60-90% of retail traders lose money trading Forex and CFDs. You should consider whether you understand how CFDs and leveraged trading work and if you can afford the high risk of losing your money. We may receive compensation when you click on links to products we review. Please read our advertising disclosure. By using this website, you agree to our Terms of Service.

EditorEditor: Chris CammackUpdated: May 21, 2024

Last Updated On May 21, 2024

Alison Heyerdahl
1

AvaTrade

Best Mobile Demo Account

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2

Tickmill

Best Customisable Demo Account

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3

XM

Best MT5 Demo Account

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4

Pepperstone

Best ECN Demo Account

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5

XTB

Best Demo Account for Beginners

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6

IC Markets

Best MT4 Demo Account

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7

FP Markets

Best Unlimited MetaTrader Demo

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8

markets.com

Best 10,000 GBP Demo Account

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9

Admirals

Best MetaTrader Tools

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10

IG

Demo Account with 18,000+ Instruments to Trade

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These are the best demo trading accounts in the UK for 2024

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Broker
Broker Score
Official Site
Beginner Course
Unlimited Demo
Downloadable Ebook
Beginner Videos
Economic Calendar
Experienced Course
Advanced Videos
Webinars
Min. Deposit
Platforms
Regulated
Website Language: English
Support Language: English
Support Hours
Compare
AvaTrade
4.59 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
GBP 100MT4, MT5, Avatrade Social, AvaOptionsASIC Regulated BrokersFinancial Services Conduct AuthorityCySEC Regulated BrokersFinancial Services AgencyCentral Bank of IrelandFinancial Regulatory Services AuthorityIsrael Securities Authority24/5
Tickmill
4.58 /5
Read Review
Visit Broker >
71% of retail CFD accounts lose money
GBP 100MT4, MT5CySEC Regulated BrokersFCA Regulated Forex BrokersLabuan Financial Services AuthorityFinancial Services Conduct AuthorityThe Seychelles Financial Services AuthorityDFSA Regulated Forex Brokers24/5
XM
4.45 /5
Read Review
Visit Broker >
75.33% of retail CFD accounts lose money
GBP 5MT4, MT5CySEC Regulated BrokersASIC Regulated BrokersDFSA Regulated Forex BrokersInternational Financial Services CommissionFinancial Services Conduct Authority24/5
Pepperstone
4.61 /5
Read Review
Visit Broker >
89%74- of retail CFD accounts lose money
GBP 0MT4, MT5, cTrader, TradingViewFCA Regulated Forex BrokersASIC Regulated BrokersCySEC Regulated Brokers24/7
XTB
4.39 /5
Read Review
Visit Broker >
78% of retail CFD accounts lose money
GBP 0xStation5CySEC Regulated BrokersFCA Regulated Forex BrokersDFSA Regulated Forex BrokersInternational Financial Services CommissionKomisja Nadzoru Finansowego24/5
IC Markets
4.56 /5
Read Review
Visit Broker >
70.81% of retail CFD accounts lose money
GBP 200MT4, MT5, cTrader, TradingViewCySEC Regulated BrokersASIC Regulated BrokersThe Seychelles Financial Services AuthoritySecurities Commission of the Bahamas24/7
FP Markets
4.40 /5
Read Review
Visit Broker >
79% of retail CFD accounts lose money
GBP 50MT4, MT5, cTrader, IRESSASIC Regulated BrokersCySEC Regulated BrokersFinancial Services Conduct AuthorityCapital Markets AuthorityThe Seychelles Financial Services Authority24/5
Markets.com
4.68 /5
Read Review
Visit Broker >
70.3% of retail CFD accounts lose money
GBP 100MT4, MT5, markets.comFCA Regulated Forex BrokersCySEC Regulated BrokersASIC Regulated BrokersFinancial Services Conduct AuthorityBritish Virgin Islands Financial Services Commission24/5
Admiral Markets
4.28 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
GBP 250MT4, MT5, MT SupremeASIC Regulated BrokersCySEC Regulated BrokersFCA Regulated Forex BrokersFinancial Services Conduct AuthorityJordan Securities CommissionFinantsinspektsioon (Estonian Financial Supervision and Resolution Authority)Business Hours
IG
4.69 /5
Read Review
Visit Broker >
71% of retail CFD accounts lose money
GBP 0MT4, L2 Dealer, ProRealTimeFCA Regulated Forex BrokersASIC Regulated BrokersBundesanstalt für FinanzdienstleistungsaufsichtFinansinspektionen24/5

How did FxScouts choose the best Forex Demo Accounts?

When comparing the best Forex Demo Accounts in the UK, we:

  • Confirmed that the brokers were regulated by the FCA or other top-tier authorities to ensure trader protection.
  • Assessed the brokers’ account options for UK residents and compared spreads on each instrument with a live account to ensure the demo account represents actual market conditions.
  • Opened a demo account on Android and iOS devices.
  • Tested the platform’s stability and execution speed, especially compared to the live account.
  • Checked and tested available tools and features, such as automated trading, market data, charting, indicators and technical analysis.
  • Checked the number of tradable instruments available through the demo account for traders in the UK, compared to the live account and other brokers.
  • Compared the available starting virtual funds between the brokers.
  • Checked whether the demo account has a fixed expiration period or remains open indefinitely, and if they could be reset upon request. 
  • Reviewed the broker’s educational and market analysis material on the demo account.

Our Broker Score and Trust Rating

FxScouts’ Broker Score and Trust Rating constantly evolve to reflect the forex market’s dynamics. We ensure transparency by incorporating regulator data and user insights. Our in-depth reviews consider over 200 metrics across seven key categories:

  • Trust Rating: Assessment of broker reliability and reputation
  • Trading Costs: Spreads and fees for clear comparisons
  • Platforms: User-friendliness and features
  • Asset Selection: Forex, stocks, and other available instruments
  • Transactions: Simple and straightforward deposits & withdrawals
  • Education: Support for beginners and developing traders
  • Customer Support: Accessibility, responsiveness, and expertise

Learn how we set the standard for broker reviews. Explore our in-depth review process here.

These are the top demo accounts in the UK for 2024, as determined by our review process.


Others Also Visit

Scroll for more detailsPreviousNext
Visit
AvaTrade
4.59 /5
Read Review
Visit
Tickmill
4.58 /5
Read Review
Visit
Spreadex
4.26 /5
Read Review
Visit
XM
4.45 /5
Read Review
Visit
Pepperstone
4.61 /5
Read Review
Visit

AvaTrade – Best Mobile Demo Account

Broker Score
4.594.59 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Mobile Demo Account
100,000 USD virtual balance
Innovative trading tools

Best for

AvaTrade is great for anyone looking to practise trading in a user-friendly and innovative mobile trading environment.

Why do we like it?

We like that the free demo account is available on the webtrader platforms MT4 and MT5 and its mobile app, AvaTradeGO. The AvaTradeGO mobile app has a sophisticated dashboard with intuitive management tools, clear zoomable charts, and many other helpful features. 

Drawbacks

The demo account expires after 21 days, although it can be extended upon request.

Summary

AvaTrade offers a top-rated mobile demo account, ideal for those looking to practise trading in a user-friendly environment. The demo account provides a $100,000 USD virtual balance and comes with a variety of trading tools. AvaTrade is compatible with webtrader platforms, MT4, MT5, and features the AvaTradeGO mobile app. The app offers over 1250 trading instruments and has a sophisticated dashboard with intuitive tools and clear charts. 

Pros
  • Top-tier regulation and security with licenses from ASIC and CBI among others
  • Accessible trading with a low minimum deposit of 100 USD
  • Award-winning mobile trading with the AvaTradeGO app with social trading features
  • Wide range of assets including unique instruments like vanilla options
  • Educational material to support trader development and strategy enhancement
Cons
  • Market analysis could be more extensive
  • Poor regulatory oversight outside of the UK and EU
  • Avatrade is a Market Maker and operate a dealing desk which might not align with all trading preferences
AlertAccepts UK Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA. 76% of traders lose money with this provider.

Tickmill – Best Customisable Demo Account

Broker Score
4.584.58 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Customisable Demo Account
Can choose the virtual fund amount and leverage level
Comprehensive MetaTrader tools

Best for

Tickmill’s demo account is a great choice for traders looking for customisability and flexibility on the MT4 and MT5 platforms, either on desktop or mobile devices.

Why do we like it?

We like that clients can select from two different account types (Classic and Pro) with any level of funds and leverage, helping traders understand the impact of spread versus commission trading. We also appreciate that the demo account mirrors live price movements across Tickmill’s tradable instruments and includes all MetaTrader platform tools available on the live accounts.

Drawbacks

Despite its strengths, Tickmill has some limitations, such as a smaller range of only around 200 financial instruments – whereas competitors like Pepperstone offer 1200+ assets for trading. 

Summary

Tickmill offers a demo account suitable for traders seeking customisation and flexibility on MT4 and MT5 platforms, accessible via desktop or mobile. The account comes in three types—Classic, Pro, and VIP—allowing users to simulate various trading conditions and understand differences in spread versus commission. It accurately reflects live market movements across a range of CFDs, paired with comprehensive MetaTrader tools like the Advanced Trader Toolkit and Autochartist. However, a drawback is Tickmill’s limited selection of financial instruments – limited to 200. 

Pros
  • Tight spreads
  • Well regulated
  • Fast and free withdrawals
Cons
  • Limited base currencies
AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 71% of traders lose money with this provider.

XM – Best MT5 Demo Account

Broker Score
4.454.45 / 5
🏦  Min. DepositGBP 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best MT5 Demo Account
No expiration date
Market depth indicator, hedging, and full EA functionality

Best for

XM’s MT5 Demo Account is aimed at traders who want to trade many different financial instruments rather than just Forex.

Why do we like it?

We like that XM allows clients to trade a wide selection of instruments, including Forex, stock CFDs, commodities, equities, precious metals and energies. We also appreciate that the demo account at XM is funded with a 100,000 USD virtual balance, does not expire, and is available on both the MT4 and MT5 platforms.

Drawbacks

Although regulated by top-tier regulators like ASIC and CySEC, XM does not currently hold a licence from the UK’s FCA, which might be off-putting to some traders. 

Summary

XM offers an MT5 Demo Account suitable for traders interested in various financial instruments beyond Forex. The account includes features like market depth indicators, hedging, and full EA functionality, with over 1000 instruments available. It comes with a 100,000 GBP virtual balance and has no expiration date. While XM is regulated by ASIC and CySEC, it lacks licensing from the UK’s FCA, which could deter some traders.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Limited platform choice
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the FSC. 75.33% of traders lose money with this provider.

Pepperstone – Best ECN Demo Account

Broker Score
4.614.61 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best ECN Demo Account
500,000 GBP in virtual funds
Raw spreads on the Razor account

Best for

Pepperstone offers demo trading with raw spreads on the Razor demo account, which is great for traders wanting to learn how raw spreads work. TradingView demo accounts are also available, making this an excellent opportunity for traders interested in learning the TradingView platform.

Why do we like it?

We mainly like Pepperstone and its demo account because of its high-speed trade execution and beginner-friendly approach, which distinguish it from other ECN brokers. The free demo accounts at Pepperstone allow clients to trade 80+ Forex pairs on the MT4, MT5, and cTrader platforms, which is also a nice touch.

Drawbacks

Pepperstone’s demo account expires after 30 days unless you have a live account, in which case you can request a non-expiry demo account.

Summary

Pepperstone is recognized for its Razor demo account, tailored for those keen to understand raw spreads and complemented by a substantial 500,000 GBP in virtual funds. While Pepperstone is known for fast trade executions and a beginner-friendly environment, the demo account’s 30-day expiration is a limitation, though this can be extended for live account holders.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts UK Clients. Average spread EUR/USD 1.00 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, CySEC, SCB, CMA, BaFin and the DFSA. 75.6% of traders lose money with this provider.

XTB – Best Demo Account for Beginners

Broker Score
4.394.39 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best for Beginners
No expiry 
No minimum deposit

Best for

XTB will appeal to beginner traders looking for a wide choice of tradable instruments, concise and well-structured educational materials, and comprehensive market analysis that provides actionable trading ideas. 

Why do we like it?

We especially like the fact that the xStation5 demo account is available on iOS and Android, with the mobile app seamlessly integrating with the desktop version. Traders can also access market news, educational materials, and the economic calendar from within the trading platform and app, which we find very convenient.

Drawbacks

The primary drawback of XTB is the limited choice of trading platforms, as it only supports xStation5 and not popular platforms like MT4 and MT5.

Summary

XTB is particularly suitable for those new to trading, providing a great selection of over 2000 instruments, superior educational resources, and detailed market analysis. The xStation 5 platform is noted for its user-friendly interface, integrating features common to Metatrader and cTrader. The demo account is accessible on iOS and Android, with access to market news and an economic calendar. 

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, DFSA, FCA and the IFSC. 77% of traders lose money with this provider.

IC Markets – Best MT4 Demo Account

Broker Score
4.564.56 / 5
🏦  Min. DepositGBP 200
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best MT4 Demo Account
The same account types, platforms and products as live accounts
24/7 Technical Support

Best for

IC Markets is a great choice for beginner traders looking for an MT4 demo account with ECN conditions.

Why do we like it?

We like the fact that IC Markets supports all three major trading platforms, (MetaTrader 4, MetaTrader5 and cTrader) which are complemented by a suite of useful tools, like free VPS service, MAM/PAMM accounts and advanced MT4 trading tools. Users can also choose between three account types: a Metatrader standard account or a raw account on either Metatrader or cTrader.

Drawbacks

IC Markets doesn’t have a proprietary trading platform, which is usually easier for beginners than traditional platforms.

Summary

IC Markets’ demo account caters especially to beginners seeking ECN trading conditions. The demo mirrors live account conditions with 24/7 technical support, access to the same platforms (MetaTrader 4, MetaTrader 5, and cTrader), and products as a live account.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Great platform choice
Cons
  • High minimum deposit
  • Limited market analysis
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.

FP Markets – Best Unlimited MetaTrader Demo

Broker Score
4.404.40 / 5
🏦  Min. DepositGBP 50
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Unlimited MetaTrader Demo
Raw spread account available
ECN conditions

Best for

FP Markets caters to traders looking for a well-regulated broker that offers a variety of account types. Depending on your preferences, you can choose either a standard demo account or a raw demo account. 

Why do we like it?

We like that the FP Markets free demo account comes with 70 Forex pairs, shares, metals, commodities, and indices on MT4 (desktop/browser) and MT5 (desktop/browser/app). The account can be opened for as long as you want and will only expire after 30 days of inactivity, which is great for beginners.

Drawbacks

Since the live account relies on ECN pricing which has multiple sources of liquidity, the demo account will have different spreads compared to a live account.

Summary

FP Markets is notable for its unlimited MetaTrader demo, appealing to traders seeking a well-regulated broker with diverse account options, including standard and raw spread accounts. It provides trading on 70 Forex pairs, shares, metals, commodities, and indices. The demo account has no time limit but expires after 30 days of inactivity. However, due to the ECN live account’s varied liquidity sources, spreads on the demo account may not match those of live accounts.

Pros
  • Trusted since 2005 with top-tier regulation
  • 100 USD minimum deposit amount
  • Supports MT4 MT5 cTrader and TradingView
  • Spreads start at 1.0 pip and narrow to 0 pips with higher trading volumes
  • Welcoming South African traders with specific regulatory compliance
Cons
  • Notably higher withdrawal fees than competitors
  • Stock CFDs are limited on MT4/MT5 and primarily available through IRESS
  • High leverage up to 500:1 posing risks for inexperienced traders
AlertAccepts UK Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, and cTrader trading platforms available. FP Markets is regulated by CySEC and ASIC.

Markets.com – Best 10,000 GBP Demo Account

Broker Score
4.684.68 / 5
🏦  Min. DepositGBP 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best 10,000 GBP Demo Account
Unlimited Demo
2000+ financial instruments

Best for

The Markets.com demo account is great for traders wanting to practise trading with advanced tools and a wide selection of over 2000 financial instruments, including stock CFDs, Forex, and commodities.

Why do we like it?

We particularly appreciate that the demo account trading conditions mirror the live account, where conditions are particularly good in comparison to Markets.com’s direct competitors. We also like that the Markets.com demo account includes 10,000 GBP of virtual funds and is unlimited and will only expire after 90 days of inactivity.

Drawbacks

The main drawback of Markets.com is the lack of accounts, with only one account option.

Summary

Markets.com offers demo trading with over 2000 financial instruments and decision-supporting trading tools that crunch big data from leading analysts, hedge funds, and commentators to give better insight into the market. The demo conditions closely resemble live trading, including stock CFDs, Forex, and commodities. While the account starts with 10,000 GBP in virtual funds and does not expire unless inactive for 90 days, a notable limitation is Markets.com’s offering of only one type of account.

Pros
  • Regulation by top-tier authorities
  • Hassle-free withdrawal process without any fees
  • Its proprietary trading platform is praised for its user-friendly interface catering to both beginners and experienced traders
  • Competitive spreads starting from 0.6 pips
Cons
  • The maximum leverage of 300:1 could pose a risk for uninformed traders warranting cautious utilization
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 , and Markets.com platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC. 70.3% of traders lose money with this provider.

Admirals – Best MetaTrader Tools

Broker Score
4.284.28 / 5
🏦  Min. DepositGBP 250
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best MetaTrader Tools
MT4 Supreme Edition
Trade Forex, indices, commodities, shares, ETFs and bonds

Best for

The Admirals demo account is a good choice for traders who want to try out the MetaTrader Supreme edition on MT4 and MT5. 

Why do we like it?

We like that Admirals offers an expansion of the standard MetaTrader package – the MetaTrader Supreme Edition, which provides a superior trading experience on Admiral’s wide range of products, including 50 Forex pairs, indices, commodities, shares, ETFs and bonds. The demo account includes a virtual balance of 10,000 GBP and trading conditions on the demo account match the live account. 

Drawbacks

The main drawback of the Admirals demo account is that it expires after 30 days if no live account is opened.

Summary

Admirals is recognised for its Demo Account featuring the MetaTrader Supreme Edition, designed for traders seeking an enhanced MetaTrader experience. The demo offers a wide product range, including 50 Forex pairs, indices, and more, with a starting balance of 10,000 USD. Trading conditions are identical to the live account, ensuring a realistic trading environment. However, the demo account expires after 30 days unless a live account is opened.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts UK Clients. Average spread EUR/USD 0.80 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, the JSC, and the FCA. 76% of traders lose money with this provider.

IG – Demo Account with 18,000+ Instruments to Trade

Broker Score
4.694.69 / 5
🏦  Min. DepositGBP 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage30:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Best Selection of Trading Instruments
Unlimited Demo
Access to the IG Academy’s educational content

Who is IG for?

IG is suitable for traders looking for a well-regulated broker with an extensive selection of trading instruments. 

Why do we like it?

What we particularly like about IG’s demo is the access to the full suite of 18,000+ instruments available at IG (including Forex, shares, indices and commodities). This demo account is available on MT4 and IG Markets’ web trading platform and comes with a balance of 10,000 GBP of virtual money. We also appreciate that neither demo account is time-limited and that they both provide free access to the IG Academy’s educational content.

Drawbacks

Some traders might find the array of platforms and instruments overwhelming.

Summary

IG offers a demo account with an impressive selection of over 18,000 trading instruments. The account provides 10,000 GBP of virtual funds and is available on MT4 and IG’s web trading platforms. Additionally, users benefit from detailed and well-structured educational resources via the IG Academy. 

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts UK Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

What is a Forex Demo Account?

A Forex demo account is a practice trading account which allows traders to learn how to trade the Forex market without risking their own money. It provides a simulated trading environment with real-time market data, charts, and technical indicators that closely resemble the live forex market but operate with virtual funds. 

Forex brokers typically offer demo accounts on various platforms. Web-based demo accounts can be accessed through a standard web browser and don’t require any software installation. Other commonly used platforms include third-party downloadable applications, such as MT4, MT5, and cTrader. Some brokers even have their own proprietary trading platforms.

Why use a demo account?

A trader should use a demo account for several key reasons. 

  • It offers an opportunity for traders to learn the fundamentals of trading, such as understanding market trends, familiarising themselves with different financial instruments, and grasping how orders work. 
  • It allows for risk-free testing and refinement of trading strategies. New and experienced traders can experiment with various techniques and analytical tools without the threat of real-world financial repercussions. 
  • A demo account helps traders learn how to use a trading platform. It helps them plan trade execution, understand the interface layout, and use various analytical tools more efficiently. 
  • It assists in understanding the psychological aspects of trading, such as managing emotions during market fluctuations, especially when you have a losing trade, which is a critical skill for live trading.

Tips for using a demo account

1. Learn how Forex trading works

Forex trading involves simultaneously buying one currency and selling another. With a demo account, you can practice this by opening virtual positions for any currency pair, using trading tools to understand how real trades might fare.

For instance, consider trading the euro against the US dollar in a demo account. On trading platforms, each pair has a ticker symbol, with EUR/USD represented as EUR.USD. The euro is the base currency, and the US dollar is the quote currency. 

If you predict the euro’s value will rise against the dollar, you “buy the pair”. Conversely, if you expect the euro to fall, you “sell the pair”. Using a trading platform, you can monitor the performance of your trade and execute buy or sell orders with the click of a button.

Your trading decisions should be based on prior analysis, typically either fundamental or technical. Fundamental analysis assesses the impact of political, economic, and social factors on currency value, while technical analysis predicts future price movements based on historical price patterns.

2. Make the most of your demo account

To make the most of your demo account in forex trading, there are vital tips to keep in mind:

  • Firstly, approach the demo account with seriousness and dedication, treating it as if it were a real trading account. This entails following your trading plan and practicing proper risk management. 
  • Simulate real trading conditions by setting your demo account balance to match the amount you intend to invest in a live account. Don’t forget to consider factors like spreads, slippage, and execution speeds. 
  • Take time to review your trades. Understanding why a trade was successful or not is crucial for improvement. Use this insight to refine your strategies and avoid repeating mistakes. 
  • Forex trading platforms differ in design and functionality. A demo account helps you understand the specifics of a trading platform, enabling you to master placing trades, setting stop losses, and take profit orders, and monitoring your account balance. It also allows you to experiment with various indicators, timeframes, and approaches to identify what works best for you. 
  • Even though you’re trading with virtual money, practice risk management strategies as if it’s real. Set realistic stop losses and take profits levels, maintain proper leverage, and manage your account balance. This discipline will be invaluable when you transition to live trading.
  • Forex markets can be volatile and are influenced by various factors such as economic news, geopolitical events, and market sentiment. Use your demo account to understand how these factors impact currency prices.

3. Create a Forex trading strategy

Forex trading strategies help traders decide when or where to buy or sell a currency pair. They are simply a set of rules that help a trader determine when to enter a trade, how to manage it and when to close it. There are many, many strategies available.  Fortunately, there is also a vast amount of information available on forex strategies, from books to YouTube videos to the educational information offered on broker platforms.

No single strategy is best, and the type of strategy you decide to employ depends upon many factors, not least your skill and experience. As a beginner, it is best to focus on the most basic and effective strategies. Other variables include: how much time you want to devote to trading; which pairs you want to focus on; the size of your positions, and whether you are going long or short. Moreover, some may work better in certain situations than others.  A demo account allows you to practise these strategies over and over again until you find the ones that you are most comfortable with and are ready to use in live trading.

Common mistakes to avoid when using a demo account

When using a demo account, it’s necessary to be aware of common mistakes.  By understanding and addressing these common mistakes, you can maximize the benefits of the demo account and set yourself up for success in live trading. 

  • Unrealistic mindset and expectations: One common mistake is approaching the demo account with a careless or unrealistic mindset. It’s important to treat the demo account as if it were real money and trade with the same discipline you would apply to live trading and avoid taking unnecessary risks.  Another mistake is overtrading or having unrealistic expectations based on demo account results. While demo trading can provide valuable insights and help develop skills, it’s essential to remember that real market conditions may differ. 
  • Neglecting proper risk management: Some traders overlook risk management principles when using a demo account. It’s crucial to practice and implement sound risk management strategies, including setting appropriate stop-loss levels, defining risk-reward ratios, and managing position sizes effectively. Neglecting risk management in the demo account can lead to unrealistic trading outcomes and poor habits when transitioning to live trading.
  • Ignoring emotional aspects: Traders sometimes overlook the emotional aspects of trading when using a demo account. Emotions like fear, greed, or impatience can significantly impact decision-making in real trading. By not simulating these emotions in the demo account and learning to manage them effectively, traders may struggle to cope with the psychological challenges they encounter in live trading.

Frequently Asked Questions about Forex Demo Accounts

How long should I use a Forex demo account before switching to a live account?

You should stay on the demo account until you completely understand the basics of forex trading and feel comfortable risking your own money. The answer will vary from individual to individual and depend on your aptitude and how much effort and time you put into trading on the demo account. Never feel that you need to rush into live trading; the more time you spend practicing on a demo account, the more likely you are to be successful using real money.

Can I reset my Forex demo account?

Most brokers allow you to reset your demo account balance if you’ve blown it up. It gives you a fresh start after a series of losing trades.

Does every Forex broker offer a demo account?

Most, but not all, do. Choosing a reputable broker is one of the critical factors determining success in FX trading. There are many issues to consider before you choose a forex broker, and the ability to practise on a free demo account is among the key ones. All the brokers we recommend offer this option, but traders should be aware that some brokers’ demo accounts expire after a certain period of time. 

How closely do demo accounts replicate live trading conditions?

While demo accounts aim to provide a realistic simulation, certain factors like order execution speed, slippage, and market liquidity may differ between demo and live trading.

How long do demo accounts stay open?

Some demo accounts will expire after a set period of time, usually 30–90 days. The best demo accounts, however, will never expire or will only expire after a period of inactivity. As a general rule, demo accounts should always be kept open. Even experienced traders use demo accounts to test new strategies or try out trading on new assets. If your demo account does expire and you still want to keep it open, it is always worth getting in touch with your broker’s customer service department to ask them to reopen it or extend it.

Can I withdraw the money from my demo account?

No, the money in your demo account is not real and cannot be withdrawn.

Are demo accounts as accurate as real trading?

You will be trading the real market only with pretend money so they are accurate. Remember, however, that you can never replicate the real emotions you will experience when trading your own money.  So, while useful for practicing different approaches and strategies, traders are likely to behave far less cautiously on demo accounts than on a real, live account.

Is a Forex demo account free?

Yes. Reputable brokers offer free demo accounts because they want you to deposit money with them and become long-term customers. That is more likely if you are able to trade successfully – and the best way of ensuring you will be successful is to learn the ins and outs of their trading platform and how to implement successful strategies.

Can I trade on a demo account on my mobile phone?

You can download demo accounts on a laptop, desktop, and portable devices such as iPads and mobile phones. The main thing is to practise as often as you can, wherever you can.

How do you open a Forex trading demo account?

It is very easy to open a demo account. Having decided which broker you wish to use, you simply:

  • Fill in a registration form
  • Receive a demo account number and a trader’s password
  • Download the software or the trading platform.

You can explore the platform within a few minutes of opening an account and start learning how forex trading works. It is much easier to open a demo account than a live account, a process that usually requires traders to send some form of identification document to the broker, fill out an application, and make a deposit.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our overall Forex Rankings report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

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