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- 1. Compare the best demo trading accounts in 2023
- 2. Best demo stock trading accounts overall for 2023
- 3. What are the best demo trading accounts to practice with?
- 4. Top 5 demo trading platforms, reviewed
- 5. What is a demo trading platform?
- How should I choose a demo trading account? 6.
- 7. How does a demo trading platform work?
- 8. How should I choose a demo trading account?
- 9. What to consider before moving from a demo account to real money
- 10. Should I use a demo trading platform to practice trading stocks?
- 11. Methodology: How did we choose the best demo trading platforms?
- 12. FAQs
Compare the best demo trading accounts in 2023
A demo account or virtual trading account is a feature where you can trade with ‘fake’ money. It’s a great opportunity to learn the ropes, practice a trading strategy, or test out a trading platform.
Read on to find the 5 best demo trading accounts and find out where you can practice stock trading for free.
Best demo stock trading accounts overall for 2023
Copy link to sectionWhat are the best demo trading accounts to practice with?
Copy link to sectionOur experts rate eToro as the best demo stock trading platform. It offers a realistic trading experience on a large range of assets, with no deposit required.
Here are more top platforms with free demo trading accounts.
77% of retail CFD accounts lose money.
Top 5 demo trading platforms, reviewed
Copy link to section1. eToro. Best for beginners, copy-trading & demo-account
2900
No. assets
$10
Minimum deposit
Stocks
Platform type
Pros & Cons
Overview
We love eToro because you can trade more than 3,000 stocks, commission free. When you buy stocks on eToro, you’re buying the underlying asset, which means you can earn dividends. Or you can trade fractional shares, which means you can invest in even the most expensive stock from just $10.
As well as being a broker that offers lots of investor protection, eToro offers a very social trading experience. You can easily see what’s trending on the stock market every day, browse the latest analyst opinion about every one of those stocks, and copy other people’s trade suggestions from your desktop or the eToro app.
The fees: Stock and ETF trades are commission free. Stock CFDs are charged a 0.15% spread and overnight fees can apply. You can deposit money for free but you have to pay $5 per withdrawal, and there’s a minimum withdrawal of $30. A $10 per month activity fee is charged if you don’t log in for a year.
77% of retail CFD accounts lose money.
2. Public. Best for sharing beginner trading ideas
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No. assets
...
Minimum deposit
Stocks
Platform type
Pros & Cons
Overview
We love Public because it’s a social platform where you can share trading tips and get ideas from other people. Public offers 9,000+ financial instruments, including cryptocurrencies and stocks from around the world.
Alongside a community of other investors all sharing their ideas, Public offers real time news and information so that you can see the full picture before you invest. And the assets don’t just include your run-of-the-mill assets; you can make alternative investments in things like handbags and comic books as well.
The fees: There are no fees for investing in stocks during regular trading hours in the US – 9.30am-4pm EST. There is a $2.99 fee for trades outside of regular hours.
What is a demo trading platform?
Copy link to sectionIt’s a financial stock broker or trading platform that offers a way to practice stock trading with fake money. It does this by allowing you to use a demo or virtual trading account, which let you buy and sell virtual stocks as opposed to the real thing.
Demo trading accounts are also known as paper trading accounts, so you might see them referred to as such. Paper trading is a throwback term, referring to a time before the internet when you would have to write down the trades you wanted to make and track the performance on paper.
How should I choose a demo trading account?
Copy link to sectionPick a service that offers you the most realistic trading experience, as that’s the best way to learn. Look for demo stock trading accounts that offer the opportunity to do your own analysis and that give you the chance to review your activity to assess what you profit and loss would have been. These factors should also be considered:
- Realistic trading experience. The point of a stock trading demo account is practice, so look for a platform where the demo account trading experience reflects the real one. That means looking for a demo account where you can use leverage, short stocks, and put in stop-loss or take-profit orders.
- Range of supported assets. You want to be able to practice on the assets that you’re interested in, and get relevant information on how well your strategies work. Before you create a demo trading account for stocks, make sure the platform lets you invest in the companies and countries you’re most interested by.
- Verification and ID required. Almost every real-money account requires some form of verification. Demo accounts can be different, and if you don’t want to go supply personal details and ID just to trade digital money then look for a trading platform that allows you to sign up with just an email address and phone number instead.
- Integrated software. Many traders use specialist software like MetaTrader to make trades and manage their accounts. This is particularly relevant to FX traders and if it applies to you, make sure the day trading demo account integrates with the software so you can practice properly and get to grips with it.
- Charting and analysis tools. Performing technical analysis is an important part of making good trading decisions. You should trade on a demo account just as you would on the real markets in order to get the best out of it, so make sure you are able to do so.
- Fees for real money trading. In an ideal world, you would use a free demo trading account with the same broker as you want to use to trade for real. In that case, look for a service that offers low trading fees and which doesn’t charge too much for deposits and withdrawals.
- Copy or social trading function. Copy or social trading is a form of trading where you follow the moves of other people. Each trader posts their trades, and the reasons behind them, like they would on a social media platform and you can copy the ones you like best. The best copy trading platforms are a good way to learn and it’s normally available to virtual traders as well as real ones
- Time limits. Many brokers offer unlimited free demo accounts for trading to allow you ample practice time. However, some may impose 30, 60 or 90-day limits on their demo accounts. This can be inconvenient if you are not ready to fund a live account before the demo expires. When selecting a broker, check if their best trading app with demo account offers unlimited access or if you must transition to live trading within a set timeframe. Unlimited demos allow you to keep honing your skills until you are fully prepared to trade with real capital.
How does a demo trading platform work?
Copy link to sectionIt simply swaps real financial markets for a simulated version. In that simulated world, you can use virtual money to buy virtual financial assets, whether that is stocks, currencies, cryptocurrencies, or anything else.
Stock trading demo accounts are normally activated by just flicking a switch in your account settings. The service assigns you a fixed amount of virtual dollars – usually $100,000 or $1,000,000 – and you decide what to do with it.
You may not need to sign up to access the demo version. We found a few brokers that offered us demo stock trading accounts without requiring all the ID verification a full account would require.
How should I choose a demo trading account?
Copy link to sectionPick a service that offers you the most realistic trading experience, as that’s the best way to learn. Look for demo stock trading accounts that offer the opportunity to do your own analysis and that give you the chance to review your activity to assess what you profit and loss would have been. These factors should also be considered:
What to consider before moving from a demo account to real money
Copy link to sectionThe leap from virtual funds to real capital carries more risk and responsibility. You’ll need to make sure you are fully prepared before transitioning to live trading. Here are some key points to consider before making the switch.
- Profitability. Have you demonstrated consistent profitability on your demo for a reasonable period of time, such as 3-6 months? Don’t rush into real trading until you’ve proven your strategy works. You may want to wait longer to ensure your trading system works in various market conditions.
- Psychology. Demo trading lacks real financial pressures. Be aware of how emotions like fear and greed may impact your real trading. When trading with simulated funds, it is easy to turn a profit, but real trading is a different game. Take time to work on the mental aspect.
- Slippage. Demo platforms may not reflect true liquidity. Real price slippage on market orders can be greater, impacting your exits. When you trade a demo account, you will rarely encounter slippage, which can lead to a false assumption that it does occur. When you trade live, slippage can happen so factor this into your strategies.
- Fills. In live markets, order fills may not be instant. In demo mode, your trade will be filled almost instantly. It’s the same as slippage above; you may assume order fills are irrelevant. Ensure you account for execution delays when planning your risk management.
- Additional Costs. Live trading entails fees like commissions and overnight financing. Account for these costs when determining position sizing and profit targets. Some demo accounts let you access a trading platform for free, but charge for certain services when you’re trading live.
The goal is to avoid transitioning to live trading prematurely before addressing these key differences. Patience and practising proper habits on a demo can pay off with consistency when you make the switch.
Should I use a demo trading platform to practice trading stocks?
Copy link to sectionA demo account is a great idea if you’re new to trading or want to test out a new strategy. It’s a way of trading without the risk of losing money, which is always most acute when you first start something new.
Popular trading platforms offer demo accounts that are almost identical to the real thing. You can often even use trading software like MetaTrader to practice for free, and you can learn whether your strategies work best on specific financial assets.
The obvious drawback to a demo platform is that it doesn’t offer any way to make money; your successful paper trades won’t translate into profits. It requires patience to understand your own strengths and weaknesses, as well as to avoid chasing those profits when you start trading for real.
What are the risks of using a stock trading demo account?
Copy link to sectionOne of the biggest risks is that a demo stock trading account can encourage a more aggressive trading style. It’s important to trade as if you did have something to lose, otherwise you might end up making reckless trades when you transition to real money.
Similarly, a hot streak on a trading app with demo account can be a frustrating experience. Beware of trying too hard to recreate that performance on your main demo trading account; if you’ve taken the time to develop a solid strategy then trust it to deliver good results over time. There is a quick summary of other risks and benefits available below.
Benefits
Copy link to section- It allows you the space to practice
- Beginners can learn the ropes and get to know new software
- Experienced traders can practice new trading strategies
- Test out new trading platforms for free
- Work out which assets work best for your style
Risks
Copy link to sectionWhat are the fees for using a demo trading platform?
Copy link to sectionThere are no fees for using a demo account. Paper trading is free and you normally don’t have to make a deposit first. Simply go to your account settings and switch on the practice trading account, then get started. Click the button below to find the best free demo trading account.
Methodology: How did we choose the best demo trading platforms?
Copy link to sectionHelping people make better financial decisions is at the heart of our mission at Invezz.
We periodically test more than 63 demo stock trading platforms to provide our users with clear, accessible guidance on the investing options available. All testing is carried out by our panel of stock market experts, analysts, and active traders who sign up to each demo account broker, conduct research, and score each service.
Our tests are designed to find stock brokerages with free demo account that offer a beginner-friendly, secure investing experience at a fair price. To supplement our practical testing and experience, we research each trading platform to gather any further relevant information. We read online customer reviews, app reviews on the Play Store and App Store, and conduct user surveys to get feedback from real people about what works, and what doesn’t.
Each stock market demo account is awarded a final score based on 130+ data points across 8 ranking categories: cost, reliability, user experience, deposit & withdrawals, investing options, range of products/markets, research & analysis tools, and the availability of educational & learning resources.
We work closely with individual brands to ensure all factual information displayed here is accurate. All data is then fact-checked by an independent reviewer. You can learn more about our expert panel and how we test, rate, and review platforms in our review process.
FAQs
Copy link to sectionMore of the best platform rankings
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >
