Free forex demo account

In forex trading, you can go as big as you want, financially speaking. But starting small is a good way to get the basics down, before you decide to invest more money in your trades. And who knows, you might already build your modest starting amount into a small trading fortune.

But for some beginning currency traders, even depositing a really small amount seems like a major step to take. Not even necessarily because they can't spare the money, but more because they are not sure if it is a good investment to make so early on.
If you see yourself in that category, fear not, for there is another way to start your forex trading. What you could do, is open a free forex demo account.

What is a forex demo account?

To trade currencies online, you need to open an account with a forex broker. When you do, you'll get access to the trading software that this broker offers, which usually offers extensive options for forex trading.
With a forex demo account, you'll get to use this software too, but with one one major difference: instead of trading for real money, you'll be trading fictitious funds.

Ideal forex training

What's the point of currency trading if you can't earn any real money with it, you might wonder.
The answer tot that question is that especially for beginners, trading with a free forex demo account is an ideal method of risk-free training and preparation for real-money trading.

When you open a demo account, you'll receive a balance of practice money. With that practice money, you'll be able to trade in real time, just as you would if it was real money. It's possible to trade all the different currency pairs, keep track of all your investements and much more.
Most importantly, you'll get to experience what currency trading is like. Not just how the software works, but also how the market moves, and which strategies work for you. You will, in short, quickly become an experienced forex trader.

And the great part is, that you can do it all stress-free, since it won't cost you anything if your practice investments don't work out. Although we can already tell you, that even demo trading can feel pretty real at times...

Opening a free forex demo account

Opening a free forex demo account is pretty easy. To explain how it works, we will show you how to open one at eToro. This is an excellent online forex broker, that offers an unrestricted demo account.

  • Open an account at the eToro website by following this link, and log in.

  • Navigate to the section labeled 'Trading'. This will take you to the WebTrader software, which is where you will be doing your currency trading.

  • Make sure you're switched to 'Practice Mode', and if you are, you're good to go!

The eToro Webtrader
The eToro WebTrader
(Click to enlarge)

If you follow these three steps, you will see a screen like the one above. A quick glance in the bottom-left corner shows that you now have $10,000 in your balance. Pretty sweet right? But we have to disappoint you, because this is of course only the practice money.

Still, there is enough reason to be excited, because now you can take your first steps in online currency trading.
At the top of your screen you'll find the list of currency pairs that are available for trading. The rates for the selling and buying price of each pair are updated in real time. Simply click on one of the two prices to start trading.

To the right, you will see graphs and the current sentiment for this pair. This is exactly the same data that real money traders get to see, so even with a demo account, you can really experience what online forex trading is all about.

In the bottom, next to your account balance, you can keep track of your other financial information, such as how much you currently have invested, and what your net profit is.
Finally, eToro is also a very social trading platform. On the right side of your screen, you can post thoughts and ideas about your trades on your 'Wall', or switch to 'Feeds' to find other traders that are worth following.

Those are the most important basics options you get at eToro, but there is a lot more to be seen and done. We'll let you discover the rest on your own, using your free forex demo account!

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Online trading at eToro
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