5 Best Stock Trading Demo Accounts
With the number of tradeable stocks in the market, it is surely a difficult task to learn how to trade these efficiently. Of course, when it comes to any kind of investment, we want to make sure we will benefit from it, or we know almost everything about the asset before we start taking cash out of our wallets.
This is where trading demo accounts come into play. In this review, you will read about the 5 best stock trading demo accounts for you to practice on. You will get a bit of information on the broker as well as the products they offer.
You will also gain useful information on how to trade stocks, why you should use a demo account, the advantages and disadvantages of a demo account, and tips and tricks on how to trade this specific asset class.
Anyone who is familiar with trading stocks has heard of eToro. After all, they have an extensive global reach and now cater to more than 20 million clients from over 100 countries. This broker is famous for its award-winning user-friendly trading platform as well as groundbreaking copy trading services.
eToro offers stocks that can be sorted by industry or exchange. This makes it easier to locate the type of stock you want to practice trading. For stocks sorted by industry, your choices are basic materials, conglomerates, consumer goods, financial, healthcare, industrial goods, services, technology, and utilities.
When sorting by exchange, the available countries are Amsterdam, Brussels, Copenhagen, Frankfurt, Helsinki, Hong Kong, Lisbon, London, Madrid, Milan, NASDAQ, NYSE, Oslo, Paris, Saudi Arabia, Stockholm, and Zurich. Stocks of some of the most famous companies can be traded with eToro. A couple of examples are Nike, Coca-Cola, Apple, Disney, Tesla, and Microsoft.
The great thing about eToro’s trading platform is it offers ease of use. Not only is it organized and pleasant to look at, but it also features technical analysis and useful trading tools. This makes it the perfect environment for newbie traders to train on.
Social trading and copy trading is another key feature of the platform. This basically allows newbie traders to get a second opinion from well-seasoned traders using the same platform. This also allows beginners to mirror other traders’ strategy to see if it’s ideal for the specific asset they are practicing to trade.
Opening a demo account is a fairly straightforward process. All you have to do is register with your username, email address, and password. eToro also gives you the option to link your Facebook or Google account to make the process of signing up easier.
Signing up for a demo account also signs you up for a real account. However, you won’t be able to trade with your live account without depositing funds first. The demo account comes with a virtual value of $100,000 that traders can use to practice on a live market without risking real cash.
If you encounter any problem or have any questions regarding the trading platform, eToro has a built-in help center on their website. Here you will find frequently asked questions and their corresponding answer. You may also open a ticket by filling in the form on the platform, and a customer representative will get back to you within a day.
Etoro’s platform supports a number of languages. These are Finnish, Vietnamese, Thai, Danish, Romanian, Czech, Swedish, Portuguese, Norwegian, Dutch, Polish, French, Arabic, Simplified and Traditional Chinese, Russian, Italian, Spanish, German, and English.
Markets.com was founded in 2008 and has been offering seamless trading and investments in different financial markets around the world ever since. With a wide range of assets and trading tools, this broker has won the award of Best Trading Platform 2020 and many more. Today, Markets.com is a part of a former TradeTech Group, Finalto Limited.
Markets.com offers more than 2200 market shares. Clients can trade stocks from the United States of America, Sweden, United Kingdom, Italy, Spain, Denmark, Australia, Germany, Netherlands, Finland, France, Greece, Hong Kong, Poland, Portugal, Czech Republic, Belgium, South Africa, Austria, and Norway.
The global markets are sorted into different categories. These categories are goods and services, technology, basic materials, financials, industrials, energy, healthcare, utilities, and telecom. Below is a list of their primary stocks.
- Rio Tinto
- Alphabet (Google)
- Deutsche Bank
All these can be traded using their MetaTrader 4, MetaTrader 5, or their own proprietary trading platform, Marketsi or Marketsx. Signing up for a demo account won’t take more than five minutes. You just need to input your email and password, and you’re good to go.
Markets.com’s demo account comes with virtual funds that you can use to get the hang of their platform or devise your own trading strategy for the stocks you plan to invest in. You will be given the opportunity to practice trading with live market values and situations. It’s important to note that if your demo account has no new positions or is inactive for 90 days, Markets.com will automatically deactivate your account.
This broker has a dedicated customer support team that can be contacted via telephone from Monday 12:00 midnight to Friday 11:55 PM GMT +2. They also have a live chat system that is available 24/5. They respond promptly and are sure to answer any of your questions.
Markets.com is not available for traders in India, Singapore, Puerto Rico, Hong Kong, Iran, Iraq, Syria, New Zealand, Turkey, Israel, Canada, Belgium, Japan, Brazil, the Russian Federation, and the United States of America.
XTB is a Europe-based online asset trading broker. Founded in 2004, this broker is one of the leading European brokers with a presence in 13 countries like France, Germany, Poland, and the United Kingdom. With its 15 years of experience and award-winning innovative trading platform, XTB caters to more than 317,000 clients.
With XTB, you can trade stocks as CFDs with a leverage of up to 1:10. You can choose from 1875 shares from Belgium, Czechia, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, the United Kingdom, and the United States of America. Some of the popular companies you can find on XTB’s platform are Apple, Amazon, BMW, and Tesla.
XTB has its own proprietary trading platform, xStation 5. This award-winning platform features fast execution speeds and a user-friendly interface. Availing for their free demo account is very easy. Just enter your email address and your country of residence.
Once you have finished registering, you will be given a virtual fund of $100,000 and access to all their tools and features on the platform. You will have four weeks of risk-free trading to practice or familiarize yourself with trading stocks.
XTB’s customer service is available 24 hours every Sunday to Friday via live chat or email. Below is a list of telephone numbers and their corresponding supported country.
- Czech Republic – +420 228 884 063
- Turkey – +90 (212) 705 1020
- Mexico – +52 5541708767
- Brasil – +55 1142103750
- Colombia – +57 15800534
- Chile – +56 232629600
- Argentina – +54 1152357099
- Peru – +51 17124709
- Cyprus – +357 25725352
- Belize – +48 222 739 976
- Germany – +49 (0) 69 9675 9232
- Romania – +40 31 425 54 93
- France – +33 1 53 89 63 30
- United Kingdom – +44 2036953086
- Thailand – +66 2 026 1622
- Hungary – +36 1 700 8349
- Italy – +39 02 94752633
- Poland – +48 22 2739960
- Slovakia – +421 233 006 951
- Spain – +34 915 706 705 Extensión 2
- China – +44 2036953086
- Vietnam – +84 287 300 3301
It’s important to note that traders from Romania, Kenya, Iran, Iraq, Syria, Cuba, Ethiopia, Uganda, Bosnia and Herzegovina, Pakistan, India, Israel, Turkey, Mauritius, Singapore, Slovakia, Australia, Japan, Canada, and the United States of America are not eligible to sign up for an account with XTB.
#4: Admiral Markets
Admiral Markets has an extensive global reach, with main offices located in Estonia, Tallinn, Germany, and India. This broker was founded in 2001and has since been offering its services to traders around the globe. They hold multiple titles, including Best Education and Training 2020.
With Admiral Markets, you can trade stocks as it is or as CFDs. There are over 3300 shares to choose from. This ensures maximum exposure to the different types of stocks available on the market. You can either sort these by exchange and country or sort by industry. Below is a list of exchanges and their corresponding countries.
- Australia – ASX
- Austria – VIE
- Belgium – Euronext
- Denmark – CSE
- Finland – NASDAQ
- France – Euronext
- Germany – Xetra
- Japan TSE
- Netherlands – Euronext
- Norway – NASDAQ
- Portugal – Euronext
- Spain – BME
- Sweden – NASDAQ
- United Kingdom – LSE
- Unites States – AMEX, NASDAQ, and NYSE
Some of the most well-known companies like Tesla, Amazon, Apple, Twitter, Facebook, Coca-Cola, and Disney can be found here. All these can be traded on their MetaTrader 4 or MetaTrader 5 platform. These trading platforms are great for traders who are looking to practice using the most well-known platforms.
Admiral Markets’ demo accounts give would-be traders the opportunity to get used to the platform without risking real money. To open a demo account, you will need to register by filling up the form on their website. They will ask for your country of residence, full name, email address, password, and contact number.
Once you’ve successfully opened a practice account, you will be given full access to their trading platform along with $10,000 in virtual funds. You will be trading in real-time with a 15-minute delay. You can contact their customer service if you come across any problem on their platform. You can either send them an email or message them on WhatsApp. You may also call their telephone number (+442035041540) if you have any queries.
Admiral Markets’ website supports a wide range of languages. These are English, Dutch, Spanish, Estonian, Croatian, Vietnamese, Arabic, Chinese, Italian, Portuguese, Russian, Czech, Indonesian, Bangla, German, Romanian, Latvian, Hungarian, Hindi, Khmer, French, Lithuanian, Polish, Slovene, Thai, and Korean.
Traders from Singapore, Malaysia, Japan, Australia, Canada, and the United States of America are not permitted to use Admiral Markets’ platform.
#5: Interactive Brokers
Interactive Brokers is one of the oldest online stock brokers on the market. With 43 years of experience, this company has an equity capital of more than $9 billion and executes more than three million trades each day. They have a global presence and headquarters located in the United States, Switzerland, Canada, United Kingdom, Hong Kong, Russia, Hungary, Australia, China, India, Japan, Singapore, Estonia, Ireland, and Luxembourg.
There are over 80 market centers to trade from on their cutting-edge and professional trading platform. Here is a list of the available regions as well as their corresponding market centers.
- Australian Stock Exchange (ASX)
- Chi-X Australia
- Hong Kong Stock Exchange (SEHK)
- Shanghai-Hong Kong Stock Connect (SEHKNTL)
- Shenzhen-Hong Kong Stock Connect (SEHKSZSE)
- National Stock Exchange of India (NSE)
- CHI-X Japan (CHIXJ)
- Tokyo Stock Exchange (TSEJ)
- Singapore Exchange (SGX)
- Vienna Stock Exchange (VSE)
- Nasdaq Baltic (N.TALLINN)
- Bats Europe (BATEEN)
- CHI-X Europe Ltd Clearnet (CHIXEN)
- Euronext France (SBF)
- Turquoise (TRQXEN)
- CBOE EU
- CHI-X Europe Ltd Clearstream (CHIXDE)
- Frankfurt Stock Exchange (FWB)
- Stuttgart Stock Exchange (SWB)
- Tradegate Exchange (TRADEGATE)
- XETRA (IBIS)
- Budapest Stock Exchange
- Borsa Italiana (BVME)
- Nasdaq Baltic (N.RIGA)
- Nasdaq Baltic (N.VILNIUS)
- Euronext NL Stocks (AEB)
- Warsaw Stock Exchange
- Moscow Exchange
- Bolsa de Madrid (BM)
- Swedish Stock Exchange (SFB)
- VIRT-X (VIRTX)
- London Stock Exchange (LSE)
- LSE International Order Book (LSEIOB1)
- Tel Aviv Stock Exchange
- ArcaEdge (ARCAEDGE)
- Bats BYX (BYX)
- Bats Global Markets (BATS)
- Chicago Stock Exchange (CHX)
- Direct Edge (DRCTEDGE)
- Direct Edge (EDGEA)
- IB VWAP Dealing Network (VWAP)
- Knight Securities
- Long-Term Stock Exchange (LTSE)
- Members Exchange (MEMX)
- MIAX PEARL
- NASDAQ (NASDAQ)
- NASDAQ OMX BX (BEX)
- NASDAQ OMX PSX (PSX)
- New York Stock Exchange (NYSE)
- NYSE American (AMEX)
- OTC Markets Pink (PINK)
- Alpha ATS (ALPHA)
- Chi-X Canada
- Omega ATS (OMEGA)
- Toronto Stock Exchange (TSE)
- TSX Venture (VENTURE)
- Mexican Stock Exchange (MEXI)
Interactive Brokers’ trading platform is fully customizable and relatively user-friendly. They offer prospective clients the opportunity to test their platform without risk. This allows you to trade in a simulated environment whenever you want.
It’s common to have questions or concerns. You can contact Interactive Brokers’ customer support via email or telephone. However, their website features a help desk with FAQs. This should be enough to address most concerns.
This particular broker is very strict when it comes to their clients. They only accept traders from the United States, Canada, and United Kingdom.
What is a stock trading demo account?
A stock trading demo account, as the name suggests, allows you to trade stocks or CFDs for stocks. Although you do not become a part-owner of a company by buying the underlying stock, you get to experience what it feels like to buy and trade stocks and shares through your designated broker.
You’ll be given virtual funds to trade whatever company you wish with realistic trading conditions such as margin, leverage, and spread. Other conditions such as added commissions or you receiving dividends through your demo account are dependent on the broker you choose. However, most of the features offered by your chosen broker may most likely be accessed by you. This includes research for technical and fundamental analysis, tutorials and guides on trading and their platform, and access to charts and watchlists.
Depending on the broker you choose, the virtual funds credited in your demo account may vary but is usually more than 10,000 USD. Leverage and margin allowed will also vary per broker, so be sure to check that. Some brokers will also limit your use of demo accounts by only letting their clients use them for a month. However, since demo accounts are free, you can create another one if your previous one expires.
Why should you use a stock trading demo account?
The best thing about demo accounts is that they are risk-free as well as hassle-free to create. Usually, you only need to put in your email address and name to create an account. With unhindered access to most of the features on the platform your broker offers, you can freely explore what they have to offer and what their trading conditions are. Some brokers only offer the more popular indices while others expand their range of products to include smaller markets, and this brings about more opportunities to trade. Knowing what your broker offers will assist you in deciding your desired trading partner.
Being a risk-free way to learn, you get to experiment with your own trading styles or perhaps even using trading bots. You can even discover or create a new trading strategy by mixing and matching different indicators. Depending on the platform, you can also choose to create your own trading bots or modify an existing one.
Some new demo account users may also encounter CFDs and options for the first time when trading using a stock trading demo account. This is a great way for them to learn more about these as they can greatly affect your trading one way or another. Since options trading has more risks and more complicated terms, having a demo account enables you to practice and create multiple strings of options trades without the fear of losing money.
Generally, having a demo account prepares you for real live trading. You get to experience competitive or wide spreads depending on the asset you choose to trade. You also learn which stocks are worth trading by observing trends that relate to demand or perhaps even their fundamental factors.
For veteran traders, it is never a bad thing to hone acquired skills or test out new ones. Some may even use this opportunity to gain back their confidence in the event of a losing streak.
Additionally, some brokers offer perks to their clients in the form of a contest. Whichever demo account tops the leaderboards in terms of gain will win a cash prize that would be credited to their live account.
Advantages and disadvantages of a stock trading demo account
Although most stock trading demo accounts also offer the opportunity to practice trading other asset classes, there are some that do not. This hinders the chance to actually transition to learning more, especially if the stock trading is not your forte which could be in forex or in options trading.
Depending on your broker, you might not have access to CFDs or Contracts for the difference, which allows you to either go long or short depending on your chosen trade direction. Also, some won’t allow you to use margin or leverage until you meet set conditions and criteria directly linked to your account.
While most brokers do offer the major exchanges in their list of available products, some do not offer markets found in Asia, where a lot of trends and opportunities can be found. Not only this, but if they do offer other exchanges, not all stocks that are listed will be available to you. It is definitely best to double-check what assets are being offered for each broker to maximize your potential.
Keep in mind that your selected broker might not offer the stock that you want, given that it might be in another market or probably because it was just listed recently. It is always best to test out the limits of what your broker can offer in terms of market coverage.
How to trade stocks
Stocks are one of the easiest asset classes to trade due to them usually only trading in a single direction and only having to either buy a stock that you want and sell if you want to exit your position.
Upon creating your account and logging in to your demo account, depending on your trading platform, you’ll see charts, a watchlist, and your own personal portfolio, which you’ll be filling up with stocks that you have purchased.
The first thing you need to do is to select a stock that you want to trade. If you have difficulty choosing one, you can use market screeners that will filter out favorable trades that follow your trading rules and conditions. If your broker doesn’t have a built-in screener, a third-party screener is readily available online.
Once you have selected the stock that you want, be sure to also check its chart to familiarize yourself with its trend and possible risk if ever it goes down or if it doesn’t go in your favor. You can do this through the identification of supports and resistances.
You also need to set up your trade by inputting your desired trading volume at a certain price. If you want your trade to be filled or executed immediately, you can select “market price,” or you can choose a high bid price.
Depending on your broker and if the product offered is a stock CFD, there might be an option to adjust the leverage on your trade. You can do that while entering your trade.
To close a position, you need to navigate your way to your portfolio and select the stock you wish to sell. If available, you can click on the X mark that appears on your portfolio, or you can manually sell a position by doing the same steps above when you first bought the stock but changing the desired trade to “Sell” instead of “Buy”.
Tips and tricks
One of the best things about stock trading is the diversification of industries and companies that are available for trading. To find the best stock to trade, you must first find the industry that is trending the most. For example: During the 2020 rally of stocks, the Electric Vehicle sector as a whole was one of the biggest winners. Within this sector, you can filter out each stock based on volatility and trend. You would find out that in the first few months, Tesla was the fastest mover, but in the later months, Chinese EV companies, as well as smaller EV companies, took the lead.
To assist you in finding out the fastest industry, an indicator called Relative Strength is applied, and this would find the top sectors that are the strongest and would rank them on a percentile basis. This indicator shouldn’t be confused with a stock’s RSI (Relative strength index), which measures the strength of each stock based on its past movement, whereas its counterpart compares a stock or industry with other assets.
One key factor in being successful in stock trading is the ability to discern your appropriate risk per trade. If a trade goes wrong, you should be able to limit your losses while maximizing your gain if you are right. Practice and backtesting are key to this, so be sure to utilize the demo account as much as you can.
One of the best strategies that a stock trader could also use is trading stocks that have reached their all-time high recently. There is a tip in the trading world in that whatever goes up will continue to go up until the trend is broken.