Would you get a drivers license without practicing first? Of course not. Why would you trade with real money without practicing? A demo account is your driving simulator for the stock market.

What Is a Demo Account?

A demo account (also paper trading account) simulates real stock trading with virtual money. You see real prices, place real orders — but your money is not real. No risk, full learning potential.

Where to Get a Demo Account

Interactive Brokers: Paper Trading Account in TWS — most professional simulation. Our recommendation.
TradingView: Paper Trading directly in chart. Free, browser-based.
MetaTrader 5: Demo account for forex and CFDs. Free, widely used.
eToro: Virtual portfolio with $100,000 play money.

What to Practice

Weeks 1-2: Order Execution

Place market orders — how quickly are they executed?
Test limit orders — what happens when price does not reach your limit?
Set stop-losses and observe how they trigger

Weeks 3-4: Test Strategy

Trade AI signals in paper mode
Calculate and execute position sizes
Keep trading journal: Every trade documented

Weeks 5-8: Build Consistency

Complete at least 30 trades
Evaluate hit rate and RRR
Recognize emotional patterns (even with virtual money!)

Limits of Demo Accounts

No real emotions: You trade differently when no real money is at stake
No realistic execution: Demo orders execute instantly at desired price. Real trading has slippage and spread.
No real consequences: A 10% demo loss does not feel like a real loss

The Perfect Transition to Live Trading

Phase 1 (Weeks 1-4): Demo account — learn mechanics
Phase 2 (Weeks 5-8): Micro-live — 25% of planned position size with real money
Phase 3 (Weeks 9-12): Half-size — 50% of planned position size
Phase 4 (from Week 13): Full size — if results are consistent

The Golden Rule

If you are not profitable in the demo account, you will definitely not be profitable with real money. Stay in demo until you complete at least 30 trades with positive results and followed rules.

Bottom Line: A demo account costs nothing but time. It potentially saves you thousands in tuition fees. The question is not whether you should use it — but how long.