| Expert Editor Matthew Levy, CFA
| Updated: It is difficult to choose a proper broker when you are new to forex trading. With this in mind, we have made a shortlist of FX brands that cater to beginners and experienced traders alike. Each broker offers demo accounts, educational materials, and plenty of ways to help advance your skill and education in forex trading.
Plus500 USThis content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.
eToro50% of retail investor accounts lose money
Fusion Markets74-89% of retail's CFD accounts lose money
FP Markets73.33% of retail investor accounts lose money
BlackBull MarketsTrading leveraged products is risky
Eightcap59.57% of retail investor accounts lose money when trading CFDs with this provider.
Pepperstone72.9% of retail investor accounts lose money
Capital.com69% of retail investor accounts lose money when trading CFDs with this provider.
IG67% of retail client accounts lose money when trading CFDs with this investment provider.
AvaTrade57% of retail investor accounts lose moneyComprehensive Comparison of the Top 10 Forex Brokers with Demo Accounts
| Forex Broker | Demo account available? | Min Deposit | Trading Platforms | Regulators |
|---|---|---|---|---|
| 1. FP Markets | Yes | $50 (AU$100) | MetaTrader4, MetaTrader5, WebTrader, IRESS, cTrader, TradingView | ASIC, CySEC, FSA (Seychelles), FSCA, FSA (St. Vincent and the Grenadines), SCB (Bahamas), FSCM (Mauritius) |
| 2. Fusion Markets | Yes | $0 | MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade, TradingView | ASIC, FSA (Seychelles), VFSC (Vanuatu) |
| 3. AvaTrade | Yes | $100 | MetaTrader4, MetaTrader5, WebTrader, AvaTade App, AvaSocial, AvaOptions, DupliTrade | CBI (No. C53877), ASIC(No. 406684), FFAJ (No. 1574), ADGM / FSRA (No. 190018), BVIFSC (No. SIBA/L/13/1049), FSCA (No. 45984), CySEC (No. 347/17), ISA (No. 514666577), SFC (No. 0261/2024) |
| 4. Plus500 | Yes | $100 | Proprietary, desktop and mobile platforms | FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250) |
| 5. Iron FX | Yes | $100 | MetaTrader 4, WebTrader, VPS, PMAM, TradeCopier, Mobile App | FCA (license no. 585561), FSCA (license no. 45276), CySEC (license no. 125/10) |
| 6. IG | Yes | $0 | MetaTrader4, L2 Dealer, ProRealTime, IG proprietary software, TradingView, | ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda) |
| 7. Pepperstone | Yes | $0 | MetaTrader 4, MetaTrader 5, cTrader, TradingView | ASIC (No. 414530), UK FCA (No.684312), CySEC (No. 388/20), BaFin (No.151148), DFSA (F004356), CMA (128), SCB Bahamas (SIA-F217), FSA (SD108) |
| 8. Tickmill | Yes | $100 | MT4, MT5, WebTrader, ZuluTrade, TradingView | CySEC (No. 278/15), FCA (733772), CONSOB (No.4310), BaFin (No.146511), ACPR (No.75473), CNVM (No.4082), FSA Seychelles (SD 008), FSCA (FSP 49464), DFSA (F007663) |
| 9. Admirals | Yes | $100 ($1 for Invest MT5 Account) | MetaTrader4, MetaTrader5, WebTrader, MT Supreme Edition, StereoTrader | CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No.SD073) |
| 10. eToro | Yes | $50 or $100 based on country ($10 for the UK, $1 in the US) | eToro Investing, eToro App, TradingView, eToro CopyTrader, Proprietary | FCA, CySEC, ASIC, MFSA, FSRA, FSA, FINRA/FinCEN, AMF, SEC, GFSC |
Top 13 Brokers Offering Demo Accounts
Traders who sign up with Fusion Markets can practice their forex trading strategies by opening a demo account. The broker will allow you to open a Classic or ZERO demo account, choosing from trading platforms like MT4, MT5, cTrader, and TradingView.
The ZERO Account type will allow you to trade with a spread as low as 0 pips and a fixed rate commission of $4.50 (round-turn). Meanwhile, Classic Account users will have the commission built into the spread, with a 0.9-pip markup.
Fusion Markets’ demo account is active for 30 days, after which you can request to reactivate it for free once you make a deposit into your live account. There is no limit to the amount of virtual funds you can add to your demo balance. The Fusion+ copy trading service is unavailable in demo format at the time of writing.
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.- 2. FP Markets
FP Markets is a brokerage that has been around since 2005, and it is regulated in Cyprus, Australia, Mauritius, and other jurisdictions across the globe. To help you get accustomed to forex trading, FP Markets offers a demo account with a virtual balance of $100,000.
Demo accounts support MT4, MT5, cTrader, and TradingView. All prices and charts that will be available on your chosen platform will be displayed in real-time, making for a realistic forex trading experience. FP Markets customers can choose to open either a Standard or Raw demo account.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.33% 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. BlackBull Markets is a viable option for beginners and traders looking to test new strategies risk-free, offering demo accounts for the MetaTrader 4, MetaTrader 5, TradingView, and cTrader platforms. Registering a demo account is a streamlined process that onboarding customers can complete in under 5 minutes. You can sign up via email, Google, Apple, or use your Facebook account.
The demo account supports line, candlestick, or bar charts. The Market Watch feature displays selected popular instruments, but users can easily modify the list. The demo account expires after 30 days, giving you sufficient time to explore the available markets and platform features. You can later switch to live trading with ECN Standard ($0 min. deposit, spreads from 0.8 pips, and no commissions) or ECN Prime accounts ($0 min. deposit and spreads from 0.0 pips with a $6 round-turn commission).
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.- 4. Pepperstone
At Pepperstone, traders have access to over 1,400 markets, including forex, indices, cryptocurrencies, and more. If you do not feel comfortable placing orders and making trading decisions with real money right away, you can try Pepperstone’s demo account.
The demo account is a risk-free way to explore the platforms supported by the broker, including MT4, MT5, cTrader, and the proprietary Pepperstone platform. Prices and market trends are updated in real time to help you make informed decisions.The Pepperstone demo account is a tool that can help novices learn how to trade, but you can also use it to test your forex strategies. MT4/MT5 demo accounts expire in 60 days unless you have a live account and request non-expiry. The cTrader demo accounts can be used indefinitely, provided you log in at least once every 90 days.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.9% 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. - 5. AvaTrade
Whether it is for learning how to trade or simply developing your trading strategies, the demo account at AvaTrade is a viable option. Members of the broker can open an unlimited demo account, allowing them to test MT4, MT5, and AvaTrade’s proprietary WebTrader platform.
If you prefer trading on the go, you can also open a demo account via the AvaTrade mobile app, compatible with devices running on iOS 14.0 and Android 7.0 or later. Depending on your preferences, you can open a standard or a professional demo account, with the main difference being the pricing of a trade.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 57% 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. - 6. eToro
If you are new to forex trading, eToro also offers customers the opportunity to start trading with a demo account that will allow them to trade live markets in real time, without risking any real money. It gives traders instant access to eToro’s proprietary platform and its functionalities, allowing beginners to get familiar with trading.
The demo account is loaded with $100,000 in virtual funds, giving you plenty of free capital to hone your trading skills. Experienced traders can also use eToro’s virtual platform to practice trading strategies and switch to their live accounts once they are ready to place real-money orders. The CopyTrader feature is fully available in the demo environment and operates exactly as it does in live trading.
eToro users can get in contact with eToro’s customer support at any time if they run into an issue while demo trading. The available communication channels are live chat, customer support ticket, and social media messaging.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 50% 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. - 7. Plus500
Whether you are new to trading or are simply looking for a brand offering the best conditions for your trades, Plus500 is a viable option. This reliable retail broker offers its customers access to over 2,800 tradable markets, all available on its proprietary platform. To get a better understanding of the platform’s features and instruments, and to practice your forex trading strategies, you can create a free demo account with an unlimited balance.
To start practicing, simply provide an email and a password that you will use to sign into your Plus500 account. Customers can customize the amount of their demo funds and reset them whenever they like. They can easily switch between demo and live trading accounts and practice any strategy they have in mind.
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. - 8. Iron FX
IronFX is a broking firm that opened its virtual doors in 2010. To help those who are new to forex and allow experienced traders to safely test out their trading strategies, the brand offers demo accounts.
The process of opening a demo account is simple, allowing you to select between Floating Spread and STP/ECN Absolute Zero demo account types. When setting up your demo account, you can also select your preferred maximum leverage to replicate the exact trading conditions you would use with a live account. The demo account is available in several base currencies, including USD, EUR, ZAR, JPY, and mBTC.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.62% 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. - 9. IG
If you are looking for a broking firm that offers virtual trading and access to a wide range of markets, you can consider IG. The broker’s library features 90+ forex pairs, over 80 indices, thousands of stock CFDs, and various instruments tied to other market types.
You can explore IG’s markets by opening a demo account with a virtual balance of $20,000. While being a useful tool for beginners, IG’s demo account is also an option for experienced traders who wish to test forex trading strategies. While the standard IG demo never expires, the MT4 demo will close after 60 days of inactivity.
CFDs are complex instruments. 67% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. - 10. Tickmill
Tickmill is a retail broker that caters to more than 490,000 traders globally. If you need help with your first steps in forex trading, you can start with Tickmill’s demo account. It will allow you to trade more than 180 CFD instruments without risking any real money.
The demo forex and CFD demo account of Tickmill enables clients to explore the interface and features of the MT4 and MT5 platforms. They also help novices build their trading skills.
Keep in mind that the demo account at Tickmill will expire if you do not log in for 7 days. Each registered customer can open up to 7 demo accounts.
Both spread-only Classic and commission-based Raw accounts are available in a demo format. EUR, USD, GBP, PLN, and CHF are among the supported base currencies that demo account users can choose from.CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with Tickmill Europe Ltd. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. - 11. Global Prime
Established in 2010, Global Prime is suitable for novice traders and those looking to test out new strategies in a risk-free environment. The broker’s demo account is free, and there is no limit on the virtual cash users can practice with.
The demo account offers over 150 currency pairs, commodities, and cryptocurrencies, among others. Once clients are ready to move on to live trading, they can go with the Standard or Raw account options. The former has spreads from 0.9 pips, while the latter offers spreads as low as 0 pips.
Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017. - 12. ActivTrades
ActivTrades is а beginner-friendly forex broker that supports demo accounts and other account options. New forex traders can test the broker’s platforms without risking any real funds through the demo account environment that simulates real market conditions and is equipped with advanced tools and indicators. Besides beginner traders, this account option may be equally suitable for experienced traders testing new strategies.
Best of all, ActivTrades’ demo accounts are active for an unlimited period and can be loaded with $/€10,000 in virtual funds. The account is compatible with MT4, MT5, and the broker’s proprietary platform, allowing users to better control their risk with bracket orders and trailing stops. Once traders feel secure about their trading skills, they can transition to a real-money account (Individual or Professional). A swap-free account is also available, aligning with the principles of Islamic finance.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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. - 13. Axi
Axi clients can open a free MT4 demo account and hone their skills with $50,000 in virtual funds. A number of base currencies are supported, including but not limited to AUD, EUR, PLN, USD, GBP, and CHF.
Clients’ first demo accounts expire after 30 days, but if a user opens a live account, they can continue testing strategies with a permanent practice account. Axi users can trade forex, shares, indices, and commodities, among others.
Axi’s leverage limits vary depending on the region it operates in and can reach 1:1000 in jurisdictions like Malaysia. As for the spreads, Standard accounts’ spreads start from 0.8 pips. Going with a Pro account grants access to spreads starting at 0 pips. Axi is licensed by trusted regulators like the DFSA, CySEC, and ASIC.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What is a Demo Trading Account?
Most reputable forex brokers allow their clients to open demo accounts before they start trading with real funds. This can be very useful for beginners who have not used trading problems and who are not experienced with market analysis. Additionally, these account types offer tools that may later help novices make better trading decisions.
Demo accounts also help traders test a trading brand and get familiar with a broker’s interface, special features, and covered markets. Therefore, they are not suitable only for beginners. Seasoned traders can also use simulated trading to test out trading strategies and monitor what would actually happen when placing specific order types. If successful, they could opt to try out new strategies live.
The key advantage of demo trading (simulated trading) is that you will use demo funds as opposed to real money. That means you will have the chance to enhance your trading skills and apply what you have learned in a risk-free environment.
However, the psychological aspect of real-life trading is missing when using demo accounts. The lack of real financial risk often leads novice traders to take risks they would never consider with real money, resulting in an inaccurate assessment of their strategy and discipline. This is arguably the biggest drawback of demo trading.
How Do Demo Accounts Function?
You will notice that generally, any reliable broker brand offers the option to open a demo account before you opt for a live account that requires funding your trading wallet before placing any orders. Demo accounts usually have a specific amount of virtual money that can be used for your demo trades.
Demo trading borrows heavily from classic paper trading, where beginners would manually record their hypothetical positions on a piece of paper, including entry and exit points, as if they were actively trading the forex market they were analyzing. Essentially, physical paper trading was the original way to practice buying and selling.
Whether you lose or gain money while you practice with simulated trading, you will not risk (or earn) any real funds. When using demo accounts, beginners should follow the same strategy they would implement while trading with real money, including assessing the risks and placing orders they would be comfortable making when they open a live trading account.
Can Investors Learn from Using Demo Accounts?
Beginners in the trading sector can benefit from the use of demo accounts, as demo accounts can be educational while costing no real money to execute trades. Since demo accounts simulate real market conditions, inexperienced traders can track how their orders would perform as if they were trading with a live account.
Simulated trading is also useful for developing strategies. You should generally stick to the same risk levels and strategies you will use in a live account, but demo trading does allow you to experiment. This is a great opportunity to test out what trading methods may work without losing real money if a particular strategy fails you.
Traders can also try out Expert Advisors (EAs) on their demo accounts by installing the trading robot just as they would on a live account. Once set up, the EAs can be tested, allowing traders to verify the success rate of a given automated trading tool without risking any real money.
As brokers tend to offer different trading platforms, you may need some time to get accustomed to the specific features of each trading software. Opening a demo account will help you learn each platform supported by your broker of choice and determine which platform is best suited for your trading preferences.
Types of Trading Demo Accounts
While demo trading accounts can be a suitable tool for inexperienced traders, they can also be a useful instrument for traders who wish to try a different way of forex trading. Since many brokers tend to offer their customers various accounts, they also allow them to start each type of trading experience with demo accounts.
Standard accounts typically cater to retail traders, sometimes offering no minimum deposit requirements, access to a wide range of instruments, no commissions, and low surcharges built into the spread. Trading conditions are easily replicated in demo accounts, giving traders the chance to practice trades they would potentially execute once live trading.
Commission-based retail accounts are another option. They typically feature far lower spreads, but charge an additional commission on top of the spread. Most broking firms offer demo versions of such account types.
With retail standard accounts often coming with restrictions on leverage and trading volumes, traders might consider upgrading to professional trading accounts. To qualify for this type of trading account, investors must meet requirements that prove they have the funds to engage in trades of higher volumes.
Conveniently enough, many brokers will allow their customers to open demo professional/zero accounts that will apply lower spreads, which can start at 0 pips. Traders can then get familiar with the different styles of trading before they start risking their real money on higher-volume trades.
Using Bots with Demo Trading Accounts
With many demo accounts, traders can run forex bots. These robots generate trading signals, and you can test them with your demo account without risking any real money. If the trades you have made based on the forex bot’s suggestions turn out to be successful, you can also rely on this type of software whenever you open a live trading account.
Forex brokers rely on precise market indicators, analysis, and trends to generate trading suggestions for your forex trades. However, it is up to you to choose whether to trust the bot or place orders you find to be more suitable.
Backtesting is another tool supported by some trading platforms, and while it differs from a demo account, there are some similarities. Backtesting allows you to use bots that will rely on historical market data to perform trades you would make. The bots will use virtual money to make the trade, which allows you to assess the success rate of the trading strategy you plan on implementing historically. While that does not guarantee future results, it can inform your strategy further.
Which Demo Account Types are Best for Inexperienced Traders?
Many brokers will allow their customers to open different types of demo accounts that can cater to the preferences of various traders. That said, if you are not well-experienced in trading, you may be wondering which account variation is suitable to start with. Depending on your trading knowledge and goals, you may want to explore different account options.
You may want to try a standard STP demo account if you are new to forex trading. It is mainly suitable for beginners or casual traders, as the STP-account type follows a pricing model based only on the spread. Retail commission-based accounts, meanwhile, enable trading with tighter spreads at the cost of paying a commission. These accounts are slightly less intuitive for beginners, but they often offer superior trading conditions.
Professional accounts, meanwhile, are usually exclusive to veteran traders. They allow clients to use high leverage ratios, but being eligible for such an account typically requires being experienced in trading, professional experience in the financial sector, or significant capital. Professional accounts are generally riskier as well, since pros typically lose access to negative balance protection.
Since most brokers allow their customers to open a wide range of accounts, we suggest traders try out all demo accounts they have access to. That way, they can determine which trading style is most suitable for their budget, risk tolerance, and overall trading goals.