Besides the obvious of real money and fake money, i constantly here how people saying how different it is. Is the only difference they are talk about is real money vs fake money? Or is the actual trading software mechanics different? Been demoing for a little now and getting prepaird to cross to the other side.
The biggest difference is what happens in the space between your ears.
And occasional slippage.
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Ideally, there is no difference. If there is, it’s due to not demoing correctly.
Hello:)!
I was kind of hoping that there would be a difference between my real and demo account, so i had something to blame on lol!
I guess i have a good broker because there is no difference :). Except the fact that the money you trade is real and that makes all the difference in the world :p:p!
1-Money; real vs. fake
2-Slippage, requote; won’t encounter this with demo. Brokers make this perfect so that you would open an account with them.
3-Emotion; fun and easy with demo
Other than these, make those pips!
Can you explain your coment about slippage in demo vs real? And also is slippage basically the lag time with a slow internet conection?
The actual difference depends on the broker, however, as an API trader I know for a fact that there are differences with every broker I have had interactions with. The first think I do is run a script that tests execution speed, slippage, spread statistics and spiking. There is usually a huge difference in demo mode in regards to everything except spread statistics. All in all though, unless you are a scalper it will not mean that you would intimately be profitable in demo and not in real, or visa versa. It would just mean that your overall P/L would be off. Now, if your P/L was very small then I suppose you could end up on the other side of the fence. If you have access to the brokers API test it out. If your broker does not have an API they are in the stone-ages and probably behave as such.
Ok well i am using FXCM anyone know the differences from switching to real from demo?
I currently am trading on a 1m chat and my trades last anywhere from 1 to 5 min would this be considering scalping? i do mainly capitialize on price spikes but so far i have seen a 15% return on my money in a week trading for about 1 hour a day. I love it and like watching my money grow tried to trade hourly/daily just didnt like walking away.
That is considered scalping. Do you use stops?
no i make judgment calls on each trade usually pull out if it drops 2-3 pips below entry and cash out 2-3 pips above spread.
Can anyone share their personal experience with FXCM demo vs Real? esp if you are trading on a 1m or 5m chart
many many differences from execution speed to liquidity providers, i would say demo trading is good to grasp the basics, but real training starts with live so keep it low. and best of luck
So many difference between demo account and real account, first about server that also different, then also about capital on account is only use virtual money while on real account is alredy using real money, profit on demo account is unwithdrawable while profit on real account is withdrawable, emotion on demo account also will different when treat on real account.
I don’t believe any broker passes demo trades to a liquidity provider. It’s just a demo environment that has the same pricing as the live environment of the broker with the difference that once a price level is reached (SL/TP/Pending order opening level) it get’s triggered at the exact same level on which it was set. Simply because there is nobody actually executing/taking the trade on the real market. That is why there is no slippage possible on demo and execution speed might be better sometimes compared to live.
Of course if you are using a market maker any price levels would be guaranteed on live too, as the broker is taking the trades into their own book. It’s a matter of personal choice 
There is definitely a difference and it’s mostly psychological.
Well, I used my demo account so sincerely! I started with a small amount of virtual money since my real trading capital was small too! I used there low trading lots size and I never tried there over trading! Basically, I open my demo after learning basic things of Forex! So, for me there is no difference!