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How to Choose the Best Trading Demo Accounts

Knowledge is of no use until you put it into practice and practice only makes for improvement. When it comes to trading, knowledge of the market is not enough. 

You need the right tools to flourish and profit. Creating the right trading strategy to make a profit in any given market requires knowledge, skill, patience, and “the 3D’s”. Discipline, Dedication, and Devotion for your work. The act of working repeatedly to get better is known as practice and with practice comes perfection.

Related: Start your Demo with Tradeview

Simulating a real-life event as close to reality can prepare you to perform in a live event to the best of your ability and that is why mock drills are carried out in every life-saving scenario. 

A trader must prepare themselves the same way as if going into real-life depending situations. This practice is not something new in financial markets. Earlier it was paper trading that was practiced to get the gist of the market and to carry out trades later. 

This not only made traders practice their trading strategies, but also kept them informed about the market and potential trades in the future. Now the same can be done with the help of an online Demo account available on a trading platform that simulates real market trades. 

The function of the demo account is the same as paper trading but it has much more utility as compared to the older method.

What are demo trading accounts and its benefits?

Demo trading accounts are free to practice trading accounts offered by brokers dealing in Equities, Forex, or Options trading. Brokers offer investors practice trading accounts so that they can get real-time experience in the market without taking the risk on real funds when they trade in the live market. 

Brokers also use a demo account so that they can provide the exact experience and the features they offer for a real live trading account. This not only encourages the investor to check the services with the broker but also get real-life experience in the market. 

Paper trading differs from the online trading done nowadays; earlier traders used to plot the market activity on paper and carry out mock trades to check if their strategy would yield them profit or not. To paper trade, you do not need a broker. 

You can get your rates from the exchange for checking with the material available to the public. This term is more associated with trading in stocks. Some trading mentors still suggest practicing paper trading as a first step…

 Key points for Demo trading account:

  • One can test the trading platform offered by the broker for trading and get used to the interface of the trading application. It also helps to understand the order types and play with different strategies.
  • New Traders can learn about the market and trading without risking real money.
  • One can also learn about and better understand the services and products offered by the broker. This helps them choose the account type offered by a broker that suits their trading style and other requirements.
  • The most important aspect of the demo is to test your trading strategies or develop new one, whether this be a manual strategy or with the help of Artificial intelligence (AI).

Although trading on a Demo account is not exactly the same as trading in a live account with real money, it still has some benefits. 

Let’s look at the pros and cons.


  • Free to use.
  • Promotes practice and testing of strategies.
  • Helps traders adapt to the market emotionally.
  • Traders learn how the live market behaves and learn to adapt to different situations.
  • Helps to understand the broker and the products they offer.


  • It might promote false market expectations of high profits.
  • Demo accounts are for limited periods so testing for longer periods with long-term investment strategies may not work
  • One can adopt high risk trading habits.
  • Demo accounts may differ in results than live accounts especially when high volatility is experienced in the market.

As mentioned earlier different financial markets will have different instruments to trade. Some may prefer trading in stocks while some choose commodities or Forex.  As all these markets have different exchanges or may have different cleaning processes, they will also have different trading applications. 

Trading applications are mostly designed by third parties which provide the technology to connect the investor to the exchange. Some brokerage companies offer proprietary trading platforms. In both cases, they still will offer a Demo account so that a client can test the product offered by the broker.

Some of the trading platforms one can check with reputed brokers:

MetaTrader 5:  allows trading in Fx and is available with few brokers who offer to trade in the stock exchange.

MetaTrader 4:  one of the most widely used trading applications for trading in CFDs, Forex, and over-the-counter commodities.

Ctrader: the best trading application for beginners. Used to trade in CFDs, Forex, and commodities OTC.

Sterling pro:  A widely used trading application for trading in US stocks.

Lightspeed: A robust trading system for trading US stocks.

Tekion: features advanced code and algorithmic smart order routing..

With the boost in new technology and online trading experience, many companies have made a great impact with their mobile application which allows you to invest in the real market…

Many tech companies that offer charting tools have also developed simulation experiences similar to trading accounts. These charting providers are loaded with sophisticated tools and studies that help traders to virtual trade in the market without needing a broker.

Some of the companies are Tradingview, Stockcharts as well as. Some offer these experiences via websites and some via mobile apps.

It is said we are creatures of our habits. So Practice the habits that will yield you great results and help you grow as a trader. Demo accounts are the safest way to test the water before you dive into real market trading.