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.

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.