Does a demo account affect a live account?

Beginner Questions
1

A Demo Forex trading account does not affect a live account, like a savings account does not affect a checking account. There are some restrictions on how Demo Forex trading accounts can be used and some associated risks, but they offer some advantages over live accounts.

The primary advantage of Demo Forex trading accounts is that they allow traders to try different strategies without risking their real money. As a result, many people use Demo Forex trading accounts to develop their trading skills before switching to a live account where they bet real money. Additionally, Demo Forex trading accounts often have lower commission rates than live accounts, making them more affordable for beginners.

However, there are also some disadvantages to using Demo Forex trading accounts. For example, the market conditions in Demo Forex trading accounts may differ from the market conditions in live accounts, leading to inaccurate predictions about future prices.

2 Likes
2

Confused. Are you saying that there are some brokers who do allow deposits to be moved between demo and live accounts?

3

Ditto that where I was confused too

4

What are you trying to explain here? Demo investment and live investment is not the same thing!

5

Perhaps some brokers insist on a cash deposit in order to open a demo account? Just wondering…

6

Actually, the demo market scenario is the same as like the real account; the only one different issue is the virtual capital!

7

Hello Guys,

Sorry, it’s my mistake. Actually, in a demo account, you don’t have to invest anything. You can trade with virtual money in the demo. You just need real money while trading in the live account.

8

So are you telling people to help beginners or asking people if demo affects live?

9

Demo account is specially designed for the learning purpose where traders can learn about trading without risking their money. It does not affect a live account as there is no trading psychology. Moreover, many times demo charts lag wrt the live charts. One can not fully depend on a demo for learning.

10

The last paragraph is my favourite. What you see on a demo account is not what to get to see on a live account. You must keep yourself from doing anything that you didn’t study or learn.

11

I agree that a demo account can help traders in getting better with their trades to some extent but depending too much on these results would only lead to unrealistic expectations. So, better know when you should move to live trading for real practice and learning.

12

I what he is saying is can demo be 100% compared with live account?
The only difference I see is our emotions, I have found out that we become relaxed and complacent.

13

Demo is important, it can help you a lot if you take demo as seriously as your own capital! But unfortunately most of the traders take the demo as like a fun game!

14

I think this is important for beginning traders.
The way to a real account is through a demo account.
Also, if a beginner finds it difficult to trade on the demo, you can always turn to investments.
My friend Marcellus will help you :wink:

15

While trading on demo accounts, I believe we should be serious, because it shapes our mindset and prepares us to trade live.

16

Of course, a serious mindset is important & I believe in that case, small trading capital is important!

17

I guess, in that case, simulation trading can be a good choice; but till now demo is a good way to learn & practice!

18

It’s all about the mindset; when I opened my 1st demo, I was with a wrong mindset; as a result my 1st demo didn’t help me to understand the market!