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Demo accounts are the best way for beginner traders to learn to trade Forex without risking their money. They 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.
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.
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Broker | Overall Rating | Official Site | Min. Deposit | Unlimited Demo | Support Hours | Trading Cost | Regulated | Website Language: English | Support Language: English | Compare |
---|---|---|---|---|---|---|---|---|---|---|
USD 5 | No | 24/5 | USD 6 | Yes | Yes | |||||
USD 25 | Yes | 24/5 | USD 6 | Yes | Yes | |||||
USD 100 | Yes | 24/5 | USD 6 | Yes | Yes | |||||
USD 100 | No | 24/5 | USD 9 | Yes | Yes | |||||
USD 0 | No | 24/7 | USD 10 | Yes | Yes | |||||
AUD 100 | Yes | 24/5 | USD 6 | Yes | Yes | |||||
USD 5 | Yes | 24/7 | USD 7 | Yes | Yes | |||||
USD 0 | Yes | 24/5 | USD 10 | Yes | Yes | |||||
USD 100 | Yes | 24/7 | USD 14 | Yes | Yes |
Find Your Ideal Forex Broker
XM’s MT5 Demo Account is aimed at traders who want to trade many different financial instruments rather than just Forex.
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.
XM doesn’t have a proprietary trading platform, which is usually easier for beginners than traditional platforms.
0.6 pips
USD 6
USD 5
XM, one of our top all-around brokers, distinguishes itself with its exceptional and well-structured Forex education for traders of all experience leves and is the recipient of the Best Forex Education Award 2023.
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.
Well regulated
Excellent education
Free deposits and withdrawals
Limited platform choice
Octa is great for beginner traders who want to learn in a risk-free environment with access to multiple trading platforms.
We like that 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, providing traders with plenty of time to practice before transitioning to real trading. Additionally, Octa hosts demo account contests like the Champion Demo Contest, offering traders the chance to win cash prizes.
The Champion Demo Contest is only available on the MT4 trading platform.
0.6 pips
USD 6
USD 25
Octa has developed the leading copy trading platform, simple for beginners to understand but with the depth of detail (risk level, drawdown, etc) that more experienced traders will want to see – all in an intuitive interface. Available on the MT4 trading platform, Octa has lowered the threshold to allow beginner traders to profit from the sophisticated trading strategies used by professional traders, using seamless integration in their trading platform.
Octa provides an excellent opportunity for beginner traders to learn and practice trading with its range of demo accounts and educational resources. With demo accounts available on MT4, MT5, and the OctaTrader web platform, traders can familiarize themselves with different trading environments. The Champion Demo Contest offers additional incentives for traders to hone their skills. However, it's important to note that some features, such as the contest, are exclusive to the MT4 platform.
Fast and free withdrawals
Low minimum deposit
Tight spreads
Limited range of assets
Poorly regulated
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.
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.
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.
0.0 pips
USD 6
USD 100
Tickmill offers some of the most competitive Forex trading conditions available and has, therefore, earned the Award for Best Trading Conditions in 2023.
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.
Tight spreads
Well regulated
Fast and free withdrawals
Limited base currencies
Demo accounts are trading accounts that let you trade on live markets with virtual money.
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.
This type of trading is also known as “paper trading” since no real money is involved. Demo accounts are a great way to learn how a trading platform works without the fear of losing money as you get to grips with the basics of trading.
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.
A trader should use a demo account for several key reasons.
Demo accounts work in exactly the same manner as real live accounts using real money. That is why they are so useful. The amount of virtual money you are given varies from broker to broker. Some brokers will offer as little as US$10,000, while others will offer US$100,000 or even US$1,000,000. When you feel almost ready to start trading with a real account, you should use the same amount of money in your demo account as you plan to have in your real account. This will give you a better idea of the limitations and market conditions you will face when trading.
All reputable forex brokers will, of course, offer forex trading, but most traders also want to trade other instruments. If you are interested in trading commodities or stock CFDs, ensure your demo-account broker offers those instruments.
It is very easy to open a demo account. Having decided which broker you wish to use, you simply:
You can explore the platform within a few minutes of opening an account and learn 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 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.
To make the most of your demo account in forex trading, there are vital tips to keep in mind:
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.
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.
Here, we’ve compiled answers to the most common questions traders have when choosing a Demo Account broker.
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.
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.
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.
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.
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.
No, the money in your demo account is not real and cannot be withdrawn.
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.
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.
You can download demo accounts on a laptop, desktop, and mobile devices such as iPads and mobile phones. The main thing is to practise as often as you can, wherever you can.
It is very easy to open a demo account. Having decided which broker you wish to use, you simply:
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.
Explore more resources that fellow traders find helpful! Check out these other guides to enhance your forex trading knowledge and skills. Whether you’re searching for the best brokers, educational material, or something more specific, we’ve got you covered:
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.