The best way to enter the Forex Market is by opening a forex demo account. In this way, you will learn about the financial market and how to perform your trading activities accordingly.

What is a forex demo account? A demo account simulates a trading environment very similar to the live account so you can test your strategies using virtual money for as long as you want. This inherent feature will allow you to experience first-hand the characteristics of the broker's trading platform and so on without risking your own money.

It is highly recommended to test your trading strategies in a demo account before taking a shot at live trading. This way, you will respond better to the market’s reactions to your new strategies. The demo account creates a similar environment with similar trading situations that might occur in a real trading account. So it is highly beneficial to know how to deal with similar possibilities before entering a volatile market such as Forex.

How to open a Demo trading account?

Opening a forex demo account is very straightforward and you can open as many demo accounts as you want with your desired trading conditions (balance, leverage, etc.). In addition, you can trade Forex, Metals, Energies, Stocks, and so on using virtual money. This is a great opportunity to practice your trading skills.

You can start your demo trading account with leading Forex brokers below:

XM Broker

Demo account: Micro, Standard, Ultra Low, and Stock
Leverage in the demo account: 1:1000
Demo account platforms: MetaTrader 4, 5, WebTrader and Mobile

Trade Forex, Metals, Energies, Stocks, CFDs, Cryptocurrencies

Deposit and Withdrawal via Bank Wire, Credit Cards, Skrill, Neteller, PerfectMoney, Bitcoin

Licenses: CySEC, IFSC, FCA, ASIC, DFSA
Country: Cyprus
Year Founded: 2008

Open XM Demo Account

XM Broker Review

FBS Broker

Demo accounts: Micro, Cent, Standard and ECN
Leverage in the Demo account: 1:3000
Demo account platforms: MetaTrader 4, 5, WebTrader and Mobile

Trade Forex, Metals, Energies, Stock, CFDs, Cryptocurrencies

Deposit and withdrawal via Bank wire, Credit Cards, PerfectMoney, Skrill, Neteller, Bitcoin, Tether

Licenses: CySEC, IFSC, ASIC, FSCA
Country: Cyprus
Year Founded: 2009

Open FBS Demo Account

FBS Broker Review

Exness Broker

Demo account: Standard, Standard, Cent, RAW, Zero, and Pro
Leverage in the Demo account: 1: Unlimited
Demo account platforms: MetaTrader 4, 5, WebTrader and Mobile

Trade Forex, Metals, Energies, Stocks, CFDs, Cryptocurrencies

Deposit and withdrawal via Bank wire, Credit Cards, PerfectMoney, Skrill, Neteller, Bitcoin, Tether

Licenses: CySEC, FSCA, FCA, FSA
Country: Cyprus
Year Founded: 2008

Open EXNESS Demo Account

EXNESS Broker Review

FXTM Broker

Demo account: Micro, Advantage, Advantage Plus
Leverage in the Demo account: 1: 2000
Demo account platforms: MetaTrader 4, 5, WebTrader and Mobile

Trade Forex, Stocks, Metals, Commodities, Bonds, and Cryptos

Deposit and Withdrawal via Bank Wire, Credit Cards, Skrill, Neteller, GlobePay, PerfectMoney, Bitcoin

Licenses: CySEC, FCA, IFSC, FSCA
Country: Cyprus
Year Founded: 2011

Open FXTM Demo Account

FXTM Dubai Review

The importance of Demo trading

Trading in the forex market without the required knowledge is a very bad idea. Even experienced traders could use more training and improvement. A demo account is an ideal way for new traders to find their way around the forex market without risking their money.

What is the best way to take advantage of the market, its variables, and your trading platform without worrying about losses? The demo account allows you to learn patience and how to implement better strategies for making profits and avoiding losses. The demo account reveals your weaknesses and the way to improve them. Think of demo trading as an experience in which you get to make as many mistakes as you can without paying a dime! Here you can try everything before you start live trading. When you try different methods in a safe trading environment, you get to see how the market reacts so you can adapt accordingly.

👉 Advice on Using Demo accounts

Nothing is without drawbacks and demo accounts are no exception. The fact that you use virtual money in demo trading means you cannot go bankrupt even if you tried. This will create an overblown sense of confidence in new traders since there is no fear of losing and when they apply the same mindset to the real market, things take a nasty turn real fast. For instance, $10,000 might seem insignificant in demo trading, but even 1/10 of that amount out of your pockets will destroy your entire trading mentality, and this is the thing that you need to understand in the forex market.

In the demo account, certain variable conditions such as slippage that may affect prices in the real account are not affected. The same applies to order execution. There is no easy way for you to know how to put a successful order in the real account using the demo account.

The best way to benefit from a demo account is to accurately calculate your financial capacity and work out an amount that you can invest in a real trading account. The fact that you can trade large volumes in a demo account does not mean you should, so if you want realistic results, take everything into account and invest realistically. The demo account is free, but it does not teach you patience or proper risk management unless you use it properly. The question is, how do you trust yourself to do that in a real trading environment with constant fluctuations?

You might say to yourself, "If I can make winning trades in the demo account, then I will be ready for the real market." Unfortunately, it does not work that way because successful trading in the unpredictable forex market requires your full attention. That is to say, you have to take all the factors into account and put your feelings aside, otherwise, the game will be over before it even begins! It pays to treat virtual money as if it were your own hard-earned cash! How big and how often would you put your money on the line? Remember, if you trade realistically in the demo account, your chances of having successful trading strategies will improve significantly. When you feel confident enough to enter the market, start using a Forex Micro account which will enable you to trade in smaller lot sizes with lower risks.

How do you take forex Demo trading seriously?

Some traders tend to take trading less seriously because it does not involve real money. Here are some practices that will help you keep your focus.

There is nothing wrong with demo trading; it helps you hone your strengths and develop your forex trading skills before moving on to live trading. The problem is that many traders will become careless after a few months of demo trading.

They don't take it seriously and start to wonder about wasting their time on demo trading when they can "accelerate" the learning curve by actually going live. All too often, these traders destroy their first live account. They jump into live trading early and are unable to develop the necessary skills, mindset, and commitment that are essential to becoming consistently profitable traders. It can be mentally tasking, especially when it is not consistent and does not pay off in the end.

Here are two exercises to help you take demo trading seriously.

👌 Feel the Pain

Some traders switch to live trading because they no longer “feel the pain” while encountering losses in demo trading. They feel their lack of progress is due to not using real money.

They do not take it seriously and end up making bad trading decisions. They do not follow the trading plan because they know it will not hurt them to lose money. In the long run, this can be very detrimental to one's personal development, as it helps to develop bad trading habits. To counter this, we suggest considering real-life "penalties" for making such errors.

For example, every time you make a bad trade or do not follow a trading plan, subject yourself to a 90-second push-up.

Did you do the same mistakes again? Wash the dirty dishes in the kitchen! Did you fail to read any of the published news? Then maybe you do not deserve this delicious lunch!

This is similar to what professional athletes do to push themselves to the limit.

Even behind the scenes, a player like Kobe Bryant punishes himself by running a distance for every three-pointer he misses. Novak Djokovic does 100 pushups for every missed serve. Lionel Messi runs a mile for every penalty he does not score.

These are reminders that will help you focus on your trades and get rid of whatever is distracting you from achieving your goals.

👌 Grade your Performance

Final grades are important when you are in the study phase, they will determine whether you pass the course. Use the same concept to study your forex trading performance so you can make the proper adjustments.

Here's how you can treat your demo trading performance as a final test. For example, at the end of each trading week you can rate yourself on a scale of 0 to 10 based on the following criteria:

Adhering to entry rules
Adhering to exit rules
Adhering to risk management rules
Value of lost trades
Value of executed trades
Profitability

These are just examples, you can customize the criteria based on the rules of your trading system.

Forex Demo Account (Demo Trading Account)

How to open a Demo trading account?

The importance of Demo trading

How do you take forex Demo trading seriously?