Practice Trading is where you use virtual money to trade under real market conditions. The platforms are usually identical to the real trading platform the only difference is the money you're using is opening simulated positions and not real trades.
In my opinion, practice trading is the best way to learn about forex and trading. So i've put together 5 places where you can practice trade forex completely free. You don't need to spend any money to use these platforms.
Why you should practice trade forex
Learn to use the platform
Forex trading platforms can vary widely between brokers. Many offer proprietary platforms. The last thing you want to do is make a losing trade simply because you couldn't understand how to use the software. So even if you're an experienced trader, I recommend trading using a practice account until you've gotten to grip with opening and closing orders on your platform of choice.
Understand the basics of forex
The best way to learn about trading and forex is to practice trade! You can read all the articles in the world, but nothing will replace actually opening and closing trades on a platform. And of course you don't want to learn using real money. Through practice trading, you'll learn how to open and close trades. You'll learn about using leverage and you'll also learn how to read and understand charts.
eToro is my pick of forex trading platforms. They have a well designed and easy to use web trader and offer one of the largest selections of markets to trade in. You can trade a huge selection of cryptos, stocks from all over the world, commodities, cryptos, ETFs and more. Basically if it's tradable it's on eToro.
eToro also offers copy trading. Using copy trading, you can automatically copy the trades of other users on the platform. You simply browse through the profiles of leading traders and then allocate funds to copy trade. You can copy trade with a practice account on eToro, which allows you to simulate under real trading conditions what copy trading will do.
With eToro I love being able to switch back and forth between my real and virtual trading accounts with a click. You don't need to login and out again which is very nice! This way I can practice some of my riskier ideas in virtual mode and leave my real account for copy trading and safer stock investments.
Disclaimer: 75% 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.
If you're looking to practice trade using MetaTrader, then my goto recommendation is XM. XM offers demo accounts for both the MT4 and MT5 platforms. XM doesn't offer a huge range of markets to trade in – they specialise in forex with limited stock and commodity trading. Once you're done practicing XM offers one of the most professional accounts for forex trading with low spreads and commissions.
EasyMarkets offers a proprietary and easy to use web trading platform. It's perfect for beginners. And yes they obviously offer a free practice trading account. One unique feature that's worth pointing out is the dealCancellation. This feature allows you to cancel losing trades without incurring a loss if done so within 60 minutes. So when you are ready to move over to a real trading account, you have a little extra protection against losing trades.
Plus500 offers a pretty well designed web trader platform which will suit beginners. They offer a free practice account which will give you $100k in virtual money to trade with.
Plus500 offers a fairly large range of markets to trade in including Forex, stocks and cryptos.
Most platforms accept deposits using fiat currency. Whaleclub is a little different in that it only offers cryptocurrency deposits. But it also offers in my opinion one of the best beginner friendly interfaces for trading. Whaleclub is free to join, and when you do, you'll get a demo account.
With your demo account you can trade forex, cryptocurrency and a small selection of stocks. Because Whaleclub is powered by cryptocurrency you won't need to worry about any lengthy verification procedures either. So you can get started practice trading in a matter of minutes.