our site, we have reviewed many brokers, and here are the best ones. All offer demo accounts.
Markets.com: Markets.com has no fees or commission. It has advanced trading platforms that allow you to trade a variety of popular assets. There is one type of account, and no minimum deposit is required. CySEC and FSB regulate this broker. Markets.com uses the industry-leading MetaTrader as its platform, ensuring a smooth-running, functional site. As if these weren’t enough benefits, you also get a free $25 upon signup.
eToro: This industry-leading platform developed social trading, which allows traders to interconnect with one another and build their communication. Another feature of eToro is CopyTrader technology, which lets traders copy the trades of more successful traders in order to gain profitability. It has users in over 170 countries, and, with eToro, you can trade indices, stocks, commodities, currencies, and more. It is regulated by the FCA, as well as by CySec, and it has a minimum deposit of $50 and leverage of up to 1:400.
AvaTrade: Established in 2006, AvaTrade has tax-free spread betting and a range of tradable assets, including Forex pairs, ETFs, indices, stocks, commodities, and more. There are two main types of trading accounts: standard and demo. There is a minimum deposit of $100 or $500, depending on the type of method used to deposit or withdraw. AvaTrade also offers its traders mobile trading. Lastly, this broker also lets you get a chance to win a bonus of up to $10,000 when you open an account.
IQ Option: This relatively new broker is growing fast. The IG Group, its parent company, trades in over 10,000 markets, including forex, commodities, shares, and indices. The contract size offered is one thousand units, minimum, and there are options for both dealing and non-dealing desk brokers. The FCA regulates IQ Option. Customer support is available 24/7 for the convenience of all its traders.
Plus500: This is a leading CFDs trading platform. It has no charges on exchange and no commissions. Established in 2008, Plus500 is regulated by the FCA. Because it trades in CFDs (among other assets), it is best for experienced traders. It accepts PayPal, unique for the industry, and does not oblige you to buy or sell; you can merely speculate if you so desire. Traders can also enjoy trading the famous cryptocurrency, Bitcoin.
Demo Accounts Are Not Enough
Though a demo account allows you to become used to the platform and test out strategies, it is not necessarily sufficient in order to make you a trading expert. The market changes frequently, so backwards-looking analysis can only help you so much in determining how you’re going to work the market. Also, when you play with fake money, you don’t have much of an attachment to it, emotionally. You might start playing the demo like it’s a game. If you don’t treat the demo like a real account, trading according to your real-life budgetary concerns, you might develop expectations that are unrealistic and lead to serious issues. It’s recommended that, after you start with this demo account, you get a micro account, in which you invest only a fraction of your finances until you have a firm grasp on what your stratagem is.
Demo accounts are a fantastic way to learn how to use a forex platform and get a feel for forex trading. The best brokers not only offer these accounts; they also help you get instruction and support to find your style and hone it. A demo account alone, however, does not prep you for real-world experience in trading. Once you have practised with the demo, get a micro account to allow you to continue to build your skillset.