Best Demo Stock Trading Account

A demo account for trading stocks works like a trading simulator on which you can practice stock trading without risking your own money. Despite the fact, that you can open a demo account for stock trading basically with any broker that features stocks on its platform, it is advised to pick a company with which you might trade in the future. The reason being, once you get used to a platform on a demo, it is easier to switch to a real account within the same trading platform. There are a couple of important broker’s characteristics on which a trader who is looking for the best demo stock trading account should focus on. Let’s review them:

Regulation - better safe than sorry

If you do not want to fall to a scam broker, regulation should be the no. 1 priority. A regulatory body oversees all actives that a regulated broker does and should there be any issue, you can always report the broker to the given regulator which will analyse and chase the broker to find out if they haven’t done any wrongdoing against you. The most reputable regulatory authorities are the UK’s Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC).

Available stocks

Secondly, verify that a broker features stocks that you want to trade. Each trader has different needs and while one might be okay with a few dozens of shares, another trader would be disappointed with such limited offer. For that reason, before you register with any company, even with just a demo, make sure that you are going to find your stocks on the broker’s platform.

Fees - as low as possible
The more you have to pay on fees, the more your stocks have to rise or decline (depending on if you also short stocks). There are huge differences in what fees brokers charge so don’t take this aspect lightly. Fees can often make or break your success.

In this guide, we have selected some of the best brokers that feature a demo stock trading account, here is their breakdown:

Regulation – Brokers that support Demo Stock Trading

eToro (Read a review) –

Plus500 (Read a review) –

IQ Option (Read a review) –

Stocks that you can trade on a demo or real account

Go to broker
67% of retail clients lose money

eToro

eToro supports trading stocks from 17 stock exchanges, these include US, EU and Asian stocks. Etoro supports trading CFDs on stocks as well as purchasing real underlying assets (stocks).

European stocks (Including: Aston Martin, EasyJet, Avast, Barclays, Admiral Group)
American stocks (Including: Apple, Facebook, Tesla, Netflix, Beyond Meat)
Asian stocks (Including: Xiaomi Corp, Bank of China, Zijin Mining, Tencent)
= In total 2500 stocks (Real underlying assets as well as CFDs on stocks)
Go to broker
72% of retail clients lose money

Plus500

Plus500 supports trading stocks from the USA, Canada, Europe, Asia as well as Australia.

European stocks (Including: Peugeot Citroën, Orange, Volkswagen, RWE, Bayer)
American stocks (Including: Tesla, Netflix, Boeing, Virgin Galactic, Shopify, Amazon, IBM)
Australian stocks (Including: Goodman Group, Canopy Growth, BlueScope Steel)
Canadian stocks (Including: Canopy Growth, Tilray, Aurora Cannabis, Aphria)
Asian stocks (Including: Bank of China, China Railway, PetroChina, Xiaomi, Tencent)
= In total 1 400 stocks (CFDs)
Go to broker
73% of retail clients lose money

IQ Option

IQ Option features US, European and Canadian stocks. They divide stocks according to the following sectors: Information technology, consumer discretionary, health care, industrials, consumer staples, financials, energy, telecommunication services, utilities, materials and real estate.

US stocks (Including: Tesla, Apple, Beyond meat, Netflix, PayPal, IBM, easyJet)
Canadian stocks (Including: Canopy Growth Corp.)
European stocks (Including: Tesco, L'Oréal, Heineken, Barclays, Vodafone)
= In total 170 stocks (CFDs)

Fees that these companies charge

Depending on if you buy a real stock and are the owner of the underlying assets (offered for instance by eToro) or you trade CFDs on stocks (offered for instance by eToro, Plus500 and IQ Option), the fees will vary.

eToro Fees on stocks (real underlying assets)

For accounts under CySec/FCA regulation, zero commission applies to most stocks available on the eToro platform. For accounts under ASIC regulation, zero commission applies to all US stocks available on the eToro platform.

Example Trade:

Initial Investment: 1,000 USD Commission: NO
Apple Stock (AAPL) Ask Rate: 250 USD Overnight Fees: NO
Position: Open 4 Units (AAPL BUY) Total Fees: 0 USD

*Withdrawals incur a low fee of $5 and FX rates apply to non-USD deposits and withdrawals.

Stock demo trading via CFDs

If you want to trade stocks with leverage, you can go for trading CFDs on stocks. One of the main fees you are going to encounter when trading CFD on stocks is the spread fee, which is basically the difference between ask and bid price (example). All brokers that we have tested today state that the spread is floating, which means the spreads change in real-time. To give you some idea what spreads they charge, here is a breakdown of spreads that IQ Option, Plus500 and eToro charge today on popular shares (when trading with leverage).

Stock (CFD) IQ Option spreads Plus500 spreads Etoro spreads
Goldman Sachs 0.72 3.03 1.04
Netflix 0.8 0.37 1.39
Amazon 24.8 0.92 8.0
Mastercard 0.87 0.25 0.72
Shopify 8.313 3.04 5.02
Coca Cola 0.96 0.03 0.11

Data about spreads were taken from the websites of the given brokers on the 9th of August 2021 (13:46 GMT).



Michael

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