Personally I think it would work.Electric candles work in place of candles so I believe a toy torch would as well as long as you have atangible candle. Usually real candles are used for the wax, flame, etc. You may use that but you couldn't use it for spells and rituals like an actual candle.
If you feel a connection to it you can work with it. I picked up 'bleeding' candles at Spirit Halloween last year [black and white candles that drip red wax] because I thought they were cool, but I've used them in a few spells for added visual effect or when I needed those specific colours. Whatever helps you connect and personalize a spell.