A demo account serves as a simulation account that traders can use to practice trading in a live environment with virtual currency. Opening a demo account is completely free and you never have to invest a dime into the account, regardless of how many you open, what company you use, or how long you use it. These accounts are one of the best ways for traders to test their practical skills with zero financial risks. Since demo accounts are completely free, many traders would assume that there is no possible way to make money from them. The good news is that it is entirely possible to profit from trading on a demo account.
So, how can you make money off a demo account? Participating in a demo account contest. You might not have heard of this before because many brokerages don’t offer this. Those that cannot afford to offer bonuses and promotional opportunities often stay away from this type of contest because it doesn’t bring them any income and only takes money out of their pocket. However, it is possible to find several of these contests online through different companies. Do note that many of these brokerages require you to register a live account to take part in their contests.
Each participating brokerage offers its own unique contest with different rules and prizes, but many of these contests follow the same pattern. Anyone that would like to can open a demo account through the broker and trade for a specified amount of time, usually around a month or so. When the time is up, the trader that made the most profit is usually crowned the winner and given the main cash prize. Sometimes second, third, and other placing traders will earn lesser prizes.
If you are looking for an ongoing contest, you can search for “forex demo contest” on any search engine to find results. Some companies offer contests periodically while others offer them monthly. There are also cases where a demo contest is offered as a one-time promotion. It’s a good idea to check online for any updates periodically so that you don’t miss out on a good opportunity. You’ll want to participate as soon as the contest starts so that you don’t get behind.
Before you register for any demo contest, it is important to understand the unique rules that apply. You need to make sure that you qualify to enter so that there are no issues claiming your prize if you win. It is also important to look at the prize(s) and to make sure that any cash prize is fully withdrawable, so you don’t waste your time. If there are requirements for a certain trading volume to be met or other rules before the prize can be withdrawn, make sure that you’ll be able to meet those guidelines. You have a better chance to win a prize if you can find a contest that rewards 2nd and 3rd place winners.
To give our readers a better idea of their options, we’ve provided a few examples of current demo contests that are currently available as of the summer of 2020. Keep in mind that these contests may expire or change over time, but this should give you a general idea of what’s out there.
- HotForex holds monthly demo contests that reward 1st place with $2,000, 2nd place with $1,000, and 3rd place with $500. Traders can view the current rankings online but be aware that all rewards are credited on a live account.
- Atirox offers a monthly demo contest named Chasing Mavericks. The goal is to maximize prosses while incurring as few losses as possible. The monthly reward is $5,000 for the winner, but you need to register a real account with the company to participate.
- OctaFX holds periodic demo contests with the next one taking place on June 8th. The 1st place prize is $1,000, 2nd place wins $600, 3rd place receives $200, and 4th and 5th place takes home $120 and $80. The participant with the highest balance at the end of the round wins. You do have to register a live account to participate.
These are only a few examples of demo contests that are out there, so be sure to look at other options. If you decide to open a trading account through a company for one of these contests, you’ll need to make sure that they offer attractive trading conditions on their live accounts. Also, know that it isn’t easy to win these contests. Most of them look for the highest profit or the most growth, so beginners will have a hard time winning. Still, this doesn’t mean that you shouldn’t participate, since these contests will help improve your skills and you could still win a prize with hard work and determination.