Best Forex Demo Accounts

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Contributor, Benzinga
January 12, 2024

Benzinga reader's top picks for the best forex demo accounts are FOREX.com & IG Group.

Trading forex in a demo account offers a great way to get started operating in the world’s largest financial market. You only need to open forex demo accounts with an online broker of your choice to get your feet wet. That involves selecting among the various forex brokers available, which requires some initial research on your part to determine the most suitable one for your experience level and trading requirements.

Quick Look: Best Forex Demo Trading Accounts

Disclosure: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Best Forex Demo Accounts

These days you have a lot of options to choose from among the various online forex brokers to trade currencies through, although traders based in the U.S. have fewer choices as a result of strict U.S. regulatory restrictions that often discourage online brokers from participating in that market. 

Below you will find the top forex, contract for difference (CFD) and/or spread betting brokers that offer a trading demo account in 8 key categories. You will also find details about each broker along with a screenshot of the trading platform you can check out via demo account trading. After deciding on a reputable broker, you can get in touch with them directly to open and start trading in a demo account.

1. Best Overall: FOREX.com

  • securely through Forex.com's website
    securely through Forex.com's website
    Best For:
    Forex Trading in and Outside the U.S.
    Rating:
    Read Review

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FOREX.com offers a demo trading account to prospective clients and ranks as the best forex broker overall. You can practice trading up to 80 currency pairs on FOREX.com’s advanced trading platforms, even if you live in the U.S.

Non-U.S. residents can also use the popular MetaTrader platform that allows you to automate your trading plans and backtest new strategies. You can check out Benzinga’s FOREX.com Review for more information about this excellent broker.

fx7

Pros

  • Available for forex trader in the U.S.
  • You can use this platform to make the most of your portfolio and improve it quickly
  • You can also study how the forex market works before you ever invest

Cons

  • You may feel as though there’s too much going on on this platform, especially if you’re a newer investor

2. Best for Multiple Trading Platforms: IG Markets

  • securely through IG Markets's website
    securely through IG Markets's website
    Best For:
    Forex Execution
    Rating:
    Read Review

    Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

IG Group is a comprehensive online forex and CFD broker that offers full access to the currency market via multiple trading platforms and supports trading in almost 90 currency pairs. The broker does take U.S. customers and requires a $250 minimum deposit to open a live account. For those learning how to trade currencies, IG offers free online courses, webinars and seminars as part of its IG Academy.

Novice traders will like IG’s intuitive mobile, web and desktop platforms that are available to demo account users and include the popular MetaTrader 4 suite. More experienced traders will appreciate the platform’s wide choice of technical indicators and charting tools, including its ProRealTime online charting software aimed at advanced technical traders. 

While IG could improve its customer service, the broker offers tight dealing spreads and can suit traders who prefer a streamlined interface and/or like to trade on a tablet device.

fx2

Pros

  • Available for forex trader in the U.S.
  • You can easily start on this platform and invest in a range of unique assets
  • You can learn how to trade before getting started
  • There are several trading platforms available

Cons

  • This platform may not work well for the type of trading you prefer to do

3. Best for Trading Experience: Pepperstone

  • securely through Pepperstone FX's website
    securely through Pepperstone FX's website
    Best For:
    Trading Experience
    Rating:
    Read Review

    Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Well-regulated and offering the best trading experience, Pepperstone is a place where you can learn to trade in a unique demo account setup. You can try algo trading, Autochartist, API trading and more strategies if you like. This means that you can test your trading plans in a demo account and decide what’s best for you when you plan to invest your money fully.

Once you get started, you can go in with no minimum deposit, try over 60 currency pairs and invest on the platform that’s right for you, like MT4, MT5, cTrader, web trading, the mobile app and more.

Pros

  • You can trade on a platform that makes sense to you
  • Algo trading, API trading, etc are all available to you so that you can choose the right strategy
  • Demo accounts on this platform help you practice

Cons

  • You may prefer to practice trading somewhere else

4. Best for Copy Trading: eToro

  • securely through eToro Forex's website
    securely through eToro Forex's website
    Best For:
    Demo Accounts
    Rating:
    Read Review

    CFD trading is not available to U.S. users. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

eToro specializes in social or copy trading that allows you to follow and duplicate in your own account the trades of expert traders who have an established track record with proven profitability. 

eToro also lets you trade more than 2,000 different assets in a demo account, and virtually any trader should find its intuitive forex platforms and apps easy to use, although it does not support the popular MetaTrader platforms. 

eToro also has excellent educational resources and it accepts U.S. residents of most states as clients.

fx6

Pros

  • eToro makes it easier to learn before you invest
  • You can get started with little money and without a long setup process

Cons

  • Yes, eToro allows you to start simply and with low minimums, but the platform may not align with your personal strategy

Disclaimer: 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

5. Best for Virtual Funding Amount: AvaTrade

If you want a substantial amount of virtual money to practice trading with, then AvaTrade offers an impressive sum of $100,000 to initially fund your demo account. 

That makes this broker our top pick from a virtual funding standpoint. 

AvaTrade also excels when it comes to the number and variety of trading platforms supported, which include MetaTrader, ZuluTrade and an impressive forex and options trading platform called AvaOptions.

fx5

Pros

  • You can mix options and forex as you learn
  • You can learn as you go so that you’re not investing until you’re ready to start

Cons

  • You may not prefer to use this mobile app given its design

6. Best for Unlimited Demo Time: Plus500

Plus500 (86% of retail CFD accounts lose money) is a specialist CFD broker and offers CFD trading for stocks, forex, commodities, exchange-traded funds (ETFs), options, indices and cryptocurrencies. It provides a portfolio of over 2,000 instruments.

Plus500 has over 1,000 assets available for trading in a demo account that includes 70 forex currency pairs, as well as stocks, cryptocurrencies, exchange-traded funds (ETFs), indices and options. The broker does not accept U.S. clients. 

Plus500 desktop and mobile trading platforms have an intuitive interface that both novices and experienced traders will find very accessible to use for demo account trading. The broker also offers unlimited time on its demo accounts, which makes them ideal for building a long-term performance track record. 

fx3

Pros

  • Uniquely, Plus500 allows you to invest in futures, forex and more
  • You can use the platform to grow a portfolio that includes all the assets most investors would prefer

Cons

  • Not all trading tools may be available in your jurisdiction

7. Best for Beginners: Capital.com

  • Disclaimer: 84% of retail CFD accounts lose money.
    Disclaimer: 84% of retail CFD accounts lose money.
    Best For:
    Market-Leading Spreads
    Rating:
    Read Review

    79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. 

Capital.com is an award-winning CFD broker offering over 6,000 tradable assets including almost 140 currency pairs and numerous cryptocurrencies. You can also enter into spread bets if you’re a U.K. client, and those from the U.K and some EU countries can buy shares in major companies. 

Capital.com offers mobile apps, and commission-free trading on decent dealing spreads. If you’re just starting out as a forex trader, then you will really appreciate the broker’s 24/7 customer service and its extensive offering of trading guides and other educational materials, so this broker is our top choice for beginners to open a demo account with. 

img_6317985358320

Pros

  • There’s a massive number of currency pairs which can easily help diversify your portfolio
  • You can use this platform to build watchlists that help you keep track of your future investing plans

Cons

  • Remember that CFDs are not legal in the U.S. and may not be available where you live

8. Best for High Volume Traders: Tickmill

Tickmill's forex demo account is a valuable tool for traders looking to practice their skills in the world of currency trading. Tickmill's demo account provides a realistic trading environment with live market data, allowing traders to practice their strategies without risking real money. One of the significant advantages is that traders can gain experience and test their trading strategies without any financial risk. It's an excellent platform for beginners to get started.

Tickmill offers a wide range of trading instruments, including forex currency pairs, commodities, and indices, which allows traders to explore various markets and assets. The platform is user-friendly and intuitive, making it suitable for traders of all levels. It's easy to navigate and offers various trading tools and indicators.

Pros

  • Realistic trading environment
  • No financial risk
  • Multiple trading instruments are available
  • User-friendly platform
  • Great educational resources

Cons

  • Limited customer support
  • Limited tradable assets compared to other brokers

Why Choose a Demo Account?

Trading in a demo account can really help forex beginners who might otherwise have to learn how to trade forex using real money and the financial risks with it. While demo trading lacks the emotional rush involved in risking real funds, it does train you to watch the market. It can also give you a good feel for how exchange rates move without risking any real money. A demo trading account can also be useful to practice in and improve your trading skills in different market conditions.

Virtual trading removes the key psychological element involved in risk-taking that can make or break a trader. Even though it does not accurately assess your trading abilities, it can help you practice. You can also use demo account trading to assess the historical performance of your trade plan and train yourself to use a trading platform.

Basically, a forex demo account offers an educational tool for novices to begin trading forex and test their strategies in a real-time trading environment without taking the associated financial risks involved in trading a real money account.

Risk and Reward in Currency Trading

Forex traders make money just like stock traders do by taking positions that rise in value. They can also lose money by taking positions that depreciate in value. When trading positions remain open, any profits or losses stay unrealized, but they become realized when the position is closed out. 

Almost all online forex brokers let traders increase the risk they can take and potentially magnify their profits by leveraging. Leverage is generally expressed as a ratio of the size of the position you can control when you place 1 base currency unit on a deposit to use as margin. A 200:1 leverage ratio, therefore, means you can control a $200 position by placing just $1 on deposit as margin. 

To trade successfully, typically only consider making transactions that meet a certain minimum risk/reward ratio that you find acceptable. For instance, you could risk 100 pips on 1 trade to potentially gain 300 pips if your market view turns out to be correct. This results in an estimated risk/reward ratio of 100:300 or 1:3 on that trade. 

No matter what you decide to do, you must be prepared to lose all the money you put up as margin when trading forex, so do not trade with funds you cannot afford to lose. If you are mentally prepared for a loss, you will not be shocked if a trade doesn’t work out. Keeping mentally prepared lets you think through all your options instead of viewing the forex market as a get-rich-quick scheme, which it most definitely is not since most retail traders lose money.

A demo account gives you a real-time accounting of the profits and losses on your simulated trading positions without you incurring any actual financial risk or rewards. Ultimately, it is the best way to learn how to trade forex by practicing in a risk-free environment.

Opening a Demo Account Helps You Choose a Forex Broker

Selecting the right forex broker is one of the most important decisions you will make as a forex trader, so choose wisely. In addition to finding one that fits your trading requirements, you’ll also want a reliable and reputable broker that submits to a strong regulatory agency for oversight. 

Opening a forex trading demo account with any online broker that you would consider using makes total sense. You can use a demo trading account to learn how to use the broker’s trading platform to practice trading and test out new trading strategies in a real-time trading environment without the risk of actual financial loss.

  • securely through Plus500's website
    securely through Plus500's website
    Best For:
    Mobile Users
    Rating:
    Read Review
  • securely through Forex.com's website
    securely through Forex.com's website
    Best For:
    Forex Trading in and Outside the U.S.
    Rating:
    Read Review

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • securely through AvaTrade's website
    securely through AvaTrade's website
    Best For:
    Non US Forex Trading
    Rating:
    Read Review
  • securely through FxGlory's website
    securely through FxGlory's website
    Best For:
    Fixed Spreads
    Rating:
    Read Review
  • securely through IG Markets's website
    securely through IG Markets's website
    Best For:
    Forex Execution
    Rating:
    Read Review

    Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

  • securely through eToro Forex's website
    securely through eToro Forex's website
    Best For:
    Demo Accounts
    Rating:
    Read Review

    CFD trading is not available to U.S. users. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

  • securely through HYCM Capital Markets's website
    securely through HYCM Capital Markets's website
    Best For:
    Forex Trading
    Rating:
    Read Review

Frequently Asked Questions

Q

Are forex demo accounts correct?

A

Forex demo accounts allow you to practice trading currency pairs in a real-time environment using actual market exchange rates. The main deficit with demo account trading is that you are not risking actual money, so your emotional responses may differ from those you experience in a live trading scenario.

Q

What are good forex demo accounts?

A

FOREX.com, AvaTrade, IG Markets and Plus500 offer good demo accounts suitable for most purposes. Beginners will probably find eToro, EasyMarkets and Capital.com easiest to use for demo account trading. If you’re interested in spread betting in a demo account, then FXCM and Capital.com could suit you best.

Methodology

These top forex brokers all offer demo accounts and were selected for this review for a variety of reasons that depend on the category we felt they excelled in. Essential requirements for each online broker chosen included having responsible regulatory oversight, a decent overall reputation with clients, an extended period in business and a significant amount of currency pairs clients can trade.

Get a Forex Pro on Your Side

FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade. 

You can also tap into:

  • EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
  • Powerful, purpose-built currency trading platforms
  • Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program

Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.

About Jay and Julie Hawk

During her financial career, Julie developed world-class expertise in technical analysis, including Elliott Wave Theory, and was deeply involved in initiating research into automated trading and trading signal systems. As a member of the San Francisco Writers’ Guild, Julie regularly wrote trade strategies, educational material, market commentary, foreign exchange newsletters, reports, articles and press releases. In addition, Julie was interviewed for various financial markets magazines and news wires in her professional capacity as a forex and derivatives expert. Since retiring from working at banks, Julie has been writing and editing books and articles about financial markets for companies like Benzinga, as well as trading forex online and mentoring other traders as part of TheFXperts’ financial team.

In addition to trading stock index, forex and commodity futures and options professionally on exchange floors, Jay also has experience trading stocks and options for private investors and trading forex online for his own account. He has also developed extensive experience in performing and using fundamental economic and corporate analysis to inform his trading and investment activities. Jay is also an expert financial writer with particular expertise in reviewing online brokers and investor services.