Are you thinking to start online trading, but you want to understand better how it works? Then we’d always recommend you find yourself the best forex demo account.
A forex demo account is a great idea because it allows new traders to practice trading without losing real capital. So we want to show you some brokers that offer this option.
All the brokers in this list offer a free demo.
Today all the best fx brokers offer the chance to train with a free forex virtual account before starting with real money. In this article, we’ll also explain to you what a MetaTrader 4 forex demo account is and its advantages.
Keep reading to learn how to trade with ZERO risks!
A virtual profile comes with virtual funds for you to use. Depending on the broker this ranges from $10.000 to $100.000. However, for all situations there is always enough funds to test trading with.
- 1 What is a Free Forex Demo Account?
- 2 How to Create a Forex Demo Account
- 3 Meta Trader 4 Demo Account
- 4 IQ Option Forex Demo Account
- 5 Why it’s Good to Have a Forex Demo Account
- 6 Spreads and Commission in Demo
- 7 Forex Demo Account Without Time Limit
What is a Free Forex Demo Account?
A free forex demo account is like a normal forex trading one, the only difference is that it uses virtual money.
This type of trading allows you to trade as much as you want with virtual money.
All the trades you open are in a virtual reality. This means you can trade without the risk of losing money. At the same time, any profits made in this setting can’t be withdrawn because it’s all virtual money.
It’s a very useful tool for all the traders without much experience and is completely free.
Another bonus of using a this setting is that the platform is always near identical to the real trading one. It is possible to do everything that is featured in the normal trading.
This is a great way of building forex trading skills and learning different sale methods. Many traders use it to test their own trading strategies and see which ones work best for them.
Profession traders can also benefit from using a free forex demo. The main reasons are because they can test the platform speed, spreads and commissions.
All the fx brokers today offer the opportunity to open a forex demo account for free.
How to Create a Forex Demo Account
As we’ve already mentioned, all the brokers offer the opportunity to open a forex demo account for free. It can either be a MetaTrader 4 demo or their own platform version.
Firstly, you need to choose which fx broker you want to use between the best ones listed here. There are different things you need to consider in a broker: the spread, the maximum leverage and the commission. Some online broker’s commission costs are fairly high.
After that, it’s necessary to sign up with your personal details which will include your name, email address and contact info. You may also be required to set up a password.
After these steps are complete you’ll be able to open a MetaTrader 4 account or a normal trading one.
Finally, once you’ve entered into your platform, you just need to select the demo version. This will take you to the demo automatically. From there you can start trading with the virtual money for free.
It’s normally quite simple to switch between your real money and the virtual version. Most brokers will have a switch button featured in your platform control panel. You just need to click on that to switch between the two accounts.
Usually a demo account doesn’t have an expiry date, which will prevent you from using it further. However it’s always worth checking directly with the broker to make sure. Normally most platforms will be available as long as a trader needs.
Most traders use it for around 2 weeks.
Why 2 Weeks?
Why? Because the majority of 15 days are considered the perfect time to test a demo account.
In 2 weeks there is the opportunity to practice with all the short-term strategies and different indicators. But most of all it’s the perfect time period to open and close different long-term positions.
After opening a free forex demo account, it’s very important to decide which trading strategy to use.
Meta Trader 4 Demo Account
Every trader has the opportunity to open a free Meta Trader 4 Demo Account to test their trading skills. There are 2 different ways to open an MT4 account:
- On the Meta Trader 4 platform or App
- With a Broker using the MT4 platform
Let’s see the difference between the 2 methods.
1- Meta Trader 4 Forex Demo Account on the MT4
If you want to open a demo account to test your trading skills and your strategies for free, you can directly do it via the Meta Trader 4 website or App.
The only thing you need to do is to go on to the MT4 website, sign up and select the demo option. By default, you’ll have an account with $10.000 of virtual funds to spend. It is also naturally commissions free and you use the account for as long as you want.
There is also the opportunity to add as many demo as you want with the starting capital that you wish. The one negative aspect of this type of account is that you can only trade on the major currencies:
The use of indicators is not possible too. This is a better options for the beginners who want to see if trading could be something that they can really do.
2- Meta Trader 4 Forex Demo Account with a Broker
The other option is to open a demo using one of the best brokers which has the MT4 platform. An example is BDSwiss.
In this case, it’s necessary to open a free trading account directly on the broker website and then download the free MT4 application from the same website.
Once you have the Meta Trader 4 application on your desktop, you just need to add your broker to it and log in with your personal details.
These types of demo have from between $10.000 to $100.000 of ‘funds’ to spend and are the best way to test the chosen broker. You can trade in all the assets and have the same trading conditions you’d have in a real one (spread, commissions, swap, etc.).
The bad thing is that once you finish the free money in your demo, you must create a new demo account with new virtual money. We find though that $10.000 is not quite enough to do all the possible testing on the platform.
There are also trading platforms where it’s possible to open a free demo account in their private platform which is not the Meta Trader 4.
Let’s see now how!
IQ Option Forex Demo Account
Don’t assume that trading online is easy.
You need to learn to read the graphics and understand how the market could potentially move.
There are trading tools available to help you analyse the graphics and the market. With a test platform you can for free practice the tools and use the various indicators. As previously mentioned, you can also test the different trading strategies and become confident with the trading platform.
A demo can help you to do all of this without any risk and no time limit. In fact, we’ve already said that with a demo there isn’t any real money involved in your trades.
You will just use free virtual money.
There is nothing better than the forex demo offered by IQ Option.
IQ Option is the best and fully regulated fx broker which offers a free forex demo account without time limit. The account comes with $10.000 for every new trader and you don’t need to make a deposit in order to use the demo account.
The broker doesn’t work with the MetaTrader 4 platform, but they have their own platform which is of a very high standard.
It’s possible to open a minimum trade with just $1. This means that you can open many trades to test every strategy and indicator.
This is what IQ Option offers:
- forex demo with $10.000
- the minimum position of $1
- same conditions as the forex real version
- no need to deposit
- fees free
- commissions free
These features are great because the broker understands that traders need some time to learn how to trade forex. With these conditions, everyone has enough time to practice and to feel confident about moving to a real one.
*Risk warning: Your capital might be at risk
Why it’s Good to Have a Forex Demo Account
For many forex traders, who do not a clear idea about how trading works or how good a trading platform is, having a demo is essential.
Investing virtual money helps for many reasons:
- Allows you to test your own trading strategy for free
- To test the trading platform
- Test to see if trading is something for you
Each of these points is very important before starting trading. The majority of people who are not profitable in trading and have made mistakes, usually do because they didn’t start with a demo account.
Another reason can be that for some people trading isn’t right for them.
Other times traders may not be satisfied or have a good feeling regarding the chosen platform. That’s why testing a platform and good trading strategies is very important.
For these reasons, it’s always a good move to start trading with a forex demo platform.
Spreads and Commission in Demo
The most important factors for a forex trading platform are commissions and spreads.
These factors vary depending on the chosen trading platform.
If a trader chooses a broker with no commission, in the forex demo account there won’t be commissions either.
About the spreads, we can say the same thing. For instance, the demo account spreads are the same as the real version spreads.
The only difference between a real account and a demo account for most of the brokers is the leverage.
For example imagine that in a real account the maximum leverage is up to 1:30 for European clients, and up to 1:500 for traders outside Europe. Then in a demo account almost all the brokers offer standard leverage of 1:1000.
Forex Demo Account Without Time Limit
A lot of people who wish to start trading, usually decide to do it with a forex demo account. As we have explained in this page, using a virtual account is risk-free.
But what people are really asking themselves is: for how long can I use a forex demo account?
Most forex demo accounts have no time limit. Usually a broker offers a free demo account that a trader can use for as long as they want. The only time it would come to an ‘end’ is when there is no virtual money left to spend.
So the only way a demo account would expire is when the money in it is finished.
But also, in this case, it’s possible to request a new demo account from the broker. This way you’ll be able to continue learning and testing the platform.
Forex Account Renewal
To get in touch to request a renewal, most brokers offer a helpful customer support team. You can contact the support team anytime, should you have any issues regarding the forex demo account. This can include asking for a new demo account or requesting a renewal.
You can normally get in touch via LiveChat, email or phonecall. Some brokers also offer a FAQ or help page directly on their homepage. You can search for answers to questions you may have directly on the website.
Usually forex brokers list the terms and conditions for using a demo account so you can double check the features lised. This should include the expiry time,(if there is one), plus the amount of virtual funds that you will able to ‘spend’.
It really is such a vital tool to have, that we’d highly recommend that everybody checks out the forex demo accounts on offer from various brokers. From there you will really be on the start of your forex trading journey.