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how do demo accounts differ from real live trading?

  • #61
  • Jan 15, 2012 3:49am Jan 15, 2012 3:49am
Newbie here and just started trading on a demo account for the past few weeks. i've had my ups and downs..but i feel like i need to "level up" my trading by trying a live account. However, fear is hindering me to try it out. Just curious, how long did it take before you guys took that leap of faith? How can you say that you are ready to go live? Any insights much appreciated.
  • #62
  • Jan 17, 2012 12:17pm Jan 17, 2012 12:17pm
played around with demo accts for a couple of days just to work out the terminals then straight in with real money...real money is lost-and pain is felt. keep in mind that opening up a real acct isn't going to be a pretty one way journey, you'll have much more set backs when ur live.
  • #63
  • Jan 18, 2012 12:43am Jan 18, 2012 12:43am
When you open up a Demo acc. you most probably receive $50-100K.
When you trade is unrealistic! Most beginners looking to invest much less.

The big margin provided by the 100K gives you a false sense of security!
If your broker is flexible ask them to open your demo acc. with the funds that you are looking to invest!

The other thing ask the broker about the spreads displayed in the demo and the live account! Many of them give better spreads in Demo which may be only for institutional clients.
  • #64
  • Jan 18, 2012 1:20am Jan 18, 2012 1:20am
Quoting kendeb57
Hi everyone

I have been trading (VERY) successfullly for 2/3 years now on a demo account.

Turned 3k in to 12k or there abouts (3k initial deposit),leverage (from what I remember 200/1).(lot size 0.1/0.2 MAX)

I keep hearing how demo accounts differ from real live trading but how?

Is it purely emotion(to real money) or the actual data you recieve once live(speed,slippage etc)

Can I also ask(I use forex meta trader 4) ,does the demo for this give me a margin call)if I were to go in to a negative territory.Just wondering if my demo account...
How are they different? One word: Slippage, that great catch-all word used by br0kers to cover a multitude of sins.
To improve is to change. To perfect, is to change often.
  • #65
  • Apr 21, 2016 5:28am Apr 21, 2016 5:28am
Any new trader wishing to learn forex on a demo should be sure to find a demo that allows you to adjust your initial starting balance to just a few hundred rather than these enormous 10000 -100000 $ demo accounts.
Once you have turned 100 into 200 then 200 into 300 and so on and so on then you can realisticly be confident in opening a live account. I pity anyone opening an 30000 live account with no real understanding of market analysis, RR and power of compounding, if you can trade you should be able to start of very small, don't let the demo account distract you with huge returns if you only have a few 1000 to invest initially.
FREEDOM IS SECURITY.
  • #66
  • Apr 21, 2016 6:24am Apr 21, 2016 6:24am
I agree, if when you practise on a demo account you should use the same amount to practise with as the sum you intend to invest in a live account, or you wouldn't get realistic results and your conclusions based on your demo account trading would be skewed.
  • #67
  • Apr 21, 2016 9:15am Apr 21, 2016 9:15am
Quoting jsean23
Newbie here and just started trading on a demo account for the past few weeks. i've had my ups and downs..but i feel like i need to "level up" my trading by trying a live account. However, fear is hindering me to try it out. Just curious, how long did it take before you guys took that leap of faith? How can you say that you are ready to go live? Any insights much appreciated.
Why don't you try it out, with a small starter?
200-300€ gets you familiar with it cheap.
  • #68
  • Apr 26, 2016 9:32pm Apr 26, 2016 9:32pm
a demo account is very important for traders because the demo account will allow us to practice the skills of trading well, and therefore we have to use a demo account with a well to improve trading skills well
  • #69
  • Apr 27, 2016 2:52am Apr 27, 2016 2:52am
Quoting kendeb57
Hi everyone I have been trading (VERY) successfullly for 2/3 years now on a demo account. Turned 3k in to 12k or there abouts (3k initial deposit),leverage (from what I remember 200/1).(lot size 0.1/0.2 MAX) I keep hearing how demo accounts differ from real live trading but how? Is it purely emotion(to real money) or the actual data you recieve once live(speed,slippage etc) Can I also ask(I use forex meta trader 4) ,does the demo for this give me a margin call)if I were to go in to a negative territory.Just wondering if my demo account would have...
It all comes down to emotion. Once your hard earn money is on the line, the normal fluctuations that the markets experience will keep you on the edge if position size is one you are not truly comfortable. I will elaborate more when I start my own threads.
  • #70
  • Apr 28, 2016 2:04am Apr 28, 2016 2:04am
Additionally,a broker may never requote a price to a demo account,but they might often requote live prices.
  • #71
  • May 11, 2016 8:09pm May 11, 2016 8:09pm
Quoting RichardTrade
Additionally,a broker may never requote a price to a demo account,but they might often requote live prices.
for that, if we want to test the better brokers trading in a real account with a small capital. at only demo account using virtual money so anything can happen and therefore we have to be careful with a demo account. But the demo account then we will be able to able to increase the skill well
  • #72
  • May 13, 2016 3:06am May 13, 2016 3:06am
Both are very important.If you want to be a successful trader you need to spend much of your time on a demo account to develop your skills and knowledge.But the demo account could not help you to control your emotions.
  • #73
  • Apr 26, 2017 9:03am Apr 26, 2017 9:03am
Hello, I used exactly 500$ in my demo since I had a plan with 500$ for live trading! Actually, there is only one different and that is virtual trading capital! Whatever, I used my practice account so sincerely as like my live trading account! This is why, now I have faced no problem in my live trading account including sentimental issue!
  • #74
  • Apr 26, 2017 8:55pm Apr 26, 2017 8:55pm
Other than maybe bigger spread/a bit of price slip at certain times (low liquidity or big events like USA elections, etc) its the same..

except you can lose/withdraw the money you earn/lose


Technical analisys
Money management
Phsycology

you need all 3 in top shape in order to perform; 1 fail and you dont get the results, no matter how good are the others

oh btw, you have 3 YEARS DEMO TRADING?!?! WTF ?!?!?!? there are things you need to learn in LIVE that DEMO trading are never going to give you !!! You know how to read a chart? know your strategy? GOOD then you are ready !!! STOP WASTING TIME !!!
  • #75
  • Apr 26, 2017 10:06pm Apr 26, 2017 10:06pm
As well as demo account it is learned as best as possible, and if our account demo is able to run trading well, then we try to plunge in real account to test our science and mental like $ 1 in standard account instaforex for future small risk also
  • #76
  • Jun 30, 2017 8:58am Jun 30, 2017 8:58am
I think there is no best place devoid of demo account for practicing trading especially for the beginners. But practically by and large beginners don’t believe the importance of this trading place at all. as a result they become loser due to exact knowledge when trading in a live account.
  • #77
  • Jun 30, 2017 9:59am Jun 30, 2017 9:59am
Yes, I have seen beginners lost interest in demo account after passing sometimes. so I prefer mini account than demo account. But demo account is really important before choosing a broker to see the performance how it works.
  • #78
  • Aug 19, 2017 8:19am Aug 19, 2017 8:19am
Nice to see, you used your demo trading account for such a long time; that’s really rare! Because I see, maximum new traders are too hurry! Since you were able to check your initial emotions for live trading; so I am sure you have a very good future on live trading.
  • #79
  • Aug 19, 2017 8:37am Aug 19, 2017 8:37am
There are several key differences between demo accounts and live accounts. The first one is that the execution speeds on the demo account might be much faster than on the live account, depending on the broker. One can also experience slippage or requotes on the live account, also depending on the broker. The last difference depends on the trader - most people have different psychological response to trading on a demo account than on a live account.
  • #80
  • Nov 30, 2017 4:10am Nov 30, 2017 4:10am
Quoting gabanda
a demo account is very important for traders because the demo account will allow us to practice the skills of trading well, and therefore we have to use a demo account with a well to improve trading skills well
Yes, the main purpose of demo is learning! I see, learning is a long term process! But, a number of new traders try to learning everything in a day, but it takes time to learn technical and fundamental analysis.
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