Whether you're planning to start day trading or you're an experienced trader looking to access more features and better trading tools, Interactive Brokers offers excellent resources that you can try for free. Interactive Brokers offers both a demo account you can access without logging in and a free account with added features.
The demo and free paper trading accounts allow users to practice trading strategies and evaluate platform features without risking real funds. This can help you to become familiar with the platform before committing real money to trades. Read on to understand the Interactive Brokers Demo account and how to use one today.
Quick Look at How to Get an Interactive Brokers Demo Account
- Visit the Interactive Brokers website
- Navigate to the Demo Account Section
- Register for a Demo Account
- Confirm Your Email Address
- Download and Install Trader Workstation (TWS)
- Login to Your Demo Account
- Configure TWS for Demo Use
- Start Using the Demo Account
How to Get an Interactive Brokers Demo Account
Getting an Interactive Brokers demo trading account is simple. Here are the steps to take:
Visit the Interactive Brokers website
The first step is to go to the official Interactive Brokers website at www.interactivebrokers.com. Then, navigate to the section dedicated to demo accounts or free paper trading accounts to start the registration process.
Navigate to the Demo Account Section
In the demo section, you'll just need to provide your name, email address, and password to start an account. Here's the link to get your IBKR demo account.
Register for a Demo Account
The Interactive Brokers registration process is simple, with only your name, email address, and password. Then, you'll see a page where you can begin using the account.
Confirm Your Email Address
You'll get a verification email to confirm your email address, but even before confirming, you can access your account. After clicking the confirmation link, you'll be prompted to download the desktop workstation. You'll see the same page you saw after setting up the account.
Download and Install Trader Workstation (TWS)
Once you've opened the account, you can navigate to the demo account section. There, you'll find links to place your first trade. You can deposit or withdraw virtual cash. You can also check cryptocurrencies or make a list of stocks, exchange-traded funds, precious metals, or other assets you want to watch. You can also download and install Trader Workstation (TWS) for PC or Mac.
Login to Your Demo Account
To log in to your demo account, you only need to enter your email address and password. When you log in, you can flip between a paper trading account and a live account. The background color is different. For a paper trading demo account, the background is red. For a regular live account, the background is light gray.
Start Using the Demo Account
Once you're logged into the demo account, you can practice placing trades using virtual funds. You can choose from stocks, options, futures, futures options, warrants, CFDs, mutual funds, bonds, commodities, forex, and crypto in your virtual trading account. This helps traders to start to understand what smart investing looks like for their accounts and financial goals.
When you click on an individual stock, future, option, or other assets, it will pull up charts to start assessing investments. You can get real-time data on financial markets. As you refine your technique to make the most of your money, you can also try out strategies used by the best stock brokers to gain greater market understanding and perfect trading techniques.
Differences Between Live and Demo Interactive Brokers Accounts
The difference between live and demo accounts is that a demo account uses virtual funds. A live account uses real money. That means while you're trading in a demo account, you don't risk losing anything. You can try out futures or options trading and get comfortable with charting tools, market data, and analysis techniques including fundamental analysis and technical analysis.
While demo accounts provide a risk-free environment to practice trading and explore platform features, live accounts involve actual financial risk and are influenced by real market conditions. Many traders underestimate the effect of their mental state or risk tolerance. The reality that paper trading isn't real might not accurately simulate traders’ emotional reactions to real market risk. These differences can affect effective trading strategies and decision-making.
You can also see Benzinga's review of Ninjatrader vs Interactive Brokers or the full Interactive Brokers review.
Frequently Asked Questions
Is there a free version of Interactive Brokers?
Yes, there is a free version of Interactive Brokers.
How long is the Interactive Brokers free trial?
According to Interactive Brokers, your free Trial will only expire if you don’t log into your account for 45 days.
Can a beginner use Interactive Brokers?
Yes, beginners can use Interactive Brokers.
About Alison Plaut
Alison Kimberly is a freelance content writer with a Sustainable MBA, uniquely qualified to help individuals and businesses achieve the triple bottom line of environmental, social, and financial profitability. She has been writing for various non-profit organizations for 15+ years. When not writing, you will find her promoting education and meditation in the developing world, or hiking and enjoying nature.