As a new trader, using real money to learn how to trade currencies can result in huge losses. This is the same for experienced traders who want to try new strategies.
Thankfully, with a demo account, you can reduce your risk exposure by practicing how to trade with different strategies using virtual money.
Most brokers offer demo accounts, but the broker you open an account with goes a long way to determining your trading experience, so you want to carefully choose one.
In this article, we have compiled a list of some of the best forex demo accounts in Canada. All the brokers that have made it to this list are regulated by the Investment Industry Regulatory Organization of Canada (IIROC).
Comparison of Forex Brokers in Canada
| Broker | IIROC Regulated | USD/CAD Spread (Pips) | Min. Deposit | Visit |
|---|---|---|---|---|
| Forex.com | Yes |
2.2
|
100 CAD
|
Visit Broker |
| CMC Markets | Yes |
1.3
|
No minimum deposit
|
Visit Broker |
| AvaTrade | Yes |
1.5
|
300 CAD
|
Visit Broker |
| FXCM | Yes |
0.7
|
50 CAD
|
Visit Broker |
| OANDA | Yes |
1.6
|
No minimum deposit
|
Visit Broker |
| Interactive Brokers | Yes |
1.6
|
$100
|
Visit Broker |
6 Best Forex Demo Account Canada
Here are some of the best forex demo accounts you can open as a resident of Canada:
- Forex.com –Forex Broker That Offers Quality Demo Trading Experienc
- CMC Markets – Forex Demo Account Broker with Wide Range of CFD Instruments
- Avatrade –Broker With Short Demo Account Duration
- FXCM –Forex Broker That Offers Variety Of Demo Trading Accounts
- Oanda –Forex Broker With Easy Demo Account Interface For Beginners
- Interactive Brokers – Forex Broker With High Demo Account Virtual Funding Amount
You need to understand these forex brokers and their trading conditions. Let us take you further into these details.
#1 Forex.com – Forex Broker That Offers Quality Demo Trading Experience
Forex.com is one of the most popular Forex and CFD trading platforms in Canada and the USA as well.
They offer Forex.com’s proprietary trading platform for web and mobile, and support MetaTrader 5 demo trading accounts with the following features:
Demo account duration: The demo account that forex.com offers has a validity period of 90 days, starting from the day you sign up. After the expiration of these 90 days, you will no longer be able to sign in to your demo account, and it cannot be renewed.
It is also noteworthy to add that you can only open one demo account for each type of trading platform per email.
Amount of virtual fund: When you sign up for the forex.com demo account, you get a $50,000 free virtual fund with which you can practice different trading strategies.
This amount is the same whether you are trading on Metra 4 or 5.
Access to the global market: This demo account gives you access to over 80 tradable currency pairs. This means that you can practice trading with the different currency pairs that you tend to use in a live trade.
Aside from the wide range of currency pairs, the Forex.com demo account also gives you access to trade assets like Gold and Silver.
Chart tools and Market Analysis: They also provide demo traders with access to professional charts, tools, and indicators like Parabolic SAR, and Bollinger Bands.
The demo account is integrated with news and market analysis with which you can make trading decisions like in a live trade.
You can also make use of their customizable drawing tools to improve your trading experience.
#2 CMC Market – Forex Demo Account Broker with Wide Range of CFD Instruments
CMC Market is one of the most regulated Forex brokers. Aside from being regulated by the IIROC, they are also regulated by the Australian Securities & Investment Commission (ASIC), the Monetary Authority of Singapore (MAS), and the Financial Conduct Authority (FCA).
This Forex broker is regarded as one of the best across the globe, and they offer demo accounts with the following features:
Demo account duration: The demo account that CMC Market offers is unlimited. This is to say that it does not expire and can be used for as long as you desire.
You can also open multiple demo accounts with the same email address. It is noteworthy to add that as a demo trader, you can trade in the CMC Markets platform, Next Generation or MT 4.
Amount of virtual fund: Once you successfully sign up for a CMC Market demo account, you will be gifted a £10,000 virtual fund which you can use to learn how to trade.
Access to the global market: CMC Markets gives you access to trade with up to 330 Forex pairs. This includes both major, minor, and emerging currencies.
This broker is also known for providing traders with a wide range of assets to trade with like CFDs, commodities, individual shares, and indices. It is important to add that up to 80% of traders with CMC lose money when trading CFDs.
Chart tools and Market Analysis: CMC Markets provides demo traders with professional chart tools and Market analysis like in a live trade with which they can learn.
One of the major differences between the CMC Markets demo account and live trade is slippage ( i.e when you stop loss order is executed at a different price from what you set).
When you set a stop loss order in a CMC Markets demo account, you do not have to worry about slippage, but the same cannot be said for live trading.
They also provide you with educational materials in the form of written articles and videos to make learning easier for you.
#3 Avatrade – Broker With Short Demo Account Duration
Avatrade has one of the best demo account offerings in Canada and is not only regulated by the IIROC but also by regulatory bodies across other countries and continents like FSCA, FCA, and BVI.
Some of the noteworthy features that the Avatrade demo account offers include:
Demo account duration: The demo account that Avatrade offers has a duration of 21 days i.e three weeks. This is regarded as one of the downsides of Avatrade demo accounts.
Notwithstanding, when the account expires, you can add another demo account to practice with. You should also know that this 21 days validity cuts across the MT 4 and MT 5 on the web trader, and mobile app trading platforms that AvaTrade offers.
Amount of virtual fund: Avatrade gives you a $100, 000 free virtual fund with which you can practice how to trade on your demo account.
Access to the global market: When practicing Forex trading with Avatrade, you can access over 40 currency pairs.
This broker also offers up to 1000 instruments to demo trades like commodities, ETFs, CFDs, etc. It is noteworthy to add that all of these assets come with their risks.
Chart, tools, and Market Analysis: Avatrade demo account offers professional charts, and risk management tools like stop loss, take profits, and ava protect.
You also practice copy trading using this demo account features like; DupliTrade, and AvaSocial.
#4 Fxcm – Forex Broker That Offers Variety Of Demo Trading Accounts
Fxcm is forex broker that offers their services in Canada and is a member of IIROC.
Fxcm offers a variety of demo accounts: MetaTrader 4 demo, ZuluTrade demo, and FXCM Trading Station demo. Here are some of the features of these demo accounts.
Demo account duration: The Fxcm demo account has a validity period of 30 days, after which, you can no longer access the account.
You should also know that you can not opening more than one demo account per email. This account is open for use 24 hours a day, 5 days a week.
Amount of virtual fund: Once you sign up for the Fxcm demo account, you will receive up to $20,000 in virtual funds which you can use to practice.
Access to the global market: The Fxcm demo account offers you the opportunity to practice trading with up to 60 currency pairs including minor, major, and exotic pairs.
You can also use the Fxcm demo account to practice how to trade CDFs. This broker provides you with access to trade over 250 assets, terms and conditions applied.
Chart tools and Market Analysis: Fxcm demo account gives you access to charts, tools, indicators, and market analysis to help you make trading decisions while practicing.
#5 Oanda – Forex Broker With Easy Demo Account Interface For Beginners
Oanda is a forex broker that is regulated in many jurisdictions including Canada by the IIROC and the UK.
Oanda offers a demo account that allows you to trade on MetaTrader 4 and Proprietary Platform – Trading View.
Some of the features of the demo account for this broker include:
Demo account duration: Oanda’s demo account is unlimited. You do not have to worry about account expiration. This is one of the good sides of Oanda.
Amount of virtual fund: On signing up for an Oanda demo account, the account will be credited with a starting balance of $100,000.
Access to the global market: On an Oanda Forex Demo account, you can practice trading up to 70 currency pairs under real market conditions.
Oanda also trades CFDs and about 120 other assets aside from Forex. It is noteworthy to add that over 73.5% of the CFD traders in Oanda lose money.
Chart tools and Market Analysis When trading using Oanda, you can use technical analysis tools, customizable features, and strategies like leverage, stop loss and take profits.
#6 Interactive Brokers – Forex Broker With High Demo Account Virtual Funding Amount
Interactive Brokers offers one of the best Forex Demo accounts in Canada, they are also regulated within Canada and other countries like Australia, the UK, and Germany to mention but a few.
Some of the features of their demo account include:
Demo account duration: The demo account that interactive brokers offer is unlimited and active for 24 hours.
Amount of virtual fund: On signing up for an Interactive broker Demo account, you get access to $1,000,000.
Access to the global market: When trading on an interactive broker Demo account, you have access to over 100 currency pairs on 24 currencies.
Aside from Forex, you can also trade options, shares, futures, bonds, etc. on interactive brokers.
Chart tools and Market Analysis: This demo account gives you access to advanced tools like; Charts, Market Scanner, Volatility lab, options strategy lab, and probability lab to mention but a few.
They also offer market data for all products. It is noteworthy to add that all data except for OTC spot FX and OTC spot Metals are delayed by about 10 to 15 minutes.
How to Choose the Best Forex Demo Account in Canada
When choosing a demo account to trade with, it’s fine to try out several brokers to see what works best for you. However, when choosing a demo account broker in Canada with whom you will like to continue with, here are some things to put into consideration.
1) Take Note Of The Demo Account Duration
When choosing a demo account, you want to consider brokers that offer a free trial period that is long enough to allow you to learn.
This is why brokers who give an unlimited duration period are usually advisable, as it allows you to practice even as a beginner and later on as an experienced trader who wants to try out new strategies.
If the broker does not offer unlimited free trials, then those that offer between 30 to 90 may be considered.
2) Virtual Fund
One of the important things to consider when choosing a demo account is the size of virtual funds.
You may want to consider accounts that offer virtual funds that are enough for you to try out different trading strategies.
Accounts that offer small virtual funds may limit your flexibility during practice.
You also want to keep in mind that when an account offers a large virtual fund like $1,000,000 if you do not have much money to trade with in live trade, you can not see the same results.
3) Features Of The Demo Trading Platform
The features of the demo account are another important consideration to put in mind when choosing a demo account.
Firstly, you want to go for accounts that offer technical analysis tools, indicators, market data, and other useful tools for live trade.
Second, you should consider accounts that have an easy-to-navigate interface, especially if you are a beginner.
Another thing you want to put into consideration is the platform’s customer service. Any platform that does not provide good customer service may not be a good idea, because even in live trading this can pose a problem.
Lastly, the level of exposure to the global market the platform offers should also be put into consideration. You may want to put platforms that offer a wide range of currency pairs and other assets into consideration.
However, you should keep in mind that irrespective of what you want to trade, you will be exposed to risks, some of which you cannot control (e.g Volatility).
FAQs on Best Forex Demo Account Canada
What is the best demo account for forex?
The best demo account for Forex will be one that is regulated by IIROC, gives you enough free trial duration, virtual funds, and trading features like copy trading, technical analysis tool, and other relevant tools for live trading.
Can you trade forex with a demo account?
Yes, you can trade Forex on a demo account. A demo account allows you to practice using virtual money to make virtual profits and losses under real market conditions.
Are forex demo accounts free?
Yes, most brokers offer a free Forex Demo account. On opening the account, you will be credited with a starting balance for free with which you can practice.
How do I create a forex demo account?
The process for creating a Forex Demo account differs from one broker to another. However, what platforms request that you provide information about your country, name, and email address?