Demo Account vs Virtual Stock Market Simulator: Which to Choose? A Guide to 5 Free Options

The Psychological Trap of Practicing Without Real Money

Before exploring the best tools, it’s essential to understand a fundamental problem: when we operate in a virtual stock simulator, our brain does not behave the same way as when risking our own capital. This is known as the “fake money” bias – we invest too aggressively, take unnecessary risks, and do not experience the emotional stress characteristic of real trading.

Additionally, the effect of available capital plays a role. A simulator may offer you $100,000 virtual dollars to practice, but when you invest $10,000 real dollars, your mindset changes completely. Prudence increases. Decisions become more cautious. That’s why practicing alone isn’t enough; you must practice correctly.

Are a demo account and a virtual stock simulator the same?

No, and this confusion is more common than you think.

Virtual stock simulators are educational tools created by financial content companies. Their goal is to teach basic investment concepts in a controlled environment. Examples: La Bolsa Virtual, Wall Street Survivor, Investopedia Stock Simulator.

Demo accounts are offered directly by regulated brokers. They not only emulate investing but exactly replicate the experience of trading with real money: same interface, same risk management tools, same asset catalog (stocks, currencies, CFDs, cryptocurrencies, commodities, ETFs).

The key difference: a simulator teaches you what investing is; a demo account shows you how to do it on a specific platform.

What assets can you practice with each tool

In traditional simulators:

• Domestic and international (stocks)
• Stock indices
• Forex

In demo accounts from brokers:

• All of the above, plus:
• CFD with leverage
• Cryptocurrencies
• ETFs
• Commodities
• Fixed income (on advanced brokers)

The top 5: from educational to professional

1. MiTrade - Unlimited demo account

This Australian broker stands out because its demo account is completely unlimited, with no time restrictions. It offers $50,000 virtual dollars to practice CFD trading, allowing experimentation with short positions and leverage.

Key advantages:

• Instant switch between real and demo accounts
• Multi-platform access (web, iOS, Android)
• No time limit
• Extensive educational resources library
• Low minimum deposit when you decide to trade with real money

Ideal for: traders who want to familiarize themselves with a platform before investing serious capital.

2. MarketWatch Virtual Stock Exchange - Integrated community

MarketWatch offers a simulator where technical tools meet real-time market analysis. The simulator allows you to build virtual portfolios using the same watchlists used by thousands of professional investors on the platform.

Key advantages:

• Access to professional financial analysis
• Active community of traders sharing strategies
• Free registration with no hassle
• Up-to-date market data in real time

Ideal for: beginners who want to learn by observing experienced traders.

3. IG - The historic platform

IG is one of the oldest brokers in the world and, interestingly, is publicly traded. Its demo account offers CFD trading on thousands of different assets, executed through MetaTrader (the most popular trading platform globally).

Key advantages:

• Professional interface with MetaTrader
• Extensive integrated educational catalog
• Proven regulation and track record
• Perfect for practicing advanced technical analysis

Ideal for: technical traders and operators who already master basic concepts.

4. HowTheMarketWorks - The most educational option

This simulator was the first to launch on the market and annually trains half a million students. It is specifically designed for classrooms and formal education.

Key advantages:

• $100,000 virtual dollars for experimentation
• 100% didactic focus
• Tools designed for teachers and students
• Premium option for advanced features
• Nearly two decades of history

Ideal for: students, beginners, and educators who need structure.

5. eToro - The social trading revolution

eToro brought investing to social networks. Its free demo account not only allows practicing trading but also access to the “copy trading” system where you replicate other investors’ operations.

Key advantages:

• Simplified interface, not overwhelming with charts
• Access to social trading panels in the demo
• Thousands of assets available
• Global community of traders
• Perfect for users who fear technical complexity

Ideal for: absolute beginners and investors who prefer to learn by copying proven strategies.

Three real problems you will encounter (y how to avoid them)

1. False confidence from virtual results Win 50% on demo but lose money in real trading afterward. Reason: you didn’t experience real emotional stress. Solution: treat the demo as if it were real money. Keep a trading journal identical to what you would use later.

2. Demo accounts with expiration dates Many brokers limit to 30 days. If you’re not ready yet, you’re forced to trade with real money. Solution: use MiTrade or others that offer unlimited access, or open multiple demos with different brokers.

3. The bias of inflated capital $100,000 virtual dollars do not reproduce the behavior of trading with $1,000 real dollars. Fix this by voluntarily limiting yourself: practice as if you only have the capital you will actually invest.

Practical steps to start practicing

Step 1: Access the broker’s website (we will use MiTrade as an example) Look for the “Open demo account” button on the homepage

Step 2: Choose between fully registering or browsing as a guest Guest option gives immediate access to the simulator, without lengthy forms

Step 3: Verify you are in demo mode Look for the indicator in the top right corner of the investment panel

Step 4: Start small Don’t make 100 trades in a week. Practice 2-3 specific strategies and document results

Step 5: Gradually increase complexity First month: only long positions (buy). Second month: practice short selling. Third month: add leverage if your broker allows.

Tips from professional traders for maximum learning

Experiment fearlessly, but methodically. The demo exists to test ideas you would never use with real money. But it’s not a casino – each trade must have a logic behind it.

Take the demo seriously as if it were real. If you don’t maintain discipline, keep stop losses, and follow your plan in demo, you won’t do it later with real money either. The simulator is your mirror.

Combine demo + education. Don’t just trade; study in parallel. Read about risk management, technical analysis, trading psychology. The demo verifies what you’ve learned.

Demo accounts are not just for beginners. The world’s largest hedge funds test strategies in simulators before implementing them. If Goldman Sachs uses simulators, you should too.

Set an exit schedule. Before starting, establish: “I will practice for 60 days. If I achieve consistent profitability of X%, I will move to real capital.” Without a deadline, the demo becomes procrastination.

When are you ready to switch to real money?

There’s no universal timeline, but look for these signs:

• Average monthly profit of 10-15% in demo for 2-3 months
• Fewer than 3 consecutive losing trades before continuing to win
• Ability to respect stop losses without emotion
• Written risk management plan for each trade

Many brokers like MiTrade allow switching between demo and real in seconds, so you can start with $500 real while keeping your demo open for new strategies.

Final reflection

The virtual stock simulator and the demo account are investments of time, not money. Both tools serve a purpose: reducing your costly learning curve. The cost of learning in demo is zero. The cost of learning with real money is losing that money.

The difference between a winning trader and a losing one is often not luck but time dedicated to practicing correctly. So yes, open a demo today. But do it with a plan, not as a hobby.