Choosing a broker

Demo trading accounts – how to use them properly (and their limits)

What a demo account is good for, how to make practice realistic, what demos don't teach you, and how to move to a small live account safely.

Almost every forex and CFD broker offers a free demo account with virtual money. Used well, it is the cheapest education available. Used badly, it teaches habits that cost real money later.

What a demo is good for

  • Learning the platform: order types, attaching stops, changing position size, reading contract specifications.
  • Testing a process: a written trading plan, a journal, fixed risk per trade.
  • Checking costs: spreads and swaps shown on the demo usually mirror live conditions, though not always during fast markets.

Make it realistic

  1. Set the demo balance to what you will really deposit. Practising with €100,000 and then trading €2,000 live changes every decision.
  2. Choose the same account type and leverage you will use live – as an EU retail client, leverage is capped by ESMA rules.
  3. Keep a journal: entry reason, stop, target, result, emotions.
  4. Trade a fixed number of times – for example 50 trades – before judging results.

What a demo can't teach you

  • Emotions. Losing real money feels different, and it changes behaviour: moving stops, closing winners early, revenge trading.
  • Execution in stress. Demo fills can be kinder than live fills in fast markets.
  • Account security, deposits and withdrawals – test these with small amounts on your live account.

Moving to live

Start with the smallest size your broker allows (often 0.01 lots) and the same fixed-percentage risk. Treat the first month live as another test. If your live results are much worse than your demo results, the difference usually lies in discipline, not the strategy.

Some brokers' demos expire after 30 days, others last indefinitely. A demo is also a good way to try a broker's platform before you go through onboarding – but check the firm's licence before you ever deposit.

This guide is general information, not personal financial, tax or legal advice. Rules change; we review this page regularly and show the date of the last update above. Found an error? Tell us. See our editorial policy.

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