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75-90% of retail traders lose money trading Forex and CFDs. You should consider whether you understand how CFDs and leveraged trading work and if you can afford the high risk of losing your money. We may receive compensation when you click on links to products we review. Please read our advertising disclosure. By using this website you agree to our Terms of Service.

AuthorAuthor: Chris CammackPublished: Jul 17, 2017
EditorEditor: Alison HeyerdahlUpdated: Jan 12, 2024

Last Updated On Jan 12, 2024

Chris Cammack

Demo accounts are the best way for beginner traders to learn to trade Forex without risking their money. But demo accounts are also necessary for testing new strategies in a risk-free environment. In this guide, we explain why it’s important to use a demo account, tips to get the most from your demo account, and common mistakes to avoid. The brokers below not only offer demo accounts that closely mirror a live trading environment but are also well-regulated entities that provide excellent educational resources and maintain low trading costs on their entry-level accounts.

According to our testing and our research, these are the best Forex demo accounts in Nigeria for 2024.

  • AvaTrade - Best Mobile Demo Account
  • Pepperstone - Best ECN Demo Account
  • FXTM - Best ECN Demo Account
  • Exness - Widest Range of Demo Accounts
  • HFM - Best MT4 Demo Account
  • IC Markets - Best MT4 Demo Account
  • XM - Best MT5 Demo Account
  • FBS - Best Demo Trading Account
  • XTB - Best Demo Account Platform
  • markets.com - Best 10,000 USD Demo Account

Best Forex Demo Accounts 2024

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Broker
Broker Score
Official Site
Beginner Course
Unlimited Demo
Downloadable Ebook
Beginner Videos
Economic Calendar
Experienced Course
Advanced Videos
Webinars
Min. Deposit
Platforms
Regulated
Support Hours
Compare
AvaTrade
4.59 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
USD 100
Avatrade Social
AvaOptions
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
CySEC Regulated Brokers
Financial Services Agency
Central Bank of Ireland
Financial Regulatory Services Authority
24/5
Pepperstone
4.61 /5
Read Review
Visit Broker >
89%74- of retail CFD accounts lose money
USD 0
TradingView
FCA Regulated Brokers
ASIC Regulated Forex Brokers
CySEC Regulated Brokers
Dubai Financial Services Authority
Bundesanstalt für Finanzdienstleistungsaufsicht
Securities Commission of the Bahamas
Capital Markets Authority
24/7
FXTM
4.37 /5
Read Review
Visit Broker >
81% of retail CFD accounts lose money
USD 10
FCA Regulated Brokers
FSCA Regulated Forex Brokers
Financial Services Commission
Capital Markets Authority
24/7
Exness
4.12 /5
Read Review
Visit Broker >
71.67% of retail CFD accounts lose money
USD 3
Exness Terminal
FSCA Regulated Forex Brokers
The Seychelles Financial Services Authority
Capital Markets Authority
British Virgin Islands Financial Services Commission
Financial Services Commission
24/7
HFM (HotForex)
4.53 /5
Read Review
Visit Broker >
72.90% of retail CFD accounts lose money
USD 0
HFM Trading App
CySEC Regulated Brokers
FCA Regulated Brokers
FSCA Regulated Forex Brokers
Dubai Financial Services Authority
Financial Services Commission
The Seychelles Financial Services Authority
24/5
IC Markets
4.56 /5
Read Review
Visit Broker >
70.81% of retail CFD accounts lose money
USD 200
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
The Seychelles Financial Services Authority
Securities Commission of the Bahamas
24/7
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
USD 5
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
Dubai Financial Services Authority
International Financial Services Commission
FSCA Regulated Forex Brokers
24/5
FBS
4.33 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
USD 5
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
International Financial Services Commission
24/7
XTB
4.39 /5
Read Review
Visit Broker >
78% of retail CFD accounts lose money
USD 0
xStation5
CySEC Regulated Brokers
FCA Regulated Brokers
Dubai Financial Services Authority
International Financial Services Commission
Komisja Nadzoru Finansowego
24/5
Markets.com
4.68 /5
Read Review
Visit Broker >
70.3% of retail CFD accounts lose money
USD 100
markets.com
FCA Regulated Brokers
CySEC Regulated Brokers
ASIC Regulated Forex Brokers
FSCA Regulated Forex Brokers
British Virgin Islands Financial Services Commission
24/5

How we Reviewed the Best Demo Accounts for 2024

At FXScouts, we have an experienced review team dedicated to evaluating Forex brokers, including their demo trading accounts. Our team of experts meticulously examines each broker, analysing over 200 individual metrics, enabling us to confidently recommend only the top demo accounts in the Forex industry.

We’ve selected the top demo accounts in the industry based on several factors:

  • Regulation: All chosen brokers are regulated by reputable authorities like the FCA in the UK, CySEC in Europe, and ASIC in Australia. Other brokers are typically regulated in offshore states like Vanuatu, Seychelles, or Mauritius, which may pose risks in live trading. Common risks include higher leverage, no negative balance protection, and difficulties withdrawing funds.
  • Account Size: Forex brokers offer different demo account sizes, from 10,000 USD to 1,000,000 USD. We advise using the same amount as you would use in a real account for realistic trading limitations understanding.
  • Expiry of Demo Account: Some brokers provide no-expiry demo accounts for practice without time constraints. Most brokers on our list offer these or extendable demo accounts.
  • Financial Instruments: All listed brokers offer Forex trading and other instruments like commodities, stocks, ETFs, or bonds. Demo traders like experimenting with different instruments, so we prefer brokers with a wider range.
  • Trading Platform: Demo accounts are an opportunity to test drive a broker’s trading platform. Our selected brokers offer user-friendly, reliable platforms like MT4, MT5, cTrader, or their own web-based platforms.
  • Customer Service: A broker’s customer service should be responsive and available 24/7 via various channels.
  • Educational Resources: Brokers offering educational resources can help beginners grasp Forex trading effectively.

You can find out more about our in-depth review process here.

These are the top demo accounts in Nigeria for 2024, as determined by our review process.


Others Also Visit

Scroll for more detailsPreviousNext
Visit
AvaTrade
4.59 /5
Read Review
Visit
Pepperstone
4.61 /5
Read Review
Visit
Exness
4.12 /5
Read Review
Visit
FXTM
4.37 /5
Read Review
Visit
HFM (HotForex)
4.53 /5
Read Review
Visit

AvaTrade – Best Mobile Demo Account

Broker Score
4.594.59 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Founded in Ireland in 2006, AvaTrade is a well-regulated broker with a free demo account available on the broker’s webtrader platform, MT4, MT5 and its mobile app, AvaTradeGO. South African traders can trade 1250+ instruments, including Forex, cryptocurrency, stocks, commodities, and indices. Voted the best Forex Trading App 2020, the AvaTradeGO mobile app has a sophisticated dashboard, complete with a set of intuitive management tools, clear zoomable charts, and many more helpful features.

  • The demo account includes a 100,000 USD balance
  • The demo account expires after 21 days but can be extended by contacting customer service.
  • AvaTrade has a library of educational material, tools and analysis to help beginners get started.
  • Customer support is available 24/5.
Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

Pepperstone – Best ECN Demo Account

Broker Score
4.614.61 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Pepperstone, headquartered in Melbourne, is internationally recognised for its 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 80+ 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.

The demo and the live account are the same in performance and conditions, except the demo account comprises 500,000 USD in virtual funds. The minimum deposit on the live account is 100 AUD, with spreads on EUR/USD as low as 0.09 pip and a commission of 0.0 USD per lot giving a total trading cost 6.90 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, develop a trading plan and manage risk. 

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.00 pipson the trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4, MT5, TradingView & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, CySEC, SCB, CMA, BaFin and the DFSA.

FXTM – Best Unlimited Demo Account

Broker Score
4.374.37 / 5
🏦  Min. DepositUSD 10
🛡️  Regulated By
💵  Trading Cost 
USD 15
⚖️  Max. Leverage2000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Regulated by the FSCA in South Africa since 2016, FXTM is a hybrid market maker/ECN broker offering trading on Forex, commodities, metals, stocks, and indices. The free demo account at FXTM allows clients to trade 60 Forex pairs on their choice of the MT4 or MT5 trading platforms. The FXTM demo account never expires and is available as an option on all account types, including FXTM’s market execution Advantage and Advantage Plus Accounts.

  • High-quality educational material for new traders. The comprehensive education section includes articles, videos, and webinars.
  • An additional set of videos covering analysis topics and chart reading techniques. Market analysis is updated daily and offers many trading ideas.
  • FXTM Invest: Unique copy trading platform, which allows traders to copy the trades of experienced traders.
Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
Cons
  • Expensive withdrawals
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

Exness – Widest Range of Demo Accounts

Broker Score
4.124.12 / 5
🏦  Min. DepositUSD 3
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. LeverageUnlimited:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Exness is a popular broker with over 200,000 clients worldwide, offering trading on 100+ Forex pairs, a small range of cryptocurrencies, 70+ stock CFDs, indices and commodities. Exness has nine trading account types on the MT4 and MT5 trading platforms – many more than most brokers. All but one of these accounts are available as demo accounts, giving beginner traders a great range of trading platforms, pricing, and executions methods to experiment with. Demo accounts automatically come with 10,000 USD in demo funds to trade with and this can be increased from inside your trading dashboard. There is no difference in the market conditions between demo accounts and real accounts, and with 100 demo accounts allowed on each of the trading platforms, there is almost no limit to the number of strategies that can be tested.

The only account not available as a demo account is the Standard Cent Account, which is already one of the lowest-risk live accounts available, it has a minimum deposit of only 1 USD and much lower trading fees than most cent accounts, with spreads as low as 0.3 pips.

Pros
  • Great platform choice
  • Tight spreads
  • Wide range of FX pairs
  • 24/7 customer service
Cons
  • Extreme leverage
  • Unavailable in Europe
  • Limited range of share CFDs
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage Unlimited:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA and the FSA Seychelles.

HFM (formerly known as HotForex) – Best MT4 Demo Account

Broker Score
4.534.53 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

HFM is an FSCA-regulated STP broker with low-cost accounts for Nigerian traders and trading products including Forex, commodities, indices, shares, bonds, and ETFs. The HFM demo account never expires and comes with 100,000 USD preloaded on both MT4 and MT5. But the MT4 Demo Account experience is the standout here; with access to expert advisors for auto-trading and over 50 built-in indicators, this is the better MT4 demo experience for new traders.

  • 5 USD minimum deposit for live accounts
  • Award-winning 24/5 customer service
  • High-quality structured courses and market analysis will benefit beginners and intermediate traders
  • No deposit or withdrawal fees for Nigerian beginners making the step up to a live account
Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

IC Markets – Best MT4 Demo Account

Broker Score
4.564.56 / 5
🏦  Min. DepositUSD 200
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

IC Markets is rare amongst brokers, as it provides a welcoming environment for beginner traders looking for an MT4 demo account with ECN conditions. In addition, the IC Markets demo account does not expire unless you are inactive for 30 days and can also be topped up by customer support.

IC Markets offers two Raw Spread Accounts and a Standard Account, all with variable spreads, on the MT4 platform. The Raw Spread Accounts charge a small commission of 3.50 USD, but spreads are often down to 0 pips, averaging 0.1 pips on the EUR/USD pair. The Standard Account charges no commission but spreads start at 1 pip. IC Markets also offers an archive of structured course material, detailed independent market analysis, and expert-led webinars. IC Markets also provides excellent 24/7 technical support for both the MT4 platform and more general queries.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Great platform choice
Cons
  • High minimum deposit
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC, ASIC, and the FSA.

XM – Best MT5 Demo Account

Broker Score
4.454.45 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Awarded the Global Forex Broker of the Year 2020 in the Global Forex Awards, XM is a market maker offering trading on Forex, stock CFDs, commodities, equities, precious metals and energies. It also has a low-cost stockbroking service. The demo account at XM is funded with a 100,000 USD virtual balance, does not expire after a set time, and is available on both the MT4 and MT5 platforms. XM’s MT5 Demo Account is aimed at traders who want to trade more than just Forex:

  • 1000+ instruments available, including stock CFDs, stock indices, precious metals and commodities
  • The MT5 demo account also features a market depth indicator, hedging, and full EA functionality.
  • For beginner traders, XM Group’s educational content is world-class and is mainly in video form.
  • Educational offering split into three Education Rooms, aimed at traders of differing skill levels – primary, intermediate and advanced.
Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Dealing desk
  • Wide spreads on its entry-level accounts
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the Belize FSC.

FBS – Best Demo Trading Account

Broker Score
4.334.33 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage3000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

FBS is a well-regulated broker offering trading on multiple assets, including Forex, metals, energies, indices, crypto, and stocks.  FBS’ free demo account allows traders to test out trading strategies on MT4, MT5, and the FBS Trader platforms with virtual money under real trading conditions.  Demo accounts expire after 90 days of inactivity, and then they are automatically deleted.  Clients can open a new account if this happens. 

Demo accounts are available on all 6 of FBS’ account types, including the Cent and Micro, aimed at beginners. But FBS offers account types to suit traders of all experience levels and allows leverage of up to 3000:1 on three of its accounts.  Trading costs can be higher than other brokers on some of its account options, with spreads as wide as 3 pips (EUR/USD) on its Micro Account and a 20 USD per lot commission on its Zero Spread Account.  Trading costs are significantly lower on the Cent and Standard accounts, with spreads down to 0.8 pips on the EUR/USD.

 
Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
  • Excellent market analysis
Cons
  • Limited range of assets
  • Extreme leverage
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, the FSCA, and the IFSC.

XTB – Best Demo Account Platform

Broker Score
4.394.39 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

XTB offers trading on over 2100 financial assets including Forex, indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies. The XTB demo account automatically expires after 30 days, but a new one can be re-opened at any time and there is no limit on the number of demo accounts that can be opened. The XTB demo account gives traders an opportunity to familiarise themselves with XTB’s platform, xStation 5. xStation 5 is an intuitive and award-winning platform that shows sentiment data and offers powerful charting tools, one-click trading, and real-time performance statistics so traders can identify areas for improvement.

  • Demo account pre-loaded with 100,000 USD
  • xStation 5 is available in a web browser, on mobile for iOS and Android, and on a desktop for Windows and Mac
  • Market analysis available from inside the trading platform
  • For beginners, the XTB Trading Academy offers clear and concise learning structured like a course.
Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, FCA, the DFSA, and the FSC

Markets.com – Best 10,000 USD Demo Account

Broker Score
4.684.68 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage300:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

The Markets.com platform is a user-friendly and intuitive trading platform operated by Markets.com, a market maker regulated by CySEC, ASIC and the South African FSCA. The Markets.com demo account is loaded with 10,000 USD of virtual funds but is unlimited and will only expire after 90 days of inactivity.

Live trading conditions are mirrored by the demo account and are particularly good when compared to Markets.com’s direct competitors. Over 50 currency pairs are available, with fixed spreads starting at 0.9 pips and leverage of 1:300. Other CFDs include stocks, cryptocurrencies, 25 indices, commodities, ETFs, and government bonds.

There are many trading resources integrated into the Markets.com 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. 

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • High minimum deposit
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5, and Marketsx platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC

ƒWhat is a Forex Demo Account?

A Forex demo account is a practice trading account which allows traders to learn how to trade the Forex market without risking their own money. It provides a simulated trading environment with real-time market data, charts, and technical indicators that closely resemble the live forex market but operate with virtual funds. 

Forex brokers typically offer demo accounts on various platforms. Web-based demo accounts can be accessed through a standard web browser and don’t require any software installation. Other commonly used platforms include third-party downloadable applications, such as MT4, MT5, and cTrader. Some brokers even have their own proprietary trading platforms.

Why use a demo account?

A trader should use a demo account for several key reasons. 

  • It offers an opportunity for traders to learn the fundamentals of trading, such as understanding market trends, familiarising themselves with different financial instruments, and grasping how orders work. 
  • It allows for risk-free testing and refinement of trading strategies. New and experienced traders can experiment with various techniques and analytical tools without the threat of real-world financial repercussions. 
  • A demo account helps traders learn how to use a trading platform. It helps them plan trade execution, understand the interface layout, and use various analytical tools more efficiently. 
  • It assists in understanding the psychological aspects of trading, such as managing emotions during market fluctuations, especially when you have a losing trade, which is a critical skill for live trading.

Tips for using a demo account

1. Learn how Forex trading works

Forex trading involves simultaneously buying one currency and selling another. With a demo account, you can practice this by opening virtual positions for any currency pair, using trading tools to understand how real trades might fare.

For instance, consider trading the euro against the US dollar in a demo account. On trading platforms, each pair has a ticker symbol, with EUR/USD represented as EUR.USD. The euro is the base currency, and the US dollar is the quote currency. 

If you predict the euro’s value will rise against the dollar, you “buy the pair”. Conversely, if you expect the euro to fall, you “sell the pair”. Using a trading platform, you can monitor the performance of your trade and execute buy or sell orders with the click of a button.

Your trading decisions should be based on prior analysis, typically either fundamental or technical. Fundamental analysis assesses the impact of political, economic, and social factors on currency value, while technical analysis predicts future price movements based on historical price patterns.

2. Make the most of your demo account

To make the most of your demo account in forex trading, there are vital tips to keep in mind:

  • Firstly, approach the demo account with seriousness and dedication, treating it as if it were a real trading account. This entails following your trading plan and practicing proper risk management. 
  • Simulate real trading conditions by setting your demo account balance to match the amount you intend to invest in a live account. Don’t forget to consider factors like spreads, slippage, and execution speeds. 
  • Take time to review your trades. Understanding why a trade was successful or not is crucial for improvement. Use this insight to refine your strategies and avoid repeating mistakes. 
  • Forex trading platforms differ in design and functionality. A demo account helps you understand the specifics of a trading platform, enabling you to master placing trades, setting stop losses, and take profit orders, and monitoring your account balance. It also allows you to experiment with various indicators, timeframes, and approaches to identify what works best for you. 
  • Even though you’re trading with virtual money, practice risk management strategies as if it’s real. Set realistic stop losses and take profits levels, maintain proper leverage, and manage your account balance. This discipline will be invaluable when you transition to live trading.
  • Forex markets can be volatile and are influenced by various factors such as economic news, geopolitical events, and market sentiment. Use your demo account to understand how these factors impact currency prices.

3. Create a Forex trading strategy

Forex trading strategies help traders decide when or where to buy or sell a currency pair. They are simply a set of rules that help a trader determine when to enter a trade, how to manage it and when to close it. There are many, many strategies available.  Fortunately, there is also a vast amount of information available on forex strategies, from books to YouTube videos to the educational information offered on broker platforms.

No single strategy is best, and the type of strategy you decide to employ depends upon many factors, not least your skill and experience. As a beginner, it is best to focus on the most basic and effective strategies. Other variables include: how much time you want to devote to trading; which pairs you want to focus on; the size of your positions, and whether you are going long or short. Moreover, some may work better in certain situations than others.  A demo account allows you to practise these strategies over and over again until you find the ones that you are most comfortable with and are ready to use in live trading.

Common mistakes to avoid when using a demo account

When using a demo account, it’s necessary to be aware of common mistakes.  By understanding and addressing these common mistakes, you can maximize the benefits of the demo account and set yourself up for success in live trading. 

  • Unrealistic mindset and expectations: One common mistake is approaching the demo account with a careless or unrealistic mindset. It’s important to treat the demo account as if it were real money and trade with the same discipline you would apply to live trading and avoid taking unnecessary risks.  Another mistake is overtrading or having unrealistic expectations based on demo account results. While demo trading can provide valuable insights and help develop skills, it’s essential to remember that real market conditions may differ. 
  • Neglecting proper risk management: Some traders overlook risk management principles when using a demo account. It’s crucial to practice and implement sound risk management strategies, including setting appropriate stop-loss levels, defining risk-reward ratios, and managing position sizes effectively. Neglecting risk management in the demo account can lead to unrealistic trading outcomes and poor habits when transitioning to live trading.
  • Ignoring emotional aspects: Traders sometimes overlook the emotional aspects of trading when using a demo account. Emotions like fear, greed, or impatience can significantly impact decision-making in real trading. By not simulating these emotions in the demo account and learning to manage them effectively, traders may struggle to cope with the psychological challenges they encounter in live trading.

Frequently Asked Questions about Forex Demo Accounts

How long should I use a Forex demo account before switching to a live account?

You should stay on the demo account until you completely understand the basics of forex trading and feel comfortable risking your own money. The answer will vary from individual to individual and depend on your aptitude and how much effort and time you put into trading on the demo account. Never feel that you need to rush into live trading; the more time you spend practicing on a demo account, the more likely you are to be successful using real money.

Can I reset my Forex demo account?

Most brokers allow you to reset your demo account balance if you’ve blown it up. It gives you a fresh start after a series of losing trades.

Does every Forex broker offer a demo account?

Most, but not all, do. Choosing a reputable broker is one of the critical factors determining success in FX trading. There are many issues to consider before you choose a forex broker, and the ability to practise on a free demo account is among the key ones. All the brokers we recommend offer this option, but traders should be aware that some brokers’ demo accounts expire after a certain period of time. 

How closely do demo accounts replicate live trading conditions?

While demo accounts aim to provide a realistic simulation, certain factors like order execution speed, slippage, and market liquidity may differ between demo and live trading.

How long do demo accounts stay open?

Some demo accounts will expire after a set period of time, usually 30–90 days. The best demo accounts, however, will never expire or will only expire after a period of inactivity. As a general rule, demo accounts should always be kept open. Even experienced traders use demo accounts to test new strategies or try out trading on new assets. If your demo account does expire and you still want to keep it open, it is always worth getting in touch with your broker’s customer service department to ask them to reopen it or extend it.

Can I withdraw the money from my demo account?

No, the money in your demo account is not real and cannot be withdrawn.

Are demo accounts as accurate as real trading?

You will be trading the real market only with pretend money so they are accurate. Remember, however, that you can never replicate the real emotions you will experience when trading your own money.  So, while useful for practicing different approaches and strategies, traders are likely to behave far less cautiously on demo accounts than on a real, live account.

Is a Forex demo account free?

Yes. Reputable brokers offer free demo accounts because they want you to deposit money with them and become long-term customers. That is more likely if you are able to trade successfully – and the best way of ensuring you will be successful is to learn the ins and outs of their trading platform and how to implement successful strategies.

Can I trade on a demo account on my mobile phone?

You can download demo accounts on a laptop, desktop, and portable devices such as iPads and mobile phones. The main thing is to practise as often as you can, wherever you can.

How do you open a Forex trading demo account?

It is very easy to open a demo account. Having decided which broker you wish to use, you simply:

  • Fill in a registration form
  • Receive a demo account number and a trader’s password
  • Download the software or the trading platform.

You can explore the platform within a few minutes of opening an account and start learning how forex trading works. It is much easier to open a demo account than a live account, a process that usually requires traders to send some form of identification document to the broker, fill out an application, and make a deposit.

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: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. 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 about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our State of the Market Report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers.

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

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References

FCA proposes stricter rules for contract for difference products – Press Release – Published: 06/12/2016 – https://www.fca.org.uk/news/press-releases/fca-proposes-stricter-rules-contract-difference-products

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