Broker to Trading

When first trading, the beginner may or may not try out the demo trading platform. They may try it out for a little while, then jump into trading. However, the demo trading account is a way to become familiar with the online trading platform before trading on a live account. This is important because the trader can make mistakes simply because they do not feel comfortable using the platform. Put simply, the trader does not want to have to work out the mechanics of the platform when trying to enter, exit, or manage a trade, they want to know before making the first live trade.

So, rather than looking at a demo account as a first step before jumping into live trading, the trader can test out the platform and trading. This applies to any trader who is using the platform for the first time. However as the trader becomes more familiar with the platform, then the need for a demo account becomes more one of using it to trade without risk, for example to test out ideas.

A demo account contains virtual funds which cannot be withdrawn but are given by the broker. Thus, the trader can trade markets without risking real money. This is important because markets are complex and trading is hard. What this really means is that it can be difficult, if not impossible, to correctly gauge a direction for a trade. Rather, the trader needs to trade with the assumption that the market will move against the traded position. Thus, the trader needs to be familiar with the behaviour of markets, with analytical tools as applied to them, and how to enter, manage, and exit a trade.

The trader may typically follow rules, which means that they trade based on indicator rules, for example, but the trader still needs to be familiar with how this actually happens in the market. The trader may wish to read a book about technical indicators before entering the market and thus combine theory and practice.

The trader may also wish to take breaks from live trading and practice on the demo. The brokers in the table above are chosen because they offer user-friendly platforms, allow the trader to switch between live and demo at any time, and let the trader explore the functionality of the real account on the demo account.

Best Demo Trading Platform

The pick of best demo trading platform is Plus500. Plus500 lets the trader access the demo version of the platform after registering, and it does not expire. When the trader has completed the full sign-up process and created a live account, the trader can switch back and forth between the real platform (which the trader deposits to) and the demo platform (which has virtual funds that are not real money). Thus, the trader can practice trading before trying out a strategy on the real account. To switch to the real account when they have it, the user selects "Real Money," and to switch to the demo account, the user selects "Demo Mode," both on the main menu.

Plus500's platform is user-friendly, providing a clear UI that caters to the human trader with space and readable text, and widgets. The platform has 2000+ CFD markets to trade, with a wide range in different categories, such as Commodity CFDs. It also has a wide range of innovative tools to enhance the experience of the self-directed trader that can be accessed from the +Insights tab on the main menu. +Insights provides lists under categories such as "Most Traded" that aim to offer insights into the activities of other Plus500 traders. So the trader can trade their ideas on the platform and tap into information about the collective behavior of other traders. The trader can register here to access the platform and evaluate it hands-on.