Forex Demo Account - Forex Brokers Offering Practice Accounts

Are you interested in trading, yet discouraged by your lack of experience and knowledge about terms like stop-loss orders, pips, leverage and similar confusing trading jargon? Don’t worry. In our modern era of inventions and discoveries, it is indeed possible to get accustomed to trading basics without risking a penny.

Make a loss in every single virtual trade, even blow up your forex practice account, your losses will be imaginary, while the great lessons learnt are real. Many of the best brokers in the market today offer excellent forex demo account packages, and for your convenience we have made a list of them for you here.

Broker Description US Clients Regulated Min. Deposit Spread EURUSD  
forextime
ForexTime
  • Regulated by CySEC & FSB
  • Over 400k Registered Accounts
  • More than 250 Trading Instruments
  • MT4, MT5 and Web Trader Platforms
  • Full ECN Trading Model
No 2 $5 0.1 pip
3
Read ForexTime Review
1
AvaTrade

  • 40% New Member Bonus
  • MIFID, ASIC, FSA & FSB regulated
No  1 $100  Fixed Spread 1
1
Read AvaTrade Review
 
FxPro
FxPro
  • CySEC, FCA
  • MetaTrader4 , MetaTrader5, cTrader, FxPro SuperTrader
No 2 $100 o.6 pips
3
Read FxPro Review
 
etoro
eToro
  • Minimum Deposit $200
  • Social Trading Platform
No 2 $200 3 Pips
3
Read eToro Review
 

Easy Markets
  • CySEC & ASIC regulated
  • Clients can trade currencies, metals, energy and agricultural commodities, Indices and Options
  • 50% FTD Bonus! (non EU Traders only)
No 1 $100 as low as 1.8 pips
1
Read Easy Markets Review
 
Markets.com
Markets.com
  • CySEC, FSB
  • Markets.com Proprietary Trading Platform
No 2 $100 2 pips
3
Read Markets.com Review
 
plus500
Plus500
  • FCA Regulated
  • Multi Asset Trading Platform
  • No Time Frame For Demo Accounts
No 2 $200 2 pips Signup
3
Read Plus500 Review
 
Fx Giants Logo
FXGiants
  • FCA, ASIC & CySEC
  • FXGiants has a proprietary interface to make its account funding process easier, fast and secure.
No 2 $100 varied
3
Read FxGiants Review
 
City Index Logo
City Index
  • FCA
  • City Index is well established and a trusted forex broker.
No 2 £100 varied Signup
3
Read City Index Review
 
OctaFX
OctaFX
  • Minimum Deposit $5
  • Up to 1:500 leverage with micro-lots (0.01 size) available for everyone
  • Scalping, hedging, trading on the news, and EAs are permitted at OctaFX.
No 2 $5 ECN as low as .2 Pips
3
Read OctaFX Review
 
oanda
Oanda
  • No Minimum Deposit
  • ASIC Authorized and Regulated;
  • Founded in 1996 with HQ in Toronto, CA;
No 2 $1 As low as 1 Pip
3
Read Oanda Review
 
hot forex
Hot Forex
  • CySEC, FSA
  • MetaTrader4 platform
  • Proprietary debit card for quick withdrawal applications!
No 2 $5 0.2 pips
3
Read Hot Forex Review
 
hot forex
XM
  • CySEC, FCA
  • MetaTrader4 platform
  • $30 + Deposit Bonus up to $5,000
No 2 $5 1.9 pips
3
Read XM Review
 
FX Primus
FX Primus
  • Minimum Deposit $100
  • Leverage Up to 500:1
  • Accounts may be individual, joint, or corporate, with options for traditional or ECN type pricing;
No 2 $100 As low as 2 Pips
3
Read FX Primus Review
 

IronFX
  • Authorized and Regulated by FCA, ASIC, FSB, CySEC
  • STP/ECN services ensure no slippage or re-quotes – scalping allowed;
No 2 $50 0.3 pips
3
Read IronFX Review
 
bdswiss
BD Swiss
  • Forex pairs and CFD trading;
  • Tight spreads as low as 1.2 pips;
  • Over 130 assets: Forex pairs (83), Indices (23); Commodities (18); and Treasuries (7);
No 2 $250 as low as 1.2 pips
3
Read BD Swiss Review
 
24Option
24Option
  • Minimum Deposit $100
  • Leverage 400:1;
  • Dedicated Account Manager;
No 2 $100 Fixed and Floating
3
Read 24Option Review
 
Henyep Capital Markets
Henyep Capital Markets
  • Regulatory compliance is under the auspices of the FCA in the UK, the SFC in Hong Kong, the DFSA in Dubai, and by way of the MiFID for the European Union.
  • Up to $5,000 Welcome Bonus (T&C apply)
No 1 $100 1.8 pips 1
1
Read HYCM Review
 
CMTrading
CMTrading
  • FSB
  • MetaTrader4 & Sirix platforms
No 2 $250 From 2 pips
3
Read CMTrading Review
 
XTB Logo
XTB
  • FCA, BaFin, CMB & KNF
No 2 $250 from 0.9 pip
3
Read XTB Review
 
alvexo
Alvexo
  • Regulated by CySEC
  • Trading Academy includes extensive support for all levels of traders, from basic training videos to discussions on advanced trading strategies;
No 2 $500 from .06 Pip
3
Read Alvexo Review
 
Trade
Trade.com
  • Regulated by CySEC;
  • Minimum deposit is $100;
  • 367+ asset choices ;
No 2 $100 varied
3
Read Trade.com Review
 

IG Group
  • FCA
  • Spot forex, CFDs, spread betting and stock brokering service;
No 2 None from 0.8 pip
3
Read IG Group Review
 
london capital group
London Capital Group
  • No Minimum Deposit
  • Founded in 1996 and headquartered in London;
  • Daily emails with market commentary and analysis get you started for each trading day;
No 2 None from .6 Pips
3
Read London Capital Group Review
 
thinkmarkets
ThinkMarkets
  • Regulated by ASIC & FCA.
  • Minimum deposit is $250;
  • Asset choices include forex pairs (35) and CFDs (10 indices, 2 metals, 2 oil, and the VIX and USD Index);
No 2 $250 as low as .8pips
3
Read ThinkMarkets Review
 

iTrader
  • Order slippage on stop losses is generally minimal;
No 2 None as low as 0.7 pip
3
Read iTrader Review
 
FxGlobe
FXGlobe
  • Regulated by CySEC
  • “No Dealing Desk Execution, no slippage, no delays”
  • “Trading support and account management for traders of varying experience levels”
No 2 $250 1.1
3
Read FxGlobe Review
 
Formax Logo
Formax
  • FCA regulated
  • CopyMaster social trading platform
No 2 None from .6 Pips
3
Read Formax Review
 
triomarkets
Trio Markets
  • Regulated by CySEC, BaFin, FCA, ACP and MiFID
  • BONUS: $4 cashback per lot traded till the end of the year
No 2 $100 from .3 Pips
3
Read Trio Markets Review
 

USG FX
  • ASIC regulated
  • Minimum deposit $100
  • Withdrawal requests approved within 24 hours
No 1 $100 1.5 - 3 pips
1
Read USG FX Review
 

*Broker offers variable spreads which are subject to fluctuating market conditions. Spreads tend to be tight during times of deep liquidity but can also widen significantly during times of low liquidity.

Finding the Best Forex Broker - FAQ

Finding the best forex broker for your needs takes some research. Hundreds of online brokerage firms now compete for your account, so plenty exist to choose from. Check out our recommended top list above, or read our FAQ below with excellent points to consider before choosing your broker, or see this extensive five step guide on how to choose a forex broker.

Finding the best forex broker that has a fast execution capability, a reliable trading platform and which can be trusted with your account deposit might be the first things you will want to assure yourself of. Other sweeteners can include account opening bonuses and other features like mobile trading and SMS market alerts.

Basically, you want a forex broker you can trust to handle your money and your trades so that you can get on with the business of trading forex without worries. Anyway, to make the process of finding a broker simpler, the list above covers most of the key comparison points between forex brokers so that you can be better prepared for a successful search.

In the end of this page you will find many more brokers that did not make the top list, you can still read our reviews of them and give your comments on them or share your experience from them.

But first we will go through some of the criteria and features you should look for when searching for the best forex broker for you.

Regulation

Most reputable online forex brokers take the step of submitting to regulation by one of the main financial regulatory agencies operating in their home country. Sometimes, they will even be regulated by more than one agency. Such regulation provides you with the security of knowing the broker's operations are being overseen by an independent authority with the goal of keeping the business honest.

Is there a benefit to where a broker is located?

Location can make a big difference, especially if the regulatory regime in the country is top of the line. The most advantageous location has to be reserved for UK brokers, since London is the center of the foreign exchange business.

Forex Trading in the UK

Early in the last century, nearly 50% of the world's foreign exchange was conducted using the Pound Sterling. Today, daily forex trading turnover in the London market represents 41% of the world, more than double that of the United States at 19%. If you choose a reputable UK broker, then you can be assured that the firm can draw upon a broad pool of experienced and professional staff in the UK.

From a regulatory perspective, UK forex brokers must also comply with one of the strictest regulatory bodies around, the Financial Conduct Authority (FCA). Once again, the pool of UK staff will be very aware of best business practices and related compliance issues, another reason to choose a UK broker, if at all possible. One must, however, be due diligent when choosing a broker that claims to have offices in London, since the marketing aspect of this location has caused many overseas brokers to set up a "shell" presence in the UK to gain your trust, but without the benefits listed above. If you prefer a UK broker, then make sure that they are headquartered in London and have a significant presence there.

Data Security

When you either enter or store vital personal information online, it can be subject to falling into unfriendly hands that may use it for their own personal gain. Accordingly, a top priority when choosing a broker is that they encrypt all data entered into online forms using industry standard SSL-encryption or better.

Another key issue involves the safe storage of data so that it will not be lost in case of disaster. Many online forex brokers use duplicate data farms with high security to assure the safety of your account information.

Back to top

Dealing Spreads

Many day trading strategies become unsuccessful over the long term if your account does not have access to competitive dealing spreads. The spread is simply the difference between the bid price and the offer price for a particular currency pair and should be no greater than five pips in the majors and major crosses, with wider spreads often seen in the minor crosses and exotic currencies.

Commissions and Fees

Sometimes brokers are not content just to have you dealing on their spreads. In this case, they might charge a commission or fee for each transaction. Sometimes these are calculated on a per transaction basis or on a volume dealt basis. Additional fees might be involves in making withdrawals or deposits, so be sure to check that information to minimize your transaction costs.

Back to top

Order Types

Most forex brokers handle the basic market, stop and limit order types. Nevertheless, some brokers also offer support for OCO (one-cancels-the-other) and trailing stops. If either of these more specialized order types would be suitable for your trading plan, then be sure that your chosen broker supports them and make sure that you fully understand the limitiation of these different order types.

Currency Pairs

Since more currency pairs often means more opportunities to profit, you will want to make sure that your forex brokers offers all of the pairs you might be interested in trading. Some traders also like to have access to precious metals like Gold and Silver, in addition to oil, especially if they will be trading the commodity currencies like AUD and CAD whose exchange rates can depend on commodity price fluctuations.

Back to top

Deposit Required

Unless you are just interested in opening up a demo or practice account with the forex broker, they will usually require a minimum deposit to be made for you to get started trading forex. Often, the more money you place on deposit, the more features you have access to or the tighter your dealing spreads become. Make sure that you research the broker thoroughly before sending a deposit.

Account Types

Account types vary considerably between brokers, but most offer demo accounts for practice trading, mini accounts for newer traders with a low minimum initial deposit, standard accounts for more experienced traders with a moderate deposit, and finally VIP accounts for larger initial deposits.

Also, the features offered with each account type vary quite a bit among the various forex brokers, so be sure to see which reputable broker will offer you the best deal for the initial deposit you have available to you.

Back to top

Leverage

Leverage refers to how much of a position you can control with a certain amount of funds allocated to it. Forex brokers currently offer leverage rates of as high as 500 to 1. What this means is that you can control a $50,000 trading position with just $100 allocated from your portfolio. Note that in the U.S. the maximum leverage is 50:1 for majors and 20:1 for minors.

Naturally, amplifying your risk by using leverage can result in larger gains, as well as larger losses, so be sure to use leverage wisely and avoid trading beyond your means.

Margin Requirements

Even though forex transactions are exchanges and not purchases of an asset like a stock or commodity, when the exchange rate moves, it creates credit risk for the counterparty showing a gain on the transaction. As a result, most forex brokers require that their clients place a certain amount of funds on deposit to cover such potential losses. This is known as the broker's margin requirement.

Since margin requirements vary among brokers, you will want to make sure that the broker you choose has guidelines you can live with. Also, some brokers automatically close out trading positions when the amount of margin in your account is exceeded by trading losses, or according to other criteria, so be sure to understand such the implications of such policies for your trading business.

Back to top

Trading Platforms

Most of the better forex brokers offer their own proprietary trading platforms for you to use to execute forex transactions with and to keep track of the market. These usually either take the form of web-based platforms that use access via your Internet browser or client-side platforms that you download to, install and run on your personal computer.

In addition, some brokers support independent trading platforms like the popular MetaTrader 4 platform that can be obtained free of charge and which many commercial forex trading robots are designed for.

Mobile Trading

Some forex traders require the convenience of trading and keeping in touch with the forex market via their mobile phone or other mobile device. Many brokers provide such services, so if this is important to you, check out what each broker offers in this regard and whether their software will work with your device.

Back to top

Algorithmic Trading

Forex traders increasingly wish to automate their trading plans or algorithms to free up their time for other endeavors. They often do this by using a programming language to write down their decision process in an algorithmic format that can then automatically be executed by forex trading platforms that support this capability.

If you think you might want to automate your trading plan, check to see with brokers you are considering to see if they support this type of trading and how they do so.

Market Alerts

Many brokers offers SMS or other types of market alerts to their customers. If you think this might be important to your trading business, look for this feature.

Back to top

Support

Those new to forex trading will want to have better access to both dealing support and technical support. See what services each broker under consideration provides and whether it will suffice for your purposes.

Information Resources

Newer traders often require educational materials about the forex market and trading in general to get started trading forex on the right foot. If this is important to you, research what the brokers you are considering have to offer in this regard.

Also, many brokers provide sophisticated news feeds, like Reuters for example, as well as proprietary market commentary and other timely information.

Back to top

Dealing Desk Access

Some traders like to speak to a personal dealer or advisor at the broker in order to obtain inside market information and advice. Others like to be able to make transactions over the telephone in a pinch. If either of these options makes sense for you, inquire with your potential brokers whether dealing desk access will be available to someone with your anticipated initial deposit.

 

Read our reviews of more forex brokers that did not make our top list above:

4XP - Read review and comment Alpari - Read review and comment
Sigma Forex - Read review and comment Refco - Read review and comment
Crown Forex - Read review and comment InstaForex- Read review and comment
Deltastock - Read review and comment City Credit Capital - Read review and comment
FCBS - Read review and comment MB Trading - Read review and comment
GFT Forex - Read review and comment Go Markets - Read review and comment
Lite Forex - Read review and comment NordFX Forex - Read review and comment
ATC Brokers - Read review and comment Markets - Reaad review and comment
TadaWulFX - Read review and comment dbFX - Read review and comment
Interbank FX - Read review and comment Questrade - Read review and comment
Pfg Best - Read review and comment CMC Markets - Read review and comment
RetailFX - Read review and comment FIBO Forex - Read review and comment
IamFX - Read review and comment Advanced Markets - Read review and comment
Interactive Brokers - Read review and comment Vantage FX - Read review and comment
ACM Markets - Read review and comment Active Trades - Read review and comment
ApexForex - Read review and comment Broco Forex - Read review and comment
Btrader - Read review and comment CitiFX Pro - Read review and comment
Dukascopy - Read review and comment EuroForex - Read review and comment
Finexo - Read review and comment Forex.ch - Read review and comment
Forex Web Trader - Read review and comment FxCast - Read review and comment
FxCompany - Read review and comment FxOpen - Read review and comment
GCI Trading - Read review and comment GCI Financial - Read review and comment
GFT Forex - Read review and comment HotSpot FX - Read review and comment
IKON GM - Read review and comment iFOREX - Read review and comment
InvestTechFX - Read review and comment MF Global - Read review and comment
MoneyForex - Read review and comment NordMarkets - Read review and comment
Zecco - Read review and comment One Corp FX - Read review and comment
ODL Securities - Read review and comment ONE Financial - Read review and comment
Prime 4x - Read review and comment Realtime - Read review and comment
SaxoBank - Reaad review and comment TFIFX - Read review and comment
   
 

*Broker offers variable spreads which are subject to fluctuating market conditions. Spreads tend to be tight during times of deep liquidity but can also widen significantly during times of low liquidity.

Finding the Best Forex Broker - FAQ

Finding the best forex broker for your needs takes some research. Hundreds of online brokerage firms now compete for your account, so plenty exist to choose from. Check out our recommended top list above, or read our FAQ below with excellent points to consider before choosing your broker, or see this extensive five step guide on how to choose a forex broker.

Finding the best forex broker that has a fast execution capability, a reliable trading platform and which can be trusted with your account deposit might be the first things you will want to assure yourself of. Other sweeteners can include account opening bonuses and other features like mobile trading and SMS market alerts.

Basically, you want a forex broker you can trust to handle your money and your trades so that you can get on with the business of trading forex without worries. Anyway, to make the process of finding a broker simpler, the list above covers most of the key comparison points between forex brokers so that you can be better prepared for a successful search.

In the end of this page you will find many more brokers that did not make the top list, you can still read our reviews of them and give your comments on them or share your experience from them.

But first we will go through some of the criteria and features you should look for when searching for the best forex broker for you.

Regulation

Most reputable online forex brokers take the step of submitting to regulation by one of the main financial regulatory agencies operating in their home country. Sometimes, they will even be regulated by more than one agency. Such regulation provides you with the security of knowing the broker's operations are being overseen by an independent authority with the goal of keeping the business honest.

Is there a benefit to where a broker is located?

Location can make a big difference, especially if the regulatory regime in the country is top of the line. The most advantageous location has to be reserved for UK brokers, since London is the center of the foreign exchange business.

Forex Trading in the UK

Early in the last century, nearly 50% of the world's foreign exchange was conducted using the Pound Sterling. Today, daily forex trading turnover in the London market represents 41% of the world, more than double that of the United States at 19%. If you choose a reputable UK broker, then you can be assured that the firm can draw upon a broad pool of experienced and professional staff in the UK.

From a regulatory perspective, UK forex brokers must also comply with one of the strictest regulatory bodies around, the Financial Conduct Authority (FCA). Once again, the pool of UK staff will be very aware of best business practices and related compliance issues, another reason to choose a UK broker, if at all possible. One must, however, be due diligent when choosing a broker that claims to have offices in London, since the marketing aspect of this location has caused many overseas brokers to set up a "shell" presence in the UK to gain your trust, but without the benefits listed above. If you prefer a UK broker, then make sure that they are headquartered in London and have a significant presence there.

Data Security

When you either enter or store vital personal information online, it can be subject to falling into unfriendly hands that may use it for their own personal gain. Accordingly, a top priority when choosing a broker is that they encrypt all data entered into online forms using industry standard SSL-encryption or better.

Another key issue involves the safe storage of data so that it will not be lost in case of disaster. Many online forex brokers use duplicate data farms with high security to assure the safety of your account information.

Back to top

Dealing Spreads

Many day trading strategies become unsuccessful over the long term if your account does not have access to competitive dealing spreads. The spread is simply the difference between the bid price and the offer price for a particular currency pair and should be no greater than five pips in the majors and major crosses, with wider spreads often seen in the minor crosses and exotic currencies.

Commissions and Fees

Sometimes brokers are not content just to have you dealing on their spreads. In this case, they might charge a commission or fee for each transaction. Sometimes these are calculated on a per transaction basis or on a volume dealt basis. Additional fees might be involves in making withdrawals or deposits, so be sure to check that information to minimize your transaction costs.

Back to top

Order Types

Most forex brokers handle the basic market, stop and limit order types. Nevertheless, some brokers also offer support for OCO (one-cancels-the-other) and trailing stops. If either of these more specialized order types would be suitable for your trading plan, then be sure that your chosen broker supports them and make sure that you fully understand the limitiation of these different order types.

Currency Pairs

Since more currency pairs often means more opportunities to profit, you will want to make sure that your forex brokers offers all of the pairs you might be interested in trading. Some traders also like to have access to precious metals like Gold and Silver, in addition to oil, especially if they will be trading the commodity currencies like AUD and CAD whose exchange rates can depend on commodity price fluctuations.

Back to top

Deposit Required

Unless you are just interested in opening up a demo or practice account with the forex broker, they will usually require a minimum deposit to be made for you to get started trading forex. Often, the more money you place on deposit, the more features you have access to or the tighter your dealing spreads become. Make sure that you research the broker thoroughly before sending a deposit.

Account Types

Account types vary considerably between brokers, but most offer demo accounts for practice trading, mini accounts for newer traders with a low minimum initial deposit, standard accounts for more experienced traders with a moderate deposit, and finally VIP accounts for larger initial deposits.

Also, the features offered with each account type vary quite a bit among the various forex brokers, so be sure to see which reputable broker will offer you the best deal for the initial deposit you have available to you.

Back to top

Leverage

Leverage refers to how much of a position you can control with a certain amount of funds allocated to it. Forex brokers currently offer leverage rates of as high as 500 to 1. What this means is that you can control a $50,000 trading position with just $100 allocated from your portfolio. Note that in the U.S. the maximum leverage is 50:1 for majors and 20:1 for minors.

Naturally, amplifying your risk by using leverage can result in larger gains, as well as larger losses, so be sure to use leverage wisely and avoid trading beyond your means.

Margin Requirements

Even though forex transactions are exchanges and not purchases of an asset like a stock or commodity, when the exchange rate moves, it creates credit risk for the counterparty showing a gain on the transaction. As a result, most forex brokers require that their clients place a certain amount of funds on deposit to cover such potential losses. This is known as the broker's margin requirement.

Since margin requirements vary among brokers, you will want to make sure that the broker you choose has guidelines you can live with. Also, some brokers automatically close out trading positions when the amount of margin in your account is exceeded by trading losses, or according to other criteria, so be sure to understand such the implications of such policies for your trading business.

Back to top

Trading Platforms

Most of the better forex brokers offer their own proprietary trading platforms for you to use to execute forex transactions with and to keep track of the market. These usually either take the form of web-based platforms that use access via your Internet browser or client-side platforms that you download to, install and run on your personal computer.

In addition, some brokers support independent trading platforms like the popular MetaTrader 4 platform that can be obtained free of charge and which many commercial forex trading robots are designed for.

Mobile Trading

Some forex traders require the convenience of trading and keeping in touch with the forex market via their mobile phone or other mobile device. Many brokers provide such services, so if this is important to you, check out what each broker offers in this regard and whether their software will work with your device.

Back to top

Algorithmic Trading

Forex traders increasingly wish to automate their trading plans or algorithms to free up their time for other endeavors. They often do this by using a programming language to write down their decision process in an algorithmic format that can then automatically be executed by forex trading platforms that support this capability.

If you think you might want to automate your trading plan, check to see with brokers you are considering to see if they support this type of trading and how they do so.

Market Alerts

Many brokers offers SMS or other types of market alerts to their customers. If you think this might be important to your trading business, look for this feature.

Back to top

Support

Those new to forex trading will want to have better access to both dealing support and technical support. See what services each broker under consideration provides and whether it will suffice for your purposes.

Information Resources

Newer traders often require educational materials about the forex market and trading in general to get started trading forex on the right foot. If this is important to you, research what the brokers you are considering have to offer in this regard.

Also, many brokers provide sophisticated news feeds, like Reuters for example, as well as proprietary market commentary and other timely information.

Back to top

Dealing Desk Access

Some traders like to speak to a personal dealer or advisor at the broker in order to obtain inside market information and advice. Others like to be able to make transactions over the telephone in a pinch. If either of these options makes sense for you, inquire with your potential brokers whether dealing desk access will be available to someone with your anticipated initial deposit.

 

Read our reviews of more forex brokers that did not make our top list above:

Want to be featured on this broker list? Send an email to brokers[@]forexfraud.com

*Broker offers variable spreads which are subject to fluctuating market conditions. Spreads tend to be tight during times of deep liquidity but can also widen significantly during times of low liquidity.

Finding the best forex demo account - FAQ

When first starting out trading forex, or when considering switching to a new forex broker, many traders option to open a forex demo or practice account. Most importantly, this allows them to practice trading using the broker's trading platform to see if they find it sufficiently to their liking. Furthermore, opening such an account also often lets traders try out additional services of the broker providing it.

Keep in mind that finding the best forex demo account for your purposes may require opening more than one demo account to test the most promising forex broker prospects. You can identify forex brokers you might want to test out with a demo account by doing some preliminary research online among the available broker reviews and Internet discussion forums for reputable and reliable forex brokers.

To help you in your search, the list above has been compiled to illustrate what features that you might want to look for in a forex demo account.

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Trading Platform Access

If your purposes in open a demo account involve checking out the forex broker's trading platform, be sure to ascertain whether opening a demo account will give you access to the real platform.

Also, when it comes to providing trading platform access, most brokers offer two main options. The first is an online trading platform usually accessed via your Internet browser. The second is a client-side trading platform that will generally need to be downloaded and installed on your Windows-based PC. Both options require an Internet connection to provide up-to-date pricing and trade execution in your forex demo account.

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Virtual Money

Virtual money is what you will be trading with in your demo account. Since virtual money is free, most brokers will provide you with a rather large amount of it that you can then trade freely until it probably eventually disappears.

Also, if you wish to practice trading more using your demo account, you will probably want to have an account with a larger initial amount of virtual money to play with. Amounts around $100,000 seem to be the norm for virtual money provided with demo accounts.

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Practice Trading

Having an opportunity to practice trading using a real forex trading platform and real-time pricing is what demo accounts are all about, especially for newer forex traders. Basically, it really pays to make any mistakes first using a demo account so that you can learn from them relatively painlessly, rather than when you have begun to live trade using a funded portfolio.

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Live Trading

Live trading or "going live" is what most aspiring forex traders want to move on to after being successful trading a demo account. This means that you place real funds at risk on each trade, and your portfolio has to take whatever the market offers you in terms of profit or loss. Most traders just starting out in forex will want to see that their trading strategy works well on a demo account before taking the plunge to start live trading.

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Dummy Trades

When trading in a demo account, you will generally be taking so-called "dummy trades". Such transactions have no reality in terms of the impact of their profits or losses on your actual trading portfolio, so you can afford to make mistakes with them which you can then learn from.

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Margin Trading

Most forex demo accounts allow practice traders to get a sense for what it feels like to trade on margin. This aspect of trading in a demo account can be very educational, since you will probably be margin trading when you start live trading, if you are like most personal forex traders funding their own portfolio. Remember that using leverage increases the risk!

In addition, you will want to manage your margin carefully when trading to avoid having less than necessary to support your open positions. Also, remember to be responsive to any margin calls unless you want your positions to be closed out, which many forex brokers now do automatically when your account's margin becomes insufficient to cover your portfolio's losses according to their stated margin requirements.

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Customer Support

Demo traders that require some customer support services to get started either installing the software or trading will want to look for forex brokers that have a good reputation in this regard. The standard for customer support varies widely among brokers, so find one that will best fulfill your needs.

Also be aware that traders newer to either forex trading or using computer trading interfaces might need more support. As a result, they should give customer support a higher priority when deciding which broker to open a forex demo account with for practice trading purposes.

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Trading Interface

The trading interface for forex demo accounts should be similar or identical to the actual trading platform you will be using when you go live trading. This will allow you to get intimately familiar with the process you will need to go through to enter orders, manage positions and execute trades.

Many traders prefer a trading interface that can be customized somewhat in terms of its screen colors and window placement. Some traders also like the interface to include a "one-click-trading" feature to make deal execution quicker.

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Real Time Rates

The best forex demo account software will display close to real-time exchange rates that change along with the market as it ticks up and down over time. This will give you a good sense of whether or not the trading strategy you intend to employ in live trading, would actually have worked over the time period you are using for demo trading

Naturally, the best type of real time exchange rate is one you can actually deal on using the demo account software. This way, when you go to enter a trade or an order in your demo account using your forex trading platform software, you do not get surprised about where the market really is trading.

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Trading Tutorials

Many forex demo account providers also offer useful trading tutorials, either in text or video format, for you to learn from and which compliment the educational service provided by their demo accounts.

These tutorials will usually be provided free of charge. In addition, they can not only help you learn to use the trading platform, but they also often provide helpful information that can help you learn how to improve your trading techniques and develop a profitable trading system.

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News Feed Access

Forex trading platforms often provide access to high-quality news feeds from professional forex market information sources that might include Reuters, Associated Press, Bloomberg or Telerate. You can often use a forex demo account to obtain access to such valuable news wires.

You can also check to see that the news your trading platform provides will be suitable for your needs. This is especially important if you have a strong interest in trading based on fundamental factors.

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Information Resources

When you open up a forex demo account, you may also quality to obtain full access to the broker's information resources. These can include informative material like courses, e-books and other tutorials, as well as timely market commentary and economic calendars that can assist you when making trading decisions.

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Entering Orders

One of the most useful aspects of opening up a forex demo account is the ability to preview how you will need to go about entering orders in practice. Entering orders correctly and in a timely fashion is one of the keys to successful forex trading.

Furthermore, you will want to take the opportunity provided by demo trading to familiarize yourself with the different types of orders that the broker offers, and how to enter each of them into the market at appropriate times and in various situations.

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Dealing Spread Impact

Many people who just back-test their trading strategies over historical exchange rate data, rather than demo trading them, fail to take into account the impact of the dealing spread on the success of their strategy. Then, when they move it to live trading, the difference becomes much more apparent.

Demo trading using real market bid/offer pricing allows you to more clearly assess this dealing spread impact in advance for any trading strategy you might decide to use while you are still within your demo period.

This is of course not the only limitation to backtesting; orders might not get filled in a live situation etc. Always keep in mind that past performance doesn't guaratee the future and that hypothetical results are not achievable in a real account.

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