What is a forex demo account?
A demo account is a free practice account that uses virtual money and live market prices. It lets you learn a trading platform, test your trading plan and make mistakes without losing real money.
Why every beginner should start with one
- Learn how to place, modify and close orders, including stop losses.
- Understand how pip values, lot sizes and margin behave in practice.
- Find out whether you can follow a trading plan consistently.
How to open one
- Choose a broker you might realistically use later.
- Register for a demo account with your name and email.
- Choose the platform (for example MetaTrader 5) and an account type matching the live account you would use.
- Set a realistic balance, the amount you might actually deposit.
Our lesson on opening a demo account walks through each step.
Using a demo account properly
- Trade the same pairs, times and position sizes you would with real money.
- Use a stop loss on every trade.
- Keep a journal and review it weekly.
- Practise for weeks, not days.
What a demo account cannot teach
The emotions of trading real money are very different. If you move to a live account, start with the smallest position size available.