Forex Demo Account: How to Open One on MT5 and Practise Properly
A forex demo account is a practice account that trades live market prices with virtual money. You open one free in MetaTrader 5 in a few minutes, on your phone or computer, practise your plan with a realistic balance, and move to a live account once you can follow it trade after trade.
Module 3 · Lesson 7 of 7
What you'll learn
- What a forex demo account is and what it costs (nothing).
- How to open an MT5 demo account on Android, iPhone and a computer.
- What is the same as a live account and what is not.
- A four-week plan to practise properly, not just click buttons.
- How to tell when you are ready to move to a live account, and how to make the switch.
This lesson closes MetaTrader 5 Basics. It builds on installing MT5 and logging in and placing your first trade.
What is a forex demo account?
A forex demo account is a practice trading account that uses live market prices but virtual money, so you can learn the platform and test a plan without risking a deposit. It is free, opens in minutes, and works on the same MetaTrader 5 (MT5) app you would use for a live account.
MetaQuotes, which makes MT5, describes demo accounts as a training mode without real money that has the same functionality as a real account. You choose the virtual deposit and leverage yourself when you open it. With a CFD broker, the positions you open are contracts for difference (CFDs), settled in cash just as on a live account, only with virtual money.
Because the money is virtual, demo profits cannot be withdrawn and demo losses cost nothing. KCM Trade's help centre answers the withdrawal question in does a demo account trade with real money?
How do you open a forex demo account on MT5?
To open an MT5 demo account, open the accounts page in the app, search for your broker's server, choose Demo account, fill in your name, email, phone, account type, leverage and deposit, then tap Register. MT5 then shows your login, master password and investor password. Save them before you tap Ready.
At KCM Trade, the demo account lives in KCM Pro rather than on an MT5 demo server: register at pro.kcm.trade, open a demo account and practise on the charts inside KCM Pro.
On an Android phone or iPhone
The steps follow MetaQuotes' Android and iPhone help:
- Install MetaTrader 5 from Google Play or the App Store and check the publisher is MetaQuotes.
- Open the accounts page and tap to add an account.
- Type at least three letters of your broker's name and tap its server.
- Tap Demo account.
- Enter your first and last name, a mobile number in international format (a plus sign, then your country code) and your email.
- Choose hedging or netting (see netting vs hedging), the account type, the leverage and the deposit.
- Tap Register, then copy the login and passwords somewhere safe and tap Ready.
On a Windows or Mac computer
In the File menu, choose Open an Account, search for your broker's server, choose a demo account and fill in the same form, as the desktop help shows. The last screen also shows a QR code: scan it in the mobile app to open the same demo account on your phone.
Which demo deposit and leverage should you choose?
Choose a demo deposit close to the amount you will really deposit, and the leverage your live account will have. A large virtual balance teaches sizes and habits you cannot use later.
Worked example: you plan to deposit $300. You open 0.10 lot of EURUSD with a stop loss 30 pips away. On EURUSD, 0.10 lot is worth $1 per pip, so the stop costs 30 × $1 = $30.
| Demo balance | $30 loss as a share of the account |
|---|---|
| $10,000 | 0.3%, which feels like nothing |
| $300 | 10%, a serious hit |
To risk 1% of $300, which is $3, the size has to be $3 ÷ (30 pips × $10 per pip per lot) = 0.01 lot. Practising with $300 trains you to trade 0.01 lot from day one. The method is in position sizing.
What is the same on demo and live, and what is not?
On a demo account the platform, order window, charts and price feed work as on a live account, but order fills, account settings and, above all, the pressure of real money can differ. That is why demo is the place to learn the steps and test a plan, and a small live account is the place to test yourself.
| Demo account | Live account | |
|---|---|---|
| Platform and order window | Same | Same |
| Prices | The broker's demo price feed | The broker's live price feed |
| Money | Virtual, chosen by you, cannot be withdrawn | Your deposit, can be withdrawn |
| Fills and slippage | May not match a live account, especially around news | Depend on real market conditions |
| Spreads and swaps | Set by the demo account type | Set by your live account terms |
| How long it lasts | Some brokers remove demo accounts after a set time or inactivity | Stays open while you use it |
| Pressure | Little | Real money makes every decision heavier |
If an old demo stops working with an "Invalid account" error, it has expired; MetaQuotes notes that the platform may open a new demo on the same server.
How should you practise on a demo account?
Practise on a demo account with a written plan, a realistic balance, a stop loss on every trade and a journal, for a set number of weeks, so the account tests a method rather than your luck. Random clicking teaches the buttons but not the habits that keep a live account open.
A four-week plan:
| Week | Focus | Done when |
|---|---|---|
| 1 | The platform | You can place, modify and close market and pending orders on phone and computer without a mistake |
| 2 | Risk | Every trade has a stop loss and take profit and a size worked out from 1% risk |
| 3 | One plan | You trade one or two pairs, one session and one setup, written down before you start |
| 4 | Review | You log every trade in a trading journal and work out your win rate and average win and loss |
Keep the trades you take on demo the same as the ones you would take live. The pre-trade risk checklist is a quick test before each order.
When should you move from a demo to a live account?
Move to a live account when you have taken 30 or more demo trades that followed your written plan, each with a stop loss and a size based on your risk rule, and you can work the platform without errors. There is no set number of weeks; the test is whether you follow your plan every time.
Check each of these before you switch:
- You can open, change and close trades on your phone without hesitating.
- Every one of your last 30 trades had a stop loss and followed your 1% (or lower) risk rule.
- Your journal shows your win rate, average win and average loss, as trading performance metrics explains.
- You know where your margin level would trigger a margin call or stop out, as margin call and stop out explains.
- Your demo balance and lot sizes matched the deposit you plan to make.
Waiting for a perfect demo record is not the goal. Live trading adds the one thing demo cannot: real money on the line. Starting small lets you learn that part while the stakes are low.
How do you switch from a demo to a live account?
To switch, open a live account with your broker, verify your details, deposit, then log in to MT5 with the live login and server, and keep the same plan and risk per trade you used on demo. The platform and steps are the ones you already know.
- Open a live account. Open a KCM Trade account in KCM Pro and complete verification.
- Deposit. Fund the account with the amount your demo practice was sized for.
- Log in. In MT5, add the live account with its login, password and server. Check the account name shows live, not demo, before you trade.
- Start at your demo size. Use the same lot size, stop rule and risk per trade.
- Keep the demo. Test any new idea on demo first, and only move it to live once it has passed the same checklist.
Try it on demo
Open an MT5 demo account on your phone with the deposit you plan to make and the leverage your live account will have. Write down the login, passwords and server. Then place three trades on EURUSD or USDZAR, each with a stop loss, a take profit and a size worked out from 1% risk, and log all three in a journal. This is week 1 of the plan above.
Quick check
- What money does a forex demo account use?
- You plan to deposit $300. What demo balance teaches you the most?
- Which of these can differ between a demo and a live account?
- Which sign shows you are ready to move from demo to live?
- What should change when you move from demo to live?
Frequently asked questions
Is a forex demo account free?
Yes. Opening and using a demo account in MetaTrader 5 costs nothing and needs no deposit. You choose a virtual balance when you open it, and the account trades live prices with that virtual money.
Can you make real money on a demo account?
No. Demo profits are virtual and cannot be withdrawn, because no real money is traded. A demo account is for learning the platform and testing a plan; earning or losing real money only happens on a live account.
How long does a demo account last?
It depends on the broker. Some keep demo accounts open while you use them, and others remove them after a set period or after a stretch of inactivity. If an old demo will not log in, open a new one in a few minutes.
Can I open a demo account on my phone?
Yes. In the MetaTrader 5 app for Android or iPhone, open the accounts page, search for your broker’s server, choose Demo account, fill in the form and tap Register. The app connects to the new account straight away.
How many demo trades should I take before going live?
There is no fixed number, but 30 or more trades that followed one written plan, each with a stop loss and a size based on your risk rule, is a practical benchmark. It shows you can follow the plan, which matters more than the demo balance.
Sources
- MetaQuotes, MetaTrader 5 Android Help: Demo Account Opening, accessed 26 October 2026: demo accounts give a training mode without real money with the same functionality as real ones; search for the broker server, tap Demo account, enter name, phone, email, hedging option, account type, leverage and deposit, tap Register; login, master and investor passwords are shown. https://www.metatrader5.com/en/mobile-trading/android/help/settings_accounts/account_open
- MetaQuotes, MetaTrader 5 iPhone/iPad Help: Demo Account Opening, accessed 26 October 2026: the same steps in the iPhone app. https://www.metatrader5.com/en/mobile-trading/iphone/help/settings_accounts/account_open
- MetaQuotes, MetaTrader 5 Help: Open an Account, accessed 26 October 2026: opening a demo account from the File menu on desktop and the QR code for connecting the mobile app. https://www.metatrader5.com/en/terminal/help/startworking/acc_open
- MetaQuotes, MetaTrader 5 Help: Manage Trading Accounts, accessed 26 October 2026: an expired demo account returns the Invalid account error and the platform may open a new demo account on the same server. https://www.metatrader5.com/en/terminal/help/start_advanced/account_manage
- KCM Trade Help Centre, Do demo accounts trade using real money?, accessed 26 October 2026. https://www.kcmtrade.com/hc/content/do-demo-account-trade-using-real-money
Practise what you learned
Open an account to use MetaTrader 5. Start on a demo account before risking real money.
Open Account