We have demonstrated the practical feasibility of a displacement- and frequency-noise-free laser interferometer (DFI) by partially implementing a recently proposed optical configuration using bi-directional Mach-Zehnder interferometers (MZIs). The noise cancellation efficiency was evaluated by comparing the displacement noise spectrum of the MZIs and the DFI, demonstrating up to 50 dB of noise cancellation. In addition, the possible extension of DFI as QND device is explored.