If you are new to trading and don’t know how forex trading works, it is wise that you enter into trading with caution. There is significant risk associated with trading CFDs. And in response, Forex brokers have created an optional account called a demo account to practice trading. Use one to start your trading career, and keep it around to perfect new trading strategies.
What Is A Forex Demo Account?
Demo accounts are 100% free. They are a good way for a beginner to trade forex with a real broker without risking any money. Demo accounts often have all the features you would expect from the broker. Plus it gives the trader a good feel for what trading would be like with MT4 or with the broker’s own software or apps.
What Is The Best Forex Demo Account?
Traders usually start a demo account with a thought that you may one day trade in a live environment. That said, you should compare a broker for a demo account the same way you would for a live trading account.
The list below includes information that would be important for you to trade on the markets with real money. To sign up for a demo account click on the “Open Demo” buttons below for a broker that suits you.
Forex Brokers – Demo Accounts
|Broker||Min. Deposit||Regulated by||Next Step|
|$ 5||FSB Regulated.||Open Demo|
|$ 100||FSB Regulated.||Open Demo|
|$ 250||FSB Regulated.||Open Demo|
|$ 200||CySEC Regulated.||Open Demo|
|$ 50||CySEC Regulated.||Open Demo|
|$ 100||CySEC Regulated.||Open Demo|
|ZAR 1500||FSB Regulated.||Open Demo|
Are Forex demo accounts accurate?
Demo accounts use the same real-time data that you would be trading with. The only way that it is not accurate, is the wins and losses of your trades are not real. You are not making money as it is all play money.
The feeling of trading in a live environment will be different because of the psychological nature of the fear of loss. So, traders, you can expect that a move over to the live environment will feel different. Even though the platform is the same.
How do Forex demo accounts work?
Most demo accounts work exactly like a regular account. Expect the broker will fund the account with play money credits. These credits are used for trading in an environment that mimics the live environment.
When you sign up for a demo account, verify your account by submitting the needed documentation. Your account will be available shortly, and you will receive your account logins
Some demo accounts expire after a period of time unless you open a regular account. When you open a live account, you will be able to keep your demo account. This is useful to continue testing new ideas and practicing while live trading.
How to use Forex demo accounts.
A Forex demo account is a great way to make your first entry into forex trading. If used for too long it can breed bad habits and allow you to develop shortcuts that can impact your trading in a real environment.
I would always suggest that you use your demo account as you would your regular account. It is a great place to learn how to use MT4, how to open a trade, learn how to read the different charts, do technical analysis and try new strategies. If you are looking for an MT4 broker, we have put together our favorites here.