A forex trading simulator is a software that imitates/mimics real financial markets. Usually, the foreign exchange market or the stock market simulations.
Any profession in the world requires time to learn specific skills to perform certain tasks. A significant problem, in my humble opinion, is people coming into forex and, in so little time, expecting massive results.
Before diving into trading, most do not do due diligence and learn to horn trading concepts.
However, forex trading simulators give you the means to reverse the market to a time period of your choice.
Thus, concepts can be tested and strategies created in real time; backtesting.
Below is a list of the top best forex trading simulators.
1. MT4 Forex Trading Simulator and Backtesting Software
The go-to software for forex simulation is the Metatrader 4 platform which can be installed for free on Metatrader4.com.
It was released in 2005 and is the most used platform by retail forex traders. The meta trader is a charting platform that provides accurate data on currency pairs, stocks, etc.
Moreover, this software bridges the gap between retail traders and brokers. Brokers provide a meta trader login to your mail; therefore, orders can be placed seamlessly.
The desktop version of the MetaTrader platform has an inbuilt forex simulator named strategy tester. This can be accessed on the main menu under the ‘view’ section.
Clicking on the ‘view’ button displays a window below your screen that can be expanded.
Here, the currency pair to simulate is chosen, time frame and specific period of market prices can be customized.
The inbuilt simulator aside, other ones can be added to the meta trader platform. The most popular one is Soft 4 FX, which has loads of tutorials on youtube.
2. Soft4FX Simulator
Soft 4 FX is a free and paid forex trading simulator that every trader can access. It provides accurate data alongside economic news, which is governed by a forex factory.
The Soft4fx simulator is one of the most used Forex simulators out there. It can be used on the Meta Trader platform on a PC or desktop.
This simulator harnesses the charting prowess of MetaTrader to the fullest. Multiple time frames can be used, and charts can be viewed in different formats.
Before this service can be used, a file is downloaded on the official site. Once done, it’s moved into a specified folder, and it’s ready to set up.
Then, under the ‘navigator,’ scroll until ‘expert advisor‘ is found. Now, under ‘tools,’ click on ‘options,’ toggle to the expert advisory section, and allow DLL inputs.
Go ahead to open any chart, hold and drag the Soft 4 FX file as seen under expert advisory onto the chart.
Lastly, install all data for all currency pairs needed in the data center, and you’re good to go.
To fully utilize the sof4x trading simulator, a one-time fee of $109 is required. This will give you access to other useful fixtures like:
- Free updates
- Unlimited trading
- 10+ years of tick data instead of 2 years on the free version
3. Forex Simulation With TradingView
Apart from the MT4 software, TradingView is an alternative for simulation. This site is user-friendly since no installation is required to access charts from every device while in sync.
Forex charts aside, stocks, options, crypto, etc., can be backtested on this platform.
After selecting a char of your choice, the ‘Bar Replay Feature’ is enabled. The icon can be found on the horizontal toolbar at the top of your screen.
When the icon is clicked on, a pop-up menu appears with a couple of action buttons. The first icon displays a blue vertical line that can hover around to choose the desired time stamp.
While the second icon from the left adjusts the speed of the replay or simulation.
Without purchasing the premium version of TradingView, the ‘Bar Replay Feature’ can only be used on daily charts.
Although a free trial of 30 days is offered, the starting price of the premium version of trading view costs $14.99 per month.
4. Forex Tester Simulator and Backtesting Software
This Forex tester simulator comes with a free and paid version. The free version allows you to test the platform online or via a standalone desktop application.
You can use this software for backtesting your Forex trading robots and finding their best settings, and that’s the feature that I love the most.
Other fascinating features of the forex tester include:
- Change the speed of testing and simulation.
- Test multiple currencies simultaneously.
- Ft5, which is the latest version, displays statistics instead of you doing it manually.
- You can work with FT5 Offline without an internet connection.
- Comes with built-in strategies and indicators from expert advisors.
- Use case in forex trading, stocks,
The free version gives you access to monthly updates and limited data. In contrast, the standard gives you daily updates, high-quality updates, and the groundbreaking AI-based Strategy Optimizer.
Apart from the pricing, one major setback is that this software is unavailable on MAC. You must use a virtual Windows environment if you are a MAC user.
Price ranges from 0 to $159 yearly.
5. FX Blue Trading Simulator v3
The FX Blue Trading Simulator v3 for MT4 effectively simulates manual trading using historical data. It modifies the MT4 strategy tester into a practical tool, allowing traders to test their skills and strategies under historical market conditions. It also provides an avenue to evaluate the performance of various indicators in past scenarios.
This free, downloadable software requires registration, but it is compatible with any broker’s desktop client terminal, making it highly versatile. It lists recommended brokers that can potentially enhance trading results due to tightened spreads, a broader range of markets, and special offers.
One of the key features of the FX Blue Trading Simulator v3 for MT4 is its ability to handle market and pending orders, set trailing stops, modify stop loss and take profit values directly on the chart, and save intricate order definitions as templates. Furthermore, it enables quick closing of all open orders, among other features not available as standard in MT4.
This version 3 offers extra features, including the use of multiple timeframes, smart lines, and keyboard shortcuts. The simulation results can also be published on the FX Blue website, allowing access to its extensive reporting and analysis functionalities.
6. Futures Trading Simulation with NinjaTrader
NinjaTrader’s futures trading simulator provides a risk-free, simulated trading environment replicating real-world trading scenarios with live-streaming market data.
The stress of trading with actual money can be overwhelming, especially for beginners. Still, Ninjatrader’s simulator prepares you for this reality, offering an excellent platform to sharpen your skills and test your trading strategies.
Signing up for the simulation environment presents several opportunities: unlimited access to the simulation is included with all funded trading accounts, and a free two-week trial with live-streaming market data is available. This makes the tool suitable for new traders who are getting started and experienced traders who want to test new concepts before risking their capital.
One of the outstanding features of ninjatrader’s platform is its free backtesting engine. It lets you simulate your automated trading strategies on historical data, thereby enabling you to analyze their past performance.
This powerful engine can help you verify and validate strategies and new technical analysis methods.
An innovative feature, “Play, Pause, and Rewind the Markets,” allows you to replay historical market data tick by tick, fully synchronized across your trading platform as though happening in real time. This offers a unique opportunity to analyze specific market events in-depth.
With Ninjatrader’s Simulated Data Feed, you have control over the market direction. This feature is especially useful when testing your automated strategies or learning the platforms, as it gives you more control over the variables in your simulated trading environment.
In conclusion, whether you are a beginner starting your trading journey or an experienced trader keen on exploring new strategies, NinjaTrader provides an integral, user-friendly, and dynamic simulated trading environment for futures trades.
7. pepperstone’s Trading Simulator
The Pepperstone MT4 trading simulator is a powerful tool for testing and refining your trading strategies. It allows traders to backtest strategies using real historical data across various timeframes, creating an environment where you can evaluate both EA and manual trading strategy performance.
Pepperstone’s simulator takes it up a notch by offering the Trading Simulator, part of their Smart Trader Tools. With this, you can replay historical market movements, assess your chosen indicators, and place simulated trades based on your strategy’s logic. Then, you can review its performance in detail, giving you valuable insights.
The platform’s user-friendly interface ensures easy setup. Simply sign up for a Pepperstone account, download the MT4 platform, and start testing your strategies using the Strategy Tester and Trading Simulator.
8. FX Replay – Streamlined and Powerful Backtesting
FX Replay revolutionizes backtesting with its intuitive, 100% web-based tool. Leveraging the charting capabilities of TradingView, it offers a superior backtesting experience that is quick to start and easy to manage.
Key features of FX Replay include easy order management, where orders can be placed directly from the chart. It also offers a quick position calculator and an adjustable drag-and-drop feature to modify your orders swiftly.
As it is entirely web-based, there’s no need for any downloads or installations, reducing setup time significantly and enabling you to get your backtesting session started in a matter of seconds.
A standout feature of FX Replay is its powerful analytics, designed to elevate your trading performance by analyzing your trading habits in detail.
Finally, FX Replay supports various trading pairs and timeframes, catering to different trading preferences, and includes Forex, Index, Energy, Crypto, and Agricultural commodities.
9. Comprehensive Learning with Investopedia Stock Market Simulator
Investopedia’s Stock Market Simulator offers a comprehensive and user-friendly platform for honing your trading skills. Trusted by over three million users, this simulator provides an invaluable, risk-free opportunity to practice stock trading with virtual money, preparing you for real-world investing.
A major advantage of the Investopedia Simulator is its extensive range of available trading options. It offers over 6,000 equities on the NYSE and Nasdaq, enabling practice in trading various stocks, ETFs, and options. This breadth makes it an excellent learning tool, whether you’re a first-time investor or an experienced trader seeking to explore advanced trading methods.
Furthermore, Investopedia’s simulator is not just for solitary learning; it fosters a sense of community and friendly competition. Users can join a game to compete with hundreds of thousands of other informed investors, adding a fun, competitive element to the learning process.
The platform is entirely free to join and use, and you don’t need to provide any financial information to start trading with virtual cash. It supports both call and put options trading but doesn’t currently support writing options.
While there is no dedicated mobile app, the Investopedia Simulator is mobile-responsive and compatible with iOS and Android devices via your preferred web browser.
ForexSimulator.com is a top-tier, highly customizable, and user-friendly forex trading simulator.
With over 20,000 users, this standalone tool caters to both Windows and Mac users and requires a one-time lifetime license fee of $249 following a 14-day free trial.
The software is intuitive and enables multi-currency, multi-timeframe real-time trading simulations. You can download 130GB of high-quality historical tick data and experiment with drag-and-drop orders, stop loss, and take profit.
Forex Simulator boasts quality tick data from 2001 onwards, real dynamic spreads, and a natural market feel. Users can automatically download and update tick data at maximum speed from multiple servers simultaneously.
A notable feature is its multi-chart trading capability with synchronized time among any number of charts opened.
Drawings and annotations are synchronized across charts and saved independently, preventing any loss of your notes or insights. Furthermore, you can use the visual trading feature to adjust limit/stop prices directly on the chart, providing a highly interactive trading experience.
What is Backtesting
Backtesting involves using previous price data to test the accuracy and reliability of a strategy, practice skills, etc.
It is important to backtest to gain adaptability to various market conditions, know if the strategy is reliable, and recognize the best market conditions in which the forex strategy thrives.
Every strategy has a flaw, and losses will be incurred. Backtesting enables forex traders to recognize these flaws and work their way around them.
Advantages of Backtesting Forex Strategies With MetaTrader
The MetaTrader platform is completely free to use. There are no restrictions on time frames to backtest. The forex simulator can be used offline, and chart templates can be applied.
Forex traders have a variety of plugins to choose from to improve the backtesting experience further.
Perks of Using a Forex Trading Simulator
- The accuracy and risk-to-reward of forex strategies can be approximated before risking actual money.
- Backtesting forex strategies build confidence in a trading system, which is required before moving to a live account.
- A trading plan cannot be created without backtesting as they work hand in hand.
Disparities Between a Forex Trading Simulator and Live Trading
Trading live accounts bring forth many underlying emotions because actual money is being traded. A few of these emotions are anxiety and greed, which are normal.
To maneuver this, only invest amounts that you can afford to lose. Also, psychology books can be read to avoid emotions influencing trading decisions.
There are many platforms to simulate the forex market, the most popular being the meta trader 4. Users can easily backtest once this software has been installed on a PC. For more features that suit your needs, third-party simulators can be added to the Meta trader.
Basically, when forex is simulated, the movement of live markets is cloned. The whole point is to imitate live trading conditions to get a similar feel.
A few software these days offer this service, although it cannot be accessed on mobile devices.
Summary: Top Forex Trading Simulator(Free and Paid)
Forex Trading simulators can be an extremely valuable tool to forex traders. It takes time to master trading concepts and fully develop a trading plan.
Instead of waiting around for prices to develop on live markets, simulators can be used. Traders can master their craft without putting real money on the line.
Also, good trading habits can be developed while the bad ones are identified and curbed.