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Best Forex Demo Accounts in 2021

A forex demo account simulates live trading conditions and gives the trader an idea about how a specific broker’s trading platform works. This is the broker’s “business card” in a sense because it shows the conditions and markets offered. 

The best Forex demo account in 2021 should give the trader access to everything the broker has to offer, with few (if any) differences from the live environment. But this is not always the case. 

Our List of the Best Forex Demo Account

Here is our list of the best forex demo account:

1
Min. Deposit
$50
Exclusive promotion
User Score
10
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
Bank Transfer, Wire 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.
2
Min. Deposit
$10
Exclusive promotion
User Score
9.3
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
Bitcoin, Credit Card, Debit Card, 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.
3
Min. Deposit
$10
Exclusive promotion
User Score
8.7
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
Bitcoin, Credit Card, Debit Card, Visa
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.
4
Min. Deposit
$200
Exclusive promotion
User Score
8.5
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FMA New Zealand, FSPR
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
Bank Transfer, FasaPay, Mastercard, UnionPay, Visa, neteller, skrill
Full regulations list:
FMA New Zealand, FSPR

What Is a Forex Demo Account?

As the name suggests, a forex demo account is an account that simulates the live trading environment. It allows the trader to see how it is out there in the trading world and to test the broker’s trading platform.

A forex demo account is linked to the live market but the traders’ orders are not transmitted to liquidity providers and routed to the market. Simply put, it’s a simulation that allows beginner traders to trade markets under near-real conditions but with virtual money rather than real money. The main downside is that “paper trading” in this way doesn’t expose you to emotions like fear and greed that arise when putting your own money on the line.

A forex demo account is more than merely a vehicle for testing the platform’s functionality or checking the conditions offered by the broker. It is an education tool offered for free by the brokerage house. 

How Does a Forex Demo Account Work?

Before opening a live trading account, forex brokers suggest trying their demo accounts first. This way, the trader can gain much-needed confidence by making beginners’ mistakes in a safe environment.

It’s easy to create a demo account on most brokers’ websites by entering a few basic details, including your email address. You’ll get your login credentials (username and password) by return email.

Your demo account will be credited with an amount of virtual money that varies from broker to broker. Opening and closing trades with this virtual money allows you to see the effects of the broker’s spreads, commissions, and leverage.

Key Features To Look in a Forex Demo Account

A forex demo account is one of the best ways for a broker to present its offering. However, not all forex demo accounts are the same. 

One of the key features to look for is how closely the demo environment reflects the live market conditions. A common issue is that a demo account might show a tight bid-ask spread during an important economic event when the live spread would be much wider.

Another thing to consider is how long the broker allows for you to test its demo account, which might be only a week or a month. Ideally, you’d be able to use the account in tandem with your live account, for example: to test new trading strategies.

Pros & Cons of Using a Forex Demo Account

Pros

Get to know the brokerage house’s offering
Understand the slippage and spreads during volatile times
Test different trading strategies without risking capital
See if the broker suits your trading style
Learn to trade

Cons

Demo accounts do not always reflect live trading conditions
Demo accounts don’t account for traders’ fear and greed psychological factors
Demo accounts make trading look like a hobby

How To Choose the Best Forex Demo Account for Me?

First, the best demo account must have unlimited availability. In other words, it should never expire, so you can always use it to test new trading strategies without risking real money.

Second, a demo account should mirror the live trading conditions exactly, but this is not easy to test before opening a live account. Open a live account at the same time if you can, and fund it, but don’t trade until you’ve checked the live prices (and their spreads) against the demo account prices and spreads.

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

To trade safely, you should first ensure that the broker is regulated so that your money is safe from fraud. However, although regulation may protect you from your broker, it won’t protect you from yourself and your poor trading decisions. Be sure to apply risk management techniques (such as stop orders) and money management techniques (such as committing no more than 1% of available funds to each separate trade).
- Mircea Vasiu

Conclusion

A forex demo account is something that every brokerage house should offer. It’s also something that every trader should test before committing capital to a live account. We’ve discussed some of the demo account features in this guide and we’ve suggested some of the best forex brokers for you to try.

Frequently Asked Questions

  1. No. Some brokers are regulated by regulators such as the UK’s Financial Conduct Authority (FCA) and some are registered offshore to avoid such regulation. Choosing a regulated broker affords you some protections such as negative account balance protection.

  2. It depends. Most brokers offer popular the MetaTrader 4 (MT4) and MT5 software, but some web-based platforms and apps also work well.

  3. Yes, they do. A typical Forex trading account offers commodities, indices, and other markets besides forex currency pairs.

  4. Yes. It can take only a few minutes to sign up for a demo account, but fully activating a live account can take longer because you typically have to provide some identity documentation.

  5. Not necessarily. You’ll learn how to avoid simple mistakes when submitting trade tickets, but you won’t feel the fear and greed that traders succumb to when trading with real money.

  6. A stop order is a pending order that you attach to an existing trade. It instructs the broker to close your position if the price starts to go against you; the aim being to exit at a small loss before it becomes a big loss.

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