Free demo account or investment simulator? How to choose the best option for your strategy

Many beginner traders face the same question: where do I start practicing without risking my capital? The answer is not straightforward, because today the market offers two categories of tools that, although similar, serve different needs. Free investment simulators and demo accounts are the two main paths, but understanding their differences is crucial before investing your time in either.

The real difference: they are not the same, even if it seems so

Let’s start with the obvious: both emulate real investing. But that’s where the similarity ends.

Free investment simulators generally come from educational non-profit platforms. Their goal is to teach basic trading concepts, provide the feeling of being in the market without real pressures. Examples like La Bolsa Virtual, Wall Street Survivor, or the famous Investopedia Stock Simulator fall into this category.

Demo accounts, on the other hand, come from online brokers. They are not an educational concession but a functional extension of their real platform. When you open a demo account with a broker, you see exactly what you would with real money: the same spreads, the same risk management tools, the same interface. It’s like learning to drive on a simulated circuit versus doing it on a test track with the real car.

Educational simulators offer less complexity. Broker demo accounts like those from MiTrade, IG, or eToro reflect real operations almost 100%, including CFDs, cryptocurrencies, ETFs, and commodities, depending on each intermediary’s catalog.

Training or practice? Both, but at different times

A novice trader needs training. They need to understand what a spread is, how leverage works, why certain assets move in specific ways. This is where a free investment simulator shines: its purpose is educational.

But once you have basic knowledge, what you need is practice. To test your own strategies. To try a new asset. To validate a system before risking real euros. This is where the broker’s demo account plays an irreplaceable role.

The best brokers understand this. That’s why they allow switching between demo and real accounts seamlessly. MiTrade stands out precisely in this: you can close your demo session, switch to real, make a trade, and go back to demo. No time limits, no pop-up “upgrade” windows, no commercial pressure.

The assets: the more, the better

A typical free investment simulator lets you trade on:

• Domestic and international stocks
• Indices
• Currencies (Forex)

A serious broker demo account adds:

• Cryptocurrencies
• CFDs on commodities
• ETFs
• Structured products (on professional platforms)

Practical difference? If you want to practice Bitcoin trading on an educational simulator, you probably can’t. If you do it on eToro or MiTrade with a demo account, you have full access.

The five essentials: what we expect from each

When evaluating which tool to choose, we look at these variables:

1. Ease of use: Do you need a PhD in finance to make your first trade?
2. Fast execution: Does the simulator reflect real speed or is it slow?
3. Order versatility: Can you use stops, limits, conditional orders?
4. Unlimited use: Or does it close after 30 days?
5. Asset catalog: The broader, the more practice possibilities

Applying these criteria, here are the candidates that pass the cut:

MiTrade. This Australian broker is a favorite in Asia, and for good reason. Its demo account is unlimited (without expiration), comes loaded with $50,000 virtual funds, and operates on CFDs. This means you can short, use leverage, test complex strategies. The apps for iOS and Android work just like the desktop. Switching between demo and real is instant. Ideal if you seek total realism without time restrictions.

MarketWatch Virtual Stock Exchange. Here we have a pure free investment simulator. MarketWatch is a financial information reference, and its simulation platform leverages that: detailed analysis, professional watchlists, an active trader community sharing strategies. Requires free registration. Perfect if you prioritize education and context over operational complexity.

IG. One of the oldest brokers in the world and publicly traded. Its demo account accesses thousands of CFD assets via MetaTrader. The educational content is extensive. If you’re looking for an institutional platform with professional tools, IG is your choice.

HowTheMarketWorks.com. The veteran of educational simulators. Launched decades ago, trains half a million students annually. Aimed at teachers and students, with $100,000 virtual funds for practice. Premium subscription available for advanced tools. It’s the most “school-like” option on the list.

eToro. The leader in social trading has a demo account that reflects that: simple interface, no intimidating charts, but access to trader panels you can follow and copy. Wide variety of products. Ideal if you’re a beginner and prefer to learn by observing other traders in real time.

The real problems nobody mentions

Using a free investment simulator is no joke. Or it shouldn’t be, but people make serious mistakes.

Problem 1: “Fragile euphoria” When you invest money that isn’t yours and comes out of nowhere, your brain doesn’t activate the same caution mechanisms as with real money. You risk more, ignore warning signs. It’s the psychological effect psychologists of trading call risk distortion.

Problem 2: “Available capital effect” The demo account gives you $50,000 or $100,000 virtual. You probably start with $500 real money(. With so much available, you tend to diversify more, open more positions simultaneously, be less selective. Then in a real account, you can’t replicate that. The psychology is different.

Problem 3: Limited accuracy Many educational simulators don’t reflect real spreads, commissions, or execution speed. You practice in a fantasy world where everything is perfect. Then reality hits.

Problem 4: Time limits Some brokers close your demo account after 30 days. If you weren’t ready for a real account, you’re forced. MiTrade handles this well: unlimited demo.

How to properly use your demo account: step-by-step with MiTrade

Suppose you decided to practice. Here’s the way:

Step 1: Go to MiTrade’s website. You’ll see the “Open demo account” button on the welcome screen.

Step 2: The registration form opens. Indicate your country. You have two options: browse as a guest )immediate demo access( or register )access all MiTrade features(. To start quickly, choose guest.

Step 3: Verify that your panel shows “Demo Account” in the top right corner. Your virtual balance will be visible.

Step 4: Start trading. The platform is available on web and mobile app. Practice as if it were a real account, because that’s how you’ll extract real value.

Tips to not waste your practice

Experiment without fear. It’s the only place where you can fail for free. Try crazy ideas, rare assets, strategies you read about in a blog. Fail here, learn, then succeed in a real account.

Take investment seriously. Even if it’s virtual money. If you don’t keep rigorous track, if you don’t note your trades and results as if it were real money, you’re wasting time.

Combine practice with theory. Don’t use the demo account as a game. Study in parallel. Read analyses, learn indicators, understand macroeconomics. The demo is the laboratory for what you’re studying.

Remember: it’s not just for beginners. Fund managers regularly use free investment simulators. Experienced traders test new strategies in demo before going live. It’s not a beginner’s tool.

The important conclusion

Today’s market offers free options that didn’t exist a decade ago. Serious educational simulators. Demo accounts without time restrictions. Access to professional platforms without real risk.

If you’re a beginner, start with an educational free investment simulator )MarketWatch or HowTheMarketWorks( to understand concepts. Then migrate to a broker demo account )MiTrade, IG, eToro to gain real operational experience.

If you already have knowledge, go directly to a broker demo account that offers what you need to practice: CFDs, cryptocurrencies, social trading, whatever.

The key is to practice before risking euros. The tools are there. The time is in your hands.