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Best Forex Demo Account in 2021

A Forex demo account simulates live trading conditions and gives the trader an idea about how trading goes with a specific broker. It represents the broker’s “business card,” if you want, in the sense that the broker shows its transparency by revealing the conditions and markets offered. 

The best Forex demo account in 2021 should give the trader access to everything a broker has to offer, with little or no differences from the live environment. Ideally, a Forex demo account should be identical to a live Forex account. However, that is not always the case. 

Our List of the Best Forex Demo Account

The list below presents the best Forex demo accounts in 2021 that exist on the market:

1
Min. Deposit
$10
Exclusive promotion
Our score
10
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
0% Commission Account
Low Spreads
Eco-Account Option
Payment Methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
Leverage
500:1
New accounts
Spreads
0.8
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
3
Min. Deposit
$200
Exclusive promotion
Our score
8.7
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FSPR, FMA New Zealand
Forex Pairs
27+
No Fee
Start Trading
Pros:
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Payment Methods
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand
4
Min. Deposit
$200
Exclusive promotion
Our score
8.5
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
No Fee
Start Trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
5
Min. Deposit
$10
Exclusive promotion
Our score
7.9
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
Can fund with BTC
64 global companies including Netflix and Amazon
Free deposits and withdrawals
Payment Methods
Credit Card, Debit Card, Bitcoin, Wire Transfer
Full regulations list:
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.

What Is a Forex Demo Account?

As the name suggests, a Forex demo account is an account that simulates the live trading environment. It gives the trader the opportunity to “see” how it is “out there” and to test the broker’s trading platform. 

More importantly, a Forex demo account is more than just testing the platform’s functionality or checking the conditions offered by the broker. A Forex demo account is an education tool offered for free by the brokerage house. 

A trader may spend his/her time by using virtual funds and trade markets just like in a real environment. Basically, the Forex demo account is linked to the market, only that the orders are not transmitted to liquidity providers and routed to the market. Simply put – it’s a simulation. 

How Does a Forex Demo Account Work?

Before opening a live trading account, brokers suggest testing a Forex demo account first. This way, the trader may gain the much-needed confidence before plunging into live trading. By simply filling a form with the personal details and an email address, the trader can download the trading platform and fill in the credentials received per email. 

Once logged in, the account is credited with a virtual amount that varies from broker to broker. The trader may use it to open and close positions, to see what the commissions would be if a similar trade would be taken in a live account, to check the broker’s spreads, the leverage, and so on. Every functionality of a live account appears in a Forex demo account, only that the latter uses virtual funds. 

Key Features To Look In a Forex Demo Account

A Forex demo account is a broker’s way to best-present its offering. However, not all Forex demo accounts are the same. 

One of the key features to look for in a Forex demo account is how closely it reflects the live-market conditions. For example, an issue with Forex demo accounts is that they show a tight spread during important economic events, like the Non-Farm Payrolls in the United States or when the main daily fixings are up, but a live account would have a wider spread. Therefore, the trader would be better off to compare the two and make sure that the demo account’s features are identical to the live one. 

Another thing to consider is the availability of a demo account. Some brokers limit the time to use a demo account from a couple of weeks to a month. Ideally, a trader wants an ongoing demo account even after opening a live one, for the simple reason that the trader may want to test some trading strategies on the demo account before testing them live. 

Pros & Cons of Using a Forex Demo Account

Pros

Get to know the brokerage house’s offering
It helps to understand the slippage and spreads during volatile times
A good tool to use for testing different trading strategies without risking capital
Ultimately, an educational tool
A great way to check if the broker is suitable for your trading strategy/style

Cons

Often, conditions in the demo account do not reflect the live trading environment
Forex demo accounts to not account for fear and greed, the psychological factors that affect profit and loss of most traders
Give the impression that trading is a hobby and not a real thing

How To Choose the Best Forex Demo Account for Me?

First, the best Forex demo account must have unlimited availability. More precisely, the demo account should never expire – a trader should take as much time as needed to use it, test new strategies, and make the most of it. 

Second, a Forex demo account must reflect the live trading conditions 100%. Unfortunately, this is difficult to test before opening a live account, but easy to do so after. Therefore, the best way to solve this issue is to open a live account, fund it, but delay trading until comparing the conditions in the Forex demo account to the ones in the live account for a period, ideally a month or so.

How To Safely Use a Broker to Make Money Online Trading?

Start with making sure the broker is regulated. This is a must. Next, make sure the broker offers the markets of interest to you. For instance, if you like trading oil and gold, make sure the broker offers these markets.

Conclusion

A Forex demo account is something that every brokerage house should offer. Also, something that every trader should test before dedicating capital to a live account. The list provided in this article combines all the features that make it easier for the trader to pick the best Forex demo account in 2021.

Frequently Asked Questions

  1. No. Therefore, a trader must know beforehand if the broker is regulated or not and choose accordingly.

  2. It depends. Most brokers offer the MetaTrader4 and 5 versions, but some web-based platforms and apps also work well.

  3. Yes, they do. A typical Forex trading account offers commodities, indices, and some other markets on top of the regular FX currency pairs.

  4. Yes. Just fill the forms the broker provides, send the documentation needed to verify the identity, and start trading.