Diff. between demo trading and Real Trading-- Opinions invited for help to Newbies

hi everybody there,

I’m new to forex and this is my first thread. and I need help from the experienced persons.

I wanna know about Difference between Demo Trading and Real Tradind about
– any type of hidden costs
– any type of charges charged by the brokers and other types of problems experienced by others while depositing and withdrawing funds

–[B] Specially difference between Real time execution of orders ( specially gold/USD)[/B]

– any fraud done by brokers to the newbies

and any suggestions for the newbies

Order execution and everything else (besides trader psychology) will be the same between a demo and live account.

It is in the best interest of the broker to put out a demo that reacts identically to the live platform.

There are several methods to deposit funds, and it’s different for different brokers. You will have to check with yours. Usually wire transfers will have a fee charged by your bank for sending out money.

There is fraud - high and low degrees of fraud.

Any broker with fixed spreads and “no commission” is ripping you off because the actual spreads that they receive are on average lower than the ‘fixed’ spread. Who do you think keeps the difference? They do.

These types of brokers are referred to as “dealing desk” brokers, and they have the power to pool their customer orders and manipulate execution.

A non-dealing desk broker never sees your orders and directly connects your orders to a network of banks via ECN.

thanks for reply professorx ,

then what do u suggess, should I go with an ecn broker rather that a dealing desk, and how much a ecn broker will charge per trade and whehter the volume of trade matters in that case ?

Also plz explain in detail what kind of fraud there can be

You might think that there is no difference, but somehow people win while demo trading, and start losing when starting using real money…

I just chatted with the support of hotforex, while on their MT4 demo account is possible to close partially a open position, is not possible on the live version, and closing a position with the contextual menu does not pop the managing windows but close the position straight. it is faster, but better know what you are doing before making mistake on live

^
Guy, that is the latest version of MT4 so you can choose closing a open position partially or close straight on all account (live & demo). The new version has integrated one click trading.

i’ve been told some brokers offer tighter spreads on their demos than their live accounts (of course, this sometimes depends on the size of your account).

There are no hidden charges of demo . it is free of cost. You can make all transactions freely . You will not have any profit or loss in your pocket. It is like a real account . Some difference is in executions of real and demo tradings. In real trading we face more requotes

there is always a difference between live and demo, some greater than others, the purpose of demo is to practice and they try to provide as much as live conditions possible but never a 100%, there are liquidity execution, spread differences ETC, basically what you do best is practice with demo with very small amounts, and when you think about going live start with a smaller ammount(50-100) just to test the live waters and how it works for a couple of weeks, make a couple of trades and withdraw if you like, when you are comfortable only then you can enter with larger capital/investment :slight_smile: best of luck

No hidden costs but there will be delay and requote in Real Trading

Yes of course when trading comes to real account it becomes difficult for the traders. In demo account trader should learn to trade with proper planning and discipline to get the positive results.

Here is the truth. A demo platform is a very good practice tool in the FX market. The only thing a demo platform can help one to achieve is; how to open/close a trade and how to use various options available or given by a broker. Aside from this, there is no further use. A demo platform could be disadvantageous because you won’t know how it feels to trade with your hard earn money. Also, you won’t know what it means to get slippage or requote when trading with a demo platform. When it comes to execution, a demo platform is very fast; it is the fastest order executor there is. Unlike a demo platform, a live platform might not give you that same fast execution you deserve. Only a few brokers are able to get you that fast execution that is as fast as a demo platform. I have attached a picture of a Demo platform and a live platform. Look at the Market Watch and see if there is any difference in quote. I have also attached a picture of the Profiforex MT4 Demo and its live account and a description of its execution time frame (they are exactly the same). MT4 so far is the best trading platform for all beginners. Now, my advice for all beginners is that you must use a demo platform to learn the act of trading, but only for a very short period of time. After one month, you should get a live account and start trading live to make yourself an experienced trader.

As a beginner and referring to myself, you don’t need to have your demo time framed thus I think it would be best to do the demo and learn until you are confident that you have sufficient knowledge on how the trading works then now’s the time that you move and try the live trading.

The main difference between a Demo account and a real trading is the fact that there is no slippage as the trades are not actually forwarded to the real market. The trades are usually executed immediately, without any rejections and sometimes in the real market delays and rejections are possible. There are no hidden costs but of course every broker has different conditions. Of course we should not forget the psychological factor here as when trading with a demo account, people are more confident, take more risks and are not afraid that they will lose. So it will be helpful to treat the demo account like a real one in order to minimize this influence.

I think the idea with demo trading is just to give the feel of what forex trading looks like and give you that incentive to trade on. Using real for real account is the major difference I see here!