A demo account is the best free training tool in trading. You get a real trading platform, real live prices and virtual money — so you can learn how everything works before risking a single cent.
What is a demo account?
A demo account works just like a live account, but with virtual funds (often $10,000 or more). You can place trades, set stop-losses, test strategies and get comfortable with the platform. Any profit or loss is virtual.
How to open one — in about 5 minutes
Option 1: through a broker (recommended)
1. Go to the broker’s website and choose Open demo account (or “Try demo”).
2. Enter your name and email.
3. Choose your platform (for example MT5), account currency and virtual balance.
4. You’ll receive your login, password and server name by email.
5. Install MT5 and log in (see our guide How to install MT5).
Opening your demo with the broker you plan to use means you practise with its real prices and conditions.
Option 2: directly in MT5
In MT5, go to File → Open an Account, search for a broker, choose Open a demo account and follow the steps.
How to get the most out of a demo
- Use a realistic balance. If you plan to start live with $500, set your demo to $500 — not $100,000.
- Follow a written plan. Decide your entry rules, stop-loss and risk per trade before each trade.
- Keep a trading journal. Note why you took each trade and what happened.
- Trade the same hours you would live. That way you experience the real spreads and pace.
- Give it time. A few weeks of consistent practice teaches far more than a few days.
What a demo can’t teach you
- Emotions. Real money feels very different — many traders find it harder to stick to their plan when it’s live.
- Every real-world condition. Fills, slippage and spreads around big news can be slightly different on a live account.
That’s why many traders move to a small live account once they’re consistent on demo, rather than jumping straight to a large one.
When are you ready to go live?
A good sign is when you can follow your plan for several weeks: using stop-losses on every trade, keeping risk per trade small and understanding why you won or lost.
Frequently asked questions
Are demo accounts free?
Yes. Brokers offer demo accounts free of charge.
Do demo accounts expire?
Some do after a period of inactivity, often 30–90 days. You can usually open a new one.
Can I withdraw demo profits?
No — demo money is virtual.
Next step: Read Lesson 11, Risk Management Essentials, in our free course — or compare brokers that offer free demo accounts.
Capital at risk. This article is general education, not investment advice.