5 best CFD trading demo accounts for beginners – Free and unlimited
Reading step-by-step guides on the internet is not enough to learn how to trade. Hiring a professional trader to tutor you won’t do the trick either. Attending webinars or live trading sessions might give you ideas or help you devise strategies, but the information you’ll get from these will go to waste if you have no way of practicing them.
The best way to learn how to trade without risking your hard-earned cash is by practicing on demo trading accounts. In this review, you will read about the 5 best CFD trading demo accounts available on the market. You will also find useful information about the broker, like the products they offer, the leverage, as well as the conditions for their demo accounts.
These are the 5 best CFD trading demo account we have tested for you:
- eToro – Best platform for beginners
- Plus500 – Very fast registration
- XTB – Professional service
- BDSwiss – High leverage trading possible
- IQ Option – Easy to use
Starting 1.0 pips variable
+ Best for beginners
+ Social Trading
+ No commissions
+ Copy portfolios
Free demo account(67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.)
Variable spreads from the market
+ Support 24/7
+ Cryptocurrencies CFDs
+ Guaranteed stops
Free demo account(Risk Warning: 76.4% of accounts lose money)
Starting 0.8 pips variable
+ Huge varierity
+ Good platform
+ Best service
+ Personal service
Free demo account(Risk Warning: 77% of retail accounts lose money)
Starting 0.0 pips + $ 5.0 commission per 1 lot traded
+ DMA execution
+ Trading signals
+ Raw Spreads
+ Leverage up to 1:500
+ Best education
+ Personal support
Free demo account(Risk Warning: Your capital can be at risk)
5. IQ Option
Starting 0.0 pips variable – only in main trading hours (no commission)
+ Easy to use
+ Binary Trading
+ Support 24/7
+ Min. Deposit 10$
+ Lowest spreads on main trading hours
Free demo account(Risk Warning: 84% of accounts lose money)
eToro is one of the most well-known brokers on the market. It has an extensive global reach with over 20 million clients from over 100 countries. Originally known as RetailFX in 2007, they restructured their brokerage company to offer multi-asset products as well as social trading. They’ve become well known for their easy-to-use interface and platform, as well as their groundbreaking copy trading services.
As CFD products, you can practice trading these assets, either long or short, with leverage that ranges from 1:1 up to 1:30 for select products. This allows you to practice under normal conditions where you can develop your strategies for technical analysis, portfolio management, and risk management.
With eToro, you can trade currencies, commodities, indices, and cryptocurrencies as CFDs. Below is a list of the offered assets as CFDs on eToro’s account.
There are also tons of CFD stocks available on their platform. These include some famous companies like Disney, Microsoft, Apple, Google, eBay, Amazon, Alibaba, and many more. You can access the full list on their website or on their platform.
Etoro offers the most assets to trade in this comparison.
To sign up with eToro, you simply need to input your chosen username, your personal email, and a password. You can also sign up by linking your Facebook account or Gmail account. After that, you will be given access to your account, which is both a live and demo account.
Practicing on eToro’s demo account or virtual portfolio is completely risk-free. You will be given a virtual value of $100,000, which you can use to trade any of the available assets on the platform.
Since the demo account gives full access to all of eToro’s features, you can even communicate with the community that is trading CFDs you’re interested in directly on their platform. This means you can get a second opinion or additional insight on your desired asset.
eToro’s customer service is available on their trading platform via their help center. Here you will find frequently asked questions. You also have the option to open a ticket detailing your concern, and a customer service representative will get back to you within one business day.
Their website support numerous languages, including English, Spanish, Italian, German, Russian, Simplified and Traditional Chinese, French, Arabic, Polish, Dutch, Portuguese, Norwegian, Swedish, Czech, Danish, Romanian, Vietnamese, Thai, and Finnish.
Advantages for beginners:
- Free and unlimited demo account with $100,000
- Multiple regulated online broker
- Available in more than 20 languages
- User-friendly trading platform
- Free analysis tools
- Social trading
- Competitive fees and spreads
(67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. 67% of retail CFD accounts lose money)
Plus500 specializes in CFD trading for all the asset classes they offer. With its 13 years of experience, this Israel-based broker caters to clients from more than 50 countries, and their company is also publicly listed on the LSE or the London Stock Exchange. As the leader in CFD trading, they were the first to introduce Bitcoin CFD to the market.
For forex CFDs, you have over 60 pairs to choose from. Some examples of these currency pairs are EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, AUD/USD, and NZD/USD. These are also known as the major currency pairs, and they could be traded with a leverage of 1:300.
Plus500’s indices offer more than 15 assets. They also have a cryptocurrency index that includes the top ten cryptocurrencies. You will also have the option to trade an index comprising the FANG+ stocks, which include Facebook, Amazon, Netflix, Google, and more.
The shares and options offered on Plus500’s platform are over 1000. This gives you flexibility and diversity when it comes to trading these particular asset classes.
With a maximum leverage of 1:100, you could trade up to 30 ETFs like ARK Innovation ETF, iShares Core DAX ETF, S&P/ASX 50 Fund ETF, and SPDR S&P Aerospace & Defense ETF. Below, you will find a list of the tradeable cryptocurrencies and commodities on Plus500’s platform.
Their demo account comes equipped with €20,000 in virtual funds and access to their WebTrader platform along with all its tools and functions. This is completely free and unlimited.
Plus500’s website supports 32 languages. These are English, Estonian, Croatian, Lithuanian, Norwegian, Romanian, Swedish, Arabic, Czech, Spanish, Icelandic, Hungarian, Polish, Slovak, Turkish, Chinese, Danish, Greek, Italian, Maltese, Portuguese, Slovenian, Bulgarian, Traditional Chinese, Dutch, French, Latvian, Russian, German, Finnish, and Hebrew.
Advantages for beginners:
- Free and unlimited demo account
- Easy and fast registration
- 24 hours support per day
- Trading platform available in multiple languages
- Huge range of markets
- Currencies, stocks, ETFs, options, and more
(Risk warning: 72% of retail CFD accounts lose money)
Since 2004, XTB has been growing and is now known as one of the most prominent stock exchange-listed brokers that offers its service to 13 countries, including Germany, France, and the United Kingdom.
With XTB, you can practice trading their CFD assets with a leverage of up to 1:10. You can choose to trade any of the 1876 stock CFDs or 140 ETF CFDs. Among the stock CFDs, you will find popular names like Apple, Facebook, Tesla, Amazon, Google, and many more. For ETFs, some of the available funds are Ark Fintech Innovation ETF, Ark Autonomous Technology and Robotics ETF, Ishares Core US Aggregate, and Vanguard Total International Bond. The full list of stock CFDs and ETF CFDs can be found on their website.
If stock and ETF CFDs are not enough for you, they also offer 25 cryptocurrencies and cryptocurrency pairs as CFDs. Below is a list of the available assets related to crypto on their platform.
With the choice to use their award-winning proprietary trading platform, xStation 5, or the well-known MetaTrader 4, you can easily practice with your demo account with high execution speeds on a user-friendly interface. This gives you four weeks of access to the platform with $100,000 in virtual funds.
Even when using the demo version of the xStation 5, you are can utilize a wide range of features that live accounts can access. These include having a built-in chart, a watchlist, market analysis, and price alerts. Aside from this, their education tab and news updates will be available for you as well.
To open a demo account, all you have to do is input your email and country of residence. Afterward, you will be asked to also put in your full name and mobile number. Once you’re done, you will be able to practice trading on their platform.
Their customer service is available 24 hours every Sunday to Friday via email, telephone, and built-in live chat on their website. Their website supports multiple languages. These are English, Arabic, Turkish, Spanish, French, Italian, Polish, Portuguese, Vietnamese, Arabic, Dutch, Chinese, and Czech.
Advantages of XTB:
- Stock-exchange listed broker
- Free and unlimited demo account
- Professional analysis platform
- Multiple language support
- More than 1,500 markets
- No minimum deposit
(Risk warning: 78% of retail CFD Accounts lose money)
BDSwiss boasts of their registered number of users, which is more than 1,600,000, and their trading volume per month, which is $84 billion per month. They serve clients from more than 180 countries with over ten offices worldwide.
All the available asset classes on BDSwiss can be traded as CFDs. Asset classes such as currency pairs, commodities, indices, and crypto. The margin and leverage that you can use for trading with BDSwiss is 1:100 and can reach up to 1:500 for certain assets.
They also offer equities or stocks from countries like the United States, the United Kingdom, France, Germany, Netherlands, Spain, and Switzerland.
You can choose to train on either their MetaTrader 4, MetaTrader 5, or on their proprietary trading platforms, BDSwiss Mobile App or BDSwiss WebTrader. You will be given $10,000 in virtual credit that you can use to trade on your chosen trading platform.
Signing up for their demo account requires a few extra steps. Aside from filling out their log-in form, you will need to contact them so an adviser could activate your demo account. To increase or change your demo account balance or even add another demo account, you can simply contact them via email, phone, or live chat found on their website, and they will take care of the rest.
Their website supports over 20 languages, including Polish, Vietnamese, Malay, Chinese, Swedish, Dutch, Italian, Filipino, English, Russian, and many more.
Advantages of BDSwiss:
- Free and unlimited demo account
- Trade with high leverage up to 1:500
- MetaTrader 4 and 5 access
- Personal support
- More than 1,000 markets
(Risk warning: 71 of retail CFD accounts lose money)
#5: IQ Option
Despite the fact that IQ Option specializes in binary options trading, they also offer forex, crypto, stocks, commodities, and ETFs and CFDs. Established in 2013, this particular broker has won multiple awards and has over 48 million registered users from around the globe.
Here is a list of all the available forex, crypto, commodities, and ETFs on IQ Option’s platform. You can trade all these with a leverage of up to 1:1000.
As for their stocks, you can choose from 177 companies. You will find some of the well-known names here like Apple, Amazon, Tesla, Netflix, Nike, Visa, Disney, McDonald’s, Wallmart, and Pfizer.
Availing for their demo account entitles you to $1,000 in virtual funds and access to their online investing platform that is available for both Windows and Mac. You can also download the mobile version from their website or on Google Play or the Apple App Store.
Signing up is very easy. Just provide your full name, country of residence, phone number or email address, and your customized password. You can even register using your Facebook or Gmail account.
IQ Option’s customer service is readily available with more than 80 customer service representatives. You can contact them via email or telephone. They can also be found on Facebook, Telegram, Twitter, Instagram, and YouTube. They accept queries 24/7, and the website supports more than ten languages.
These languages are English, Russian, Chinese, Portuguese, Turkish, German, French, Thai, Vietnamese, Hindu, Spanish, Indonesian, Italian, Korean, Swedish, and Bangla.
(Risk warning: 71% of retail CFD accounts lose money)
What is a CFD Trading Demo Account?
A CFD trading demo account is a type of account that allows you to trade Contracts for Difference on a risk-free and virtual trading account provided by your desired broker. Your capital will never be at risk, but you will be able to simulate real trading conditions provided by your broker and with the volatility of the market.
CFDs come from a wide variety of assets like forex, cryptocurrencies, ETFs, indices, stocks, and commodities. By trading a demo account that has access to CFDs, you have the chance of experiencing trading all these assets depending on your selected broker.
Demo accounts exist to provide assistance for new traders and veteran traders alike. These accounts are used for practicing and testing out strategies and techniques to know how well you perform in the market. These accounts are always free but keep in mind that some brokers limit your use of their broker accounts. Contact your broker for more information on these.
In the event that you blow up your demo account, don’t worry because you can easily create a new one in a few steps, or you can contact customer service to replenish your virtual account balance.
Why you should use the demo account
Trading using a CFD demo account gives you the experience of being a client of your chosen broker without risking any of your capital. Mostly all of the features available for that particular broker can also be accessed by you. This includes the platform, research, and educational materials, and as well as the assets that the broker offers for all its clients.
You will be able to simulate real-time trading conditions such as trading fees for swaps, commissions, and spreads. This allows you to practice in the world of trading, where each trade always incurs a certain amount of risk.
With all of the features available, you’ll be given a chance to use leverage, trading bots, and maybe perhaps interact with other clients depending on your chosen broker.
One of the best things about demo accounts is the ease of creating one. Assuming that you want to have a clean account with all your funds back, you can either simply contact customer service or create a new account since registration for this is easy and hassle-free. Whether you blow up your account or make millions, you have the advantage of experience and newfound knowledge that you can use in your next trades, whether they be in your demo or live account.
Some brokers also offer contests to encourage you to practice and be the best trader you can be. Top traders are usually awarded credits for their live accounts.
Advantages and disadvantages:
- Generally, demo accounts provide the right environment to test out the platform and products offered by your broker. You get to identify if this particular broker is right for you in terms of execution times and if their platform is user-friendly. Some even take it a step further by testing out new strategies that they can apply for their day-to-day trades or for their investment plan for the long term.
- Having a demo account gives ample time to practice without the need to deposit any funds. This benefits clients like students or newbies that want more options when it comes to investments.
- Since this type of account simulates real trading, a new or veteran trader may be able to test the limits with the use of margin and leverage. With the wide range of products that can be traded as CFDs, you have access to multiple asset classes that you can trade and practice within a few minutes of creating your demo account.
- For CFDs, one of the best advantages you have is the use of leverage as well as tight spreads for most of your trades. Trading CFDs is usually cheaper than buying underlying assets directly. Aside from that, you can go long or short for these assets, which gives a huge advantage rather than just trading in a single direction. In the event of a market crash, CFDs would be a big help as you can bet against long-term investors that just want stock prices to rise.
- Another advantage of trading these is the fact that you do not have to physically own an asset like gold. Contracts for difference give you the right to profit from the increase or decrease of price by just going long or short this asset.
- It is important to note that CFDs also have their own cons. One of those cons is that US citizens are not allowed to own contracts for difference. Another is that CFDs have weak industry regulation and that the asset does not have as much liquidity as its underlying asset.
- Given that leverage is widely used for these contracts, it is also an issue for clients that they overleveraged or exceed their allowable margin by being careless or too confident in their trades. Even though demo accounts allow errors like these, lucky win streaks might lead to the downfall of clients once they open up an account using real money.
- The asset classes offered as CFDs also vary between brokers. One might offer CFDs for ETFs, while another broker might only offer these for single-share stocks. It’s beneficial to double-check with the products offered since there are cases in which you can’t use leverage or margin when trading non-CFD assets.
- CFDs usually have tight spreads, but this is not true for lesser-known stocks and forex pairs. In this case, it would be beneficial to trade the underlying asset to lessen your average entry price by setting a limit order, whether it be for a long trade or a short trade. You might be fooled into thinking that your broker is the best because they might charge no added commission, but they take it back from the large spread on some of their assets.
- Demo account holders won’t also be able to experience the mental stress and pressure in putting hard-earned capital at risk. Once they transition to live accounts, this feeling might overwhelm them as they won’t be able to manage their emotions through both the gains and losses. This makes them commit more errors and random trades. Some might even risk more to gain more which is a bad strategy, especially when the psyche is negatively affected.
How to trade CFD:
Upon logging in to your demo account, double-check if the asset you want to trade is offered as a CFD product. Check its chart and fundamental values if applicable to know if your trading has a good chance of going in your favor.
When you’ve selected your ideal CFD product to trade, you need to decide whether you want your trade executed at market price or at your desired price point using the different types of orders provided by your broker. Input your desired trade size or lot size afterward.
A tab to choose your desired leverage may also pop up depending on your broker. Sometimes, leverage or margin is already set by default in your account’s settings.
You may also set cut loss levels and take profit levels to your liking. Most importantly, double-check if the trade you have set is in the right direction. Many newbie traders accidentally go short when they actually want to go long and vice versa.
Tips and Tricks
Keep in mind that, for the most part, trading CFDs are almost the same as their corresponding counterparts. You can trade these using the leverage allowed by the broker, and these even allow for fast execution even when trading with high volume but be sure to manage your greed and limit your leverage to a certain amount. If you become careless or complacent, your leverage would be a double-edged sword, and you may blow up your account.
Given that CFDs are just contracts, you don’t need to worry about handling physical gold, silver, or other commodities. Just trade with the chart, and the broker will handle the rest.
Be sure to set cut loss points. CFDs, like regular assets, are subject to volatility and trend reversals. Just because a certain asset is going up doesn’t mean it will go up forever, nor is there a guarantee that an asset that continues to go down will go up in the near future.
When trading CFDs with high leverage, always know how much you are willing to lose. Ideally, you should only risk 1% of your total portfolio per trade so that you can bounce back immediately once you get a trade right.
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