Demo Trading Competitions
Demo trading competitions are an increasingly popular way to test your skills against other traders in a risk-free environment. These competitions, hosted by online brokers and trading platforms, allow participants to trade with virtual funds and compete for prizes, such as cash or trading credits.
This guide uncovers the pros and cons of trading demo competitions, alongside entry criteria and standard terms and conditions. Our team also rank the best UK brokers with demo trading competitions:
Brokers With Demo Trading Competitions
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Established in 1989, CMC Markets is a respected broker listed on the London Stock Exchange and authorized by several tier-one regulators, including the FCA, ASIC and CIRO. More than 1 million traders from around the world have signed up with the multi-award winning brokerage.
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RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.
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Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
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Established in 2006, FxPro has emerged as a trusted non-dealing desk (NDD) broker offering trading on over 2,100 markets to more than 2 million clients worldwide. It has scooped over 100 industry awards and counting for its competitive conditions for active traders.
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Founded in 2008, NordFX is an offshore CFD broker offering forex, stock, commodities, indices and crypto trading to over 1.7 million clients in 190 countries. Traders access markets through the MT4 and MT5 platforms and benefit from low commissions, spreads from zero and decent extra features. Minimum deposits start from just $10 and very high leverage is available up to 1:1000.
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FXCM is a respected forex and CFD broker, established since 1999. The British-headquartered broker has won multiple awards and operates in various jurisdictions, including the UK and Australia. With zero commissions, over 400 assets, and a range of analysis tools, FXCM remains a popular choice for traders. The broker is also regulated by top-tier authorities including the FCA, ASIC, CySEC, FSCA, BaFin.
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Established in 2007, Axi is a multi-regulated forex and CFD broker that has made strides to improve its trading experience over the years, from expanding its suite of stocks and upgrading the Axi Academy to launching its own copy trading app.
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CloseOption is a Georgia-headquartered broker with over a decade in the trading industry. The brand offers high/low binary options trading on forex and crypto markets, with decent payouts, welcome bonuses, 24/7 customer support and intuitive trading software.
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Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.
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OspreyFX is an ECN broker headquartered in St. Vincent and the Grenadines. Established in 2019, the firm offers 120+ forex and CFD assets with high leverage up to 1:500, tight spreads from 0.1 pips and round-the-clock customer support. OspreyFX also stands out for its funded trading accounts where traders can keep up to 70% of profits.
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Baxia Markets is an offshore CFD broker that offers trading on forex, commodities and indices with tight spreads on a straight-through processing model with ultra-low latency. Trade on MetaTrader 4 or MetaTrader 5 with leverage up to 1:500 and no restrictions to scalping or hedging strategies. Users also benefit from third-party copy trading services.
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MultiBank FX is an established broker offering forex and CFD products since 2005. With 20,000+ instruments, plenty of local payment methods and 24/7 multilingual customer support, the broker is a popular choice among traders globally. New clients can also access a variety of bonus offers and access the hugely popular MT4 and MT5 trading platforms.
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Established in 2005, FXOpen is a multi-regulated broker that has attracted over 1 million traders. Designed for active trading, it provides access to a growing selection of more than 700 markets and supports high-frequency trading, scalping, and all forms of algorithmic trading using expert advisors (EAs).
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Established in 2013, SuperForex is an offshore CFD and forex broker offering highly leveraged trades on 400+ instruments via the popular MetaTrader 4 platform. The broker has gained clients in over 150 countries and is regulated by the Belize IFSC. With a range of STP/ECN account types, including swap-free, micro and zero spread, this broker continues to suit traders with different styles and setups. SuperForex also offers a range of welcome bonuses and trading contests.
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World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
What Is A Demo Trading Contest?
A demo trading competition is a simulated contest that allows traders to compete against each other using a virtual bankroll. The winner, or winners, are typically those that generate the highest returns within a specified period, often a few weeks or months. Some may have additional criteria, such as the number of trades made or the risk management techniques used.
Demo trading competitions are normally organised by online brokers, allowing aspiring investors to test their strategies, gain experience and improve their trading skills. They are also offered as a way to attract new traders and encourage existing investors to become more active.
The virtual money used in the competitions is provided by the hosting broker, and participants can use it to trade a variety of financial instruments, such as forex, stocks, and commodities.
Prizes are given to the top-performing traders. Rewards may include cash gifts, trading credits, or other incentives. The value of the prizes varies depending on the size of the competition and the broker or trading platform offering it. CloseOption, for example, offers an $850 cash reward to its winner.
CloseOption Demo Contest Winners
How To Take Part
Registration
Investors normally register for demo trading competitions by providing their contact details and creating a contest account with the hosting brokerage. Some firms may also request that you open a live account before entering.
There will be a window of time whereby traders can enter, and the terms and conditions of the competition will be stated. Read these carefully before entering.
Virtual Trading
Traders are given a predetermined amount of virtual money to use for online trading, often between £10,000 and £1000,000.
Importantly, the virtual trading environment is designed to simulate live market conditions, and traders can test their strategies without risking real money.
Ranking
Demo trading contests typically last for a set period, ranging from several days to a few months.
During this period, the best brokers with demo trading contests will host a live leaderboard showing the latest rankings. Leaderboards are usually updated daily. The traders with the highest ROI or profit percentage are ranked at the top of the leaderboard.
Prizes
The value of the prizes may vary depending on the size of the competition and the broker or trading platform hosting it. For example, Axi’s top prize is $1,000, whereas IC Markets goes up to $10,000.
Winners are normally contacted by email when the demo trading contest finishes. Prizes are then credited to client accounts.
Pros Of Demo Trading Competitions
- Risk-free trading – Traders can test their strategies and ideas without risking real money.
- Learning opportunity – Demo competitions can be a great way to learn about different markets. Traders can test their skills, learn from their mistakes, and refine their trading systems.
- Motivation – Trading demo competitions can be a fun and engaging way to try out new approaches. The competitive aspect of contests can also motivate traders to improve.
- Prizes – Trading demo competitions often offer prizes to the top-performing traders. These can include cash rewards, trading credits, or merchandise.
- Access to new platforms – Participating in demo trading competitions can be a good way to explore new platforms, apps and trading tools before risking money in a live account.
Cons Of Trading Demo Competitions
- Unrealistic trading environment – Traders may take risks and make decisions that they would not make in a real money environment, which can lead to mistakes in a live trading account.
- Lack of emotional involvement – Trading demo competitions do not involve real money, so traders do not experience the true emotional impact of winning or losing cash. This can create a false sense of confidence when investors start trading with real money.
- Limited trading experience – Demo competitions typically have a short time frame, usually a few weeks, which may not provide investors with enough time to gain the necessary experience to become successful in the long term.
- Emphasis on short-term gains – Demo trading competitions often focus on short-term gains rather than long-term profitability. This can encourage traders to take high risks and make impulsive trading decisions.
- Lack of transparency – Some demo trading competitions are not transparent in terms of their rules, scoring system, or selection process.
How To Compare Brokers With Trading Demo Competitions
Rules
Evaluate the terms and conditions of the demo trading competition, including the prizes, scoring system, and duration of the contest.
All demo competitions are good practice, but some will give you better conditions and potential prizes than others, with the biggest trading demo competitions offering prize pots of £10,000+, some of which you may be able to withdraw or use in a live trading environment.
Reputation & Regulation
The best brokers with demo trading competitions hold a license with a trusted regulator. For British traders, the top brokers are regulated by the Financial Conduct Authority.
Several FCA-regulated brokers offer demo competitions, including Axi.
Trading Platform
The trading platform should be user-friendly, stable, and have all the necessary tools for technical analysis and online trading. The demo platform should also simulate real trading conditions as closely as possible.
Among the most popular platforms used for demo trading contests are MetaTrader 4 and MetaTrader 5.
Market Access
Consider the range of markets offered by the broker. Do they offer stocks, forex, cryptos and commodities?
This is important because demo trading competitions should serve as good practice, and the instruments should match those you plan to trade with real money.
Customer Support
Check the quality and availability of customer support. Does the broker offer 24/5 or 247 customer support, and is it available via accessible channels, such as live chat, social media or telephone?
Bottom Line On Demo Trading Competitions
Brokers with demo trading competitions offer a useful and enjoyable way for traders to sharpen their skills and compete with other investors without risking real money. While there are limitations to using demo accounts, such as the absence of psychological pressure, virtual trading contests still provide valuable experience. Traders can refine their strategies, gain confidence in their abilities, and develop the discipline and risk management skills needed to succeed in real-money trading.
To take part in virtual trading contests, see our list of the best brokers with demo trading competitions.
FAQ
What Are Demo Trading Competitions?
Demo trading competitions are virtual investing contests where participants trade with simulated funds provided by the hosting platform or broker. Participants compete against each other to see who can make the most profit within a given time frame. Some demo trading contests also offer prizes, including cash gifts and bonus credit for trading in a live account.
Are Trading Demo Competitions Free To Join?
Most trading demo competitions are free to join. However, some brokers may require a deposit to open a live account before you can take part in the virtual trading contest. Check the entry requirements before opting in.
Can Traders Win Real Money In Demo Competitions?
Yes, some brokers with demo trading competitions offer cash or trading credits to the winners. However, it is important to note that these winnings are usually subject to terms and conditions, such as withdrawal restrictions or time limits.
What Is The Duration Of Trading Demo Competitions?
The duration of demo trading competitions can vary, depending on the hosting platform or broker. Some demo trading contests last for a few days, while others can go on for several weeks or even months.
Are Trading Demo Competitions Good For Traders?
Demo trading competitions can be beneficial for traders in several ways. They provide a risk-free environment for traders to test their skills and strategies and also offer an opportunity to learn from other traders’ techniques. Participating in these competitions can help traders develop discipline, emotional control, and risk management skills.