What Nick describes are called in Japan:
飾り刀 Kazari-tō; decorative sword
模擬刀 Mogi-tō; simulated sword
Ones with metallic nonferous blades made specifically for iaido are called:
居合刀 Iai-tō. These can cost up into the many-hundreds of dollars; I have one that cost $1,500. The high cost reflects high-quality furniture/koshirae; also, you can't tell mine is an iaito from a few feet away. It has a two-toned black/maroon saya and the sword itself has good heft, balance, and the hamon is finished nicer than the "toys." Don't have an image of the blade but here's the koshirae:
-- Guy
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