A demo account is a virtual account that comes with play money that you can make virtual trades with. Demo accounts are free of charge and they represent actual market conditions.
Benefits of Demo Account:
A demo account is free
Develop and test a system without risk: A demo account will allow you to try different trading strategies until you come up with a method that makes you comfortable. A demo account will allow you to explore the strengths and weaknesses of a trading system without risking a single penny.
Learn how to use the trading platform effectively: Trading platforms can be difficult to grasp at first glance. The ability to use the demo version of a trading platform with play money allows you to learn the functions of your trading platform before committing your money.