CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Forex broker demo account platform comparison
Here's how the top forex brokers offering demo accounts stack up against each other:
FAQs
What are forex demo accounts?
Forex demo accounts are simulated accounts that allow traders to learn how to trade with virtual money. Demo accounts are free to use and widely available; most reputable forex brokers offer some version of a demo account. Demo accounts allow you to practice trading, get a feel for how the forex market works, and experiment with different trading strategies and techniques – all without the added stress of losing your actual money.
What is the best forex broker that offers a demo account?
IG is the best forex broker that provides access to a demo account. Year after year, IG has shown itself to be the best broker in the forex industry. Highly trusted and regulated in a staggering eight Tier-1 jurisdictions, IG holds a Trust Score rating of 99. Though IG does offer MetaTrader 4, IG’s proprietary web-based trading platform steals the show with its wide variety of rich features, market research, and powerful trading tools. IG also offers seamless integration of trading signals into its web platform. IG has won countless Annual Awards from our sister site, ForexBrokers.com, and is a fantastic choice for forex traders of all experience levels.
IG Trading Platform Screenshots
What are the requirements for opening a forex demo account?
The requirements for opening a forex demo account will vary depending on your broker and your country of residence. In most cases, you’ll need to fill out an application with your broker providing basic information such as your name, address, phone number, and trading experience. Some brokers may also require you to verify your identity before opening a demo account. Once your application is approved, you’ll be granted access to a demo account and you can start practicing with virtual funds.
Is trading with a demo account worth it?
Yes, trading with a demo account can be worth it – especially for beginner investors and traders. Demo accounts give inexperienced traders the opportunity to practice trading and to experiment with trading strategies in a risk-free trading environment. Trading with a demo account can help you gain confidence in your abilities and experience the highs and lows of the market without the risk of losing any real money.
What should I look for in a forex demo account?
It's important to make sure that your broker's demo account offers the same platform(s) that you'll be using when trading with live funds (real money). Many of the best forex brokers in the industry offer a range of proprietary trading platforms (platforms created in-house by the broker). Popular third-party platforms include MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, and Zulutrade.
analyticsUsing a demo account should feel realistic
A demo account should simulate actual trading conditions and incorporate spread data from live markets to provide a realistic understanding of how instruments like CFDs operate in a live trading environment.
Pros and Cons of Demo Accounts
The good: Demo accounts give traders the opportunity to practice trading with virtual funds, test trading strategies, and gain confidence as a trader. The bad: Demo accounts are not a perfect simulation of what you'll face in the real market, and there is a chance that you may become too comfortable trading in a virtual environment.
Check out the Pros and Cons of using a demo account to learn how to trade:
Pros
- Risk-free learning: Practice trading without risking any real money. Demo accounts allow you to learn the ropes of forex trading and understand the mechanisms of the currency market.
- Platform familiarity: Get comfortable with your trading platform of choice and learn how to place orders, set stop losses, navigate charts, and use technical analysis tools.
- Strategy testing: Test out trading strategies in a demo account to see how they perform before using them in the live forex market.
- Understanding market behavior: Learn about market trends, economic indicators, and other market factors that influence currency pair prices.
- Emotional control: Develop a disciplined trading mindset by trading in a risk-free environment. Demo accounts can help you control emotions that can negatively impact your trading decisions.
Cons
- No real monetary risk: The lack of genuine financial risk can lead to the development of bad trading habits. Over-trading, neglecting risk management, or not respecting stop-loss orders are habits that can be detrimental when switching to a live account.
- Lack of emotional involvement: Demo accounts can't replicate or simulate the psychological pressure of trading with real money.
- Different market conditions: The simulated market conditions in a demo account might not fully represent the live trading environment. For example, orders in a demo account are always filled, while in live trading, orders can be affected by slippage and market liquidity.
- Data accuracy: Some demo accounts may not provide accurate data or may not correctly incorporate factors like spreads and commissions.
- Overconfidence: Success in a demo environment can lead to overconfidence when transitioning to live trading. It's important to remember that successful demo trading does not guarantee success in live trading.
currency_exchangeTo sum it up:
While demo accounts are a valuable tool for beginners (and even experienced traders testing new strategies), they should be used with an understanding of their limitations. Think of demo accounts as a helpful stepping stone to live trading – not as a perfect simulation.
Final thoughts
Forex demo accounts are an excellent way to learn how to trade risk-free. They are an essential tool for beginners who are looking to get a feel for the market before risking their own money. While there are limitations to trading with a demo account, it’s a great way to practice and develop your trading strategies. However, it’s important to remember that forex trading in the real market is different from trading with virtual money.
BrokerNotes.co 2024 Overall Rankings
To recap, here are our top forex brokers for 2024, sorted by Overall ranking.
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Methodology
At BrokerNotes.co, our data-driven online broker reviews are based on our extensive testing of brokers, platforms, products, technologies, and third-party trading tools. Our product testing extends to the quality and availability of educational content, market research resources, and the accessibility and capabilities of mobile platforms and trading apps. We also dive into each broker’s trading costs, such as VIP rebates, inactivity fees, custody fees, bid/ask spreads, and other fee-based data points.
Steven Hatzakis, an industry veteran with decades of experience in the forex market, leads the BrokerNotes research team. All BrokerNotes content is researched, fact-checked, and edited by the research team.
All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running the latest version of macOS to test trading on the go. We test mobile apps and products using iPhones running iOS 17 and Samsung devices running Android OS 14.
Note: The online brokers on our site provide the ability to trade forex in one or more ways, such as non-deliverable spot forex (i.e., rolling spot contracts), contracts for difference (CFD), or other derivatives such as futures. The availability of specific markets or features will depend on your country of residence and the broker's applicable brand or entity that services your account(s).
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
About the Editorial Team
BrokerNotes.co provides unbiased forex broker reviews and ratings to help traders and investors find the best broker for their needs. All content is researched, fact-checked, and edited by our research team and all ratings and rankings are based on the team’s in-depth product testing.
John Bringans is the Managing Editor of BrokerNotes.co and ForexBrokers.com. An experienced media professional, John has close to a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets. He holds a Bachelor’s Degree in English Literature from San Francisco State University, and conducts research on forex and the financial services industry while assisting in the production of content.
Joey Shadeck is the Content Strategist and Research Analyst for BrokerNotes.co and ForexBrokers.com. He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years. An industry veteran, Joey obtains and verifies data, conducts research, and analyzes and validates our content.
Steven Hatzakis is the Global Director of Online Broker Research for BrokerNotes.co and ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. A forex industry expert and an active fintech and crypto researcher, Steven advises blockchain companies at the board level and holds a Series III license in the U.S. as a Commodity Trading Advisor (CTA).
TD Ameritrade
Capital.com
Swissquote
AvaTrade
OANDA
Plus500
FXCM
Pepperstone
XM Group
Admirals
FP Markets
Tickmill
IC Markets
FxPro
Markets.com
FinecoBank
BlackBull Markets
Vantage
ThinkMarkets
HYCM (Henyep Capital Markets)
HFM
DooPrime
Questrade
ActivTrades
Trading 212
BDSwiss
Trade Nation
TMGM
Eightcap
Moneta Markets
Spreadex
MultiBank
Exness
ACY Securities
easyMarkets
RoboForex
VT Markets
Octa
IronFX
IFC Markets
Trade360
Axi
TeleTrade
iFOREX
FXOpen
FXPrimus
Xtrade
Forex4you
GBE brokers
Alpari
TopFX
Libertex (Forex Club)
LegacyFX
FXGT.com
ATFX
