• Demo account trading, aka Paper Trading, is a way in which you can simply start trading with a virtual account that is preloaded with a certain sum of virtual money. This is not real cash, so you can safely learn to trade without any risks
• No Deposit bonus account. Often brokers run promotions that will let you open a trading account with a tiny balance on it, without the need for making any deposits. Usually, it ranges from $5 to $50
• Tournaments. Some brokers run trading contests where, in most cases, you can participate free of charge, and often the prizes are available for instant withdrawals
• Cent accounts. While this one is not really free, it comes with a relatively low cost to entry, meaning that you can start trading with as little as $10, or in some cases even as little as $1

Some people believe that in order to start trading, you need to make large investments. However, as we have already mentioned, it is actually possible to start trading with no money at all. There are several ways to accomplish this. The list includes Demo Accounts, No Deposit bonuses, participation in Forex tournaments, or Cent accounts.

All of these strategies are different in their own ways, and each has its own set of pros and cons. By the end of this guide, you will have a broad understanding of what each of them represents and which one might be the best place for you to start. 

Demo Account

Demo accounts are one of the most common methods for traders to get started in Forex trading without a deposit. Because it is a very popular choice among new customers, almost all brokers offer it. 

A demo account exists for a specific purpose. It demonstrates how the Forex market works and gives you an idea of how you should operate within this environment. Additionally, the fact that you can trade without money adds a lot to the overall experience. These accounts come with no fees associated and infinite possibilities for learning.

A demo account does not use any of your actual money. Instead, you are given a starting deposit (virtual assets) with which to trade. As a result, the demo account is primarily focused on learning and accumulating expertise in trading. So, when you decide to move to a real account, you will have the knowledge of how trading works in general. Let’s examine the process of what opening a demo account looks like: 

Let’s say you have chosen AvaTrade as your trading destination. Here is a step-by-step guide on how to create a demo account in a simple and comfortable manner through them: 

Step 1 - Once you load the website, you will see a button for a Demo account. Click on it. 

Step 2 - Once you selected the option to open a demo account, you will see a separate window where you have to enter a minimal amount of information such as email address and password. Fill in the details and click on “Practice For Free”. 

Step 3 - After that, you will be transferred to the trading platforms in a matter of seconds. The website will offer you an easy 3-step tutorial that will help you to get familiar with the demo trading process. 

It is important to keep in mind that the larger the market is, the more you will be able to learn from it, which will translate into a greater learning experience. In this way, both parties, traders and brokers, can benefit from trading without a deposit.

No Deposit Bonus

With a free no-deposit bonus provided by the best Forex brokers, you may start trading without making a deposit and get a fantastic start. 

It makes no sense to try and hide the reality that FX trading is dangerous, especially if you trade without sufficient understanding and at least a minimum amount of expertise. To stay safe, it is better to begin trading with the no-deposit bonus offered by numerous FX brokers. 

In contrast to the demo account, no-deposit bonuses enable traders to trade on a real account using the broker's money. A no-deposit bonus is a welcome incentive and a great way for the broker to meet newcomers. In such cases, a specific broker is not just being kind of charitable by giving you a certain amount of money. The bonus you get is intended for trade purposes only. 

All in all, welcome bonuses are a great way to trade without money to get started. The bonuses typically range from $20 to $50, which may not appear to be much, but it definitely is more than enough to open a Forex trading account and start your journey. 

No-deposit bonuses operate in a fairly straightforward manner. When you create an account with the broker, you will be given a welcome bonus. XM is one of the best options you can come across on the internet when it comes to opening this type of account. Let’s take a look and find out how you can get your first bonus on the XM website: 

Step 1 - Go to www.xm.com. In the right corner of the website, you will see the “open an account” button. Click on it. 

Step 2 - After that, you will be taken to a separate page where you should fill in some personal details such as your full name, country of residence, preferred language, etc. Once you enter all of the necessary details, you will be taken to the second part of the questionnaire. 

Step 3 - Once the questionnaire is totally complete, you are very close to getting the bonus. Simply confirm your email, and make your first transaction. The XM no deposit bonus should appear on the account within a day. The XM $30 No Deposit Bonus cannot be withdrawn, but it may be utilized to trade in the system, which is a great opportunity, especially for beginners.

It is important to keep in mind that most brokers have limitations on such promotions. In most cases, you will have a certain number of days when you need to complete your required trading volume. The trading volume can be very huge, or you might come across the maximum withdrawal which limits the amount of money you will be able to take from your account. What we are trying to say is that while there is a chance to learn and even make a buck out of it, it is not always advantageous. 

Finally, many brokers restrain such offers to a few geographic locations, so it might be difficult finding an offer that is available in your country. 

Forex tournaments

Instead of various types of incentives, some brokers provide Forex trading competitions, so if you wish to trade Forex without a deposit, it might also be a good place to start. These tournaments may be extremely varied; some brokers may provide one or more distinct sorts at the same time, allowing you to select which one appears to be more suitable for you. It might be a one-day competition, or it could run for a month. Short tournaments are ideal for novices who do not have a lot of time to spend trading. 

Tournaments can feature many incentives, such as money, gadgets, cars, or some other reward. However, we would highly advise you to participate in events that solely come with cash rewards as other forms of awards might be difficult to come by, especially if the broker is worldwide and not headquartered in your country.

To participate in the competition, you must first open an account with the broker. Tournaments are often divided into three types:

• Free entry - these kinds of events require you to simply register as a participant and begin trading as soon as the tournament begins
• Tournaments with a deposit - in that case, you don’t have to pay an entry fee, but you must have a specific amount of money in your personal account
• Events with a low entry price - events that charge a low fee to enter

When participating in tournaments, you are not trading with real assets. And instead of dealing with the broker, you are trading with other traders who are also participants. In the end, there is only one winner since he/she produces the greatest profits and thus qualifies for the reward.

Typically, brokers who provide tournaments will host a number of them, not just one or two. You will be able to locate the schedule ahead of time, as well as information on the rules and rewards.

While free online trading without investment sounds pretty exciting, there are some dangers that all traders must avoid at all costs. That being said, here is a list of things that you should keep in mind: 

• If you don’t agree with a specific broker’s terms and conditions, simply skip it. Some deals look too good to be true and in that case, always listen to your intuition
• If you want to participate in the campaign and open a free trading account, make sure you read the terms and conditions. You might even have to pay attention to the smallest details. In reality, a free bonus is not always really free. Some brokers may need you to make a deposit in order to receive your winnings. Some such promos are, in fact, frauds
• Be cautious, since while certain Forex brokers may provide a nice chance with their no-deposit bonus, they may also need you to meet the trading volume criteria. Avoid bonuses that require you to finish more than one lot for $10 in order to access your profits

So, now that you understand how to trade without a deposit, one common question remains to be answered, “is it worthwhile signing up for one yourself, and will it provide you with any big benefits?”

The answer may depend on a lot of things. Some traders may certainly benefit from this form of promotion by building up a little account balance and then converting it into a full-fledged trading account over time. However, as we have already mentioned throughout this article, such offers are mostly for gaining enough experience so that when you invest real money later, you are ready to face the markets with confidence. Getting familiar with trading platforms and the market is crucial, so you don’t end up just losing all your money. So, here is the list of pros and cons of free online trading without investment.

Pros

• Possibility to get familiar with the Forex market
• Experiencing the thrill of trading that most traders have on a daily basis
• Learning how to be more careful when making important decisions

Cons

• You can’t make a living out of online trading without a deposit
• Traders will not be exposed to real risks and won't gain much-needed real-world experience
• When it comes to demo accounts, you are dealing with virtual money, therefore you can’t make any profits