Before you start offshore forex, you may want to try the trading tool without risking money. A demo account is made for that.
A demo account uses virtual funds on the same trading tools as a live account. This guide is based on the official help pages of HFM and XMTrading (checked on 20 October 2026). It covers how to open one, how it differs from a live account, and what to test. After reading, you will know what to try on your demo account today.
Conclusion: a forex demo account is a practice account with virtual funds
What you can practice on a demo account is mainly operation. You can repeat placing orders, entering trade size and closing positions without worrying about losses.
However, profit on a demo account is not a guide to live results. The next sections explain why.
- A demo account lets you try the trading tool with virtual funds
- Profit and loss are virtual, so your real money does not change
- Demo results do not promise live account results
- Expiry and virtual funds settings differ by broker. Check the official page
What is a demo account? What the official sources confirm
A demo account lets you experience trading with virtual funds. No real deposit is needed. The trading tool screens and operations work as they do on a live account.
Below are the points confirmed in the official texts of two brokers. For other brokers, check the official page. Sources: HFM official FAQ and XMTrading official help center (both checked on 20 October 2026).
Note: myHF at HFM is a client area and wallet. It is created automatically when you register. You manage deposits, withdrawals and account creation there. It is separate from your trading accounts (live and demo).
- Where to create a demo: HFM uses the myHF area (client area). XMTrading uses the portal or the XMTD TraderPro app
- Trading tools: HFM offers MT4, MT5 and the HFM app. XMTrading is not stated in the official help (you choose the specification when you create the account)
- Virtual funds: HFM is unlimited (the official wording is unlimited virtual funds). XMTrading lets you set the balance to any amount
- Demo account types: HFM is not stated in the official FAQ. XMTrading offers a Standard demo only (no Micro demo)
Demo account vs live account: the differences
The biggest difference is whether the funds are your own money. A demo account uses virtual funds. A live account uses the funds you deposited.
The XMTrading official help says a demo account has the same functions as a live account. It also says results may differ because of your psychological state.
Order execution (when an order is filled) and spread (the gap between the selling and buying price) are not always exactly the same on demo and live. Fine differences can only be judged within what the official sources state.
Key point: do not treat demo results as a track record. Profit on virtual funds does not guarantee profit on a live account. Use the demo to check operations and get used to the trading flow.
- Funds: demo is virtual funds; live is your deposited funds
- Profit and loss: demo moves no real money; live increases or decreases real money
- Orders: demo orders are not placed in the real market; live trades in the real market
- Identity verification: whether a demo needs it differs by broker; many brokers require documents for live accounts
- Psychology: losses weigh less on demo and more on live
How to open a forex demo account: steps
Opening a demo account starts with registering in the broker's client area. The flow differs slightly by broker, so first get the overall picture.
Step 1: Register in the broker's client area. Sign up with your email address and log in to the client area (My Page). At HFM and XMTrading, registering opens each broker's client area.
Step 2: Create the demo account. In the account creation menu, choose demo instead of live. Follow the screen for account type, currency and virtual funds settings.
Step 3: Receive your login details. At HFM, the login details are sent to your registered email address. They are the trading account ID, trader password and server.
Step 4: Log in to MT4 or MT5. Start the trading tool and enter the login details. Choose the server name specified by the broker.
XMTrading demo account (official help): log in to the portal or the XMTD TraderPro app. On the home screen, press the plus button at the top of the frame showing your balance. Choose Demo and press Continue. Then choose the demo account specification. To change your virtual funds, select the demo account in the account menu on the home screen and press Set balance. You can set any amount.
HFM demo account (official FAQ): at HFM you can create live and demo accounts from the myHF area. You log in to a trading account from the trading platform or WebTerminal. See the column on logging in to HFM with MT4 and MT5 on this site for setup details.
- Step 1: Register in the broker's client area
- Step 2: Create a demo account (choose demo, not live)
- Step 3: Receive the login details (account ID, trader password, server)
- Step 4: Log in to MT4 or MT5 with the specified server
5 operations to check on your demo account
The value of a demo account is that mistakes cost you nothing. Try the operations that often trip people up on a live account first.
You can also watch the numbers on screen to understand stop out (the system that closes positions by force when the margin level falls). The levels differ by broker and account.
For more, see the guide to order types, the guide to the differences between MT4 and MT5, and the guide to stop out and leverage on this site.
- Order types: how to place market, limit and stop orders, and how they differ
- Trade size (lots): enter lots and see how the profit and loss range changes
- Stop loss and take profit: enter a stop loss and a take profit
- Margin movement: watch required margin and margin level while holding a position
- Closing: how to close a position and how to read the history
Demo account expiry and virtual funds differ by broker
Expiry and virtual funds rules for demo accounts depend on the broker. In the official texts we checked (HFM FAQ and XMTrading help, both on 20 October 2026), we did not find any mention of expiry.
Note: check expiry on the official page of the broker you use. Whether there is an expiry, and how many days it lasts if there is one, may differ by broker. This site lists only what could be confirmed officially.
- Expiry: not stated in the official texts of HFM and XMTrading that we checked
- Virtual funds (HFM): stated as unlimited
- Virtual funds (XMTrading): can be set to any amount
- Number of accounts (XMTrading): up to 5 demo accounts per the same personal information
Before moving from demo to a live account
Once you are used to the operations, move on to preparing a live account. There is no standard number of days of practice. The point to move on is when you feel confident yourself.
On a live account, profit and loss move in real money. Start with a small amount, and keep it to money you can lose without affecting your daily life.
For next steps, see the money management guide, the guide on how to start offshore forex (the steps to open a live account), and the guide to identity verification (KYC) on this site.
- Can you operate from order to close without hesitation?
- Can you decide your maximum loss yourself before trading?
- Do you know the flow of account opening and identity verification?
Frequently asked questions
Q. What is a forex demo account?
A. It is a practice account that lets you try the trading tool with virtual funds. No real money moves. The official help of HFM and XMTrading also describes it as an account for experiencing trading with virtual funds.
Q. What is the difference between a demo account and a live account?
A. The main difference is whether the funds are virtual or your own deposit. The XMTrading official help says a demo account has the same functions, but results may differ because of your psychological state.
Q. How do I open a forex demo account?
A. Log in to the client area (My Page) and choose demo when you create an account. At XMTrading, press the plus button on the home screen and choose Demo. At HFM, you can create one from the myHF area.
Q. Does a forex demo account have an expiry date?
A. The official texts we checked did not mention an expiry. Whether there is an expiry, and how many days it lasts, may differ by broker. Check the official page of the broker you use.
Q. Can I change the virtual funds on a demo account?
A. XMTrading says in its official help that you can set the balance to any amount. HFM says you can practice with unlimited virtual funds. For other brokers, check the official page.
Sources and conditions
FX Textbook is edited from official platform documentation, broker-published information and applicable terms where available. Account conditions, services and rules can change. Confirm the current terms in the broker's registration flow before you act.
FX Textbook is an independent information site, not a broker or provider of personal investment advice. Forex and CFDs involve risk. You may lose some or all of your invested capital. No trading result is guaranteed.
NEXT STEP
Once you are used to the demo, see the steps to open a live account
When you are comfortable with the operations, check the 6 steps from opening an account to your first trade. Preparing identity verification and deposits is covered there too.