7 Best Demo Trading Accounts (Updated 2019)
5 (100%) 1 vote

Demo accounts have been turning out to be an essential part of trading platforms in the twenty-first century. Online brokers are using demo accounts as a tool for marketing their platform to customers. This permits traders to test the platform’s features before using their real money.

A demo account is a type of artificial account, which is funded with fictitious money that permits a potential client to try out with the platform. These types of accounts are now a day’s offered by almost all platforms, including foreign exchange trading venues, stock trading platforms, and commodities exchanges. Both beginners and advanced traders like to use demo accounts as a mean of testing their strategies.

Trading on demo accounts is a simple way to learn how to trade effectively, without risking any of your own funds. One can prepare his self for a variety of scenarios while trading on demo accounts. There are many opportunities that the traders have when trading through demo accounts.

In this guide, we have selected 7 brokers that offer the best demo trading accounts with all the functions and features similar to a real account. Along with demo accounts, we only selected those brokers that are well established and regulated from relative bodies. Below are the criteria we use for selecting the brokers that offer demo accounts.

What Criteria have we Used in our Selection?

The demo account is gaining a lot of attention both from traders and brokers perspective. Demo account alone, however, cannot make a big difference unless you choose the right broker. Therefore, we have set criteria that allowed us to choose the broker that is fully equipped with innovative trading tools along with strong demo account. Following are major factors that we used for selecting the best demo account broker:

  • Regulation and compliance
  • Demo account
  • Demo account functions and features
  • Spreads and commissions
  • Customer support
  • Number of instruments
  • Payment options
  • Educational material
  • Trading platform interface
  • Trade execution

  1. eToro

eToro demo account, known as eToro Practice Account, is one of the most essential features for traders who would like to trade with eToro. The broker offer unlimited and free access to its demo account with the potential to use $100,000 virtual money. It is quite easy to create an eToro account where you can easily use its demo account.

Review at Glance
Regulated ASIC, Cysec, FCA
Islamic accounts available YES
Min Deposit deposit: 200
Minimum position size 0.1 lot
Spread Fixed
Leverage 1:30

 

With this broker’s practice account, one can use all the features, functions and services that real account users would have. Its demo account helps new users to safely and quickly learn about the trade executions. This account also permits traders to connect to a professional investor along with learning the way of activating the copy trading function. One can also learn how to set the trade replication parameters.

Although a demo account is really helpful for new traders, it is equally essential for advanced investors. Trading is always a learning process. The past performance is never been considered as the indicator for a successful future. It helps advance traders in expanding their knowledge combined with testing new trading strategies.

eToro stands at the top of the list among the most reliable brokers in our criteria. It’s innovative and easy to use platform attracts investors from all over the world. Copy trading along with lower fees is among the best features of this platform. eToro is a credible trading platform which is registered and licensed from major global regulators.  Close to 6 million users are registered on eToro. Its platform is available in several languages such as English, Spanish, German, Italian, Russian, French, Polish, Chinese, Greek and Arabic.

Pros & Cons:

Pros:

  • Exceptional social networking
  • User-Friendly Platform
  • Numerous payment Methods Including PayPal
  • Low commissions
  • Copy Trading

Cons:

  • No customization
  • Lack of fundamental data
  • Lack of news flow
  • No MT4 Platform

66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

 

  1. Alpari

Alpari is one of the most established trading platforms that offer trading services to clients over the last two decades. This broker’s platform is fully equipped with all the modern day trading tools and features that suits both new and advanced investors. Its demo account helps traders to gain the skills that one need for working on the stock and currency market by practicing with virtual money.

Review at Glance
Demo account Yes
Regulated in Major Hub Yes
Authorized in the European Union Yes
Currency Pairs (Total Forex pairs) 48
CFDs 16

 

Its demo account holders can use the MetaTrader platforms 4 and 5 to hold the grip on the most famous trading tools. Alpari offers a demo account with a multi-lingual and user-friendly interface along with a full range of trading orders. The demo account also permits traders to test its more than 50 in-built technical instruments and indicators.

Moreover, one gets real cash even on a demo trading account from Alpari. The traders need to simply register for Alpari’s trader contest for demo accounts and attain the utmost profit in your trading on a demo account. You can receive a real cash prize for doing so!

Alpari is a reliable broker amid its compliance with trading policies and procedures set by regulatory bodies. This broker is regulated in multiple jurisdictions. It is regulated and licensed by Belize International Financial Services Commission and the Financial Services Authority of Saint Vincent and the Grenadines. The broker also won several awards in the past few years. For instance, in 2016, Alpari won FXEmpire’s award for the most innovative broker and it was named “Best Broker in Europe” in 2013.

In order to facilitate investors who are constantly on the move, Alpari has developed mobile trading apps. This means one can use this platform by downloading an app from the Google Play Store or the Apple App store.

Pros and Cons:

Pros:

  • Multiple Choices of Trading Platforms
  • Several Types of Trading Accounts
  • 24/7 Technical Support
  • Competitive Spreads
  • Generous promotional offers
  • Numerous Trading Competitions

Cons:

  • No Localized Telephone support
  • Multilingual support not available

 

  1. IG Group

IG Group is listed on the stock exchange and it was established in 1974. IG is among the biggest CFD and forex brokers in the world. IG is a reliable broker amid its exposure to the stock market and license from multiple regulatory authorities.  This London-based broker offer CFDs on a wide variety of assets such as forex, shares, indices, commodities, options, and cryptocurrencies.

Review at Glance
Demo account Accessible with $20000 in virtual funds
Founded              1974
Product Indices, CFDs Markets, Forex, Commodities, Shares, Bonds, Cryptocurrencies, Options
Minimum Deposit Varies depending on the account being opened
Regulator Financial Conduct Authority (FCA) Australian Securities & Investments Commission (ASIC)
Customer Support Email, live chat, Twitter and phone support

 

It also offers one of the best demo accounts to traders from more than 150 countries. Traders can use this award-winning platform for free to develop their trading skills with $20,000 virtual funds. Traders can also use its educational content along with testing their strategies both through web and mobile.

IG’s demo account provides traders an opportunity to try its web and mobile trading platforms in an environment with no risk of losing real money. Although traders could experience all most all the features of the real platform in the demo, the traders are not subject to interest, slippage and dividend adjustments. Traders will also not be charged for special features like chart packages on a demo account

Traders should not be worried about insufficient funds to cover margin and running losses as their trade will not be closed, which can happen on a live account.

Pros & Cons:

Pros:

  • Trustworthy broker
  • Over 40 years’ experience
  • No withdrawal fees unless traders want a same-day transfer via CHAPS

Cons:

  • Deposit fees for all transfer types except debit cards and bank transfers
  • Only 4 cryptocurrencies available to trade
  1. AvaTrade

Since 2006, AvaTrade has been providing innovative product and services to traders from all over the world. This broker also offers a demo account to traders after a simple signup procedure. Traders can easily use its demo account, which contains all the features of a real platform.  Founded in Ireland, AvaTrade began working as forex trading firm, but it expanded its business and asset classes in the past couple of years.

Review at Glance
Demo account Yes
Regulations Regulated by six authorities
Min Deposit $100
MT4 Integration Yes
Instruments CFD, Forex, Crypto

 

It is a reliable broker as it is regulated by six jurisdictions including the Central Bank of Ireland, ASIC in Australia and FSA Japan.

Its demo trading account is available on Mobile App. Whether you are on a business journey, on a holiday or at the office, AvaTradeGO app allows traders to make trades in a demo account. Its innovative platform and user-friendly interface are among the best features. Traders are allowed to test their MT4 and other trading tools such as charts and indicators through a demo account.

This trader helps new investors to understand the trading and investing techniques through valuable forex strategies and free eBook.

Pros & Cons:

Pros:

  • Used by 200,000+ traders
  • Established in 2006
  • Regulated by Central Bank of Ireland, ASIC, FSA, FSB, and BVI
  • deposit from $250

Cons:

  • Doesn’t offer VPS (See alternatives)
  • Not FCA Regulated (See alternatives)

 

  1. OctaFx

While Forex and stock markets offer attractive profit-making opportunities, these markets also involve the risk of losing money. Therefore, it’s always good to use the demo account before trading with the real money. That’s why OctaFx allows traders to use a demo account before diving into a live account.

Review at Glance
Demo account Yes
Regulated CySEC
Foundation Year 2011
Min Deposit $5
Max. Leverage 1:500

 

The OctaFX demo account offers the same experience on a demo account as real accounts. Its demo account is basically a practice account. This account is accessible to all traders after going through a simple registration process. Demo account permits traders to get accustomed to a range of instruments and tools along with understanding the dynamics of the liquid markets.

OctaFX provides unlimited demo dollars for practice on a demo account. Its demo account helps traders better know how to carry out trades. Traders can discover all the functions of the trading platform through demo accounts such as charts and levels, indicators and Fibonacci retracements.

Pros & Cons:

Pros:

  • Used by 300,000+ traders
  • Established in 2011
  • Regulated by Unregulated
  • deposit from $5

Cons:

  • Doesn’t offer VPS
  • Not FCA Regulated

 

  1. XM

XM is a well-known broker for forex and CFDs trading. It offers one of the best demo accounts to traders which are equipped with all the trading tools and modern day features. Traders will trade real markets using virtual funds and traders can use it as long as they want. This demo account permits you to test all possible trading strategies as many times as you want. The platform also offers to follow market trends, charts and opening and closing of orders on a demo account.

Review at Glance
Demo account Yes
Instruments CFD, Forex, Crypto
Regulated By FCA, CySec, ASIC
MT4 Integration Yes
Mobile Apps iOS, Android and Windows

 

XM Group offers the entire suite of MetaTrader platforms on demo accounts along with the potential to trade over 1000 CFD instruments. Traders can also trade cryptocurrencies from the demo account. It is regulated by Australian and European authorities.

Pros & Cons:

Pros:

  • Regulated in the UK, Cyprus (EU), and Australia
  • Competitive pricing on XM Zero account
  • Added MT5 Web
  • Offers many international live seminars

Cons:

  • Single-stock CFDs only available on MT5
  • Higher spreads on Micro and Standard accounts

 

  1. IQ Option

IQ Option offers a free demo account to traders. Indeed, traders don’t need to deposit funds to use the demo account. Traders can use its demo account only by filling the registration form. Its demo account contains all the features of a real account. One can trade all the instruments using virtual funds. It also offers several charting features, indicators and other functions to demo account holders.

Review at Glance
Demo Account Yes
Regulation CySEC (Cyprus)
Minimum Initial Deposit $10
Asset Coverage CFDs, ETFs, Forex, Cryptocurrency, Stocks, Indices, Commodities
Leverage 30:1  Retail Traders, 1000:1 Professional Trader
Trading Platforms Proprietary Web, Mobile App

 

IQ Option is a regulated broker and it is licensed from the jurisdiction of the Cyprus Securities Exchange Commission (CySEC). It is one of the fastest growing online trading platforms. The broker claims to have more than 25 million registered trading accounts. It is the most famous trading platform for options traders. Traders can trade multiple assets on this platform including forex exchange, stocks, commodities, and indices.

 

FAQ:

What is a demo account?

A demo account is a type of account that brokers offer to traders to test the platform and practice their trading strategies. This account allows traders to use virtual funds by taking part in real trade. However, they are not exposed to any risk and reward. Traders are mostly allowed to experience all the features and charting tools that they are eligible to use in real account. These types of demo accounts are offered by a large number of online trading platforms, including foreign exchange trading venues, stock trading platforms, and commodities exchanges.

Who can sign up for a demo account?

Anyone can sign up for the demo account according to the rules set by brokers. In majority cases, the broker permits traders to use a demo account only by registering through email. However, some brokers only permit those customers to use a demo account that has already deposited funds into the real account. Once the traders have a demo account, he/she is eligible for virtual funds to test the platform and their other trading features.

History of demo accounts?

The growth in online trading along with digitalization has paved the path for demo trading accounts. The demo accounts were not feasible prior to the use of personal computers and the Internet. Demo accounts started offering by online brokers in 2000s, thanks to the invention of high-speed internet. The demo accounts have now been used as a marketing tool for brokers and a means of testing trading strategies.

How long you can use a demo account?

This depends on the rules and procedures set by brokers. Brokers have been using different policies regarding the time frame for holding a demo account. For instance, AvaTrade demo account remains active as long as the traders log in on the trading platform at least once every 10 days. Some brokers offer unlimited funds in demo accounts while other brokers permit to use the specified virtual funds.

Does the demo account use live market?

Yes, the majority of brokers allow traders to trade live markets with virtual funds. The only difference between the demo account and a live account is the use of real and virtual funds. You are not open to any risk and you are also not eligible to get cash on profitable trades. The demo account is particularly designed for testing the platform.

About the Author:

sirajsarwar

Be the first to comment

Leave a Reply

Your email address will not be published.


*