Top Demo Accounts

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Four Best Forex Demo Accounts

By Karina Fabian 03 January 2020

Forex trading offers some advantages over the stock market because of its liquidity, decentralization and 24/5 operating schedule.

Forex trading offers some advantages over the stock market because of its liquidity, decentralization and 24/5 operating schedule. Foreign exchange trading is riskier than other types of investing, because the currency markets shifts rapidly and you’ll need to trade on a margin account, which can maximize returns but also magnify losses. Investors wanting to actively trade on the forex market should not only be comfortable with stock trading in general but also with the platform they use to execute their trades.

Demo accounts offer you a chance to test a forex broker’s trading platform. These accounts let you use virtual money to make trades and test strategies. The best demo accounts let you enact all the important trading functions, including setting up alerts and creating stop-loss orders. As you experiment with a demo, assess how intuitive the controls feel, how easy it is for you to understand the charts at a glance and how well you can drill down to get the exact information you want in order to make a wise trade.

The best forex demo accounts don’t just sell you on their system, however. They should educate you on the forex market, simulate real-world trading and allow you to test different strategies. Demo accounts can help you learn your trading style – whether you are more comfortable with intraday moves or longer-term position holds, for example.

The Four Best Forex Demo Accounts

The best forex trading platforms offer demo accounts, so you should first check which brokers most interest you. We’ve reviewed eight of the best on our site, and of those, we found these to have the best demo accounts:

  • Thinkorswim: Thinkorswim by TD America is easy to learn and offers the most robust analytics of any broker we reviewed, including more than 300 technical indicators as well as forecasting tools. It works not only for forex but also online stock trading, making it a good choice if forex is just part of your investment portfolio. When trading on this demo platform, you are using information that’s 20 minutes old, which is close enough to real time to give you a good idea if your strategies are sound for the current market. It also has tutorials and educational resources right on the platform. You can try thinkorswim for 60 days without opening an account.
  • FXCM: Our reviewers say the forex training provided by FXCM is among the best. This forex broker’s demo account runs that same hours as the forex market – 24 hours, Monday through Friday. The demo accounts attempt to replicate real markets but have delays and may not have all the products available in the real-world market. You can select a standard account or a mini account, which helps you better simulate how you intend to trade in real life. The platform itself, Trading Station, was one of the best we tested, with multiple watchlists, alert options and analytic tools. You can get educational materials along with the demo.
  • OANDA: This platform does not offer all the features of other forex trading demo accounts, but as a result, it’s simpler to use. Our reviewers had an easy time creating stop-loss and other advanced orders. It offers 50 technical indicators to help you plan your trading strategies and provides real-time data. This forex broker does not offer as many training resources as others, but its forex demo account never expires, and it offers unlimited virtual funds, giving you the opportunity to bounce back after a disastrous learning experience. It also offers you the choice of five trading platforms.
  • ForexTrader: This forex demo account is limited to 30 days and offers you $50,000 in virtual money. You can choose to create simple or complex orders, read trade analysis and tips and use mobile apps as well as the desktop demo. FOREX.com is one of the largest forex brokers in the United States. It also allows you to trade gold, silver and futures. While it offers an impressive 50 technical indicators, our reviewers found the charting tools less versatile than those of other forex trading platforms.

Demo Accounts Are Not Enough

While a demo account can help you get used to a platform and enable you to test strategies, experts say it’s not sufficient for becoming a trading wiz. The changing nature of the market means that backward analysis can only go so far in helping you determine strategies.

Top 10 Online Demo Trading Accounts 2020

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easyMarkets was formed by bankers and Forex experts and has been serving the forex market for 18 years, with transparent pricing, fixed spreads and no commissions on deposits or withdrawals.

  • Demo Account is Unlimited
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Risk Warning: Users should be aware that all investment markets carry inherent risks, and past performance does not assure future results. Trading of any kind is a high-risk activity, and you could lose more than you initially deposited. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 73-89% of retail investor accounts lose money when trading CFDs. Please be sure you thoroughly understand the risks involved and do not invest money you cannot afford to lose. Your capital is at risk. Advertiser Disclosure: TopBrokers.Trade is an independent professional comparison site funded by referral fees. The compensation TopBrokers.Trade receives is derived from the companies and advertisements featured on the site. Due to this compensation, we can provide our users with a free comparison tool. Unfortunately we are unable to list every broker or exchange available, however, we do our best to review as many as possible.

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easyMarkets was formed by bankers and Forex experts and has been serving the forex market for 18 years, with transparent pricing, fixed spreads and no commissions on deposits or withdrawals.

Demo Trading Accounts 101

A demo account is an online trading account used to practice trade strategies and maneuvers, all without risking real money. In the past, this type of practice was carried out on paper, creating a “paper trail” of hypothetical, simulated trades. Thus explaining the term “paper trading,” which refers to practice trading that takes place in an environment with no real money.

Online trading has skyrocketed in popularity, which means that “paper trading” now takes place online as well. Paper trading involves opening a free demo or virtual account, which you will use to simulate trades and manage virtual funds. Most brokers, if they are reputable, offer traders a demo account for free. Whether or not a broker offers such an account is a good litmus test for seeing if their platform suits your trade needs.

Trading with a demo account is often the entry point for traders seeking to trade in the forex market. Demo account trading is similar to flight simulation for pilots; it’s a first step in the process of becoming a pilot.

Advantages of Demo Trading Accounts

The process of signing up for a demo account is a way to test, quickly and without risk, the broker’s trading platform to see if it meets your requirements. It’s important to test your broker and evaluate them before opening an account in which you risk real money. With a demo account, traders who have never used a trading platform and risked real money before will have a good base to kickstart their career.

Demo trading accounts allows the trader to get an introduction into the practical environment of real money trading without risking the loss of real currency. A demo account is useful for developing, testing, and optimising trading strategies and orders. A trader can evaluate his or her performance on a demo account, improving their own maneuvers or asking expert advisors for assistance. Eventually, this practice will pay off when trading with a real money account.

Trading isn’t just about placing orders and collecting profits. It starts with getting to know the trading platform and ecosystem. To get the most out of your chosen trading platform, you need to study and use it. Be sure to carefully learn all of the features, shortcut keys, and functions used in the process and familiarize yourself with indicators, charts, and other analytical tools.

A demo platform is a great way to get accustomed to a trading platform without risking the loss of real money as you learn basic features and strategies.

Disadvantages of Demo Trading Accounts

Although a demo account is a good option, there are some disadvantages of which traders should be aware. One of these drawbacks is that the demo account isn’t the real deal. The money is fake, the conditions are also fake, and the entire environment is detached from the reality of trading, so you don’t experience the emotional roller coaster or adrenaline surges you would if trading with real money. Because of this simulation drawback, traders may use a micro-account, which is a small trading account that has minimal risk, yet still lets them experience a real trading environment.

Also, there is a problem with complacency when you use a demo account. When traders worked for the money they earned and are putting it at stake, they are not complacent because they have more on the line. When using a demo account, the money isn’t real, so traders may end up taking bigger gambles and risks than they would in a real-money environment. This can skew their results.

Another drawback with demo accounts it that several of real-money trading elements are not present. Traders aren’t there to see the impact of factors like slippage, or other occurrences that, in real life would affect their strategy. Demo trading accounts, therefore, may not be a 100%-accurate reflection of a broker’s platform, where they experience latency, lag time, and other events that differ from a practice run.

Alternatives to a Demo Account

These major criticisms of demo trading accounts can be avoided through opening a micro-account. A mirco-account is funded with real money, and then can be used to simulate real trading. This micro-account has a smaller deposit size, which lowers the risk associated with it and is a good, inexpensive way to get introduced into real money trading.

A micro-account gives you a better grip on trading realities. For example, if you wanted to start full-scale trading with $2,000, you wouldn’t want to open a demo account that has a default amount of $100,000 (in fake money). This huge gap between intended funding and practice funding would make it difficult to practice money management.

However, if you opened a $100 micro-account and used micro-lots to trade, you would be trading with real market conditions and experiencing the adrenaline and thrill that is real money trading. You could see how factors such as retracements, slippage, surprise news, and more actually impacted your psyche and outcomes.

Also, such a miniature account could easily be opened with money that you could afford to lose. The cost of opening a micro-account can be viewed as part of your learning costs or an investment in your education.

Psychology of Trading

There’s no denying that trading is a mentally challenging career. The reasons behind that primarily have to do with the psychology of trading itself.

When you make a winning trade, you feel exhilarated and ecstatic. But, when you get on a losing streak, which happens, you can feel confused and even irrational. Irrational behaviour by a trader leads to common sense being thrown out, causing bad decisions and more losing trades.

Difficult though it may seem, a trader must control their emotions, even in downswings, and develop a resilient mental barrier when it comes to trading. This mental toughness is reinforced by risk management techniques. When losses occur under these systems, they occur only to the degree at which they can be recovered.

The psychology of trading is about managing these highs and lows. Numerous books are available to traders to help them attain a positive mindset.

Learn About Account Size Management

“Risk management” refers to account size management. Account size management means that you know how much you can trade and lose without enduring a crippling loss to your trading account, otherwise known as “blowing out” your account.

For example, suppose that a trader has $1,000 in his account. He decides to use a trade size that will take $200 as margin for a trade. If he loses the trade, the $200 is gone and his account is down 20%. Two more losses of equivalent magnitude reduce the account by another 40%. The trader now has to make a gain of 150% to get the account back to its starting $1,000.

To contrast, take a trader who uses a trade size that commits just $50. The trader loses three trades of equal size, similar to the first trader. But this second trader has lost only $150 and needs only to make a 17.6% profit in order to bounce back to the starting level.

So, 150% versus 17.6% is a big difference. The first trader took a lot of risk to try to make a huge gain, while the second realized that staying afloat in the market is just as important as making a profit. Account size management is the key to surviving market adversity.

A demo account can help traders understand this importance of account size management through the implementation of various trade limits. With a demo, traders can also experience the effects of these limits.

The Final Word on Demo Trading Accounts

In conclusion, demo accounts come with both benefits and drawbacks, but the most important thing to note is the ability to practice that comes with a demo account. A micro-account is also a suitable option. However, if you want to practice account size management and other such risk management tools, a demo account allows you to do that with real money. A micro-account allows to experience a real-world market environment. Either way, it comes down to the fact that practice makes perfect (or close to it).

How to Choose a Demo Trading Account

Before deciding on your trading platform, you will want to try out a few demo trading accounts first. It is the perfect opportunity to learn the ins and outs of the platform without losing any real capital. Below we have listed a few suggestions to help you choose the best broker and trading platform for you:

Capital Offered

Some demo trading accounts offer you a specific amount of capital to use while you are learning how to trade. You will want to look at the different capital options offered. Having a significant amount of capital will make small losses easier the recuperate. A small amount of capital will make it harder to recover.

Time Limit

Keep in mind; different demo trading accounts have different time limits. While some demo platforms have a time limit of a week or two, others are unlimited. For beginners, you will, of course, need more time to learn the ins and outs of the fx trading platform, so you will then want to find a demo trading account that offers no time limitations.

Regulation

Remember, every country has their own rules and regulations when it comes to online trading. Due to the possible safety concerns, make sure that your accounts will be properly regulated and your information secured. For example, the regulatory body in the UK is the Financial Conduct Authority (FCA). The Regulatory Body controls and protects the integrity of the traders, market, and investors in addition to the brokers, and to help members maintain their regulatory responsibilities.

Customer Service

Because trading happens 24 hours a day, you will want to make sure customer service is there when you need it. You may find it more comfortable to speak via chat or telephone rather than awaiting an email reply, which can take time. It could be worth your while to check out the customer support before signing up, and many brokers have a local UK phone number. Find out the wait times and see how the representatives can handle your questions regarding the leverage, spreads and trading volume.

Tradeable Assets

When selecting a broker, many traders just concentrate on stocks. However, you should keep in mind there are many other types of investment alternatives offered. Including Forex (FX), Cryptocurrencies, ETFs, CFDs, futures, options as well as precious metals, to just name a few.

For more information on selecting the right trading platform for you, please see our tutorial: What To Look For When Choosing A Trading Platform

Demo Account

What is the difference between a demo account and a live trading account?

The primary difference between a demo account and a live trading account is that there is no capital at risk when trading in a FOREX.com demo account.

FOREX.com’s demo/practice account is a core element of our educational effort. A practice account is intended to familiarize you with the tools and features of FOREX.com’s trading platforms and to facilitate the testing of forex trading strategies in a risk-free environment using virtual funds.

Results achieved on the FOREX.com practice account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the practice account. Conditions in the practice account cannot always reasonably reflect all of the market conditions that may affect pricing, execution and margin requirements in a live trading environment. Margin and leverage settings by product and account may vary from time to time between your practice account and a live account due to live account settings changes imposed by FOREX.com resulting from market volatility and other factors. Rollover/financing charges are not simulated in the demo environments. The pricing available in the demo environment is the same pricing available to FOREX.com account holders. Pricing for managed accounts and accounts referred by an Introducing Broker may differ.

How long does a demo account last?

Demo accounts last for 30 days after signup. Afterward, you will not be able to log in using the demo account credentials.

Can I open multiple demo accounts?

No, you can only open one demo account of each type (i.e. FOREX.com platforms or MetaTrader) per email address.

How do I renew my demo account?

Demo accounts last for 30 days after sign up. Afterward, you will not be able to log in using the demo account credentials. Demo renewals are not available at this time. If you have further questions, please contact us.

I forgot my demo username or password. How do I retrieve them?

If you forgot your username, please contact us for assistance. If you forgot your password, please click here to request your password.

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    Binarium

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  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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