Demo Accounts vs Simulators: A Practical Guide for Training Traders

When you start in the trading world, you face an initial decision: should you use a simulator or jump straight in? The answer isn’t as simple as it seems, because although both tools share the goal —training without risk— their nature is different.

The Difference That No One Clearly Explains

Trading simulators are programs primarily designed for education. Platforms like Investopedia Stock Simulator or Wall Street Survivor emulate the feeling of trading, but remember: they are specialized in training, not brokers. Their focus is pedagogical.

In contrast, broker demo accounts —MiTrade, IG, eToro— are something completely different. It’s not just that they imitate real trading; they are the same system you’d use with real money, just with fictitious capital. The interface, tools, execution speed, everything is identical.

Which one to choose? It depends on where you are in your trading journey.

What Are They Really For?

There are two clearly differentiated purposes:

1. Education: You learn the fundamentals of investing, how markets work, what CFDs, Forex, and indices are. Here, educational simulators excel.

2. Practical training: You already know what to do, now you need to do it in an environment that exactly replicates how you’ll trade later. Here, real broker demo accounts stand out.

An interesting fact: large investment funds and managers constantly use simulators before executing trades in the open market. It’s not just for beginners.

What Can You Trade in Each

Educational simulators typically offer:

• Domestic and international stocks
• Indices
• Basic Forex

Broker demo accounts go further:

• Cryptocurrencies
• CFDs on multiple underlying assets
• ETFs
• Commodities
• For professional clients: fixed income, structured products

MiTrade stands out here because its demo account ($50,000 virtual) includes full access to CFDs, allowing you to practice leverage and short positions from day one. It also works on mobile, so you can train from anywhere.

The Problem Everyone Faces

Here’s the uncomfortable part: virtual money doesn’t hurt.

When practicing with $50,000 fictitious from MiTrade or $100,000 from HowTheMarketWorks, your psychology changes. You tend to take disproportionate risks because, frankly, it’s not your money. It’s what traders call “fragile euphoria.”

Even worse: many demo accounts give you huge initial capital. When you trade with your real budget of €500 or €1,000 later, you’ll find that you can’t replicate the same strategy. The restrictions of real capital are brutal compared to your virtual practice.

And if that weren’t enough, some brokers limit demo accounts to 30 days. That forces you to switch to real money even if you’re not ready.

Five Platforms That Work (All for Free)

1. MiTrade

• Unlimited demo with $50,000 virtual
• Access to CFDs, leverage, short selling
• Apps for iOS and Android
• Instant switch between demo and real
• Excellent for practicing derivatives trading

2. Virtual Stock Exchange (MarketWatch)

• Stock-focused simulator
• Professional analysis tools
• No time limit
• Community of traders sharing ideas

3. IG

• Demo account with MetaTrader
• Thousands of assets available
• Reputable broker, publicly listed
• Extensive training included
• Ideal for CFDs and Forex

4. HowTheMarketWorks.com

• $100,000 virtual for practice
• Designed for structured education
• Used by half a million students annually
• Premium version available
• Perfect if you need a gradual learning curve

5. eToro

• Free demo with integrated social trading
• Simplified interface (without complex charts)
• Wide catalog of assets
• Built-in social network of investors
• Best for those intimidated by complex tools

How to Use Them Without Making Mistakes

Experiment, but seriously. Use the demo account to try radical strategies you would never attempt with real money. But do it studying each move, not playing.

Match your discipline. If you don’t keep a record, don’t track losses, don’t respect stops… you shouldn’t do so in the demo either. Otherwise, your conclusions will be useless when real money is involved.

Combine demo + education. The best strategy is to use trading simulators while studying. The demo account confirms what you’ve learned; it’s not the starting point.

Demo accounts are not graduation tools. It’s not “I did 5 successful trades in demo, now I’m ready.” Even experienced traders open new demos when exploring unknown assets or strategies.

Understand the capital bias. With $50,000 virtual, you can afford to lose 10% without sweating. With $500 real( money, that 10% is a tragedy. Practice thinking in percentages, not absolute amounts.

The Transition: From Simulator to Real Money

The critical moment arrives when you decide to move to real capital. Here, the advantage of brokers like MiTrade is clear: you can switch between demo and real account without losing continuity. Make 5 real trades, go back to demo if in doubt, and repeat until you feel confident.

Don’t make the transition just because “I’ve won 10 consecutive demo trades.” Do it when you understand why you won those trades, what your methodology was, and have documented your process.

Conclusion: Your Best Investment )Without Money

Trading demo accounts and simulators are probably the most underestimated tools in financial markets. They are free, mostly unlimited, and offer access to training that previously cost thousands in seminars.

Relying on them isn’t weak. It’s smart. The best traders don’t rush to trade with real capital. They practice, make mistakes, adjust, and repeat.

MiTrade, IG, eToro, HowTheMarketWorks, MarketWatch: choose according to your profile. But choose and start today. Your future as a trader depends less on when you start trading with real money, and more on how much time you dedicate to practicing risk-free.

Because the harsh truth that no one wants to hear is this: 70% of traders fail not due to lack of strategy, but due to lack of discipline. And that can only be learned through practice.