Demo Accounts

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Written By
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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.
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Edited By
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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.
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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:

Best Demo Accounts 2024

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

Demo Accounts Comparison

Demo Accounts Comparison
Broker Free Demo Account Instruments Available Platforms Education Regulators Visit
FOREX.com logo
Forex, Spot Metals MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral NFA, CFTC Visit
Interactive Brokers logo
Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB Visit
NinjaTrader logo
Forex, Stocks, Options, Commodities, Futures, Crypto NinjaTrader Desktop, Web & Mobile, eSignal NFA, CFTC Visit
eToro USA logo
Stocks, Options, ETFs, Crypto eToro Trading Platform & CopyTrader SEC, FINRA Visit
OANDA US logo
Forex, Crypto OANDA Trade, MT4, TradingView, AutoChartist NFA, CFTC Visit
DNA Markets logo
CFDs, Forex, Indices, Commodities, Stocks, Crypto MT4, MT5 ASIC Visit
LQDFX logo
Forex, CFDs, Stocks, Indices, Commodities, Crypto MT4 - Visit
IG logo
CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA Visit
Pocket Option logo
Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos Web, MT4, MT5 MISA Visit
IQCent logo
Binary Options, CFDs, Forex, Indices, Commodities, Crypto Online Platform, TradingView IFMRRC Visit
Plus500 US logo
Futures on Forex, Commodities, Cryptos, Indices, Interest Rates WebTrader, App CFTC, NFA Visit
Moomoo logo
Stocks, Options, ETFs, ADRs, OTCs Desktop Platform, Mobile App SEC, FINRA, MAS, ASIC, SFC Visit
Videforex logo
Binary Options, CFDs, Forex, Indices, Commodities, Crypto TradingView - Visit
Uphold logo
Cryptos Desktop Platform, Mobile App - Visit
M1 Finance logo
Stocks, ETFs, OTC stocks Own SEC, FINRA Visit

#1 - FOREX.com

Why We Chose FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • Instruments: Forex, Spot Metals
  • Regulator: NFA, CFTC
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Minimum Deposit: $100
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
  • The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.

Cons

  • Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
  • Despite increasing its range of instruments, FOREX.com's product portfolio is still limited to forex and CFDs, so there are no options to invest in real stocks, real ETFs or real cryptocurrencies.

#2 - Interactive Brokers

Why We Chose Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • Instruments: Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
  • Regulator: FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB
  • Platforms: Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
  • Minimum Deposit: $0
  • Minimum Trade: $100
  • Leverage: 1:50

Pros

  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries.
  • The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.

Cons

  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.

#3 - NinjaTrader

Why We Chose NinjaTrader

NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

- DayTrading Review Team
  • Instruments: Forex, Stocks, Options, Commodities, Futures, Crypto
  • Regulator: NFA, CFTC
  • Platforms: NinjaTrader Desktop, Web & Mobile, eSignal
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets
  • Traders can get free platform access and trade simulation capabilities in the unlimited demo
  • NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC

Cons

  • The premium platform tools come with an extra charge
  • Non forex and futures trading requires signing up with partner brokers
  • There is a withdrawal fee on some funding methods

#4 - eToro USA

Why We Chose eToro USA

eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."

- DayTrading Review Team
  • Instruments: Stocks, Options, ETFs, Crypto
  • Regulator: SEC, FINRA
  • Platforms: eToro Trading Platform & CopyTrader
  • Minimum Deposit: $10
  • Minimum Trade: $10

Pros

  • The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors
  • The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
  • A free demo account means new users and prospective day traders can try the broker risk-free

Cons

  • The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
  • Average fees may cut into the profit margins of day traders

#5 - OANDA US

Why We Chose OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • Instruments: Forex, Crypto
  • Regulator: NFA, CFTC
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • The broker offers a transparent pricing structure with no hidden charges
  • There's a strong selection of 68 currency pairs for dedicated short-term forex traders
  • The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies

Cons

  • It's a shame that customer support is not available on weekends
  • There's only a small range of payment methods available, with no e-wallets supported
  • The range of day trading markets is limited to forex and cryptos only

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.

  • AvaTrade offers an unlimited demo account with access to MT4, MT5 and its own in-house platform.

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.

  • XM offers $100,000 in virtual funds but can you top up your practice account by contacting customer support.

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.

  • CMC Markets offers one of the largest product portfolios I have seen with over 12,000 instruments, including currency pairs, currency indices, shares, indices, commodities, treasuries, share baskets, and ETFs.

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.

  • XTB offers a demo account that you can sign up for in 2 minutes. I simply had to provide my email, name, phone number and choose my country from a list.

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.

  • IC Markets offers demo trading on all three of its platforms; MT4, MT5, and cTrader with pricing conditions that reflect its live accounts.

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.

XTB demo trading platform
XTB Trading Platform In Demo Mode

Pros And Cons Of Demo Trading Accounts

Pros

  • Risk – Because demo accounts are funded with simulated money, mistakes won’t cost you any of your hard-earned capital. In addition, they also allow you to practice day trading while you are still saving for that initial account deposit.
  • Price action – The best way to understand price action is to experience it. Stock trading demo accounts, for example, will give you practice reacting to volatile markets and capitalizing on price fluctuations.
  • Broker & platform – Online trading with demo accounts is an effective way to test a potential broker and platform. For example, you can check their software has all the charts and tools you need. In addition, do they offer any useful extras, such as trading contests? So, check the overall quality of the broker’s services before you commit real capital.
  • Calibration – Demo brokerage accounts are the ideal place to fine-tune your strategy. You can make mistakes and adjustments until your plan is consistent, without losing real capital. Because overtrading, cutting profits short and direction bias are all common mistakes that can prove costly if you don’t make them in practice accounts first.
  • Forward testing – Once you have a market and strategy in mind, you can either backtest or forward-test your trading plan. While backtesting can prove useful, it lacks the emotional element. Forward testing enables you to put your plan to trade stocks, for example, into action while battling trading pressures in real time.
  • Drawdowns – Regardless of how effective your strategy is, there will be days when the market feels against you. However, investing in a day trading demo account allows you to practice sticking to your plan and perhaps adjusting your position size until things turn around.

Cons

  • Execution – Demo accounts often provide better execution than live trading. This is because demo accounts usually fill a market order at the price shown on the screen. However, in a live market, there is slippage. This can result in orders not being filled at the expected price. So, meeting previous profit calculations may prove challenging.
  • Increased capital – Normally, demo software allows you to choose how much capital you would like to trade with. As a result, many individuals opt for far more than they will have when they live trade. Greater capital allows for smaller losses to be more easily recouped. You may also find yourself unable to afford the expensive instruments you explored when using demo accounts.
  • Spreads – Online forex brokers, for example, often look to impress potential traders with tight spreads in demo accounts. However, in fast-moving markets, in particular, the spread quoted may be far wider.
  • Deposits – Although using virtual money, there are some brokers who will require an initial deposit to use their demo accounts. So, this is something to check before you sign up.
  • Leverage – Many traders enjoy the increased leverage some brokers offer in demo accounts. Whilst this can result in substantial virtual profits, in live trading it can also lead to significant losses.
  • Deal rejection – In demo day trading accounts, trades almost always go through as requested, regardless of certain factors. However, when live trading, price changes between your trade submission and execution can result in rejection. So, be prepared for re-quotes when you upgrade to live trading.
  • Trading tools – Free charts and packages you get when you are trading gold in your demo account may well come at an additional cost when you live trade.
  • Market movements – Your demo account server may not take into account interest and dividend adjustments, or out-of-hours price movements.
  • Emotions – Day trading demo accounts will not expose you to the fear, hope and greed that you may experience when you live trade. The fear of losing your capital can result in costly mistakes. Whilst greed can lead to holding onto a winning position for too long. Unfortunately, you cannot practice controlling these emotions with demo accounts.
  • Complacency – Managing risk properly with a practice account is often overlooked. Traders often take more risks than they would if real funds were on the line. This can result in bad habits when you transition to live trading.
  • Overtrading – The excitement of trading can cause many with demo accounts to overtrade. After all, why not take that risk when it isn’t real money on the line? This can develop into a habit of overtrading. However, when you move to live trading, you will then need to learn quantity doesn’t always trump quality.

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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