Best Demo Stock Trading Account

Given the complexities of stock trading, consistent practice is crucial for improvement. Stock demo accounts provide a risk-free environment for traders of all levels to practice and refine their trading skills. Demo accounts typically simulate real market conditions, offering real-time or slightly delayed market prices. 

Most online brokers offer demo accounts with virtual funds, allowing users to test trading strategies, explore market dynamics, and familiarise themselves with trading platforms. In this article, we will explore some of the best demo stock trading accounts offered by brokers, focusing on their key features and benefits.

Factors to Consider When Selecting a Demo Stock Trading Account

When selecting a forex broker that offers demo stock trading, traders should consider several crucial factors. These include:

• Regulation - The regulatory status of a broker is probably the most crucial thing to consider when selecting a broker for any trading activity. It is important to choose a broker that has regulations from well-known organisations, as they are required to follow strict financial and investor protection standards.
• Demo Account Features - Consider the features of the demo account, like the duration it lasts, real-time price streams, and amount of virtual funds available. 
• Platforms Available - The trading platform a broker provides is the interface through which traders can access the market. Check if the broker supports a feature-rich trading platform that is intuitive in nature.
• Market Access - Verify that the demo account includes a wide selection of stocks so you can diversify your trading.
• Spreads and Fees - A good demo account should reflect the real spreads offered by the broker. Therefore, compare the spreads and fees of different brokers and select the one that best suits your needs.

Let’s take a look at some of the best demo stock trading accounts with these factors in mind.

Pepperstone

Pepperstone is one of the top brokers that offers a remarkable demo account for stock trading. This demo account includes $50,000 in virtual funds, available in any of the account currencies supported by Pepperstone. Traders can choose between a standard or razor account setup, but there is no swap-free demo account offered.

MT4 and MT5 demo accounts automatically expire after 60 days, while TradingView and cTrader demo accounts do not have an expiration date. However, traders can prevent their MT4/MT5 accounts from expiring by opening and funding a live account. 

Even so, any demo account without activity (no logins) will expire after 90 days, regardless of whether the trader has a live funded trading account. Traders with a live account can open up to 10 demo accounts, while those without a live account are limited to a maximum of 5 accounts.

Spreads are subject to change. Check your platform for the most up to date data.

Having access to multiple demo accounts allows traders to test and practice various trading strategies across different accounts simultaneously. Notably, Pepperstone offers a wide collection of company stocks from a variety of regions, all as CFDs. Pepperstone's clients have access to stock from the US, the EU, the UK, and Australia, among others. 

The spreads for trading these stocks are competitively low. For example, US shares are available with a minimum commission of $0.02 per side per share. Aside from share CFDs, Pepperstone offers a ton of other trading instruments including CFDs on forex commodities, indices, currency indices, cryptocurrencies, and ETFs. The trading platforms available to use include MetaTrader 4, MetaTrader 5, TradingView, cTrader, and Pepperstone Trading Platform.

Positively, Pepperstone operates under the regulation of various organisations. These include the FCA in the UK, the ASIC in Australia, the BaFin in Germany, and the CySEC in Cyprus, among others. 

75.3% of retail CFD accounts lose money

FP Markets

FP Markets is another well-established broker that provides a robust demo trading environment, allowing traders to practice stock trading. The demo account comes preloaded with a virtual balance of $100,000. The demo account replicates the conditions of a live trading account, allowing users to test strategies under real market conditions. 

It’s important to note that a demo account will expire if there is no login activity for more than 30 days. However, by staying active and logging in periodically, the demo account will not expire. Additionally, traders have the ability to create a new demo account whenever needed.

Spreads are subject to change. Check your platform for the most up to date data.

The fees for trading the various shares and stocks are fairly low on the FP Markets broker site. As an example, stocks from the NYSE have a commission of $0.2 per side per share. On the FP Markets platform, traders can access over 10,000 Australian and international share CFDs, as well as stock CFDs and indices spanning four continents.

There are two primary ways to trade stocks on FP Markets. The first option is through MetaTrader 4 or MetaTrader 5. These platforms offer access to over 1,000 stock and share CFDs, with MT5 providing a more extensive selection than MT4.

The second option is the Iress platform, which is available exclusively to traders in Australia. Iress allows investors to trade more than 10,000 Australian and international stock CFDs with Direct Market Access. However, Iress requires a minimum deposit of AUD 1,000 and incurs a monthly fee of AUD 60, plus an additional AUD 25 for ASX data.

Alongside stock CFDs, FP Markets also offers CFDs on forex, indices, metals, commodities, ETFs, cryptocurrencies, and bonds. It operates under the regulations of several institutions, including the ASIC in Australia, the CySEC in Cyprus, and the FSCA in South Africa, among others.

72.44% of retail CFD accounts lose money

Exness

Exness is a globally recognised broker that offers a highly flexible and user-friendly demo stock trading account. The broker offers a demo account with a virtual balance of $10,000, enabling investors to practice trading and refine their strategies. Demo accounts on Exness come with an expiration period that varies depending on the trading platform. 

MT4 demo accounts are deleted after 180 days of inactivity, while MT5 demo accounts expire after just 21 days of inactivity. The broker does not specify the expiration period for Exness Terminal demo accounts. Once a demo account is deleted, it cannot be reactivated, but traders can open a new account from their Personal Area.

Spreads are subject to change. Check your platform for the most up to date data.

Exness provides access to a wide range of stock CFDs across multiple regions. Traders can choose from four main account types to trade stocks, including the Standard, Pro, Zero, and Raw Spread accounts. The Standard, Pro, and Raw Spread accounts are commission-free for stock trading, making them cost-effective options. Only the Zero account charges a commission. 

To demonstrate this, let’s take the AMZN (Amazon) stock CFD and see its spreads across these accounts. It has an average spread of 0.7 pips on the Standard account, 0.5 pips on the Pro account, and 0.4 pips on the Raw Spread account, all without any commission. In comparison, the Zero account offers a lower spread of 0.1 pips but charges a commission of $1.8 per side per lot.

Exness offers a ton of other market products to its traders. These include CFDs on forex, metals, cryptoсurrencies, energies, and indices. The trading platforms available include MetaTrader 4, MetaTrader 5, and the Exness Terminal. Regarding regulations, Exness operates under the supervision of several reputable authorities. These include the FCA, the CySEC, the FSCA, and the CMA in Kenya, among others.

Remember that Forex and CFDs available at Exness are leveraged products.
Their trading can result in the loss of your entire capital.

eToro

eToro is a well-known online broker with a feature-rich demo trading account. The eToro demo account comes with $100,000 in virtual funds, allowing traders to practice stock trading in a risk-free environment. The demo account mirrors real market conditions, providing access to real-time price streams. eToro's platform is renowned for its social trading features, enabling users to follow and copy the trades of successful investors. This feature is also available in the demo account, allowing users to observe and learn from experienced traders.

Notably, eToro offers a ton of stocks, totalling over 6,000 different stocks from 20 different global stock exchanges, both as real underlying assets and as CFDs. The fees that apply depend on whether an investor is trading real stocks or CFDs. 

Spreads are subject to change. Check your platform for the most up to date data.

On this broker site, stock CFDs are available with a spread of 0.15%. Additionally, CFD positions for US-listed stocks and ETFs priced at $3 or less incur a commission fee of $0.2 per unit. Meanwhile, when trading real stocks, a commission of $1 or $2 may be charged for opening and closing a position, depending on your country of residence and the stock exchange where the asset is listed.

Alongside stocks, eToro also supports the trading of CFDs on forex, commodities, ETFs, indices, and cryptocurrencies. It also supports the trading of real cryptocurrencies. One of eToro’s standout features is its multi-regulatory oversight. It operates under the supervision of various organisations in various jurisdictions. These include the FCA, the ASIC, the CySEC, the FSAS in Seychelles, and the FSRA in Abu Dhabi.

61% of retail investor accounts lose money when trading CFDs with this provider.

XM

XM is a reputable broker that provides an excellent demo stock trading account for traders of all levels. The broker provides a demo account that simulates real trading conditions, allowing traders to practice stock trading and other financial instruments. Notably, traders have the flexibility to reset their account balance immediately after opening the account. It’s important to note that the demo account expires after 90 days of inactivity (no login).

XM offers a variety of stocks in two categories: stock CFDs and turbo stock CFDs. Both of these categories feature competitively low spreads, making XM an attractive choice for stock traders. Spreads on stock CFDs are as low as 0.34 pips for the ExxonMobil stock. Turbo stock CFDs have similarly low spreads with Google Turbo stock trading with a minimum spread of 0.28 pips.

Spreads are subject to change. Check your platform for the most up to date data.

XM supports multiple trading platforms, including MetaTrader 4 and MetaTrader 5. These platforms allow traders to access a ton of other market products beyond just stocks. In particular, traders have access to CFDs on forex, indices, commodities, precious metals, cryptocurrencies, and energies. Furthermore, XM operates under strict regulatory oversight. It holds licenses from various financial authorities including the CySEC, the ASIC, and FSC in Belize.

75.18% of retail investor accounts lose money when trading CFDs with this provider.

HFM

HFM is another great contender for top brokers with a demo account for stock trading. This broker offers access to a variety of global stocks from a variety of stock exchanges, all as CFDs. These include stocks from the London Stock Exchange, the NASDAQ, the New York Stock Exchange, and the Euronext, among others. 

Stock CFDs have competitively low spreads across four trading accounts. As an example, Google’s stock is available to trade with a low minimum spread of 0.1 pips. However, the broker also charges a commission of 0.1% for stock trades. Importantly, you can trade CFD stocks on MetaTrader 4, whereas CFD DMA Stocks can be traded on MetaTrader 5.

Spreads are subject to change. Check your platform for the most up to date data.

The HFM demo account comes with $100,000 in virtual funds, allowing traders to practice stock trading in a risk-free environment. The demo account replicates real market conditions, providing access to real-time price streams and a wide range of trading instruments. Aside from stock CFDs, this broker also allows investors to trade CFDs on forex, energies, indices, commodities, bonds, ETFs, and cryptocurrencies.

Lastly, HFM is a well-regulated broker with oversight in multiple jurisdictions. It operates under the stringent supervision of the CySEC, the FCA, the DFSA, the CMA, and the FSCA.

68% of retail investor accounts lose money when trading CFDs with this provider.

Final Comments

Demo stock trading accounts are invaluable tools for traders of all levels. They provide a risk-free environment to learn, practice, and develop the skills needed in the stock market. The brokers listed in this article offer some of the best demo trading experiences available. When choosing a broker, it's important to consider factors such as regulatory compliance, trading platforms, trading fees, and the quality of the demo account. Ultimately, the best broker for you will depend on your individual trading needs and preferences.

Further, it's essential to remember that demo accounts cannot fully replicate the psychological aspects of real-money trading. The absence of financial risk can lead to overconfidence and impulsive decisions. Therefore, it's crucial to approach demo trading with discipline and treat it as a serious learning experience. By choosing a platform that aligns with your goals and utilizing it effectively, you can build a strong foundation for successful stock trading.