eToro Demo Account Review
Trading is a high-risk investment. There is a relatively steep learning curve as well. Before you begin trading, you need to have a deep understanding of how the market works, and all the risks you will be getting yourself into with every decision you make.
Due to all these risks, demo accounts were provided by brokers. The purpose of a demo account is to mimic the trading environment and give you time to get accustomed to the trading tools. Demo accounts help you train your eyes and mind for the real market. They allow you to make all kinds of rookie mistakes with none of the losses.
Practicing for a couple of months on a demo account is crucial for your success as a trader. In this article, we will look at the different types of demo accounts offered by eToro, how to open an eToro demo account, and if it is a good demo account for beginners.
Types of eToro Demo Accounts
Before diving into the eToro demo, or practice accounts, we need to look into the types of accounts offered at eToro. eToro offers 4 different kinds of accounts:
Professional Account
Retail Account
Islamic Account
Demo Accounts
You can open a demo account with either a Professional or Retail eToro account. The main differences between the two accounts are:
| Retail Account | Professional Account |
|---|---|
Numerous Trading Restrictions |
Minimal Trading restrictions |
Access to maximum leverage of 30:1 on major currencies |
Access to maximum leverage of 400:1 |
More legal protection provided by eToro |
Less legal protection than retail account |
Portfolio does not have to exceed certain limits |
Must have a portfolio that exceeds $500,000 |
The best option for beginners would be a demo account for an eToro Retail Account. The Professional Account is for the highly experienced trader, and before you qualify for it, you must first master how to use the Retail Account.
Regardless of the account you choose, you will have access to all the features of a live account, but with none of the risks.
Demo accounts are not only for beginners, their capabilities come in handy several other times. For example;
Expert or mid-level traders could use a broker's demo account to compare performance across different options in the market.
Traders could also use demo accounts to test or practice new strategies.
If you are serious about being a successful trader, you need to have a demo account.
How to Open eToro Demo Account
Here is a step-by-step guide to opening an eToro demo account:
1. Create a Free Account
First, visit the eToro site and open and create a free account. Fill in the username and email details or simply use your Google account. Select a preferred username.
How to open an eToro Demo Account
2. Access Virtual Portfolio
Once you have the account, you will need to make sure you are joining with a demo account. To do this, select the Virtual Portfolio option which will be clearly visible under your username.
3. Start Practicing
Once you have created the account and chosen whether you want the Retail or Professional option, you can start practicing right away.
eToro Demo Account
Is eToro Demo Good For Beginners?
Yes, eToro has a good demo account for beginners.
The eToro demo account offers:
Hassle-free sign-up process
User-friendly interface
Easy to learn with minimal jargon and complexities
Has both web and mobile app options
Trading on the account is free
Virtual $100k for you to trade with for free
Numerous learning resources for beginners
The eToro demo account’s flexibility means that new traders will have the opportunity of learning how to trade at any time of the day, thus giving them more practice hours. Although this may seem like a small thing, the minimum amount of time required for you to practice on your demo account is 6 months. That is a lot of time. So, if you put in more hours, you will be ready to start trading sooner.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
"Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more"
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
FAQ
What is an Islamic Account?
An Islamic account does not have any Riba for the duration of the account.
What is Negative Balance Protection?
Both the Retail and eToro accounts have what is known as negative balance protection. This protection is a cover that protects traders in case their accounts go into a negative balance. eToro absorbs the loss and the trader's equity will be reset to zero.
Do Demo Accounts on eToro Allow You to Practice with Leverage?
Yes, eToro demo accounts have all the features of real, live accounts. The demo account also offers CFD trading.
Can I Trade for Less Than 6 Months on My Demo Account?
Yes, you can practice training for less than 6 months on your demo account, however, this could put you at a higher risk for losses. As it is, 78% of retail traders lose money. You probably need all the practice you can get.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.
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Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
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Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.