Best Forex Demo Accounts 2022 – Beginners Guide

The easiest method to learn about forex trading and the market structure is to start with forex demo accounts. All you need is a demo account with an online broker of your choice. This includes choosing from the wide variety of forex brokers available, and it requires initial research to determine which broker is best for your level of experience and trading needs.

Demo forex account is the best way to brush up your trading skills. A forex demo account is best for novice traders who do not know trading platforms. Demos are also suitable for post-testing by experienced traders. To help you get started, we’ve put together a list of the most valuable demo accounts. Let’s take a look at the best brokers with demo accounts in 2022.

What is Forex Demo Account?

A demo account is also known as a free trading account that is available for learning. This is passed on to potential traders/investors by the Forex Broker and can be used to practice trading or to test new strategies. They are also called paper money accounts because they are financed in virtual or counterfeit currency. Fake money allows you to understand the broker’s trading platform and test different trading strategies without putting real money at risk.

The demo account has all the features of a real business account. This includes access to market data, analytical tools/indicators, and customer support teams.  The demo account doesn’t access the live market; apart from this everything is the same as the real account.

Which forex demo account is best for you

We have curated the best forex demo accounts currently available. Some are suitable for beginners who want to learn the currency for the first time, while others are more helpful for advanced trading strategies.

Demo Fund Amount

The best forex demo accounts we have reviewed come preloaded with a fixed amount of banknotes. You need to make sure that the amount offered is sufficient to learn the basics of Forex trading. After all, if you are a beginner, you will encounter more trades losing than winning, especially at the beginning of your trading journey.

Time limit

You should also check if the demo account has a time limit. We’ve seen many providers offering only a 30-day trial period. When you are just starting, you may not have enough time to learn how the forex trading market works. Because of this, the best forex demo accounts have no time limit. This is especially useful later when developing a new business strategy.

Demo account features

This metric is probably the most important. In short, the best forex demo accounts reflect real-time trading conditions in a similar way. In other words, we are operating in a 100% risk-free manner under real-world conditions. This is very important because the purpose of using a demo account is to learn and develop effective trading strategies that can be used in the real Forex scene.

Currency pair

Regulated trading sites offer forex demo accounts. Some websites offer dozens of currency pairs, while others are a bit in between. Therefore, it is important to check the Forex trading pairs offered by the platform before using the demo account feature. The most frequently traded markets are large pairs including EUR/USD, GBP/USD, and AUD/USD. However, if you want to trade exotic currencies such as the Thai baht, make sure it is compatible.

Best Forex Brokers with Demo Accounts 2022

  1. eToro
  2. Plus500
  3. FXCM
  4. IG
  5. AvaTrade
  6. Capital.com
  7. Forex.com
  8. ETX Capital

Best Forex Broker with Demo Accounts Reviewed

1. eToro

eToro specializes in social trading, so you can track and copy trades from experienced traders with proven profitability and a proven track record. eToro is a social trading platform, unlike most other platforms which makes it one of the best forex trading platform. Therefore, learning the eToro trading platform with a practice account is very practical. The eToro account is free to use, contains 100,000 eToro virtual currencies, and has no time limit.

The most important feature of eToro is its social trading component. Instead of doing your analysis and placing each order, the social copy trading platform allows you to track and copy the strategies of highly skilled and successful traders.

In addition, eToro’s demo account allows you to trade more than 2,000 different assets, and although the popular MetaTrader platform is not supported, almost all traders have an intuitive Forex platform and easy to use app. eToro also has excellent educational resources and accepts as customers US citizens from most states.

On the eToro platform, it is not required to register every time, there is only a uniform system of registration. This means you don’t need separate login details to access demo and live dealer accounts.

2. Plus500

Plus500 Review

Plus500 is a leading CFD provider with over 1,000 assets that can be traded on demo accounts, including stocks, cryptocurrencies, exchange-traded funds (ETFs), indices, and options, as well as 70 foreign currency pairs.

Plus500’s desktop and mobile trading platforms have an intuitive user interface that makes trading demo accounts highly accessible for both novice and experienced traders alike. The broker also offers unlimited hours on a demo account, making it ideal for creating long-term checking account accounts.

Plus500 is one of the largest CFD providers in the world. The broker has developed a platform that allows traders to utilize a variety of readily available CFDs. Plus500 charges no fees. This means fees are included in the spread and risk management tools such as negative balance protection and guaranteed Stop Loss are included.

You can open a demo account on your trading platform. This gives you access to a wide range of tools and indicators for analysis and trading, as well as a variety of risk management tools including guaranteed stop orders.

3. FXCM

FXCM makes a list of the best demo forex accounts due to their dedication to forex education and training. This complements the already extensive demo trading account. In addition, the broker is attractive to beginners and established traders.

It is also available on several trading platforms including MT4, ZuluTrade, NinjaTrader, and Quant. Connect either of these two applications to your desktop or mobile application and open your free demo account to receive a $50,000 virtual credit. The demo account offers over 39 currency pairs with leverage of 1:400.

4. IG

IG Markets is the UK broker that is existing in the market since 1974. This brokerage firm got listed on the London Stock Exchange in 2000. As a UK company, IG is the obvious choice of demo account. By choosing IG as your demo account, you can take advantage of CFD trading such as Forex, Options, ETFs, Interest, and Bonds. If you are in the UK, you can also do differential betting and binary trading. In some countries, there are also stock trading options (not CFDs).

IG Markets allows you to use your own internal IG platform and MetaTrader 4 as a demo trading platform. The IG broker provides $20,000 as virtual money and users can use it for trading in demo account. Choosing this platform gives you free access to IG Academy’s exclusive educational content and alternatively payable graphics packages that new traders will appreciate.

5. AvaTrade

Best Forex Brokers of 2022 - The Trading Mesh

If you need a decent amount of virtual currency to practice trading, AvaTrade offers an impressive $100,000 to top up your demo account first. This makes this broker the best choice from a virtual finance perspective. AvaTrade is also distinguished by the number and variety of trading platforms it supports, including MetaTrader, ZuluTrade, and the impressive Forex and Options trading platforms called AvaOptions.

Signing up for a demo account with AvaTrade is easy as you can enter your account information or simply link to your Google or Facebook profile. After registration, online Forex and CFD brokers offer the option to host a free demo account on their existing MT4 and MT5 trading platforms or our proprietary web trading platform AvaOptions.

6. Capital.com

Online Trading with Smart Investment App | Capital.com

Capital.com has no complicated jargon, is very easy to use, and offers free demo accounts for all users. This way you can trade 100% risk-free until you feel comfortable testing your real money forex skills. As you learn the basics, you may want to take advantage of the many educational materials provided.

It includes numerous guides, courses, videos, and a comprehensive educational application called InvestMate. As well as risk-free training and trading materials, Capital.com is also suitable for beginners with a minimum deposit of just £20. This means you can trade negligible amounts after you switch from a demo account to a real money account. You can also easily deposit funds online and via the Capital.com mobile app by debit/credit card or e-wallet.

Capital.com offers dozens of currency pairs covering majors, minors, and various exotics. We also offer CFDs in the form of stocks, metals, energy, and more. Most importantly, Capitall.com does not charge any transaction fees, so you only pay margin.

7. Forex.com

Forex.com offers demo accounts to potential clients and is widely recognized as the best overall Forex Broker. Even if you live in the US, you can practice trading up to 80 currency pairs on Forex.com’s advanced trading platform.

We emphasize that forex demo accounts are ideal for beginners who want to learn how to trade forex before risking their capital. However, it should be clear that the demo account is also suitable for experienced traders who want to test or modify new strategies. Forex.com is worth considering. As the name suggests, this popular online platform is a professional forex broker. It provides access to over 80 currency pairs, many of which are from emerging markets.

8. ETX Capital

ETX Capital | CFD certificates

It is very simple and straightforward to register the demo forex trading account with ETX Capital. You are needed to provide your name, address, and phone number to open the demo account. A demo account is available with the TraderPro platform and with the MT4 platform. Both are available in WebTrader, desktop, and mobile versions.

The broker credits €10,000 in the demo account after verification, traders can use it for practicing purposes. You will also have access to a range of premium trading tools, technical indicators, and customizable charts. You can open more than one demo account with a single email id. So, as soon as your virtual credits are exhausted, you can open other credits.

Why choose Forex Demo Account?

A demo forex account is really helpful for novice traders who don’t know much about the market, instead of risking real money it is best to practice with virtual money. Demo trading doesn’t have the excitement of betting real money, but you can see the market. It can also give you a good idea of ​​how exchange rates work without putting your real money at risk.

Virtual trading eliminates the key psychological factors associated with risk-taking that can determine or destroy traders. Even if you don’t accurately assess your business skills, they can help you practice. You can also use demo account trading to evaluate the past performance of your trading plan and to train on using the trading platform.

As you learn to trade in foreign currencies, you will also learn how to read and interpret market movements. Not only can you view the performance of your trades, but you can also compare them with global markets, current events, and other factors that affect the value of your coin. While research is important and successful investors should study how their money is managed, it is a good place to start.

Who Needs a Forex Demo Account?

  • Novice traders who want to practice forex trading without taking any risk.
  • Traders who want to understand the new broker’s features, services, and proprietary trading platform.
  • Merchants who want to try and understand new platforms such as MT4, cTrader, or other proprietary platforms
  • Traders who want to test or perfect new strategies.

Pros of Forex Demo Account

  • Demo accounts are risk-free- Opening a Forex demo account is free. You will also receive a free “virtual” currency that you can use to trade in your demo account.
  • Real-time forex trading- Demo accounts shows the real-time market outcomes. It is exactly same as live account the only difference is that the money is not real.
  • Broker features and services- Through demo account you can get the basic understanding of the broker’s services and other features. This includes propaganda, customer support, training, and news resources.
  • Mental and Emotional Preparation for Real-Time Trading for Beginners- To be successful in a real currency trading environment, you must learn to control your emotions. The demo environment plays an important role in clearing up your emotions even with ongoing losses.
  • It helps you develop, test, and refine your Forex strategy- Both beginners and experienced traders can use the risk-free demo trading environment to test and modify their trading strategies.

Cons of Forex Demo Account

  • It can give you false trust- When you interact with the demo account, you already know it’s fake. And your actions have no real effect on real money. This can give you false confidence leading to over-trading.
  • It doesn’t help much with managing your emotions- It’s hard to feel emotions when there’s nothing at stake. Demo trading is all about fake money that doesn’t affect your finances. So it doesn’t help you control your emotions and maintain order.
  • May promote bad trading habits- Most demo account traders don’t take the time to analyze trades before entering positions. This is a gambling mindset that can accumulate bad trading habits, especially among day traders and resellers.
  • Limited funds and duration- Most brokers have limited access to virtual cash. It also limits the number of days (often 30 days) you can run a demo account. A short period is not enough to understand all aspects of brokers, platforms, and the Forex market.

How to start Forex Trading?

Follow these simple steps to start forex trading with eToro-

Step 1: Register with eToro

In this first step, you need to fill out a registration form with some basic personal information. The personal information could be your first name, last name, email address, and phone number. You will also need to select a password to use to log into the eToro Forex platform after opening an account. When you have filled out all fields on the form, you must agree to our General Terms and Conditions and Privacy Policy. To do this, simply check the box before clicking the “Create Account” button.

eToro forex trading account

Step 2: Verify your account

The second step is called account verification. This is a two-part process. To get started, you need to click on the “Full Profile” button on the eToro trading platform. We request additional personal information, including your physical address. You will also be required to fill out a Know Your Customer (KYC) questionnaire.

You must also provide proof of identity and proof of address, which must match the address you provided in the previous step. Copies of these documents may be sent electronically for very fast verification.

Step 3: Deposit the funds

As soon as the trading account is verified, the deposit option is activated and the path is opened for real trading. Start this process by clicking on the “Deposit Funds” button in the lower-left corner of the eToro Forex platform. Enter the amount to be deposited, select a payment method, and enter the information required to confirm payment.

Step 4: Find Forex Currency Pairs to Trade

To see the list of 52 currency pairs available in the eToro interface, you need to click on “Markets” in the left column. Click on Forex at the top of the interface. A full list of currency pairs available on eToro will appear.

eToro Forex | Must-Read Guide for Currency Trading

Step 5: Configure and Validate Forex Positions

After deciding whether to buy or sell utilizing fundamental analysis, you must click on the bid or ask price in the list of currency pairs, or search and click the “Trade” button. In either case, a window will open to configure and validate your trading position.

A Guide to Trading Currencies | eToro

Conclusion

A demo account is required to gain deeper insight into your preferred broker, trading platform, trades, tools, and key trading indicators. Through a demo account, you can learn the pairing of different forex currencies. It also helps you understand how many and how many trading and analytics tools a broker uses.

You don’t have to risk your capital right away. Several brokers offer free demo forex trading accounts that we have discussed in this guide. The location shouldn’t delay you either. For example, finding a demo account for trading forex is as easy in Singapore as it is in South Africa or others.

In general, a demo account offers many benefits, from perfecting your strategy to knowing your potential market. However, there are certain limits, from dealing with different emotions to understanding the need for an effective risk management strategy.

FAQs

What is a Forex Demo Account?

A forex demo account is a non-real trading account that a forex broker makes available to potential traders. It is designed to help traders gain a deeper understanding of the real trading market. And all of this takes place in a risk-free environment where you don’t have to risk real money.

How does a forex demo account work?

It starts with opening a free demo account with your favorite broker that will give you cash to trade for free. The platform also provides a platform where you can trade as if you were trading in real-time, whether it be a general-purpose MT4 or an exclusive trading section.

How can I open a demo forex account?

Different brokers have different rules when opening a forex demo account. Some require you to open a real account in addition to the demo. Others need a demo to open and run a separate device. But the bottom line is that demo accounts should be free.

How long can I trade with my demo forex account?

It depends on your preferred broker’s policy. However, if you check out our list of the best demo brokers, you will find that most of them, like Go Markets, offers a 30-day free trial.

Are Forex Demo Accounts Correct?

Yes, forex demo accounts are correct and these accounts are cost-free and risk-free.

What is a good forex demo account?

You can check out eToro, AvaTrade, Capital.com, and Plus500.