Recently, I was researching the best free stock market simulators available, and I was surprised to discover how many real options there are to practice without risking money. The truth is that many people don’t fully understand the difference between a traditional stock market simulator and a broker’s demo account, so I wanted to share what I learned.

Basically, both let you invest in the stock market virtually, but they work differently. Simulators are mainly educational tools created by specialized finance platforms. Demo accounts, on the other hand, come directly from online brokers and show you exactly how you would trade with real money. The key difference is that demo accounts usually have more available assets: crypto, CFDs, ETFs, commodities—whereas basic simulators focus on stocks and indices.

The important point is to understand what these tools are for. Mainly two things: education and training. If you’re a beginner, you need education. If you already have experience but want to test new strategies or assets you’re not familiar with, you need training. That’s why it’s so valuable to invest in a stock market simulator when you’re just starting out, without the pressure of losing real money.

The assets you can practice with vary by platform. In general, you’ll find stocks, indices, and forex on almost all of them. But if you want to invest in a stock market simulator with more variety, broker demo accounts offer cryptocurrencies, ETFs, and more complex products.

MiTrade is one of my favorites. It’s an Australian broker that really puts effort into user education. The best part is that its demo account is unlimited, with 50,000 virtual dollars to practice, and you can use CFDs, short positions, and leverage. It also works on web and mobile apps. I personally like it because you can switch between the demo and real accounts without any trouble.

MarketWatch has its Virtual Stock Exchange, which is fairly well known. It’s more basic, but it works well if you only want to practice with stocks. You sign up for free and access its analysis tools.

IG is one of the oldest and most serious brokers in the market. Its demo account gives you access to thousands of CFD assets through MetaTrader, along with high-quality educational resources.

HowTheMarketWorks is probably the simulator most focused on education. It trains half a million students annually and gives you 100,000 virtual dollars to experiment with. It also has a premium version if you want more advanced tools.

eToro is interesting if you’re drawn to social trading. Its demo account is free, and you can practice the social investment model that characterizes this platform. It’s simpler visually, with fewer complex charts.

Now, there are some real issues we run into when using these tools. First, some simulators are slow or inaccurate because they’re mainly educational, not commercial. Second, many demo accounts have time limits—only 30 days—which forces some users to trade with real money before they’re ready. Third—and this is important—there’s something they call fragile euphoria: since it’s virtual money that isn’t yours, sometimes you invest without thinking about real risks. In addition, demo accounts give you a huge amount of virtual capital—sometimes tens of thousands of dollars—which doesn’t reflect what you’ll actually have available to invest.

If you’re going to use a demo account properly, here are a few tips that have worked for me. First, experiment for real. Try ideas you’ve never used before because there’s no real risk. But do it seriously—not like a casino. Second, take the process seriously. Even if it’s fake money, if you don’t treat it like real money, you won’t learn anything that’s truly valuable. Third, combine practice with education. Watching tutorials while practicing in the demo account is much more effective. Fourth, understand that demo accounts aren’t only for beginners. Major fund managers constantly use simulators before making real trades.

The reality is that investing in a stock market simulator is a very smart use of your time. These tools are almost all free, and there are many options to choose from based on your needs. And good brokers like MiTrade let you switch between a demo and a real account when you’re ready. That way, you can practice exactly what you’re going to do before risking your capital. That’s why both beginners and experienced investors should keep a demo account open. It’s the safest way to improve your skills, and ultimately, your financial results. Practicing with virtual money is the best preparation for trading with real money.