forex demo account
Forex exchange plays a significant role in online trading with massive daily turnover. The exchange involves trading popular currencies from around the world. You are only required to predict where the currency is headed to make money. However, the forex market is highly volatile, with fluctuating currency pairs. This is the reason why most brokers offer a demo account to enable traders to practice before starting on the real trade.
The best part about demo accounts is that they are free, and you are not required to deposit funds. If you are a beginner trader, a demo account will help you get familiar with the various aspects of forex trading. Also, intermediate and advanced traders can use demo accounts to test their strategies. Read on to find some of the best forex demo accounts in the UK.
Pros and cons of a forex demo account
Pros
- An excellent way for beginners to learn forex trading
- Enable experienced traders to test new strategies
- Exposes you to real-time forex trading situations
- Allows traders to familiarise with the trading platform
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Cons
- Virtual money does not have real value
- Create a false sense of confidence
Top 10 UK forex demo accounts
- Go Markets demo account
Go Markets Pty LTD is one of the most reputable forex trading platforms in the UK. It is regulated by the Australian Securities and Investment Commission (ASIC) and licensed by Australian Financial Services under license number AFSL254963. The head office is in Australia with offices in London, China, and Hong Kong.
The site has a free demo account for both MT4 and MT5 platforms. It is loaded with $50000 virtual funds to enable you to practice and try out strategies without committing real capital. The demo account provides the same price feed as the live platform. There is also standard and Go Plus+ accounts with minimum opening amounts of AUD200 and AUD 500, respectively.
Remarkably, all account holders on the site are assigned a dedicated manager for assistance in case of any issue. Also, the minimum leverage for all accounts is 1:500, which is impressive compared to other forex trading platforms. Go Market involves some of the major currencies such as AUD, USD, EUR, GBP, NZD, CAD, SGD, CHF, etc.
One of the most appealing features of this site is the digital security measures employed. For instance, the site uses up to date servers protected with the latest software applications and firewalls. Also, the site is protected with a secured socket layer (SSL), which provides a secure environment.
To become a trader on the platform, fill out the registration form, and submit. If you have created the account successfully, you will receive a confirmation email. Next, you will have to download either the MT4 or MT5 trading platforms. The links to download the platforms are provided on the site. Whether you choose to download MT4 or MT5, the procedure is the same.
Pros
- Servers located in London
- Regulated and licensed by reputable bodies
- Impressive digital security measures
- The demo account is compatible with both MT4 and MT5 platforms
Cons
- The Demo account expires after only 30 days
- CMC market demo account
CMC market is an established forex and CFD broker founded in 1989. It is headquartered in the UK with fifteen offices around the world. Since the site is regulated by the Financial Conduct Authority (FCA), it employs high-level security and safety measures.
The free demo account will enable you to familiarise yourself with their trading platform known as Next Generation. This is a CMC Markets proprietary platform that is a bit difficult to navigate through the layout and functionalities.
The demo account is unlimited, which means you can use it for as long as you desire. This is a rare feature since most forex trading platforms have a deadline with their demo accounts. The most exciting thing is that the demo account has been designed precisely the same as the live platform. The demo comes with virtual funds to enable you to practice trading strategies and techniques. When you are ready to start real trading, you can use the login details you used when setting the demo account. You will only need to deposit funds to start trading.
CMC Markets involves major, minor, and emerging currency pairs to give a wide range of trading opportunities. Some of the most common include AUD/USD, EUR/CHF, GBP/USD, Dash/USD, Ethereum/USD, etc. The average leverage is around 30:1, which is better compared to other forex trading sites.
One of the biggest issues with forex trading sites is the lack of reliable customer support. CMC markets feature a live chat function and telephone lines that are available 24/5, where you can get instant feedback.
Pros
- The demo account is unlimited
- Smooth transition from demo to live account
- Regulated by the FCA
- Android and iOS mobile apps
- Reliable customer support
Cons
- A unique design that is difficult to navigate
- com demo account
Forex.com was established in 2001, and it is regulated by various regulatory bodies, including the FCA in the UK. Right now, the site is operated by Gain Capital Holdings, which is listed in the NYSE. It is a robust trading platform from both beginners and professional traders.
The only difference between the demo account and the live trading account is that you use virtual funds instead of real money. Forex.com demo account has been designed to familiarize you with the functionality and the features. Also, it a risk-free environment where you can test forex trading strategies using virtual funds.
It is important to note that the demo account is just a practice account. Therefore, the results achieved are purely hypothetical. Also, the account does not yield actual profits or losses like in the live trading account. Furthermore, the condition set in the demo account are theoretical and do not always reflect the real circumstances in the market conditions.
After practicing, you can sign-up and start real trading. Forex.com platform has three account options that include standard account, commission account, and direct market access account. You will only need to provide your name, address, and tax ID number. Typically, the verification process will only take a few minutes. The minimum deposit required is 100 EUR. However, you can deposit more for more trading flexibility.
It is good to note that it is only the standard account that works with the MetaTrader4 platform. The other accounts work on the Forex.com proprietary platform, which is also up to date. You can access the platform with mobile apps and desktop.
Pros
- Involves over 80 currency pairs
- Free and easy to use a demo account
- Competitive spreads that help to cut the cost
- 24/6 reliable customer support
Cons
- Technical indicators are difficult to access in the mobile apps
- easyMarkets demo account
EasyMarkets is a popular forex trading site that offers several unique features. It is regulated and licensed by leading regulatory bodies, which means it is a safe broker. The site began operations in 2001 as Easyforex but later rebranded. Right now, it is available on both the proprietary platform and MT4.
The site offers a free demo account for all traders. It has been designed exactly the same as the live trading platform to enable you to learn and test new strategies. On the downside, the demo account is only loaded with $10,000 virtual funds, which is low compared to other demo accounts that offer up to even $50,000.
To access the demo account, you will have to first register as a user. The process is very easy, and you can choose between email, Google account, or Facebook. Once you have signed in, the first thing you will notice is the simplicity of the interface. It only features a list of the traded commodities, the chart, and an information section.
After learning and polishing out on your trading skills, you can check out the live trading account. Unlike other forex trading platforms, EasyMarkets does not charge deposit and withdrawal fees. Also, for security purposes, the identity of the account holder is verified before withdrawal requests are approved. Also, proof of identity and address is required. If you use a credit card, you may be required to provide more documentation.
The mobile app has similar features to the web-based platform and is designed for iOS and Android devices. It has a colorful and straightforward interface that is simple to navigate compared to other forex trading apps.
Pros
- Regulated by CySEC and ASIC
- demo account interface
- Fixed spreads with no slippage and commissions
- Responsive customer support
- 50% deposit bonus
Cons
- Some features don’t work on the MT4 platform
- Plus500 demo account
Plus500 is a leading online forex and CFD trading platform. It was established in Israel in 2008, and now they have regional offices in other countries, including the UK. Actually, it is listed on the London Stock Exchange (LSE) and is part of the UK FTSE 250 index. Also, the site is regulated by the Financial Conducts Authority (FCA) under the license number FRN 509909. This is an indication that it is a legitimate forex trading platform.
The site offers a free and unlimited demo account. It means that you can use the account for as long as you want. This is a great feature to familiarize yourself with the trading platform and the market. The registration process is simple and straightforward. There are no forms required, and you will choose between the email option, Google account, or Facebook.
It is effortless to upgrade from the demo account to the live trading account. You will only need to provide more information, verify your account, and deposit funds. The minimum deposit for the basic live account is $100, and the maximum leverage is 1:30. To upgrade to the professional account, you must have performed a minimum of ten transactions per quarter for the last year.
There are no deposit and withdrawal charges involved. In addition, there are numerous ways you can deposit and withdraw funds. However, it worth noting that free withdrawal is only for the first five transactions, after which a $10 charge is applied. Also, every deposit must come from the account holder’s e-wallet or bank account. The site does not support third-party transfers.
Pros
- Regulated by prominent regulatory bodies such as FCA, CySEC and ASIC
- Features an extensive range of currency pairs
- Low minimum deposit
- The demo account is free and easy to use
Cons
- Does not support MT4
- OANDA demo account
OANDA is one of the leading forex and CFD brokers in the industry. The platform is operating under the guidelines of six regulatory bodies, including the Financial Conduct Authority (FCA) in the UK. Right now, it is available in over 196 countries around the world.
The site prides itself as a fully automated forex trading platform that enables it to offer transparent services and competitive spreads. This is because it has a wealth of experience and longevity in the industry than most of its rivals. Since its establishment in 1996, the platform has grown considerably in the last two decades advancing from spot forex to over 124 trading instruments.
The most outstanding feature is the demo account. While some forex trading platforms offer a limited demo account, the Oanda demo account is unlimited, and you can use it for as long as you want. Also, the demo account has been designed exactly the same as the live trading account, except that you use virtual funds instead of real cash.
After practicing and gaining enough confidence, you can upgrade to the live trading account and start trading in the real market. Since you provided details when opening the demo account, the upgrading process is straightforward.
One of the biggest concerns with online forex trading is data security. Recently, there have been numerous cybercrime cases where people have lost their personal data. Fortunately, Oanda has employed specific measures to ensure that personal data and trading activities are secured.
Pros
- Intuitive interface
- Free and unlimited demo account
- Powerful research tools
- Simple registration process
- Regulated by reputable regulatory bodies
Cons
- Slow customer service
- AxiTrader demo account
AxiTrader knows what features traders want and aims to offer them in the most efficient way possible. It was established in 2007 in Sydney Australia under AxiCorp financial services. The site grew steadily and ventured into the international market. In 2012, the company opened a UK office under the business name AxiCorp Limited.
As it has become standard for most online forex trading sites, AxiTrader comes with a demo account. This is a great way to learn and sharpen your trading skills in a non-threatening and beginner-friendly environment.
The demo account is a replica of the live trading account. For example, it is funded with $50,000 virtual funds and features real-time execution speeds and spreads. You will only need to provide a few personal details to start using the demo account. On the downside, the account is only available for 30 days. Most forex trading platforms are nowadays offering unlimited demo accounts.
To upgrade from the demo account to the standard account is very simple, and you will only need to fill out the registration form. The site is highly encrypted, so you shouldn’t worry about your personal information. To protect your account, you will need to confirm your identity. Once your identity has been verified, you can fund your account and start trading.
There is no minimum deposit required in the basic MT4 standard account. Also, there are no commission fees, spreads starts at 1.0 pips, and the minimum trade is 0.01 lots.
Pros
- No withdrawal and deposit charges
- Free demo account
- Simple upgrading process
- Regulated by FCA
Cons
- The demo account is limited to 30 days
- eToro demo account
eToro is a key player in the online forex and CFD trading industry. It was established in 2007 in Israel and spread to other countries around the world. In the UK, the site is regulated by the Financial Conduct Authority (FCA). This means it is a legitimate site that offers genuine services.
The site offers a free demo account that enables a trader to learn without paying brokerage fees. In fact, the demo account has been designed to resemble the actual trading account. It is unlimited, which means you can access it for as long as you want. Also, the account is funded with $50,000 virtual money to give you the flexibility to try new strategies. Even if you deplete the funds, you can contact the customer support for reimbursement.
Creating the demo account is free and simple. All you need to do is to provide your email address, username, and phone number. Alternatively, you can use your already created Google and Facebook accounts.
The look, feel, and functionality of the demo account is exactly the same as the live account. The only difference is that the demo account does not involve real money. Switching from the demo account to the live account is very easy. Just click the small button below the profile picture and choose ‘Real Portfolio’. To start trading on the live account, you will need to deposit $200.
Pros
- Seamless account opening process
- Free and unlimited demo account
- Reliable customer support
- Easy switching between real and virtual portfolios
Cons
- Allows only one account base currency
- Pepperstone demo account
Pepperstone is a reputable forex trading platform that was established in 2010 in Australia. Since then, it has enjoyed a remarkable growth rate, and now it has over 57000 clients from around the world. In 2015, it opened offices in London to serve the European clients. The platform is considered safe because it is regulated by both the Financial Conducts Authority (FCA) and the Australian Securities and Investments Commission (ASIC).
The site has a demo account that you can use to practice and familiarize yourself with the trading platform. To start using the demo account, you are required to complete a simple application form where you only provide your name, email address, and phone number. Alternatively, you can sign up using your Google account, Facebook, or LinkedIn. The demo account is funded with $50,000 virtual funds to enable you to practice risk-free.
Upgrading from the demo account to the actual trading account is very easy. You will only need to complete the verification process and deposit at least $200. Pepperstone has complied with financial regulations by segregating client’s funds in tier-1 banks.
Pros
- Regulated by the Financial Conduct Authority (FCA)
- Client’s funds are segregated
- Free demo account
- Easy switching between the demo and live accounts
Cons
- The demo account is limited to 30 days
- AvaTrade demo account
AvaTrade is a well-established forex and CFD brokerage firm founded in 2006 in Ireland under the name AvaFX. It rebranded later to improve service delivery and spread to other parts of the world. It is regulated by the Central Bank of Ireland and other financial authorities such as the Financial Conducts Authority in the UK.
If you are not ready to start on the live account, you can start on the free demo account. You are only required to provide your name, email, and phone number to get started. Alternatively, you can use your Facebook and Google accounts. It is funded with $100,000 virtual funds, which is sufficient compared to other forex trading sites.
The demo account is designed to look the same as the real trading account. For instance, it features some of the popular currency pairs such as GBP/USD, AUD/USD/ USD/CHF, etc. There is also a graphical representation of the exchange rate between the currencies.
Pros
- Impressive interface
- Free demo account
- Offers a wide range of currency pairs
- Easy and simple to open an account
Cons
- Limited research tools
Conclusion
A demo account is a great way to gain a deeper understanding of online forex trading. Also, it will enable you to familiarise yourself with your preferred broker, their operations, and key features on their trading platform. Even more importantly, a demo account will help you try out strategies that you can apply in real trading.
Frequently asked questions (FAQ)
- What is a forex demo account?
This is a dummy trading account provided by the forex broker for practice purposes. In most cases, you will be provided with virtual funds to use.
- How does a demo forex account work?
Most forex demo accounts are designed similar to the live trading accounts. The virtual funds represent real cash that you will use in your trading activities.
- What is the process of opening a forex demo account?
The process of opening a demo account will depend on the forex broker. On some platforms, you will need to open both the real and the demo account while others run them as separate entities.
- What is the difference between a live and demo trading account?
The only significant difference between the two accounts is the currency used. A demo account is free and uses virtual funds that have no real value. However, to start trading on a live account, you will need to deposit money.
- How long can I use a forex demo account?
This will depend on the broker. Some offer a 30-day free trial while others give unlimited access.