diff --git a/packages/hooks/src/__tests__/useTotalAccountBalance.spec.tsx b/packages/hooks/src/__tests__/useTotalAccountBalance.spec.tsx
index 943a2d1e1a47..1c02c5aa6262 100644
--- a/packages/hooks/src/__tests__/useTotalAccountBalance.spec.tsx
+++ b/packages/hooks/src/__tests__/useTotalAccountBalance.spec.tsx
@@ -15,6 +15,85 @@ describe('useTotalAccountBalance', () => {
         expect(result.current.balance).toBe(0);
     });
 
+    test('should return total balance correctly when user has one account', () => {
+        const mock = mockStore({
+            client: {
+                active_accounts: [
+                    {
+                        balance: 10000,
+                        currency: 'USD',
+                        account_type: 'real',
+                    },
+                ],
+            },
+        });
+
+        const wrapper = ({ children }: { children: JSX.Element }) => (
+            <StoreProvider store={mock}>{children}</StoreProvider>
+        );
+        const { result } = renderHook(() => useTotalAccountBalance(mock.client.active_accounts), { wrapper });
+        expect(result.current.balance).toBe(10000);
+    });
+
+    test('should return total balance correctly when user has multiple accounts in same currency', () => {
+        const mock = mockStore({
+            client: {
+                active_accounts: [
+                    {
+                        balance: 10000,
+                        currency: 'USD',
+                        account_type: 'demo',
+                    },
+                    {
+                        balance: 10000,
+                        currency: 'USD',
+                        account_type: 'demo',
+                    },
+                ],
+            },
+        });
+
+        const wrapper = ({ children }: { children: JSX.Element }) => (
+            <StoreProvider store={mock}>{children}</StoreProvider>
+        );
+        const { result } = renderHook(() => useTotalAccountBalance(mock.client.active_accounts), { wrapper });
+        expect(result.current.balance).toBe(20000);
+    });
+
+    test('should return total balance correctly when user has multiple accounts in different currencies', () => {
+        const mock = mockStore({
+            exchange_rates: {
+                data: {
+                    rates: {
+                        EUR: 2,
+                        USD: 1,
+                    },
+                },
+            },
+            client: {
+                active_accounts: [
+                    {
+                        balance: 10000,
+                        currency: 'USD',
+                        account_type: 'demo',
+                    },
+                    {
+                        balance: 10000,
+                        currency: 'EUR',
+                        account_type: 'demo',
+                    },
+                ],
+            },
+        });
+
+        const wrapper = ({ children }: { children: JSX.Element }) => (
+            <StoreProvider store={mock}>{children}</StoreProvider>
+        );
+        const { result } = renderHook(() => useTotalAccountBalance(mock.client.active_accounts), { wrapper });
+        expect(result.current.balance).not.toBe(20000);
+        expect(result.current.balance).toBe(15000);
+    });
+
     test('should return total balance correctly when user has multiple accounts', async () => {
         const mock = mockStore({
             exchange_rates: {
diff --git a/packages/hooks/src/useTotalAccountBalance.ts b/packages/hooks/src/useTotalAccountBalance.ts
index 5ab91f88ecaf..44fdc175d1c4 100644
--- a/packages/hooks/src/useTotalAccountBalance.ts
+++ b/packages/hooks/src/useTotalAccountBalance.ts
@@ -1,21 +1,25 @@
 import useRealTotalAssetCurrency from './useTotalAssetCurrency';
 import useExchangeRate from './useExchangeRate';
-
 /**
  * we can use this hook to get the total balance of the given accounts list.
  * it loops through the accounts list and adds the balance of each account
  * to the total balance, it also converts the balance to the currency of the
  * first account in the list
  */
+type TUseTotalAccountBalance = {
+    balance?: number;
+    currency?: string;
+    account_type?: string;
+};
 
-const useTotalAccountBalance = (accounts: { balance?: number; currency?: string }[]) => {
+const useTotalAccountBalance = (accounts: TUseTotalAccountBalance[]) => {
     const total_assets_real_currency = useRealTotalAssetCurrency();
     const { getRate } = useExchangeRate();
 
     if (!accounts.length) return { balance: 0, currency: total_assets_real_currency };
 
     const balance = accounts.reduce((total, account) => {
-        const base_rate = getRate(total_assets_real_currency || '');
+        const base_rate = account?.account_type === 'demo' ? 1 : getRate(total_assets_real_currency || '');
         const rate = getRate(account.currency || total_assets_real_currency || '');
         const exchange_rate = base_rate / rate;