75-90% 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: Alison HeyerdahlUpdated: February 5, 2024
AuthorAuthor: Chris Cammack

Last Updated On February 5, 2024

Chris Cammack

Demo accounts are the best way for beginner traders to learn to trade Forex without risking their money. But demo accounts are also necessary for testing new strategies in a risk-free environment. In this guide, we explain why it’s important to use a demo account, tips to get the most from your demo account, and common mistakes to avoid. The brokers below not only offer demo accounts that closely mirror a live trading environment but are also well-regulated entities that provide excellent educational resources and maintain low trading costs on their entry-level accounts.

These are the best demo trading accounts in Malaysia for 2024, according to our testing and our research.

1

XM

Best MT5 Demo Account

Visit
2

Octa

Demo Accounts on Three Platforms

Visit
3

Tickmill

Most Flexible Demo Account

Visit
4

AvaTrade

Best Mobile Demo Account

Visit
5

Pepperstone

Best ECN Demo Account

Visit
6

FP Markets

Best Unlimited MetaTrader Demo

Visit
7

FBS

Highest Leverage Broker with a Demo Account

Visit
8

Admirals

Best MT4 Demo Account

Visit
9

HFM

Best MT4 Demo Account

Visit
10

FxPro

Best cTrader Demo Account

Visit

Top Rated Forex Demo Accounts 2024

Scroll for more detailsPreviousNext
Broker
Broker Score
Official Site
Beginner Course
Unlimited Demo
Downloadable Ebook
Beginner Videos
Economic Calendar
Experienced Course
Advanced Videos
Webinars
Min. Deposit
Platforms
Regulated
Support Hours
Compare
XM
4.45 /5
Read Review
Visit Site >
75.33% of retail CFD accounts lose money
USD 5MT4, MT5CySEC Regulated BrokersASIC BrokersDFSA Regulated Forex BrokersInternational Financial Services CommissionFinancial Services Conduct Authority24/5
Octa
4.37 /5
Read Review
Visit Site >
67.65% of retail CFD accounts lose money
USD 25MT4, MT5, OctaTraderCySEC Regulated BrokersFinancial Services Conduct AuthorityMwali International Services Authority24/5
Tickmill
4.58 /5
Read Review
Visit Site >
71% of retail CFD accounts lose money
USD 100MT4, MT5CySEC Regulated BrokersFCA Regulated Forex BrokersLabuan Financial Services AuthorityFinancial Services Conduct AuthorityThe Seychelles Financial Services AuthorityDFSA Regulated Forex Brokers24/5
AvaTrade
4.59 /5
Read Review
Visit Site >
76% of retail CFD accounts lose money
USD 100MT4, MT5, Avatrade Social, AvaOptionsASIC BrokersFinancial Services Conduct AuthorityCySEC Regulated BrokersFinancial Services AgencyCentral Bank of IrelandFinancial Regulatory Services AuthorityIsrael Securities Authority24/5
Pepperstone
4.61 /5
Read Review
Visit Site >
89%74- of retail CFD accounts lose money
USD 0MT4, MT5, cTrader, TradingViewFCA Regulated Forex BrokersASIC BrokersCySEC Regulated BrokersDFSA Regulated Forex BrokersBundesanstalt für FinanzdienstleistungsaufsichtSecurities Commission of the BahamasCapital Markets Authority24/7
FP Markets
4.40 /5
Read Review
Visit Site >
79% of retail CFD accounts lose money
AUD 100MT4, MT5, cTrader, IRESSASIC BrokersCySEC Regulated BrokersFinancial Services Conduct AuthorityCapital Markets AuthorityThe Seychelles Financial Services Authority24/5
FBS
4.33 /5
Read Review
Visit Site >
76% of retail CFD accounts lose money
USD 5MT4, MT5CySEC Regulated BrokersASIC BrokersFinancial Services Conduct AuthorityInternational Financial Services Commission24/7
Admiral Markets
4.28 /5
Read Review
Visit Site >
76% of retail CFD accounts lose money
USD 25MT4, MT5, MT SupremeASIC BrokersCySEC Regulated BrokersFCA Regulated Forex BrokersFinancial Services Conduct AuthorityJordan Securities CommissionFinantsinspektsioon (Estonian Financial Supervision and Resolution Authority)Business Hours
HFM
4.53 /5
Read Review
Visit Site >
72.90% of retail CFD accounts lose money
USD 0MT4, MT5, HFM Trading AppCySEC Regulated BrokersFCA Regulated Forex BrokersFinancial Services Conduct AuthorityDFSA Regulated Forex BrokersFinancial Services CommissionThe Seychelles Financial Services Authority24/5
FxPro
4.39 /5
Read Review
Visit Site >
71.58% of retail CFD accounts lose money
USD 100MT4, MT5, cTrader, FxProEdgeFCA Regulated Forex BrokersCySEC Regulated BrokersFinancial Services Conduct AuthorityDFSA Regulated Forex BrokersSecurities Commission of the Bahamas24/7

How we Reviewed the Best Demo Accounts for 2024

At FxScouts Malaysia, we have an experienced review team dedicated to evaluating Forex brokers, including their demo trading accounts. Our team of experts meticulously examines each broker, analysing over 200 individual metrics, enabling us to confidently recommend only the top demo accounts in the Forex industry.

We’ve selected the top demo accounts in the industry based on several factors:

  • Regulation: All chosen brokers are regulated by reputable authorities like the FCA in the UK, CySEC in Europe, and ASIC in Australia. Other brokers are typically regulated in offshore states like Vanuatu, Seychelles, or Mauritius, which may pose risks in live trading. Common risks include higher leverage, no negative balance protection, and difficulties withdrawing funds.
  • Account Size: Forex brokers offer different demo account sizes, from 10,000 USD to 1,000,000 USD. We advise using the same amount as you would use in a real account for realistic trading limitations understanding.
  • Expiry of Demo Account: Some brokers provide no-expiry demo accounts for practice without time constraints. Most brokers on our list offer these or extendable demo accounts.
  • Financial Instruments: All listed brokers offer Forex trading and other instruments like commodities, stocks, ETFs, or bonds. Demo traders like experimenting with different instruments, so we prefer brokers with a wider range.
  • Trading Platform: Demo accounts are an opportunity to test drive a broker’s trading platform. Our selected brokers offer user-friendly, reliable platforms like MT4, MT5, cTrader, or their own web-based platforms.
  • Customer Service: A broker’s customer service should be responsive and available 24/7 via various channels.
  • Educational Resources: Brokers offering educational resources can help beginners grasp Forex trading effectively.

You can find out more about our in-depth review process here.

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


XM – Best MT5 Demo Account

Broker Score
4.454.45 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Awarded the Global Forex Broker of the Year 2020 in the Global Forex Awards, XM is a serious market maker broker. The demo account at XM is funded with a 100,000 USD virtual balance and available on both the MT4 and MT5 platforms. XM’s MT5 Demo Account is aimed at traders who want to trade more than just Forex. With over 1000 instruments available, traders will have access to Stock CFDs, Stock Indices CFDs, CFDs on Precious Metals and CFDs on Energies. The MT5 demo account also features a market depth indicator, hedging, and full EA functionality. XM’s demo account is not time-limited.

For beginner traders, XM Group’s educational content is based on instruction in a video format. The core educational offerings are three Education Rooms, aimed at traders of differing skill levels – primary, intermediate and advanced. The Primary Education Room is open to the public, but access to the others requires registration.

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Limited platform choice
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the Belize FSC.

Octa – Demo Accounts on Three Platforms

Broker Score
4.374.37 / 5
🏦  Min. DepositUSD 25
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Octa offers demo accounts on all three of its trading platforms: MT4, MT5 and the OctaTrader web platform. None of Octa’s demo accounts ever expire, so beginners can learn how to trade for as long as they want in a risk-free environment before they start trading with real money. Octa also runs frequent demo account contests like the Champion Demo Contest. The Champion Demo Contest is a monthly contest with a prize pot of 500 USD and additional prizes for 2nd, 3rd, 4th, and 5th places. This contest is only available on the MT4 trading platform, though.

Beginner traders will appreciate Octa’s education and analysis sections and a range of useful trading tools. Traders on MT4 and MT5 with a 1000 USD or higher balance will have free access to AutoChartist, an algorithm highlighting trading opportunities. The Account Monitoring tool allows users to monitor any other Octa trader’s account – traders can access the history of an account which is valuable for beginners studying successful traders. Accounts are only represented by numbers, so all holders remain anonymous. Copy trading is also available on all accounts.

Pros
  • Fast and free withdrawals
  • Low minimum deposit
  • Tight spreads
Cons
  • Limited range of assets
  • Poorly regulated
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4, MT5 and Octatrader platforms supported. Octa is regulated by CySEC, FSCA, MISA, and is registered in St Lucia.

Tickmill – Most Flexible Demo Account

Broker Score
4.584.58 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Tickmill’s demo account is available on MT4 and MT5 and both desktop and mobile devices. The great thing about Tickmill’s demo account is its customizability and flexibility. Tickmill’s demo account will only expire after 14 days without a login attempt and clients can choose any level of virtual funds to start with. Similarly, clients can choose any level of leverage, whichever account currency they want (from USD, GBP, and EUR) and one of Tickmill’s three account types (Classic, Pro and VIP). Being able to choose which account type is especially important as it allows demo users to experience the difference between trading purely on the spread and trading with a commission. 

The demo account perfectly mirrors the price movements on Tickmill’s range of CFDs including Forex, Bonds, Commodities, Indices and Cryptocurrencies and comes with the full suite of tools available on the MetaTrader platforms.

Pros
  • Tight spreads
  • Well regulated
  • Fast and free withdrawals
Cons
  • Limited base currencies
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.00 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 and MT5 platforms supported. Tickmill is regulated by CySEC, FCA, FSCA, DFSA, and the FSA-Seychelles.

AvaTrade – Best Mobile Demo Account

Broker Score
4.594.59 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

The free demo account is available on AvaTrade’s webtrader platform, MT4, MT5 and its mobile app, AvaTradeGO. Clients can trade over 1250 instruments, including Forex, cryptocurrency, stocks, commodities, and indices. Voted the best Forex Trading App 2020, AvaTradeGO offers a sophisticated dashboard, complete with a set of intuitive management tools, clear zoomable charts, and many more helpful features.

AvaTrade offers a library of educational material, tools and analysis to assist clients in finding the best trading opportunities. The demo account includes a 100,000 USD balance that expires after 21 days. If you are not ready to open a live account after this time, contact the customer service team and extend it. Customer support is available 24/5.

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 Malaysian Clients. Spreads start at 0.90 pips on theEUR/USD on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

Pepperstone – Best ECN Demo Account

Broker Score
4.614.61 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage200:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Pepperstone is internationally recognised for its high-speed trading execution and an offering for beginners that most ECN brokers don’t have. Free demo accounts at Pepperstone allow clients to trade 80+ Forex pairs on MT4, MT5 and cTrader platforms, withcustomer support. The demo account expires after 30 days unless you have a live account, in which case you can request a non-expiry demo account.

The demo and the live account the same in performance and conditions, except the demo account comprises of 500,000 GBP in virtual funds. Pepperstone’s education section called Learn to Trade Forex helps traders get started with some of the technical concepts, while a section called Trading Guides supports traders with issues that they will confront every day; how to keep a trading journal, developing a trading plan and managing risk. 

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts Malaysian 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 200:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, CySEC, SCB, CMA, BaFin and the DFSA.

FP Markets – Best Unlimited MetaTrader Demo

Broker Score
4.404.40 / 5
🏦  Min. DepositAUD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

ASIC-regulated FP Markets has a free demo account to trade 70 Forex pairs as well as shares, metals, commodities and indices on MT4 (desktop/browser) and MT5 (desktop/browser/app). The account will remain open for as long you want, and will only expire after 30 days of inactivity.

The differences between the demo and live accounts at FP Markets are the execution (the demo account is virtual) and the spreads. The live account relies on ECN pricing which has multiple sources of liquidity, causing different spreads compared to a demo account. The minimum deposit on the live account is 50 GBP, with spreads on EUR/USD as low as 0.10 pips and commission of 6 USD per lot giving a total trading cost 7 USD per lot.

Besides the demo account, FP Markets has introduced Traders Hub as an education and market analysis section. Daily technical and fundamental analysis is available, alongside all the educational eBooks, video tutorials, and trading courses are available to help beginner traders get going.

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 Malaysian Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5, and ctrader platforms supported. FP Markets is regulated by CySEC and ASIC.

FBS – Highest Leverage Broker with a Demo Account

Broker Score
4.334.33 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage3000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

FBS is a well-regulated broker offering trading on multiple assets, including Forex, metals, energies, indices, crypto and stocks.  FBS’ free demo account allows traders to test out trading strategies on MT4, MT5 and the FBS Trader platforms with virtual money under real trading conditions.  Demo accounts expire after 90 days of inactivity, after which time they are automatically deleted.  Clients can open a new account if this happens. 

Demo accounts are available on all 6 of FBS’ account types, including the Cent and Micro Accounts which are aimed at beginners. But FBS offers account types to suit traders of all experience levels and allows leverage of up to 3000:1 on three of its accounts.  Trading costs can be higher than other brokers on some of its account options, with spreads as wide as 3 pips (EUR/USD) on its Micro Account and a commission of 20 USD per lot on its Zero Spread Account.  Trading costs are significantly lower on the Cent Account and Standard Account, with spreads down to 0.8 pips on the EUR/USD.

Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
  • Excellent market analysis
Cons
  • Limited range of assets
  • Extreme leverage
AlertAccepts Malaysian Clients. Spreads start at 0.80 pips on the EUR/USD on the trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, the FSCA, and the IFSC.

Admirals – Best MT4 Demo Account

Broker Score
4.284.28 / 5
🏦  Min. DepositUSD 25
🛡️  Regulated By
💵  Trading Cost 
USD 8
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Regulated by three major international authorities, including ASIC, Admirals offers an expansion of the standard MT4 package with the MT4 Supreme Edition. The MT4 Supreme Edition provides a superior trading experience on Admiral’s wide range of products, including 50 Forex pairs, indices, commodities, shares, ETFs, bonds and cryptocurrencies.

The demo account includes a balance of 10,000 USD and expires after 30 days if no live account is opened. The trading conditions on the demo account match the live account. The education section at Admiral Markets is one of the best available, with a well-structured trading course for beginners and experienced traders, webinars, and an in-house market research team frequently publishing trading news.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts Malaysian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by the FCA, ASIC, CySEC, and the JSC.

HFM (HotForex) – Best MT4 Demo Account

Broker Score
4.534.53 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

HFM is a well-regulated STP broker with awards for its client protection and product line. The HFM demo account is unlimited and comes with 100,000 USD pre-loaded on both MT4 and MT5. But the MT4 Demo Account experience is the standout here; with complete access to expert advisors and over 50 built-in indicators, this is the better MT4 demo experience for new traders.

Award-winning customer service and their client-focused approach to doing business mean that beginner traders at HFM can rely on premium support. High-quality structured courses and market analysis will benefit beginners and intermediate traders.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

FxPro – Best cTrader Demo Account

Broker Score
4.394.39 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 14
⚖️  Max. Leverage200:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

FxPro is a reputable and strongly regulated broker – one of the biggest brands in the business. FxPro supports demo accounts on all major platforms: MT4, MT5 and cTrader, but cTrader access is what sets the platform choice apart from many. The cTrader demo account, available on desktop and Android/iOS mobile apps, is loaded with $100,000 in virtual funds and expires after 180 days.

A comparatively light education section includes trading courses for beginner and advanced traders. An economic calendar, calculators and trading news caps off the support offered. While education material exists, the true draw for FxPro is the cTrader support at a reputable brokerage.

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts Malaysian Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA

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 State of the Market 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.

 

Vanessa Marcos
Financial Writer

Vanessa joined the team in 2023. Born and raised in southern Portugal, she has a BA in Journalism and a Master’s in Literary Theory, both from Lisbon University. Since 2011, she has worked in social media, copywriting, content management, ghost-writing, and SEO. Vanessa loves to write, and although she is a generalist in digital marketing, she always draws on her creativity in her work. She is constantly researching new subjects and finds the analytical depth of Forex trading fascinating.

 

Stay updated

This form has double opt in enabled. You will need to confirm your email address before being added to the list.

Close