Demo Accounts

Written By

Rebecca Holden

Written By

Rebecca Holden

Rebecca is an investment writer and broker analyst. She has evaluated dozens of brokers and trading platforms. Rebecca formerly worked in e-commerce where she helped grow the online presence of some of the UK's largest brands.

» Rebecca Holden Profile Page

Edited By

James Barra

Edited By

James Barra

James is an investment writer with a background in financial services. He has worked as a management consultant, where he delivered large-scale operational transformational programmes at some of Europe's biggest banks. James authors, edits and fact-checks content for a series of investing websites.

» James Barra Profile Page

Updated

Feb 6, 2024

Having used many demo accounts in recent years, I wanted to create a complete guide to help traders. I share my pick of the best demo trading accounts and answer the most common questions.

The key factors I look at when evaluating demo trading accounts are:

• Does the account have a time limit?
• How much virtual funds are available?
• Does it provide access to a good range of investments?
• Is it easy to sign up and start using the demo trading account?
• Does the demo account accurately simulate live market conditions?

Best Demo Accounts 2024

Based on my tests, these 5 brokers offer excellent demo accounts with easy sign-up requirements:

1. CMC Markets
2. Vantage
3. AvaTrade
4. XM
5. Pepperstone

Demo Accounts Comparison

Demo Accounts Comparison

Broker	Free Demo Account	Instruments Available	Platforms	Education	Regulators	Visit
	✔	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting	Web, MT4	✔	FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA	Visit
	✔	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds	ProTrader, MT4, MT5, TradingView, DupliTrade	✔	FCA, ASIC, FSCA, VFSC	Visit
	✔	CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting	WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade	✔	ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM	Visit
	✔	Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures	MT4, MT5	✔	ASIC, CySEC, DFSA, FSC, FSCA	Visit
	✔	CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting	MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade	✔	FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB	Visit
	✔	Forex, Crypto	OANDA Trade, MT4, TradingView, AutoChartist	✔	NFA, CFTC	Visit
	✔	CFDs, Multipliers, Forex, Stocks, Indices, Commodities	Deriv Trader, MT5	✘	MFSA, LFSA, VFSC, BFSC	Visit
	✔	CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto	MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade	✔	ASIC, CySEC, FSA	Visit
	✔	CFDs, Forex, Stocks, Indices, Commodities	MT4, MT5, TradingView	✔	ASIC, FCA, xCySEC, SCB	Visit
	✔	CFDs, Forex, Indices, Commodities	MT4, MT5	✘	CySEC	Visit
	✔	CFDs, Forex, Stocks, Cryptos, Options, Commodities, Bonds	MT4, TradingView, TradingCentral	✘	ASIC, FCA, MAS	Visit
	✔	CFDs, Forex, Stocks, Indices, Commodities, Crypto	Exness Trade App, MT4, MT5, TradingCentral	✘	FSA, CySEC, FCA, FSCA, FSC, CBCS	Visit
	✔	CFDs, Forex, Indices, Commodities, Stocks, Crypto	MT4, MT5	✘	ASIC	Visit
	✔	CFDs, Forex, Stocks, Cryptos, Futures, Options, Commodities	MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral	✔	NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA	Visit
	✔	CFDs, Forex, Stocks, ETFs, Cryptos, Futures, Commodities, Bonds	eToro Web, CopyTrader, TradingCentral	✔	FCA, ASIC, CySEC, FSA, FSRA, MFSA	Visit

#1 - CMC Markets

Visit

Review

Why We Chose CMC Markets

Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.

"With advanced charting tools and an extensive range of tradable CFDs, including an almost unrivalled selection of currencies and custom indices, CMC Markets provides a fantastic online platform for traders of all levels. "

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting
• Regulator: FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA
• Platforms: Web, MT4
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

• The web platform delivers a fantastic user experience with advanced charting tools for day trading and customizable features, catering to both beginners and experienced traders. MT4 (but not MT5) is also supported.
• The brokerage continues to stand out with its wide range of value-add resources, including pattern recognition scanners, webinars, tutorials, news feeds, and research from respected sources like Morningstar.
• CMC Markets is heavily regulated by reputable financial authorities and maintains its stellar reputation, helping to ensure a secure and trustworthy trading environment.

Cons

• While CMC offers an above-average suite of assets, there is no support for trading real stocks and UK clients can’t trade cryptocurrencies.
• An inactivity fee of $10 per month is applied after 12 months of inactivity, which may deter casual investors.
• The CMC Markets app offers the complete trading package but the design and user experience trails category leaders like eToro.

Visit CMC Markets

#2 - Vantage

Visit

Review

Why We Chose Vantage

Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.

"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds
• Regulator: FCA, ASIC, FSCA, VFSC
• Platforms: ProTrader, MT4, MT5, TradingView, DupliTrade
• Minimum Deposit: $50
• Minimum Trade: 0.01 Lots
• Leverage: 1:500

Pros

• Vantage maintains its high trust score thanks to its strong reputation and top-tier regulation from the FCA and ASIC
• It’s quick and easy to open a live account – taking less than 2 minutes
• There are no short-term strategy restrictions with hedging and scalping permitted

Cons

• The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
• Unfortunately, cryptos are only available for Australian clients
• It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection

Visit Vantage

#3 - AvaTrade

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Review

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team

• Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
• Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
• Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

• The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
• Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
• There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill

Cons

• It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
• There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
• There is no ECN account with raw spreads

Visit AvaTrade

#4 - XM

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Review

Why We Chose XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team

• Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
• Regulator: ASIC, CySEC, DFSA, FSC, FSCA
• Platforms: MT4, MT5
• Minimum Deposit: $5
• Minimum Trade: 0.01 Lots

Pros

• Accessible trading accounts with a $5 minimum deposit and fast account opening
• The broker offers premium research including market sentiment, fundamental insights and strategy builders
• 1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries

Cons

• PayPal deposits are not supported
• There's $5 inactivity fee after only 3 months, though this won't affect active traders
• There is weak regulatory oversight through the global entity

Visit XM

#5 - Pepperstone

Visit

Review

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team

• Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
• Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
• Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
• Minimum Deposit: $0
• Minimum Trade: 0.01 Lots
• Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

• Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
• Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
• There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.

Cons

• Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
• Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
• Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.

Visit Pepperstone

What To Look For In Demo Trading Accounts

Based on my experience using demo trading accounts, there are several important factors to consider:

Time Limits

Most online brokers offer access to a demo trading account for up to 30 days. After this, you will normally need to open a real-money account and make a deposit.

However, I prefer brokers that offer unlimited access to demo accounts. These will allow you to continue testing strategies even after you have opened a live account, making them an excellent tool for aspiring traders.

Virtual Funds

Having used dozens of demo trading accounts, most brokers offer between $10,000 and $100,000 in virtual funds.

Once you have exhausted this money, you will normally need to open a live account, though some brokers will replenish your bankroll so you can continue practising until the demo account expires.

Importantly, I recommend demo trading in realistic volumes, as this will make the transition to real-money trading easier.

Trading Instruments

The best demo trading accounts allow you to simulate trading on thousands of instruments spanning popular asset classes, including forex, stocks, indices, commodities and cryptocurrency.

However, the most important thing is to make sure you can practice on the markets you want to trade.

For example, if you want to trade CFDs on the S&P 500, make sure this is available. Equally, if you want to speculate on the EUR/USD, check this is available in demo mode.

Getting Started

After signing up for multiple demo trading accounts, those with a straightforward sign-up process stand out. In my experience, the best demo trading accounts allow you to register and start trading in less than 5 minutes.

To get started, you will normally need to provide basic contact details, choose your base currency, amount of virtual funds, and trading platform, and agree to the terms and conditions.

You will then be provided with login credentials which you can use to sign into the demo platform.

Real Trading Conditions

The best demo trading accounts simulate real market conditions. For me, this means looking for several things.

They should offer live market data and pricing, leverage trading if it’s available in the real-money solution, and access to risk-management tools like stop-loss and take-profit orders. This should help gauge what trading in real-money mode will be like.

That being said, day trading demo accounts cannot fully replicate real-market conditions. For example, in demo mode trades are often executed instantly so you won’t experience the slippage or re-quotes you can see when you trade for real.

Demo trading accounts should also provide access to the same platforms and tools. MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader are among the most popular third-party platforms.

However, I think a demo account is even more important to consider if the broker offers a proprietary platform where you may be unfamiliar with the different features available.

What Is A Demo Trading Account?

A demo account is a kind of trading simulator, that allows you to practice online trading with a wide range of financial instruments, from stocks, futures, and options to CFDs and cryptocurrencies.

How They Work

Demo accounts are funded with simulated money, allowing you to gain trading experience without risking real capital.

This allows you to craft strategies and build confidence while getting familiar with market conditions.

In addition, they are an effective way to test drive a potential broker and software.

Capabilities

The best demo trading accounts allow you to simulate real trading with the only difference being that you use pretend money.

This way you get the full experience of the markets and the trading platform, without the pressure of risking your actual funds.

• Exploration – Testing different financial markets allows you to get a feel for how they behave while finding the right product for you. Trading stocks will be different to commodities, for example.
• Gain experience – Before you risk real capital, you can practice opening and closing positions, plus applying stops and limits. In addition, you can view margin requirements, as well as track profit and loss.
• Charting – Learn how to interpret and utilize charts, from testing technical indicators to identifying patterns.
• Past performance – You can analyze past performance to correct mistakes and hone your strategy before you put real capital on the line.
• Trading tools – Learn how to interpret and utilize information from news feeds and market data.
• Watchlists – Demo accounts also allow you to identify and monitor financial markets of interest.

Pros And Cons Of Demo Trading Accounts

Pros

Cons

Bottom Line

Demo trading accounts offer a multitude of benefits, from honing a strategy to getting familiar with prospective markets.

However, there are certain limitations, from tackling different emotions to seeing the need for an effective risk management strategy.

But regardless of whether you think using demo accounts is very helpful or not, they remain an effective way to test a potential broker and platform.

FAQ

What Are Demo Trading Accounts?

Demo trading accounts offer a risk-free environment where you can practice trading. They differ from live accounts because they do not use real funds – the broker will provide you with a virtual bankroll. There is no requirement to deposit money.

Which Is The Best Demo Trading Account?

I have listed the best demo trading accounts. These practice accounts offer a straightforward sign-up process, a generous amount of virtual funds to practice trading online, and excellent conditions when you are ready to move to real-money trading.

How Do I Open A Demo Trading Account?

Most demo trading accounts are easy to open. The majority of the time, you will simply have to head over to the broker’s website and fill in a straightforward form.

You will usually be asked for your email address, username, password and location. Often you require no more details than this. Your account login details will then be emailed to you and instructions on the next steps will be given.

You can even find some forex demo accounts that require no registration at all.

Are Demo Trading Accounts Only For Beginners?

Not at all. Demo accounts are also useful for experienced traders looking to develop and test strategies before deploying them in live market conditions.

I find they are particularly useful for brokers with proprietary platforms and in-house tools that you may have not used before.

What Are The Alternatives To Demo Trading?

If you don’t want to use a demo account and are new to trading, I recommend brokers with a low minimum deposit.

The best firms allow you to start trading with a minimum investment of less than $100 with access to high-quality educational materials and training guides.

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