What is a Demo Account?
A demo account is a trading platform that allows traders to practise using the platform without making a deposit. Its primary goal is to train your trading skills, particularly for newcomers who want to venture into the trading world. Funds are simulated in a demo account so you can test your trading strategy or check the execution, trading tools, and other available features risk-free.
You can trade not only stocks, but also other financial instruments and assets such as gold, commodities, Forex, CFDs, oil futures, and so on, with a demo account. The only difference is that it does not necessitate a one-time deposit. At the same time, you will have the opportunity to put your skills to the test in real-world situations. This is an excellent opportunity to fine-tune strategy.
How Demo Account Trading Platform Works?
A demo account functions similarly to a game simulator. In the form of games, simulation games attempt to imitate various real-life events.
Stock market demo trading accounts, like simulation games, allow you to do this on a computer simulator. The virtual trading environment enables you to become acquainted with the platform while also practising and honing trading strategies. In other words, you will be trading with ‘fake money,' which carries no risk in real-world market conditions.
List of Best Stock Trading Demo Account 2023
Traders can register for and open a demo account with eToro by doing the following:
- Go to the eToro website and click the ‘Register' button.
- Traders must first register on the eToro website before they can convert their live account to ‘virtual' or demo account mode.
- After selecting to register, merchants will be directed to an online application where they must enter their First and Last names, as well as a Username and Password, before entering their phone number.
- Then, merchants can click ‘Create Account,' which will take them to a new page. The new open page is a trading platform for traders, where they can trade, deposit funds, access trading markets, copy others, and do other things.
- Traders must fill out their account information by clicking ‘Complete Profile.'
This account serves two purposes: it is a live account, but the trader can convert it to a ‘virtual' account, which serves as a demo or training account, by pressing the ‘live' dropdown and selecting ‘virtual' from the two options provided.
|User-friendly platform||No technical analysis available, thus not suitable for experienced traders|
|Copy Trading feature available|
|Regulated by the FCA, CySEC, ASIC|
Source : Facebook
Signing up for a demo account with Libertex consists of the following simple steps:
- Visit the Libertex website
- Go to the demo account sign up portal
- Provide your details, such as name, location, email, and create a password.
- Read and accept the terms and conditions
- An email will be sent to your inbox with a link to register
|Competitive commission fees with tight spread||Allows CFD trading only|
|Compatible with MetaTrader 4|
|Excellent educational tools|
Source : Facebook
Traders can register for and open a demo account with AvATrade by following the steps below:
- Go to the AvATrade website and click on ‘Demo Account.' This link is accessible via the ‘Register Now' button.
- A new page will load, and merchants can sign up for a demo account by filling out an online form or by using their Facebook or Google credentials.
- Merchants must provide basic information such as their first and last name, email address, and phone number in order to register in the traditional manner.
- When the merchant fills out this form or uses the Facebook or Google credentials, which automatically fill in all of the information, a new page will load to indicate that the demo account registration was successful.
- The trader will be given an automatically generated password, which can be changed in the ‘My Account' section of the account demo.
|Zero commission||Allows CFD trading only|
|Compatible with MetaTrader 4/5|
|Islamic trading account available|
|Regulated by ASIC|
4. TD Ameritrade
Source : Facebook
The first step in getting started with paper trading at TD Ameritrade is to download a software known as thinkorswim.
- Once you've downloaded the software, it's time to log in and start trading. At the login screen, you will be given two options: live trading or simulated mode. The broker refers to the second option as “Paper Money.” Select this option only if you already have an account; otherwise, you'll be trading with real money.
- Once inside, double-check to ensure that you are indeed in simulated mode. This will be indicated by a brown tab at the platform's top that says “SIMULATED TRADING.” That's a pretty good indication that you're in demo mode.
Underneath this section, you’ll also see balance information. You should have $200,000 worth of buying power. That’s another sign you’re on a simulator.
|Zero commission for stocks and ETF trading||Interface is complex, not user-friendly|
|Available for iOS and Android devices|
Which Broker is Best for a Demo Account?
According to our research, the overall best stock demo account trading platform is eToro. The platform is known to be super user-friendly, which makes it easier for new traders to get used to, also equipped with its top-rated feature, Copy Trading.
Copy Trading allows other investors to copy your favourite, successful investors in trading.
Benefits of Stock Trading Demo Account
Beginners benefit from the ability of demo accounts to simulate real trading because they have access to comprehensive training tools at no cost. The only difference between this and a Live account is that you are not using real money, so there is no real profit.
The following are the primary reasons to begin with a demo account:
1. Market Research
Traders will gain an understanding of the market and have the opportunity to practise trading in real-world conditions.
2. Access to Financial Instruments
Traders will be able to put their trading strategies to the test using all available financial instruments. It not only covers stocks, but also commodities, metals, CFDs, oil futures, currency pairs, and so on.
3. Trading Experience
Demo accounts are a risk-free way to determine your unique trading style and tactics. Even if you lose, you are not putting your money at risk. Simultaneously, you will comprehend the advantages of various trading conditions such as leverage, pip, margin conditions, and others.
4. Technical Analysis
Traders have an excellent opportunity to learn technical analysis skills. You will learn how to read trading charts and apply key technical indicators.
5. Advanced Trading Tools
Above all, demo accounts provide access to the best trading platforms for desktop and mobile, as well as integrated advisory services, daily analysis, and technical analysis.
Moving From Demo Trading Account to Real Money Trading Account
As a new investor, you should be aware of your investment risks and risk tolerance. If you are the type who is impatient, rushes into the market without conducting research, and likes to make large transactions, these are the main reasons why you will lose money in the stock market.
As a result, it is best to begin your trading journey by familiarising yourself with the best demo account available for Malaysian investors.
Once you understand how online trading works, you can progress to a real trading account where you can trade with real money.
If you're new to the financial markets, opening a demo account for stock trading is the best way to learn the ropes. It offers a risk-free and exceptional trading experience in which beginners can develop winning strategies without risking real money.
Furthermore, with the ability of demo accounts to simulate real trading, beginners have access to comprehensive training tools at no cost. The only difference between this and a live account is that you are not using real money, so there is no real profit.
As a result, it is critical to select the best stock trading demo account in Malaysia that is appropriate for your trading journey, and we hope that this article has assisted you in making a decision that will benefit you in the long run.