Demo vs. live
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Thread: Demo vs. live

  1. #1
    Join Date
    Mar 2017
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    Default Demo vs. live

    I often hear, that trading on demo account and live can`t be compared. And I don`t really understand why. The priciples of trading are the same. The only difference is that on demo you trde virtual money.
    So, what does the traders mean? Is it about psychological aspect? Because, when you trade real money, you become more nervous. Or there are some other issue?

  2. #2
    AmineL Guest
    Quote Originally Posted by AbdulFani View Post
    I often hear, that trading on demo account and live can`t be compared. And I don`t really understand why. The priciples of trading are the same. The only difference is that on demo you trde virtual money.
    So, what does the traders mean? Is it about psychological aspect? Because, when you trade real money, you become more nervous. Or there are some other issue?
    Exactly. It's about the psychological aspect. When real money is involved, emotions gets involved too ! Emotions are kind of an enemy to logic and reason especially in a field where you can lose thousands of dollars in seconds.

    Losing fake money isn't the same as losing real money! You're more likely to change your plan/ system or your stop loss if you're using real money. The fear will be more present with real money and that will make you do things that are not according to plan...Unlike in Demo, you really don't care that much of losing something that doesn't really exists !

  3. #3
    Join Date
    Dec 2015
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    The psychological pressure of trading with real money is certainly not something that can be overlooked as a factor. I can only speak for myself, but I can tell you that once I started trading on a live account I was a lot more stressed than when I was trading on the demo account, and that had an effect on my decision-making process.

  4. #4
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    The main difference between Demo and Live is that on demo you (usually) cannot get any slippage on execution. However there might be also some other differences depending on your broker so for sure first ask there for detailed information. All things like pricing feeds, spread/commissions, symbols specifications etc. should be same on Demo and Live.
    On the other hand, what you mentioned about the psychological aspect is completely valid. You make decisions easier on demo because you don’t care that much about the virtual money there, you don’t pay that much attention on risk management, lot size etc.
    And still you should never go live before testing everything on demo first. See how things work, build your strategy, make mistakes and learn for them… For sure you will learn a lot more when you go live but on demo you can get the main idea.

  5. #5
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    Quote Originally Posted by AbdulFani View Post
    Is it about psychological aspect? Because, when you trade real money, you become more nervous.

    I think that's what most people are primarily referring to, when they mention the differences, but the other points made above by Eyedfondue are perfectly valid, too: in theory, there "shouldn't" be practical differences, but there can be, over slippage etc., depending on the broker.

    In general, one shouldn't assume that one will necessarily be able to duplicate perfectly in a funded account the results one's produced on demo.

  6. #6
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    Hi to everyone! How do you think, are there any tricks from brokers on demo account? Is it easier to get profit on demo?

  7. #7
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    Demo server might good than live server, in demo account will rarely facing requote problem but on real account sometime often facing requote and this is also making trader being emotion sometime, but if making comparison server live between broker also has different speed execution

  8. #8
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    Definitely the major difference between the demo and live account is psychological aspect during trading. State of mind while trading matters a lot and when a person is dealing with the real money it makes a huge difference. during real trading Emotions come into play and can significantly affect the trading decisions. Also it seems to the person that he can certainly make more profit in demo account as stress, fear, emotional involvement all affects the trading in live account.

  9. #9
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    Mar 2017
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    Some people recommend to try cent account after demo. So, you trade with real money, but with really small sums. How do you think, is it a good idea? Are there any requotes and slippage, while trading on cent account?

  10. #10
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    Quote Originally Posted by AbdulFani View Post
    Some people recommend to try cent account after demo. So, you trade with real money, but with really small sums. How do you think, is it a good idea?

    I think it is, in principle, as long as people treat it as a way to learn and practice with real money, and not as a way to try to get rich.


    Quote Originally Posted by AbdulFani View Post
    Are there any requotes and slippage, while trading on cent account?

    Sometimes; it depends on the broker.

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