Forex Demo Account Comparison

Forex demo accounts are a great way to gain trading experience and try forex trading with virtual funds without risking any real money. Even experienced Australian forex traders utilise demo accounts to test forex trading strategies and automated tools. Demo accounts allow clients to familiarise yourself with trading conditions, products such as foreign exchange and cryptocurrencies, and explore other aspects of forex markets.

Below lists the top 10 best forex demo accounts for 2020 from forex brokers that hold an AFSL licence.

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What Should I Look For In A Forex Demo Account?

The most important element when choosing a forex demo account is the platforms offered. Traders generally have a personal preference in regards to trading platforms, usually either MetaTrader 4 or cTrader. The second important factor is the features within the demo account that will replicate a trading environment where real money is used, this includes leverage, customer service, guaranteed stops and spreads. Like choosing the best forex platform for you when forex trading, having the right features within the platform to suit your forex strategy can be critical to future success. A third factor is execution speed which helps traders make fast trades with reduced slippage in higher volatility markets that can carry high risk. The final factor is the expiration date of the demo account, with some demos lasting a month while others are unlimited.

Why Are Demo Accounts So Important?

Trading financial instruments such as forex and shares is a high-risk investment, especially if you are exploring different forex and CFD markets for the first time. Forex and CFD markets such as cryptocurrency are high-risk environments, therefore traders should be cautious when taking on highly leveraged positions. When adding leverage to the equation, traders run the risk of losing more money than you originally deposited in your trading account. It is for this reason that becoming well equipped to deal with the volatility and high-risk nature of financial markets is paramount.

Understanding Volatility With A Demo Account

Learning to trade forex can be achieved by reading and research as well as utilising forex brokers educational tools. However, the most effective way is to practice trading via a demo account, allowing you to develop strategies and your trading style. Demo accounts allow users to familiarise themselves with various markets and trading platforms. Virtual money accounts are suitable for levels of experience and we encourage you to practice trading with a forex broker listed above prior to trading with real money.

Background To Our Forex Demo Review

This demo account review was compiled and published in 2016 and was updated in January 2020. It was put together by the dedicated staff at Compare Forex Brokers who spent a significant amount of time researching the industry. As the market changes rapidly and brokers continue to offer new features all the time, please validate all information read above with the Forex broker’s dedicated website. We aim to update our analyses frequently but sometimes inconsistencies can be found.

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