Dear Friends,
I know this might sound like a stupid question, (and yes, I do know that the main difference between the two is that in the Demo account you smile when you lose money, while on the real you don’t )… but I think there are other things one should be aware of.
For instance (and again, forget the main difference - that in Demo the money is not real):
[ul]
[li]is it true that a demo does not behave “[B]exactly[/B]” as a real account ?[/li][li]is it true that a real account is “slower” processing orders ?[/li][li]can we have extra fees, values, etc… that are not tottaly represented on the demo account ?[/li][li]what other main difference one should be aware and ask the broker for information ?[/ul]Kindest Regards[/li]/Ricardo
[QUOTE=rdquintas;35218]Dear Friends,
I know this might sound like a stupid question, (and yes, I do know that the main difference between the two is that in the Demo account you smile when you lose money, while on the real you don’t )… but I think there are other things one should be aware of.
For instance (and again, forget the main difference - that in Demo the money is not real):
[ul]
[li]is it true that a demo does not behave “[B]exactly[/B]” as a real account ?
[/li]
Yes, it does not need to take into account whether there is sufficient volume to fill your order at the price quoted. In addition variable spread brokers often do not shadow the spreads on their demo platforms
[li]is it true that a real account is “slower” processing orders ?
[/li]
This is quite possible because you are dealing with real orders and customers
[li]can we have extra fees, values, etc… that are not tottaly represented on the demo account ?
[/li]
Not sure about this but think it is unlikely
[li]what other main difference one should be aware and ask the broker for information ?[/ul]
[/li]
Just remember it is not real. A brokers major servers will be dedicated to their real customers and when faced with technical issues the real customers will quite rightly take preference. Slippage, requotes, liquidity issues dont affect a market that isnt real. These issues all seem to affect real accounts adversely. You seem to rarely have a no fill as happened to me last night on the Asian breakout on a trade that would have lost!
1st question - A demo account, from my experience, does in fact act very much like a real account…no worries there. If it does, your broker is chopped & screwed (find another one - fast). The only difference is the one you precieve in your mind.
2nd Question - Nope, not really guy, only during news hours…usually a few minutes (or hours depending on the news). That’s where most beginning news traders get tripped up thinking the spread is constant through out the day, not so…I know this because, well, I’ve lost money thinking the same.
3rd question - I know that with the ECN broker I will be trading with, they charge 5$ for every 100,000$ you trade, which is more then reasonable considering most of their major pairs are 0 to 5 pips in spread.
4th question - Do your own research on several brokers and gather a few 3rd party opinions and come up with your own conclusion. I personally only asked like 2-3 questions pertaining to funding. Try going to your brokers forum and browse around, contact support online or over the phone if you don’t understand something in their terms of agreement.
Side Note : Consistent traders smile when they make and lose money, because they know that when they executed a trade exactly according to plan without breaking any rules on their own…it was a great trade, and you find yourself smiling on a lose knowing that if it weren’t it would’ve been a great win, the market just did what it did, and you did the best you could in the situation.
You smile knowing their will be many more opportunities like it, and the profits you make over the long term more then makes up for the few inevitable losses.
I don’t know if I gave the best explanation, but try using the search button on this forum and you will find many more responses directly related to your questions.
First off loved this quote, so true Josef Benjamin
Side Note : Consistent traders smile when they make and lose money, because they know that when they executed a trade exactly according to plan without breaking any rules on their own…it was a great trade, and you find yourself smiling on a lose knowing that if it weren’t it would’ve been a great win, the market just did what it did, and you did the best you could in the situation.
You smile knowing their will be many more opportunities like it, and the profits you make over the long term more then makes up for the few inevitable losses.
* is it true that a demo does not behave "exactly" as a real account ?
* is it true that a real account is "slower" processing orders ?
* can we have extra fees, values, etc.. that are not tottaly represented on the demo account ?
* what other main difference one should be aware and ask the broker for information ?
Tony & josef have covered this one quite well, also there are lots more
threads on the forum discussing this very issue.
I would just like to add, would you expect a live account to totally
mimic a demo account? I wouldn’t, the basic difference is in live it
is your own money you are losing. This psychologically affects traders,
when they lose they blame their system, broker, son, daughter, anybody
except the person whos fault it really is, themselves.
Ok there are “scam”, cheating, low down brokers out there who will try
to fleece traders, but if you do your research, take into account a whole
host of varying opinions you should avoid these people.
)… but I think there are other things one should be aware of.