Free Forex Trading Simulator for Practice in 2025
We have all heard the saying, "Practice makes perfect," and trading is no exception. Whether you are just starting or looking to improve, taking time to learn can lead to better trading decisions. That’s where a forex trading simulator helps.
A trading simulator is basically a software which mirrors the movements of the market, and traders often use it to practise strategies and build confidence without risking real capital.
Today, we will explore what a trading simulator is, its benefits, compare various types of simulators, and find out how to select the top simulator software.
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
What is a forex trading simulator?
A forex trading simulator is a tool that simulates or mirrors real market conditions. Using a simulator is not only limited to forex but could also be used across a range of financial markets, including stocks, bonds, and commodities, all using virtual money.
Some trading simulators use a basic algorithm to replicate price action, while other platforms provide a more realistic experience by streaming live market data.
Trading simulator platforms offered by regulated brokers usually come with all the standard trading functions, including order placing, modifying, and closing trades. It also reflects costs like spreads, commissions, and swaps, just like a live trading account, because other charges can have a significant impact on the returns a trader generates.
Forex trading simulators vs. Simulation platforms
Many new traders spend hours practising on the wrong tools, thinking that all simulators are the same. Unfortunately, that’s not true, and there’s a big difference between demo accounts and pure simulation platforms. Knowing this early can save you time.
Demo accounts
Using a demo account is essential when you eventually want to start operating in real markets but first want to practice on a trading simulator. These demo accounts are provided by regulated brokers. They use live market data, allowing you to test your trading strategies in real time using virtual money.
While a demo account simulates real market conditions closely, it is important to note that if your strategy is successful in your demo account, it does not guarantee the same result in a live account, as market conditions are always changing.
Simulation platforms
Simulation platforms are educational tools that simulate the experience of other traders. Here, traders do not test their trading strategy but observe or engage in pre-set market scenarios, which are designed to teach specific trading concepts. These platforms are usually more gamified and structured around learning through interactive exercises.
In this article, we will focus predominantly on demo account trading simulators.
Pros and cons of using a simulator
As a forex trader, if you want to choose the top forex trading simulator, it is important to know the advantages and disadvantages of using one.
Advantages of using a trading simulator
- Traders can test their strategies without financial risk. There is no capital loss even if a strategy fails in a demo account.
- Demo accounts offer similar exposure as live accounts. This helps traders understand the instrument they are trading in and improves familiarity with the platform.
- With more experience on the demo platform, it's easier to switch to a live account.
- Traders can build discipline and confidence by practising.
Disadvantages of using a trading simulator
- Demo accounts cannot replicate real-world trading emotions. Without real money at stake, it’s hard to experience the pressure that influences real decision-making.
- Some traders take unrealistic risks to boost performance. This behaviour may not be practical in live trading.
- With a demo account, the responsibility and stress are much lower. Hence, traders tend to overlook real-world constraints like capital size, tax rules, emotional stress, and long-term goals etc., yet these play a major role in live trading decisions. However, it’s important to remember that trading simulators cannot perfectly replicate market conditions such as slippage, variable spreads, and order execution delays, which can cause differences between simulated and live trading experiences.
How to choose the top forex simulator
If you are willing to try a trading simulator to start practising forex trading, here are a couple of questions you should ask while choosing a simulator software for you.
Does the simulator mirror real market conditions?
You see, the best way to learn any skill is to practise as much as possible. But that practice needs to take place in the right environment.
When it comes to trading, learning with real market price action is better than relying on theory alone. Without practical knowledge, a trader risks developing habits that don’t align with real market behaviour and may end up wasting valuable practice time.
Does it allow flexible deposit amounts?
Many simulators give you virtual deposits up to EUR 100,000. Yes, that’s a generous amount for practising, but it lacks a realistic edge if your live account balance will be way smaller.
Consider this: if you have EUR 100,000 on a demo account, you can make a lot of losing trades and still have plenty of virtual money to practice with. But when you switch to a live account with a deposit of EUR 1,000, the stakes feel much higher, and you will need to manage that money more carefully.
The problem is, when a demo account has a huge balance, it’s easy to take risks without thinking twice. But on a real account with limited funds, that mindset doesn’t work. This gap can hurt your risk management.
Which tools and features come with the simulator software?
There is a range of forex trading simulators available, and many of them offer different features and functionality. You can start with the most basic platform and upgrade later for more features if needed.
Starting with an advanced platform like MetaTrader Supreme Edition can save time, especially if you plan to become an intraday trader.
But, if you are a positional or a swing trader, the basic MetaTrader 5 platform may also work fine, as it provides real-time currency rates and essential features like backtesting for basic analysis.
Is the simulator offered by a trusted broker?
Demo account trading simulators are offered by most brokers. So, choose one that’s trustworthy, especially if you will continue with them for live trading.
Learn how to choose a reliable broker here.
Once you have chosen a trading simulator that meets your needs, the next step is to learn how to use it effectively.
Step-by-step guide for using a forex trading simulator
MetaTrader Supreme Edition (MTSE) offers two useful simulators for forex traders:
- Trading strategy tester: For testing strategies against historical price data.
- Day trading simulator: For simulating real-time day trading using historical data.
Trading strategy tester
This feature in MetaTrader Supreme Edition is ideal for testing forex strategies on historical data.
How to use it?
1. Launch strategy tester
Press Ctrl+R or click the Strategy Tester icon.
2. Choose your settings:
- Template: Pick one that suits your strategy.
- Timeframe:
- Daily strategies: 3 years of data
- Intraday: 6-12 months
- Account balance: Adjust your account balance to match what you will have in your live account.
3. Start Backtest:
- Use a template for e.g., Master Candle. Please note: The Master Candle template isn’t built in MetaTrader Supreme Edition; you will need to code it or download it.
- Click Start to begin the simulation.
To ensure the top speed and quality, apply these settings:
Backtesting Tips:
- Use the slider to adjust speed.
- Every tick mode is more accurate but slower.
- Repeated backtesting may help fine-tune strategies.
After testing, check your results under the Results or Report tab.
Day trading simulator
A day trading simulator is ideal to test intraday strategies as it lets you practice trading with real market conditions using past data.
Once you select historical data, the day trading simulator will go bar by bar through the markets, and you can manually pause it to place a trade. It will then add up those trades in a Profit and Loss statement at the end of the time period, as described here.
How to use it?
Open MT4 + Strategy tester (Ctrl+R)
Choose EA: Select Admiral - Trading Simulator.ex4
Set Parameters:
- Select instrument & timeframe
- Model: Open prices only (recommended for most users)
- Historical data: Ensure sufficient data exists
- Account balance: Match your real account by clicking Expert Properties > Testing
To ensure the top speed and quality, apply these settings:
Depicted: Admiral Markets MetaTrader Supreme Edition – Backtesting simulation USDJPY chart. Date Range: 1 January 2017 to 7 July 2017. Past performance is not a reliable indicator of future results.
You can then apply different templates, add your indicators, trade normally, and see if your strategy worked or not. However, it is important to understand that a strategy’s strong performance during backtesting does not guarantee similar outcomes in live markets.
MetaTrader Supreme Edition tools
Smart Lines
The smart lines tool uses line objects drawn on a MetaTrader chart as the stop-loss or take-profit for positions. They provide three main features:
- Trend-line stop-loss (or take-profit);
- Partial closes at different levels
- Time-based exits (e.g., close all positions at midnight)
When used with the day trading simulator, you can use the smart lines tool to make manual trades, which will then be tracked by the simulator.
Here’s how to create a smart line:
- Draw a horizontal line, a vertical line, or a trend-line on the chart;
- Hold down the Alt key while clicking on the line.
This is how it looks:
Speed control
MetaTrader Supreme Edition gives you two ways to control simulation speed when using the Strategy Tester:
Visual Mode Slider
This is the slider next to the Visual Mode checkbox. It ranges from 1 to 32, where:
- 32 = fastest possible playback
- Lower values = slower playback
SpeedFactor setting (advanced fine-tuning)
Inside Expert Properties > Inputs, you will find a parameter called SpeedFactor. This setting slows down the simulation behind the scenes by adjusting how the system processes each tick.
- Higher values = more delay between ticks (slower simulation)
- Lower values = faster processing
However, the performance depends on your computer and the number of indicators you have added to the simulator, and how many ticks each simulated bar has.
When to switch to a live trading account?
While forex simulators are great for learning. But overusing them can delay real trading experience. That’s why many brokers limit demo account usage to encourage real market engagement.
Some traders fall into the habit of resetting their demo balance after losses, which doesn’t build the emotional discipline needed for live trading. A better approach is to treat the demo account as if it were real. So, practice your strategy and learn to manage risk effectively using a demo account and then switch to live trading.
With Admiral Markets free demo account, you can test strategies in a risk-free setting and start building habits that may serve you in real trading.
Other links that may interest you:
- The Top Forex Backtesting Software
- A Guide to Day Trading Strategies and Systems
- How to Trade with MetaTrader WebTrader
Frequently asked questions
Is the forex trading simulator free?
In many cases, forex trading simulators offered by regulated brokers are available to use for free, although terms and conditions may apply.
Does a forex simulator reflect real market conditions?
Simulators typically use historical price data to replicate past market conditions. While they can closely mirror market movements, they may not fully capture the speed.
Do I need to download software to use the forex simulator?
In most cases, yes. Simulators often require a trading platform such as MetaTrader 4 or 5, sometimes with additional plugins like the Supreme Edition.
About Admiral Markets
Admiral Markets is a multi-award-winning, regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Explore options with Admiral Markets!
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