CFD Demo Accounts
CFD demo accounts provide a risk-free opportunity for traders to practice strategies, get to grips with platforms and test out brokers. This article will explain in more detail what CFD demo accounts are, how they work and how you can compare different brokers and their paper trading offerings. We have also provided a list of our top CFD demo trading brokers below.
Best CFD Demo Accounts
#1 - Forex.com
Go long and short on a range of popular financial markets with intuitive platforms and reliable execution. 99.76% of trades are executed in less than a second with an average speed of 0.02 seconds.
Forex.com is excellent for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score.
- DayTrading Review Team
- FTSE Spread: 1 pt
- GBPUSD Spread: 1.0 Var
- Stocks Spread: 0.1% (Min Commission Applies)
- Leverage: 1:200
- Regulator: CySEC, IIROC, NFA, CFTC, FCA, CIMA, CIRO
- Platforms: MT4, MT5, TradingView
Forex Trading
Forex.com is a leading FX broker. The brand offers a huge range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.2 with a $5 commission per $100k.
Stocks Trading
Forex.com offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.
Crypto Trading
Trade major cryptos against USD, EUR, GBP and AUD. All traded with tight spreads. No virtual wallet is required, just a trading account. Cryptos are not available in the US, UK or Canada.
About Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they offer a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
Pros
- The broker’s parent company, StoneX, is listed on the NASDAQ
- Fast order execution speed
- Top-rated forex and CFD broker
Cons
- Tools and platform access varies between countries
- $15 inactivity fee
- No copy trading tool
#2 - IG Group
IG offers an impressive suite of 18,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 18,000+ markets and top-tier market research.
- DayTrading Review Team
- FTSE Spread: 1.0 pt
- GBPUSD Spread: from 0.589 pips
- Stocks Spread: Variable
- Leverage: 1:30
- Regulator: FCA, ASIC, MAS, FSCA, JFSA, FMA, CFTC, NFA, BMA, DFSA, FINMA, BaFin
- Platforms: MT4
Forex Trading
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
Stocks Trading
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
Crypto Trading
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
About IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
Pros
- IG is an LSE-listed company with a transparent financial history and a great track record
- 24/5 customer support is available
- Opening an account takes less than 5 minutes
Cons
- No copy trading platform
- Inactivity charge
#3 - IQCent
Trade leveraged CFDs on popular markets including stocks and commodities.
- FTSE Spread: From 0.7 pips
- GBPUSD Spread: From 0.7 pips
- Stocks Spread: Variable
- Leverage: 1:500
- Regulator: IFMRRC
- Platforms: TradingView
Forex Trading
IQCent offers major, minor and exotic currency pairs with tight spreads.
Stocks Trading
IQCent offers trading on four German stocks alongside several established indices.
Crypto Trading
Trade popular crypto tokens via leveraged CFDs.
About IQCent
IQCent is an offshore binary options and CFD broker with 10+ payment methods and a $50 minimum deposit. Clients benefit from copy trading tools and in-depth market analysis.
#4 - Kwakol Markets
Trade CFDs with high leverage and spreads from 0.0 pips on premium accounts.
- FTSE Spread: From 0.8 pips (Standard Account)
- GBPUSD Spread: From 0.8 pips (Standard Account)
- Stocks Spread: From 0.8 pips (Standard Account)
- Leverage: 1:1000
- Regulator: ASIC, FINTRAC
- Platforms: MT4, MT5
Forex Trading
Trade forex with ECN executions and tight spreads.
Stocks Trading
Trade stocks with zero commissions and ultra-fast trade executions.
Crypto Trading
Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold.
About Kwakol Markets
Kwakol offers trading on the MT4 & MT5 platforms with high leverage & copy trading.
#5 - ForexChief
ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals.
- FTSE Spread: 70
- GBPUSD Spread: 0.9
- Stocks Spread: 50
- Leverage: 1:1000
- Regulator: VFSC
- Platforms: MT4, MT5
Forex Trading
ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs on both MT4 and MT5.
Stocks Trading
ForexChief offers 100 US company stocks CFDs for MT4 DirectFX and Classic+ account holders.
Crypto Trading
ForexChief supports crypto CFD trading with five major digital currencies paired against the US dollar.
About ForexChief
ForexChief is a foreign exchange and CFD broker with offshore regulation and access to both MT4 and MT5 trading platforms.
Pros
- Low minimum deposit
- Copy trading
- MT4 integration
Cons
- Weak regulatory oversight
#6 - Videforex
A suite of CFDs are available across popular markets with high leverage.
- FTSE Spread: Floating from 0.2
- GBPUSD Spread: Floating from 0.1
- Stocks Spread: NA
- Leverage: 1:500
- Regulator:
- Platforms: TradingView
Forex Trading
Videforex offers leveraged trading on major, minor and exotic currency pairs.
Stocks Trading
Videforex offers trading on major exchanges such as the FTSE.
Crypto Trading
Start trading on cryptos against fiat currencies and other alt coins.
About Videforex
Videforex accepts deposits in a range of cryptos and fiat currencies. Payouts reach 98% per trade.
Pros
- Copy trading
- Full range of investments
- Demo account
Cons
- Weak regulatory oversight
- No MT4 integration
#7 - Sage FX
SageFX offers retail trading on financial markets with competitive spreads.
- FTSE Spread: 5.0
- GBPUSD Spread: 0.9
- Stocks Spread: N/A
- Leverage: 1:500
- Regulator: Pending
- Platforms: MT4
Forex Trading
Sage FX offers trading on major and cross currency pairs.
Stocks Trading
Sage FX offers retail trading on major stock indices from around the world.
Crypto Trading
Sage FX offers leveraged trading on crypto and USD pairs.
About Sage FX
Sage FX is an MT4 trading broker offering high leverage rates and secure mobile investing.
#8 - Coinexx
Take positions on popular markets with tight spreads, high leverage and micro lots.
- FTSE Spread: From 0.0 pips
- GBPUSD Spread: From 0.0 pips
- Stocks Spread: NA
- Leverage: 1:500
- Regulator:
- Platforms: MT4, MT5
Forex Trading
Trade currency pairs with ECN spreads and zero SL/TP limits.
Stocks Trading
Speculate on stock indices with 1:500 leverage and ECN spreads.
Crypto Trading
Trade cryptos against the US Dollar with 1:5 leverage.
About Coinexx
Coinexx is an ECN broker with 1:500 leverage, 80+ instruments and a joining bonus.
Pros
- MT4 integration
- Full range of investments
- Low minimum deposit
Cons
- No copy trading
- No regulatory oversight
- Few payment methods
#9 - World Forex
Speculate on 40+ share CFDs with high leverage and low fees.
- FTSE Spread: NA
- GBPUSD Spread: NA
- Stocks Spread: From 0.03
- Leverage: 1:1000
- Regulator: SVGFSA
- Platforms: MT4, MT5
Forex Trading
Take positions on a long list of forex pairs with tight spreads and low commissions.
Stocks Trading
Trade 40+ stock CFDs including big names like IBM and American Express.
Crypto Trading
Trade on 10 cryptos paired with the USD and EUR. Crypto only pairs are also available.
About World Forex
World Forex offers commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
Pros
- Low minimum deposit
- Multiple payment methods
- Full range of investments
Cons
- Weak regulation
#10 - RaceOption
Go long and short on popular financial markets via the RaceOption platform
- FTSE Spread: Floating
- GBPUSD Spread: Floating
- Stocks Spread: Floating
- Leverage: 1:500
- Regulator:
- Platforms: TradingView
Forex Trading
Trade major and minor currency pairs with competitive leverage rates
Stocks Trading
Trade more than 50 stocks and shares on US, UK and European markets.
Crypto Trading
Trade Bitcoin against the USD and CNY
About RaceOption
RaceOption is a binary options and CFD platform offering trading contests and prize giveaways.
What Is A CFD?
CFD stands for ‘Contract for Difference’, which is a type of financial instrument that allows you to speculate upon the future price movements of an underlying asset. As derivative products, you do not take ownership of the asset you are trading, you simply invest money in the rise or fall of its value.
CFDs can be traded on almost any equity or security, depending on a broker’s asset range, including company shares, forex, commodities and cryptocurrencies. One major benefit of CFDs is that you can short assets, meaning that you speculate on its value falling.
How Do CFD Demo Accounts Work?
A demo account works just like a normal CFD account, only there is no material buy-in. Rather than depositing your own money, a demo account is funded with virtual capital that you spend in a simulated trading environment. However, the market movements are still accurate and brokers will still implement virtual trading fees, like spread markups and commissions, to maintain realism.
That being said, the liquidity seen in CFD demo accounts is usually infinite, i.e. orders are instantly filled at the shown price, no matter the asset. The real world, on the other hand, has limited liquidity, so slippage may occur.
Most brokers offer CFD demo accounts for free and with no time limit, so investors can practice trading strategies and explore new markets with no risk to their real money. This is a great way to start trading as you can hold out and only stake real funds when you feel comfortable.
Pros Of CFD Demo Accounts
- Given the simulated nature of CFD demo accounts and the virtual funds, there is no risk of real monetary loss
- Paper trading is a great way to trial a broker or trading platform without any commitment. For example, you may want to explore some new assets, charting tools or indicators without staking money before getting comfortable with them.
- CFD demo accounts are also a great way to refine or test trading strategies, ironing out snags and inefficiencies by identifying mistakes that don’t cost you real money. Once you are producing consistent results, you can take your strategy to the real world.
- Trading with simulated money for some time can give you a taste of inevitable drawdowns and low-yield periods. Experiencing these can help you practise sticking to your strategy and risk management approach until you rise again.
Cons Of CFD Demo Accounts
- While leverage can increase trade sizes, and getting practice in with no risk of loss can be helpful, investors must be careful. CFD demo accounts can provide a false sense of security and lead to taking risks that are too great when you begin live trading.
- The simulated nature of demo accounts does not support all real-life trading characteristics, like slippage. Therefore, orders in a live account may not be filled at the same price as for a demo account and maintaining performance can be difficult
- Some, albeit not all, brokers will use their demo account as an advertising tool for their services. This can often produce tighter spreads and lower trading fees than would realistically be available in a live account, especially in fast-moving, volatile markets.
- CFD demo accounts may come with the full suite of a broker’s additional charting and analysis features, which may come at a cost for live trading accounts.
- While demo accounts can be good to get a feel for a broker or strategy, the safety they provide does not expose you to many of the psychological difficulties of live trading. For example, demo trading is often done with no fear, complacent risk management and overtrading.
How To compare CFD Demo Accounts
Several factors and considerations can be used to differentiate between options and find the best CFD demo accounts:
Platforms
The trading platform that the broker offers can make a significant impact on your experience. Platforms range from sleek and easy-to-use mobile applications that keep things simple to complex and sophisticated desktop trading clients or even proprietary web-based trading systems.
Functionality is an important and personal thing, some traders may want easy access to and integration with online automated trading robots, while others may prefer to carry out their trades manually using one-click trading. Some of the most popular trading platforms include MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader.
Markets
All CFD demo accounts will offer a variety of different markets, so it is important to look for one that offers the markets you are interested in. These will often include forex and stocks, while some brokers will also offer cryptos, indices and commodities.
Check out the assets your broker offers on both their demo account and whichever live account you are interested in opening afterwards. CFD trading follows standard market hours for its assets, i.e. exchange trading hours for stocks and indices, 24/5 for forex and 24/7 for cryptos.
Customer Support
Customer service is important for live trading as any lost time can mean you lose money. Using demo accounts can give you a good feel for a broker’s level of customer support, especially as you are likely to have more questions when paper trading. Try to find a broker with active customer support at all times you might be trading.
Education
When opening a CFD demo account, the aim is to learn, so finding a broker with a good range of high-quality educational tools can be very impactful. Some brokers offer one-to-one sessions to support demo trading, while others may have live webinars, online trading courses and educational blog posts.
Fees
While some brokers will offer a free demo account for anyone keen, others are not so accessible. Firms may charge for their demo trading services or require some level of deposit into a live trading account before they let you begin using their CFD demo accounts.
Final Word On CFD Demo Accounts
CFD demo accounts offer a great way for those inexperienced to get a feel for CFD trading, different brokers and platforms or new markets. Moreover, they are a safe place to try new strategies or refine existing ones, with no risk of financial loss. However, care should be taken as their risk-free nature can result in complacency or an unhealthy risk appetite when it comes to live trading.
FAQs
What Is A CFD Demo Account?
CFD demo accounts are offered by some online brokers and provide risk-free, simulated CFD trading in real-time markets. These accounts are funded with virtual money and work much the same as live trading, albeit with better liquidity and often tighter spreads.
How Does A CFD Demo Account Work?
A demo account lets you execute trade orders on CFD assets based on real-time pricing data and fee structures. However, there is no risk involved as all money is simulated. Traders can usually select how much they wish to fund their account with (up to a predefined maximum) and begin trading immediately.
Why Should I Open A CFD Demo Account?
CFD demo accounts are a great way to explore a more unique area of trading without risking any real money. If you want to get into trading CFDs, try a new broker, platform or asset or refine and get to grips with a new trading strategy, demo trading can be a useful tool.
What Should I Look For In A CFD Demo Account?
There are many things to consider when opening a CFD demo account, including the markets on offer, platforms used and customer service. Don’t forget to think about fees and the broker’s live trading options before opening a demo account.
Do CFD Demo Accounts Have Fees?
CFD demo accounts are often free, though some brokers may charge for them. Moreover, some firms require a small deposit into a live trading account before you can make use of their demo options.
Who Offers A CFD Demo Account?
Many brokerage firms and exchanges, such as Commsec, CMC, Trading 212 and Barclays, offer CFD demo account login options.