In short
- Use a demo to learn the platform, test a plan and practise risk management.
- Set the demo balance to what you'd really deposit.
- Keep a trading journal from day one.
- Move to a small live account once you can follow your rules consistently.
UK brokers with free demo accounts
| Broker | Demo platforms | FCA FRN |
|---|---|---|
| Hantec Markets | MT4 | 502635 |
| Pepperstone | MT4, MT5, cTrader, TradingView | 684312 |
| IG | IG platform, MT4 | 195355 |
| CMC Markets | Next Generation, MT4 | 173730 |
| XTB | xStation 5 | 522157 |
All are free. Demo terms (expiry, virtual balance) vary — check with each broker.
What does "demo account" mean in forex?
A forex demo account is a practice account funded with virtual money. It runs on the same platform and usually the same prices as a live account, so you can learn to place trades and test a strategy without risking real money. Some brokers also run demo trading competitions, but treat them as practice rather than a guide to real results.
What a demo account is good for
- Learning the platform: placing market and pending orders, setting stop-losses and take-profits, closing part of a position.
- Understanding margin: seeing how much margin a trade uses and what a margin call looks like.
- Testing a strategy: checking whether your rules make sense over dozens of trades.
- Comparing brokers: spreads, platform stability and tools — before depositing.
How to use a demo account properly
- Use a realistic balance. Practising with £100,000 when you'll deposit £500 teaches the wrong habits.
- Write down your rules for entries, exits and position size before you trade.
- Risk 1–2% per trade and always use a stop-loss.
- Keep a journal: why you entered, what happened and what you'd change.
- Trade at the times you'll trade live — spreads and volatility differ by session.
- Review after 30–50 trades, not after one good or bad day.
What a demo can't teach you
Demo trades don't feel like real money. Fear and greed — closing winners too early, moving stop-losses, revenge trading — mostly appear when the money is real. Demo fills may also be smoother than live execution during fast markets.
When to go live
There's no fixed timeline, but a sensible test is: can you follow your own rules for a month, with a journal, without breaking them? When you move to live trading, start small — the smallest position sizes your broker allows — and expect results to differ from your demo.
Choosing a demo account
- Same pricing as live: ask whether demo spreads mirror the live account you'd open.
- Same platform: practise on exactly the platform you'll trade live — MT4, MT5 or the broker's own.
- Adjustable balance: you should be able to set a realistic balance and reset it.
- Expiry: some demos close after a set period or after inactivity; check whether you can extend.
- Account type: if you plan to use a raw-spread account, practise with commission included.
A 30-day demo practice plan
| Week | Focus | Goal |
|---|---|---|
| 1 | Platform skills | Place, modify and close market and pending orders; attach stops and limits without errors |
| 2 | Risk rules | Size every trade so a stop-loss costs 1% of the balance |
| 3 | Strategy | Trade only your written setups, in the same session each day |
| 4 | Review | Analyse your journal: win rate, average win vs average loss, rule breaks |
Demo vs live: what changes
| Demo | Live | |
|---|---|---|
| Money at risk | None | Yours |
| Emotions | Mild | Strong — fear and greed affect decisions |
| Execution | Often smoother | Real slippage in fast markets |
| Costs | Simulated | Real spreads, commission and financing |
Common demo mistakes
- Trading huge positions because "it's not real money"
- Resetting the balance after every loss instead of learning from it
- Switching strategies every few days
- Never writing anything down — without a journal, a demo teaches very little
Frequently asked questions
Are forex demo accounts free?
Yes. FCA-authorised brokers offer demo accounts free of charge, usually with virtual funds you can reset.
Do demo accounts expire?
Some do, often after 30 days without activity or a fixed period, though many brokers will extend or reopen them on request.
Is demo trading the same as live trading?
Not quite. Demo execution can be smoother than live, and trading with virtual money doesn't test your emotions in the same way.
Which is the best forex demo account in the UK?
The best demo is one on the platform you plan to use live. Hantec Markets offers MT4, Pepperstone covers MT4, MT5, cTrader and TradingView, and IG, CMC Markets and XTB offer demos of their own platforms.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.