Open a demo account to practice trading

Before choosing a broker with whom to invest in derivatives or investment products, it is best to be sure that the broker's online trading technology is suitable before investing capital. Fortunately, it is possible to use a free demo account or a trading simulator that replicates the investment in real conditions on the proposed platform but with fictitious capital.

Open a demo trading account: in brief
  • A demo account is a fictitious trading account. 
  • Demo accounts operate with virtual capital, but usually under real market conditions.
  • Demo accounts are useful for practising trading or for testing a platform.
  • Demo accounts are usually time-limited or have a notional capital ceiling.

Open a trading demo account!
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Open a demo account to practice trading
Analysis N°1

Of course, the main purpose of this type of demo account is also to allow you to practice and test different strategies and different types of analysis. You only need to test these different strategies to determine which ones have the most positive effects before you start trading for real by accessing your traditional trading account.

Analysis N°2

The demo accounts with unlimited fictitious capital are probably the most interesting because they allow you to trade in demo mode for many weeks without being limited if you lose your entire training capital.

Analysis N°3

Finally, demo accounts also have the advantage of helping you determine whether or not you are suited for trading by verifying that you are able to make good trades.

What is a trading demo account?

A trading demo account, also known as a demo account or virtual account, is an account offered by many online brokers that allows traders to explore and practise trading without risking any real capital. Here are some of the features and benefits of a demo account:

  • Trading simulator: A demo account simulates real financial market conditions, allowing traders to place orders, buy and sell assets, and test different trading strategies in a risk-free environment.
  • Use of virtual funds: Traders use virtual funds rather than real money to trade on a demo account. This allows them to experiment with different trading approaches without fear of losing money.
  • Training and learning: Demo accounts are particularly useful for beginners who want to learn the basics of trading and familiarise themselves with trading platforms before moving on to a real account. They offer a hands-on learning opportunity without financial risk.
  • Strategy testing: More experienced traders can use a demo account to test new trading strategies or hone their skills without risking their capital. This allows them to assess the effectiveness of different approaches before applying them in a real environment.
  • Platform evaluation: Demo accounts also allow traders to evaluate the functionality and user-friendliness of the trading platforms offered by different brokers before deciding which one to use.

Open a trading demo account!
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Are there demo trading accounts?

Yes, there are demo trading accounts. A demo account is a fictitious account that allows you to simulate stock market transactions with virtual money. It is an excellent way of testing your investment strategies, familiarising yourself with a trading platform and practising placing orders without risking your real money.

Many online brokers offer free demo accounts. You can usually open a demo account in a few minutes by providing a few personal details.


Why use a trading demo account?

As you will have understood, the main purpose of a trading demo account is to allow you to test a broker's trading platform in order to verify that its features match your investment method. But these accounts also allow you to test all the services and tools of this broker without spending a single cent.

It is also very interesting, if not essential, to open several demo accounts with different brokers in order to be able to compare the different technical characteristics of each of these solutions. In this way, you will be sure of your choice and will be able to launch yourself with confidence.

But demo accounts also have another important advantage, as they allow you to test your trading strategies without risk and only start trading when you have developed a method that you are happy with.


How to choose the best trading demo account?

In order to make an accurate comparison between the different demo accounts offered by CFD brokers, you will need to evaluate a number of important criteria, the main ones being

  • The type of access to the platform: Depending on your preferences, you may choose an online platform or one that requires downloading.
  • Virtual capital: It is best to choose a demo platform with a large virtual amount to test long-term strategies.
  • The life of your demo account: The training period needed to become a good trader varies from person to person and it is therefore preferable to open an unlimited demo account.
  • Live quotes: This may seem obvious, but some platforms do not offer live quotes on their demo account. It is therefore essential to find out about this beforehand.
  • Market analysis: The access from the platform to the different market analysis and technical signals will be very useful when you trade in real mode. They should therefore be included in the demo account so that you can test their relevance.


The different advantages of a demo account for online trading:

A free demo account offered by a broker or a trading platform has certain advantages that we propose to discover here in detail. We will then come back to the limitations of this tool and give you our objective opinion on its usefulness.

As far as the advantages of such a demo account are concerned, we can first of all underline that it allows to visualize the way prices of an asset evolve and that it allows of course to learn to recognize the risks and in particular the risk related to the leverage effect. Indeed, leverage is a tool that many new online traders are eager to use but which fundamentally changes the level of risk involved. However, it is possible to choose the level of leverage you want to use in your strategies and assets. Using a demo account allows you to test different levels of leverage in order to be able to choose the most suitable leverage later on. A demo account will indeed allow you to understand that leverage can be both useful and dangerous.

Another undeniable advantage of the online demo account is that it allows you to understand how the proposed trading platform works and what trading conditions are offered by your broker. By using your demo account you will learn how to use different orders to place, how to customize the charts by displaying different indicators or using different time periods. They allow you to test the different technical or fundamental analysis tools or to test specific functions such as social trading or how to best manage different lot sizes. Of course, it is sometimes possible to use the demo accounts of different brokers before choosing the broker whose platform will convince you the most.

Finally, and this is of course the main advantage of an online demo account, it allows you to test different trading strategies. Indeed, the trading platforms offered by CFD brokers offer different ways of approaching the market and some even include tools dedicated to the strategy. With your demo account, you will be able to test these tools as well as test your own strategies in real market conditions. You will be able to try out different approaches in order to evaluate which one seems to be the most suitable for the type of asset you are investing in and thus be ready when you start trading by yourself.

Open a trading demo account!
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What are the limitations and drawbacks of a free demo account?

As we have just seen, a demo account has many advantages but it also has its limits which we propose to discover now in more details. These limitations are as follows.

  • First of all, with a demo account, the stress of real trading is absent. This means that if you manage to implement a winning strategy using the demo account, it is possible that the added stress and fear that comes with trading in real mode will defeat your strategy. Emotions are an integral part of the data that influences traders' decision making. Unfortunately, these emotions are rarely the same with a free demo account even though everything is done to make you feel like a real trader. This is why it is advisable to start with small amounts of money when entering the real trading mode, so that the tension level is not too high at the beginning.
  • Another defect of free demo accounts is that they can lead to a too important confidence and thus push you to take bad habits. Indeed, on a demo account, as we have just seen, the real risk is absent. This pushes us to dare more than in a real trading mode. However, if luck is on our side and the tested strategies, although very daring, work, we will tend to recreate them more easily in real mode without taking into account the possibilities of losing.
  • The final disadvantage of a free demo account is that your experience will in no way reflect how you might react to risking your own money. It is indeed easier to leave a position open with a demo account despite a hesitant trend or a period of market hesitation than when you commit your own capital. However, knowing how to cut your losses at the right time is essential to any good online investment strategy.


How can I practise trading with a demo account?

To practise trading with a demo account, here are a few steps and tips to follow:

  • Choose a broker: Select a reliable online broker that offers a demo account. Make sure the broker offers a wide range of financial instruments and a user-friendly trading platform.
  • Open a demo account: Sign up for a demo account on the broker's trading platform. Generally, you will need to provide some basic information and choose the currency in which you wish to trade.
  • Familiarise yourself with the platform: Take the time to familiarise yourself with all the features of the trading platform. Learn how to place orders, use the different order types, analyse the charts and use the technical analysis tools.
  • Develop a trading strategy: Before you start trading, define a clear and precise strategy. Choose the financial instruments you want to trade, determine your profit and loss targets, and identify entry and exit signals.
  • Practice trading: Use the demo account to put your trading strategy into practice. Start trading with small amounts and test different approaches to see what works best for you.
  • Analyse your performance: Regularly evaluate your trading performance. Analyse your past trades to identify your strengths and weaknesses, and make any necessary adjustments to your trading strategy.
  • Manage your emotions: Trading can be emotionally taxing, even on a demo account. Learn to control your emotions, stay disciplined and not let your feelings influence your trading decisions.


Our objective opinion on free demo accounts:

In conclusion of this article, our opinion on using a free demo account for your online trading remains relatively positive.

In fact, using such an account allows you to practice without worrying about getting into real trading without understanding the ins and outs of it. In fact, we would strongly advise anyone who wants to start trading CFDs to use a practice account to familiarize themselves with the trading platform that they will be using in the future.

But as we said above, these demo accounts also have their limits and you shouldn't go into real mode without realizing that things will be different in that your emotions will likely change your behavior in the market.

In conclusion, a demo account is very useful for all traders who want to test their knowledge and strategies before starting trading.

Frequently Asked Questions

What is a demo trading account?

A demo account is a form of trading account that allows investors to try their hand at online investing with a fictitious software. This software is usually based on the real market prices of the assets as well as all the features and tools of the brokers and thus allows investors to practise placing orders and using the platform with fictitious money but in real conditions.

What is a real trading account?

Unlike a demo account, a real trading account is a real online investment account. It is where the investor deposits the capital with which he will place his orders on the market. The trading account allows the investor to take positions with part of his capital on online operations. It is funded by the trader and by the gains made and losses are deducted from this account.

How do I open a trading demo account?

Opening an online demo account is done in the same way as for a real trading account. You need to fill in a form to register with the broker of your choice and fill in your personal details. You will then get a fictitious capital with which to trade and, when you are ready, you can switch to a real trading mode by switching to a standard account.

Open a trading demo account!
{etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on etoro