AuthorBy Jeffrey CammackAuthor InformationUpdated: December 2, 2020

Forex demo accounts are free practice accounts for new traders. Think of them like flight simulators for new pilots. Like a flight simulator, you can make all kinds of mistakes without any consequences – except for maybe a bruised ego and the realisation that you have a lot to learn. Demo accounts are always free, but some are better than others. Most traders with a demo account will go on to open a live account with the same broker. 

To test these demo accounts, we set up the trading software, read the educational material, traded away all of the virtual money we were given, and used the customer service teams to help get us started. While trading with these brokers, we rate the quality of their financial regulation, trading platform choice and read the fine print to get a grasp of the trading conditions should a novice trader want to open a live trading account. These are the best demo trading accounts in Australia for 2020, according to our testing and our research.

English

These brokers have the best demo accounts

Last updated on 2 Dec 2020
Updated 2 Dec 2020
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Sweden
1
FP Markets
Min. Deposit
AUD 100
4.174.17
Demo Account
Yes
Education & Analysis
1110.503.5/ 5
Support Hours
24/5
Overall Rating
11110.54.17/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.
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FP Markets is a leading ASIC-regulated STP broker, providing tight spreads on their RAW account, coupled with the choice of MT4, MT5 and IRESS trading platforms. A standard commission-free account is available for entry-level traders looking for a lower minimum deposit.

Relative to other Forex brokers, FP Markets has made a serious investment in new traders with award-winning customer service and a lightweight education section, which includes daily email updates of the latest financial news impacting the currency markets.

Pros
  • Well regulated
  • Tight spreads
  • Good range of accounts
  • Great customer support
Cons
  • Expensive withdrawals
Read More About FP Markets
2
Pepperstone
Min. Deposit
AUD 100
4.514.51
Demo Account
Yes
Education & Analysis
11110.54.5/ 5
Support Hours
24/7
Overall Rating
11110.54.51/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.16 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA.
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Pepperstone is a renowned Australian Forex broker, fully-regulated by ASIC and popular worldwide for its fast ECN execution of trades, tight spreads and a wide choice of trading platforms. Award-winning 24-hour support anchors their customer support, where a personalised service for individual customers is available through numerous channels.

Founded in 2010, Pepperstone won the fastest-growing company award (2014) in Australia, from BRW Magazine and emerged as the 2014 Winner of the Governor of Victoria Export Awards cementing their reputation as a strong newcomer with well-appreciated trading conditions.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • High minimum deposit
  • Limited market analysis
Read More About Pepperstone
3
AvaTrade
Min. Deposit
AUD 100
4.184.18
Demo Account
Yes
Education & Analysis
110002/ 5
Support Hours
24/5
Overall Rating
11110.54.18/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.90 pips. Minimum initial deposit 100 AUD. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
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Hugely respected worldwide, AvaTrade is one of the largest and best value brokers in the Forex industry. AvaTrade has built its reputation on providing a secure and innovative trading environment for beginner traders; it continues to add to that reputation with the recent addition of AvaProtect – an automated loss-protection tool – to its product lineup.

With support for the leading trading platforms and top-quality multilingual support, AvaTrade offers trading in Forex, commodities, cryptocurrencies, exchange-traded funds, options, bonds, and equities.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited education
Read More About AvaTrade
4
MarketsX
Min. Deposit
AUD 250
4.394.39
Demo Account
Yes
Education & Analysis
1110.503.5/ 5
Support Hours
24/5
Overall Rating
11110.54.39/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4 & MT5 platforms supported. MarketsX is regulated by CySEC, ASIC, and the FSCA.
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Markets.com is a global playing the Forex market and has strong brand recognition. With strong International regulation and feedback from the industry, they have built a client base of over 5 million accounts since 2010.  The trading conditions are reasonable for Markets.com being a market maker, and it was a positive step to see this broker adopt the MetaTrader suite of tools.  We recommend Markets.com as traders enjoy trading with them. They are a broker to set up a serious trading account on trusted software and regulation.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • High minimum deposit
Read More About MarketsX
5
XM
Min. Deposit
AUD 5
4.384.38
Demo Account
Yes
Education & Analysis
111115/ 5
Support Hours
24/5
Overall Rating
11110.54.38/ 5
AlertLeverage limitations apply to all the EU regulated entities of the group.
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XM Group lets traders deposit as little as $5 to open an account; offers 500:1 leverage, and has a generous bonus scheme for new accounts.  Fully regulated by ASIC, CySEC and the FCA, XM Group offers accounts to suit most traders including those interested in tight spreads and automated trading.

XM Group partners with investment-grade banks and uses segregated accounts to ensure security, your personal account manager ensures your satisfaction, and customer service is available 24/5, via live chat, email and in 30 languages.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
Read More About XM
6
Admiral Markets
Min. Deposit
AUD 100
4.184.18
Demo Account
Yes
Education & Analysis
111115/ 5
Support Hours
Business Hours
Overall Rating
11110.54.18/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, and the FCA.
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Founded in 2001, Admiral Markets offers reliability, market leadership and simple modern trading. A global presence, a large Australian and international client base, flexible trading accounts, competitive trading conditions, and peerless educational material have attracted both beginner and experienced traders to the brand.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
Cons
  • Expensive withdrawals
Read More About Admiral Markets
7
FxPro
Min. Deposit
AUD 100
4.214.21
Demo Account
Yes
Education & Analysis
110002/ 5
Support Hours
24/5
Overall Rating
11110.54.21/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA.
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FxPro is one of the most respected Forex brokers in the industry. Regulated by the FCA and CySEC and with over 870,000 client accounts in 173 countries, FxPro is a truly global powerhouse.

FxPro offers a no dealing desk execution model on MT4, MT5, cTrader and a browser-based platform. A reasonable 100 AUD opening deposit and outstanding customer service are combined with competitive spreads – often as low as 0.6 pips – to match profitability with security.

Since its founding in 2006, FxPro has won more than 55 awards for best broker, best service, best tools, and best trading platform and has cemented its place the top tier of global Forex brokers.

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
Read More About FxPro
8
eToro
Min. Deposit
AUD 50
3.333.33
Demo Account
Yes
Education & Analysis
10.50001.5/ 5
Support Hours
24/5
Overall Rating
1110.503.33/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC.
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eToro is one of the largest brokers in the world and is well-known as the pioneer, and industry leader, in social trading. Also ASIC-regulated, eToro’s spreads are on par with other market maker brokers and the minimum deposit is only 50 USD for Australian traders.

The social trading experience is quite different from traditional Forex trading and eToro offers an unlimited demo account for traders to try the platform and social trading concept; setting up a live account is a simple instant process.

Pros
  • Well regulated
  • Good for beginners
  • Innovative trading tools
Cons
  • Limited education
  • Wide spreads
Read More About eToro
9
easyMarkets
Min. Deposit
AUD 200
4.244.24
Demo Account
Yes
Education & Analysis
111104/ 5
Support Hours
24/5
Overall Rating
11110.54.24/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & the proprietary easyMarkets platform are supported. easyMarkets is regulated by CySEC, ASIC, and the FSA in Seychelles.
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EasyMarkets offers three simple account types, a 50% deposit bonus for new accounts up to $2000, and offers MT4 alongside its proprietary platform. EasyMarkets is fully regulated by CySEC, FSA and ASIC in Australia, ensuring compliance with the highest client protection standards. With a minimum deposit of $200, you can trade Forex, commodities, agriculture, metals and other stocks allowing a diversified portfolio of investments.

Customer accounts have a dedicated account manager, 24/5 customer support from their offices around the world, fast withdrawals and a stacked learning centre. EasyMarkets is one of our favourite online Forex brokers.

Pros
  • Well regulated
  • Wide range of assets
  • Innovative trading tools
Cons
  • Limited platform choice
  • Limited account options
Read More About easyMarkets
10
ThinkMarkets
Min. Deposit
USD 5
3.983.98
Demo Account
Yes
Education & Analysis
1110.503.5/ 5
Support Hours
24/6
Overall Rating
1110.503.98/ 5
AlertAccepts Australian Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. ThinkMarkets is regulated by FSCA, FCA, and ASIC.
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ThinkMarkets is a very well-regulated ASIC-regulated broker and headquartered in Melbourne and London since 2010. It offers support for MT4, MT5 and its own ThinkTrader platform on two account types: One with a very low minimum deposit and the other a commission-based ECN account for more experienced traders.

Education is well-structured and useful for beginners, though market analysis is mainly left to in-platform third parties. Customer support is excellent and provided locally and execution times are world-class, perfect for automated trading.

Pros
  • Low minimum deposit
  • Well regulated
  • Great platform choice
Cons
  • Limited market analysis
  • Non-transparent spreads
Read More About ThinkMarkets

🏆FP Markets – Best Demo Account in Australia

ASIC-regulated FP Markets has a free demo account to trade 60+ Forex pairs as well as shares, metals, commodities and indices on MT4 (desktop/browser) and MT5 (desktop/browser/app). The account will remain open for as long you want, and will only expire after 30 days of inactivity.

fpmarkets-homepage-202010

The differences between the demo and live accounts at FP Markets are the execution (the demo account is virtual) and the spreads. The live account relies on ECN pricing which has multiple sources of liquidity, causing different spreads compared to a demo account. The minimum deposit on the live account is 100 AUD, with spreads on EUR/USD as low as 0.1 pips and commission of 6 USD per lot giving a total trading cost 7 USD per lot.

Besides the demo account, FP Markets has introduced Traders Hub as education and market analysis section. Daily technical and fundamental analysis is available, alongside all the educational eBooks, video tutorials and trading courses are available to help beginner traders get going.

AlertAccepts Australian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & IRESS platforms supported. FP Markets is regulated by CySEC and ASIC.

🏆Pepperstone – Best ECN Demo Account

Pepperstone, headquartered in Melbourne, is internationally recognised for their high-speed trading execution, and an offering for beginners that most ECN brokers don’t have. Free demo accounts at Pepperstone allow clients to trade XX Forex pairs on their choice of MT4, MT5 and cTrader platforms, and 24/7 customer support. The demo account expires after 30 days unless you have a live account, in which case you can request a non-expiry demo account.

pepperstone-homepage

The demo and the live account the same in performance and conditions, except the demo account comprises of 500,000 AUD in virtual funds. The minimum deposit on the live account is 100 AUD, with spreads on EUR/USD as low as 0.16 pip and commission of 7 USD per lot giving a total trading cost 8.60 USD per lot. 

A demo account should be used as a learning tool in conjunction with studying how to trade. Pepperstone’s education section called Learn to Trade Forex helps traders get started with some of the technical concepts, while a section called Trading Guides supports traders with issues that they will confront every day; how to keep a trading journal, developing a trading plan and managing risk. 

AlertAccepts Australian Clients. Average spread EUR/USD 0.16 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA.

🏆AvaTrade – Best Mobile Demo Account

AvaTrade is one of the largest and best regulated brokers in the world. The free demo account is available on AvaTrade’s webtrader platform, MT4, MT5 and its excellent mobile app, AvaTradeGO. Demo traders can access over 1250 instruments, including Forex, Crypto, Stocks, Commodities, and Indices. The demo account comes pre-loaded with 100,000 USD and will expire after 21 days. If you are not ready to open a live account after this time, get in touch with the customer service team and they will be happy to extend it.

With an AvaTrade demo account you get to test-drive the excellent AvaTradeGo mobile app. Voted the best Forex Trading App 2020, AvaTradeGO offers a smooth trading experience with a sophisticated dashboard, complete with a set of intuitive management tools, clear zoomable charts, and many more helpful features.

avatrade-homepage-app

Trading conditions on the live account at AvaTrade are great. The average spread on the EUR/USD is 0.9 pips and the minimum deposit is 100 AUD, no commission is charged. Maximum leverage is 400:1. Deposits and withdrawals are free of charge.

For beginner traders, AvaTrade offers a complete library of educational material, as well as helpful tools and analysis to assist traders in finding the best opportunities. Customer support is available 24/5 in 14 languages and is well-known for its quality.

AlertAccepts Australian Clients. Average spread EUR/USD 0.90 pips. Minimum initial deposit 100 AUD. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

🏆Marketsx – Best $10,000 Demo Account

Marketsx is a brand-new trading platform operated by Markets.com, a market maker regulated by CySEC and ASIC. The Marketsx demo account is loaded with only 10,000 USD of virtual funds but is unlimited and will only expire after 90 days of inactivity.

marketsx-platform

Live trading conditions are mirrored by the demo account and are particularly good when compared Markets.com’s direct competitors. 50+ currency pairs are available, with fixed spreads starting at 0.60 pips and leverage of 300:1. Other CFDs include stocks, cryptocurrencies, 25 indices, commodities, ETFs, and government bonds.

There trading resources integrated into the Marketsx platform to help traders improve their market knowledge. Rolling market coverage, a Week Ahead briefing and downloadable in-depth market guides can also be accessed without leaving the platform. Market analysis is available via Xray – the platform’s integrated video streaming service. Xray provides the latest news and views on major markets and economic developments and technical trends.

AlertAccepts Australian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4 & MT5 platforms supported. MarketsX is regulated by CySEC, ASIC, and the FSCA.

🏆XM – Best MT5 Demo Account

Awarded the Global Forex Broker of the Year 2020 in the Global Forex Awards, XM is a serious market maker broker with ASIC and CySEC regulation. The demo account at XM is funded with a 100,000 USD virtual balance and is available on both the MT4 and MT5 platforms. XM’s demo account is also unlimited and can be run in parallel with a live account.

XM’s MT5 Demo Account is aimed at traders who want to trade more than just Forex. With over 1000 instruments available, traders will have access to Stock CFDs, Stock Indices CFDs, CFDs on Precious Metals and CFDs on Energies. The MT5 demo account also features a market depth indicator, hedging, and full EA functionality.

xm-mt5-homepage

The live account trading conditions at XM are good across the board. XM offers the XM Zero Account, a raw pricing account with low commission, spreads as low as 0 pips on major currency pairs, and fractional pip pricing. It also offers Micro and Standard Accounts with spreads starting at 1 pip and minimum deposits of only 5 AUD. Unfortunately, having ZAR as a base currency is only possible on the Micro and Standard Accounts and not on the XM Zero Accounts.

For beginner traders, XM Group’s educational content is based around instruction in a video format. The core educational offerings are three Education Rooms, aimed at traders of differing skill levels (Primary, Intermediate and Advanced). The Primary Education Room is open to the public, but access to the others requires registration.

AlertLeverage limitations apply to all the EU regulated entities of the group.

🏆Admiral Markets – Best MT4 Demo Account

Regulated by three major international regulators including ASIC (AFSL: 410681), Admiral Markets offers an expansion of the standard MT4 package with the MT4 Supreme Edition. This addon extents and beautifies much of the MT4 product and makes for a more superior trading experience, letting clients trade 40+ Forex, indices, commodities, shares, ETFs, bonds and cryptocurrencies.

admiral-metatrader-supreme

The demo account includes a balance of $10,000 and expires after 30 days if no live account is opened. The trading conditions on the demo account match the live account with a minimum deposit of 100 AUD to get started.

The education section at Admiral Markets is one of the best available, with a well-structured trading course for beginners and experienced traders, webinars, an in-house market research team frequently publishing trading news.

AlertAccepts Australian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, and the FCA.

🏆FxPro – Best cTrader Demo Account

FxPro is a reputable and strongly regulated broker – one of the biggest brands in the business. With a wide range of trading platform supported, cTrader access is what sets the platform choice apart from many. The cTrader demo account, available on desktop and Android/iOS mobile apps, is loaded with $100,000 in virtual funds and expires after 180 days.

fxpro-ctrader

FxPro has a single live account type with 70+ Forex pairs to trade. In addition, all trading platforms at FxPro offer indices, energies, metals, shares to traders. Open the live account with a minimum deposit of 100 AUD, once submitting your paperwork for verification.

A comparatively light education section includes thin trading courses for beginner and advanced traders as well as a section for webinars that have not yet materialised but shows the potential of things to come. An economic calendar, calculators and trading news caps off the support offered. While education material exists, the true draw for FxPro is the cTrader support at a reputable brokerage.

AlertAccepts Australian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA.

🏆eToro – Best CopyTrading Demo Account

From the undisputed leader of proprietary trading platforms that dedicate themselves to copy trading, comes an unlimited demo account with a lot of potential. Noticeably different than trading on more traditional platforms like MetaTrader or cTrader the eToro platform encourages traders to follow strategies from other clients rather than getting into detailed chart analysis themselves.

etoro-copy-people

For a trader looking for copy trading, and a less traditional layout, eToro is worth trying with a demo account. Spreads on the live account are wider than at ECN brokers with EUR/USD at 1.0 pips and GBP/USD at 2.0 pip which means the cost of trading will be slightly higher at 10 USD per lot of EUR/USD. But in return, eToro provides a completely different trading experience in ways other traditional brokers can not. A live account at eToro requires a minimum deposit of 50 AUD to trade 47 Forex pairs, commodities, cryptocurrencies, indices and shares.

AlertAccepts Australian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC.

🏆easyMarkets – Best Unlimited Demo Account

Founded in 2001, easyMarkets was one of the first online brokers. Regulated by ASIC since 2003, CySEC since 2007 and the FSA since 2020, easyMarkets offers simple accounts and unique trading tools. The easyMarkets demo account is available on both MT4 and the easyMarkets platform. While the demo account has unlimited use on both platforms, the demo account on the easyMarkets platform allows traders to test the innovative features which this broker is famous for, such as dealCancellation, Freeze Rate and easyTrade.

easymarkets-dealcancellation

Live account trading conditions are good for a market maker, with fixed spreads starting at 0.9 pip on the EUR/USD and leverage of 400:1 available. The minimum deposit is 200 AUD, and 103 different currency pairs are available to trade, alongside precious metals, commodities, indices, cryptocurrencies, and shares.

easyMarkets are a firm favourite for new traders, with simple account options and an intuitive web-based trading platform. easyMarkets also hosts the Learn Centre featuring articles, videos and ebooks covering multiple topics including trading strategies, trading psychology, risk management and introductory learning modules for new traders. Market analysis is less impressive, but the market news feed is integrated into the trading platform for ease of access.

AlertAccepts Australian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & the proprietary easyMarkets platform are supported. easyMarkets is regulated by CySEC, ASIC, and the FSA in Seychelles.

🏆ThinkMarkets – Best Demo Account with Free Education

ThinkMarkets, headquartered in Melbourne, is an ASIC-regulated broker with over 500,000 clients. With support for web browser, desktop and mobile app, for MetaTrader 4 & 5 as well as the ThinkMarkets proprietary trading platform choice is wide.

The free demo account includes $25,000 in virtual funds to trade on all assets and platforms giving new traders a full authentic trading experience. The demo account is so similar to the live account that it also charges commissions on trades, giving an accurate view of the trade’s earning potential. The demo accounts on MT4/MT5 expire after 90 days of inactivity, while the ThinkTrader demo account has no expiry term, and the account balance can be topped up if needed.

thinkmarkets education

Education is well-structured with courses for beginners and intermediate traders, though market analysis is mainly left to leading third-parties like TradingView. A live account requires a minimum deposit of 5 USD with a trading cost of 12 USD per lot of EUR/USD.

AlertAccepts Australian Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. ThinkMarkets is regulated by FSCA, FCA, and ASIC.

What is a Demo Account?

A demo account is a virtual Forex trading account designed for beginners. A demo account is the same as a real account, except for the money in the account. A real Forex account is funded by the trader, but a demo account has virtual money provided by the broker.

Real accounts are funded with real money by the trader, demo accounts are funded with virtual money by the broker

This virtual money can only be used in the demo account and cannot be converted into real money. Because they work the same way as real accounts, traders with demo accounts will face real market conditions.

Virtual-money

Demo accounts simulate real market conditions

Demo accounts are always free. This works for both traders and brokers: Traders get hands-on experience before making a deposit and brokers want new traders to have a good time trading without any risk. This makes it more likely for a new trader to open a live account.

Demo accounts are always free

Demo accounts also offer traders the opportunity to practice what they have learned. Demo accounts are used by experienced traders to test new strategies, new trading robots and new trading platforms. Traders should always keep their demo account open.

Traders should always keep a demo account open

Demo accounts are all about learning. When comparing demo accounts new traders should also look at how a broker helps beginners. Other things to consider are:

  • Education material
  • Customer service
  • Market analysis
  • Trading conditions

How to Choose the Best Demo Account?

Traders should choose a Forex demo account that never expires. Some brokers will only offer demo accounts for a short period of time, sometimes as short as one week.

Choose a Forex demo account that never expires

Demo accounts that never expire allow you to practice at your own pace. You are not under pressure to complete your education within a set time. With a demo account that never expires, you can also continue your trading education once you have a live account.

demo-accounts-how-long

FXTM, Plus500 and XM all offer demo accounts that never expire.

When choosing a demo account, it is also important to think about what trading platform you will be learning to use.

Choose a demo account with the trading platform you want to use

MetaTrader 4 (MT4) is supported by nearly every Forex broker and is a good, user-friendly platform for beginners to start with. Because it is so widely supported there are many online tutorials and guides for beginners.

MT4 Brokers

MetaTrader 5 (MT5) is similar to MT4 but has extended features and a more modern interface. cTrader is another popular platform, though is less widely available.

The most popular trading platforms are MetaTrader 4, MetaTrader 5 and cTrader

FXPro, Pepperstone and OctaFX all offer demo accounts for all three platforms (MT4, MT5 and cTrader).

It is important to reiterate that demo accounts are simulations of live accounts. For the true trading experience, you should open a demo account with the same minimum trade size as you would use in your live account.

If you plan to be doing a lot of mobile trading, it makes sense to open a demo Forex account on a mobile app as well. Make sure that the trading app works well on your mobile phone.

Choose a demo account that works well on your mobile phone

Mobile trading apps have evolved a lot over the years since the first ones became available a decade ago. To a large extent, the functionalities of Forex demo accounts available on desktop platform terminals are now captured by mobile apps.

Why Use a Demo Account?

Use a Forex demo account so that you will not lose any money while you are learning. Forex is a high-risk venture and 70-90% of traders will lose money. It is really that simple.

You cannot lose real money with a demo account

Of course, you will not make any profits either. But beginner traders rarely profit by jumping straight into a real account.

Yes, there is a (very) small chance you will be lucky and make a profit. But this is no better than gambling. And like gambling, the house always wins in the end: You may make a profit once or a few times, but eventually, you will lose.

Being profitable depends on how well you know the Forex market and your ability to use your trading platform correctly. It also depends on the performance of your Forex trading strategy.

Use a demo account to learn how to trade, gain platform experience and perfect your strategy

Trader-thinking

How to Learn to Trade with a Forex Demo Account

When you are learning to trade Forex with a demo account, these are the concepts you should cover as part of your practice sessions.

Leverage and Margin

Leverage is money borrowed from your Forex broker which allows you to open much larger trades than you would with just your own money. The margin is the deposit required from you to open a trade. This is real money taken from your trading account.

Leverage is money borrowed from your broker to increase the size of your trade

Calculating how much you will borrow and how much you will need to deposit when opening a trade is an important part of managing your risk. This means understanding how leverage and margin can affect the size of your orders.

Spreads and Currency Pairs

You should go through the list of currency pairs and know which ones are the major pairs, minor pairs, and exotic pairs. Understand how they are priced and why exotic pairs have a larger range of movement than major currencies.

Exotic pairs have a larger range and wider spreads than major pairs

It is also important to know the spreads for each currency pair you plan to trade and to discover whether they are fixed or variable.

Order Types

Forex is about buying and selling currencies, but there are various ways to do this. The different ways to buy and sell currencies are called order types.

The two common order types are buy and sell. These are instant orders to buy or sell a currency pair at market price. Then there are limit orders, stop orders and pending orders. Each one of these has variations that can give traders an edge, depending on the market situation. They can also be combined to better manage risk.

Each order type has its own purpose, and they can be combined

Traders should also know how to set the prices for pending orders and set the expiration time for execution of pending orders.

Charting and Tools

ctrader charts

 

Reading and modifying charts is an essential part of Forex trading. You will need to understand how to change time frames and how to add indicators and oscillators to the charts.

Charting is an essential part of Forex trading

You will also need to understand how plug-in tools work. Autochartist is a tool that plugs-in directly to MT4, MT5, and cTrader and helps you detect chart patterns and trading opportunities.

Fundamental Analysis: How Fundamentals Affect Price and Volatility

Fundamental analysis is the study of how news events affect price action and volatility. Most brokers will have an economic calendar with the upcoming data releases for the major economies but trading unpredictable geopolitical events, such as Brexit or the Covid-19 pandemic, is a very tricky business.

Trading geopolitical events, like the Covid-19 pandemic, is a tricky business

Trading-Covid

 

You will need to learn how each currency pair that is listed on the news calendar responds to high-impact news releases. Once you understand a currency pair’s response you can learn to trade the initial spikes when news is released.

Technical Analysis: Support and Resistance Levels, Signals and Patterns

Technical analysis is the study of historical price movement to predict future price movement. Technical analysis occurs almost entirely on charts. Each platform comes with a variety of line tools, Fibonacci tools and other tools necessary for chart studies.

Technical analysis is the study of historical price movement to predict future price movement

With a Forex demo account, you can learn how to use these tools to plot support levels, resistance levels, chart patterns, retracement and extension levels, and create trade alerts.

Gaining Platform Experience: MT4, MT5, cTrader and other Platforms

Learning starts with understanding your Forex trading platform and its features. Before you start trading with real money you should be able to answer all the following questions about your platform:

  • How do you pull charts, change time frames, and add indicators?
  • How do you deploy Forex expert advisors (EAs)?
  • How do you add custom indicators to your platform?
  • How do you adjust indicator parameters?
  • How do you set up market orders, pending orders, stop loss and take profit orders?

Stop Loss

For this reason, you should use the same platform for your demo account and your live account.

Use the same trading platform for your demo account and your live account

You should also use the same amount of virtual money in your demo account that you will fund your live account with.  By doing this you can use the same lot sizes and other parameters to mimic the exact conditions that you will face in live trading.

More than 98% of Forex brokers offer demo accounts on the MetaTrader 4 (MT4) platform. However, the MetaTrader 5 (MT5) and cTrader platforms are also available for those who want extended functions such as algo trading (cTrader) or a Depth of Market (DOM) tool (MT5).

More than 98% of Forex brokers offer demo accounts for the MT4 platform

Some brokers also offer their own platforms. While these are often easier to use for beginners, you should only use them for demo trading if you plan to open a real account on the same platform.

Indicators and Robots

Once you have mastered the use of the trading platform, it is time to use your demo Forex account to test your strategies and to learn the best use of indicators and Forex robots.

 

MT5 Market

The emphasis is not to give yourself a false sense of security by just posting profits, but to understand how each indicator works. You also need to find out how well your indicators and robots work in live market conditions. You will also need some theoretical knowledge of the categories of indicators available and how they are used.

How do I Prepare for the Step Up to a Live Account?

Unfortunately, the answer to this is: You cannot.

Trader Psychology

 

A drawback of Forex demo accounts is the reduced psychological impact when using them. When traders know that no real money is involved and nothing is at stake, they disconnect from the seriousness of the situation – it is human nature.

Trading with a demo account does not have the same psychological impact as trading with a real account.

However, when real money is involved, traders will find anxiety and self-doubt to be near-constant companions. Forex trading with a demo account cannot prepare you for dealing with these emotions, and you should be aware of this psychological challenge.

Furthermore, slippages and requotes that can occur in real money trading do not exist when using a demo Forex account.

How do you open a Forex Demo Account?

Opening a demo account only takes a few minutes. To get started:

  1. Visit a Forex broker where you would like to open an account
  2. Complete your personal information
  3. Verify your phone number or email address
  4. Follow the instructions on your screen and in your email.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

References

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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