What a demo account is
A demo (or practice) account lets you place trades with pretend money on real, live prices. It costs nothing, risks nothing, and is by far the best place to make your beginner mistakes. Almost every regulated broker offers one, and MetaTrader can create one directly.
The point of a demo is to learn the mechanics and test ideas without paying for the lesson in real money. Used properly it can save you a lot; skipped, it usually costs you.
The numbered steps
Step 1: Choose a broker you can verify is properly regulated, or simply open a demo inside the MetaTrader platform itself.
Step 2: In MetaTrader, go to File → Open an Account, choose a demo server, and fill in the basic form (name, a virtual balance, and a leverage setting). No deposit or ID is required for a pure demo.
Step 3: Set the starting balance to something realistic — close to what you might actually trade with. A demo with a fantasy €1,000,000 balance teaches nothing useful about sizing.
Step 4: Submit the form. The platform gives you a login and connects you to live prices with virtual funds. You can now place trades exactly as you would on a real account.
How to use it well
Treat the demo money as if it were real. Trade the same small sizes you would use for real, keep a journal, and follow a plan. If you gamble on demo because "it doesn't matter", you are practising the exact habits that will hurt you later.
Spend weeks here, not hours. Learn to place and close trades, set stops and targets, size positions, and read your profit and loss — until all of it is boring and automatic.
An honest limitation
Demo trading feels different from real trading because you feel nothing when nothing is at stake. It teaches the mechanics but not the emotions, and demo fills can be more forgiving than live ones. Doing well on demo is a good start, not proof you will do well with real money.