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
-- Specially difference between Real time execution of orders ( specially gold/USD)
-- 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 best of luck
No hidden costs but there will be delay and requote in Real Trading
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