What is the difference between demo and real market accounts? | Forex Factory

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What is the difference between demo and real market accounts?

  • #1
  • First Post: May 26, 2021 11:35pm May 26, 2021 11:35pm
Hi every one, i have been try and study forex since 2014, but just in demo only.
Now it is the time to go in to next step (after i finish my master degree) , it is real account.
However i know there is a huge diffirent between real and demo.
So could you guys give me some advice and insight about real market.
Best regard.
By the way introducing some broker which is the best for you (IC,IG,FXCM...), i just need it for reference.
  • #2
  • May 26, 2021 11:50pm May 26, 2021 11:50pm
Money affects your critical thinking especially when losing money.

IMHO you need to put real money on the line and keep losing it professionally. Sort of like build up your trader toughness.

No need to put all the line, just something like 100 bucks acc or something that stings.

Reading books won't help with psychology. You need raw emotions to be felt when trading. And write a journal of what you experience.
  • #3
  • Jun 5, 2021 4:08pm Jun 5, 2021 4:08pm
Quoting potay90
Hi every one, i have been try and study forex since 2014, but just in demo only. Now it is the time to go in to next step (after i finish my master degree) , it is real account. However i know there is a huge diffirent between real and demo. So could you guys give me some advice and insight about real market. Best regard. By the way introducing some broker which is the best for you (IC,IG,FXCM...), i just need it for reference.
However i know there is a huge different between real and demo.

If your successful in your demo account trade like that in your real account. People have more balls in demos and tend to get crazy with risk management because obviously there is nothing to lose. When things affect our physical our brains tend to raise warning flags, obviously by reminding of us the risks.
My point is disassociate your self with your money, and your brain wont play tricks on your emotions as much. I have noticed the smaller the time frame the more involved you become with changing things. I prefer the larger time frames because I like to let my profits run as much as possible. Another thing I do to is have multiple investments ie.. Forex, Options, Real-estate, Stocks etc...and only invest when there is something worth investing. Always have a stop loss, OR exit plan if your investment does not pan out, and always hold your winners
It's me...
  • #4
  • Sep 2, 2021 10:53pm Sep 2, 2021 10:53pm
If you are successful in demo it is not necessary you will also be successful in real account. In demo your real money will not involve so you will feel easy when you open your trade but in real account your real money will be involve and there is risk of losing money also be thetre so you will trade with very care and you also will be afraid of losing your money.
  • #5
  • Edited 10:15am Sep 3, 2021 8:10am | Edited 10:15am
Get out of demo as soon as possible. If you can't afford more than 1 lot with American leverage don't bother till you can.

The information on this forum is lacking.

You need to get your head screwed on and geared to real challenges. The only reason to stay on demo is to learn the bells and whistles - that's all.

You need to get into the "matrix". You need to learn you're going to be a target and need to learn quickly how to win in the environment and no one here seems to. You need to learn while having the odds stacked against you and have a difinitive edge/head game. This is especially true if you're with a legitimate, larger broker and not some sketchy pos. Maintain the rationale they are trying to take your money no matter what people tell you, what you read or what you broker even says.
  • #6
  • Sep 8, 2021 1:05am Sep 8, 2021 1:05am
@Fml I don't agree with you, a demo account is very helpful. It lets new traders understand market movements and form strategies accordingly .
  • #7
  • Sep 8, 2021 9:08am Sep 8, 2021 9:08am
I agree @Fml, I am in Demo with IG because I'm a real beginner having trouble with set files and I'm still losing money, it hurts!
  • #8
  • Sep 16, 2021 8:08am Sep 16, 2021 8:08am
Quoting potay90
Hi every one, i have been try and study forex since 2014, but just in demo only. Now it is the time to go in to next step (after i finish my master degree) , it is real account. However i know there is a huge diffirent between real and demo. So could you guys give me some advice and insight about real market. Best regard. By the way introducing some broker which is the best for you (IC,IG,FXCM...), i just need it for reference.
The real difference between a demo and a live is the source of deposit. Like mentioned previously, this can really make you or break you when trading. The best mindset to work with is, treating it exactly like a real account. This means setting the demo balance to something you feel you would be comfortable depositing into your trading account. It might also be great to trade like its real. For example, would you trade the same products and quantities if you were trading on a real account?
It's very easy to get carried away especially when trading on a leveraged account. Keep in mind that increased leverage increases risk.

If have tried all brokers and found yourself unsatisfied, you can try FOREX.com! You can use the link below to open a demo:
https://www.forex.com/en-us/open-an-...gle.com/&bTag=
  • #9
  • Sep 17, 2021 10:41am Sep 17, 2021 10:41am
Quoting FOREX.com
{quote} The real difference between a demo and a live is the source of deposit. Like mentioned previously, this can really make you or break you when trading. The best mindset to work with is, treating it exactly like a real account. This means setting the demo balance to something you feel you would be comfortable depositing into your trading account. It might also be great to trade like its real. For example, would you trade the same products and quantities if you were trading on a real account? It's very easy to get carried away especially when...
Very informative and a great advice to beginners in going LIVE.
But here's one thing I learnt from my personal experience.
It doesn't really matter how long you trade a demo account...
And in regards to trading demo like a real one...it's impossible because it just isn't real.
Imho, the biggest different between a demo and real account (technical issues aside) is greed and fear.
This can only be overcome when you face them in trading a real account.
And I mean...just how serious do you think you can get trading a demo account?
Aim for what's achievable and don't be a dreamer.
  • #10
  • Sep 24, 2021 12:49am Sep 24, 2021 12:49am
Demo account is a type of account on which you learn all of the material of forex trading and helps you to develop your trading skills by gaining both experience and knowledge, however on real account you must be aware because you actually trade with your invested funds.
  • #11
  • Oct 12, 2021 5:22pm Oct 12, 2021 5:22pm
Timely post because last night was my first time trading on a live account after 6 months of babypips, investopedia, and some old-fashioned textbook learning. Anyway, here's what happened : I panicked on my first (overleveraged) trade, closed too early, and then proceeded to revenge trade because I thought a tiny tick in the opposite direction signaled a reversal

Regardless of the system I have been manually backtesting and using in my demo account, I still made an utterly stupid mistake due to emotion. I lost 1% in less than one hour. Thankfully, my live account is only filled with "tuition" money at the moment, so I'll take this as a valuable lesson. Learn from my mistake and best of luck to ya!
Trying my best.
  • #12
  • Oct 13, 2021 1:22am Oct 13, 2021 1:22am
A demo account allows you to try trading and see how the platform works. When I started it was very convenient to experiment with charts and try to "catch the wave". As I became more confident in myself, I tried to trade small amounts for real. But do not overestimate demo accounts, there are still many pitfalls waiting for you on any platform, whatever you choose (withdrawing money, contracts, etc.)
  • #13
  • Oct 17, 2021 10:50am Oct 17, 2021 10:50am
Quoting potay90
Hi every one, i have been try and study forex since 2014, but just in demo only. Now it is the time to go in to next step (after i finish my master degree) , it is real account. However i know there is a huge diffirent between real and demo. So could you guys give me some advice and insight about real market. Best regard. By the way introducing some broker which is the best for you (IC,IG,FXCM...), i just need it for reference.
Mindset and emotions of trading real money is the biggest difference.

I would suggest a micro account as an initial step before over investing.
As the account grows, risk should always be viewed as a percentage and not the value to help control your emptions if a trade moves against you.
  • #14
  • Oct 18, 2021 6:06am Oct 18, 2021 6:06am
I think demo is pointless myself, except for learning basic execution, how to put a stop loss, how to put a limit order, these kind of things.

Then just use a live account with small money, so small that you dont really care about the loss, but the executions are realistic. You can also find out here if your broker is good or bad.

There is no point to using a large account, say 10k and up, if you are not successful with a small 1k account.

I think I heard ICT say that a demo gives you a high from your wins, but allows you to ignore the losses because they arent real. I agree with this.

You need the real risk of loss to focus the mind and make yourself take it all seriously.

Just open a micro or mini account with a few hundred, and go live straight away.
  • #15
  • Oct 20, 2021 3:58am Oct 20, 2021 3:58am
Quoting LogicFX
I think demo is pointless myself, except for learning basic execution, how to put a stop loss, how to put a limit order, these kind of things.
Yes, but you must agree that as a practice for a beginner, this is a great tool, without which it would be more difficult to understand your strengths. Of course, it is worth remembering that in real trading everything is somewhat different and it is more difficult to control yourself first of all.
  • #16
  • Oct 29, 2021 6:44am Oct 29, 2021 6:44am
The obvious difference is that demo account won't bring you any sum of money, actually it won't bring you money at all. As for real account, then real money are being made only there. In my opinion, demo account is pretty helpful for beginners because they can meet trading activity and start gradually understand all the features of this activity. Real account is one of the most important things in trading and basically, there are no trading activity without real accounts. Thus, I would advice all the novices to move on a rel account as fast as they can in order to see by their own how is money being made in this activity. So, something like that.
  • #17
  • Oct 30, 2021 2:50pm Oct 30, 2021 2:50pm
Quoting louiseking
@Fml I don't agree with you, a demo account is very helpful. It lets new traders understand market movements and form strategies accordingly .
Potay90 has been practicing on demo since 2014... that's 7 years. You advise him to stay on demo for another 7 years?
You learn by far more if you trade micro lots than demo.
  • #18
  • Oct 31, 2021 6:08am Oct 31, 2021 6:08am
I would say you have been on a demo account for plenty long enough. Get yourself onto a live account. Only deposit what you can afford to lose. Always use a stop loss and be mindful of your lot size to keep good risk management. Let us know how you get on. Don't put yourself under too much pressure straight away.
  • #19
  • Nov 29, 2021 3:40am Nov 29, 2021 3:40am
There are a number of differences in a demo and live account, the few most common ones are:

The spreads are generally tighter on a demo account but on a live account there can be a difference of 1 pip which may have a huge impact on the total profits made.

In demo trading stop loss orders are perfectly executed but not on a real account.

There are no re-quotes on the demo account. However, as the live market is extremely volatile your order will be placed at a slightly different price than the price at which you ordered.

The biggest reason that can turn your planning upside down is the emotions which are absent on a demo account but take a front seat and drive all your actions on a live account.

Given that you've spent many years on demo it will be really difficult for you to adjust to the live market conditions. I would advise you to take it slow and start with a small capital initially.
  • #20
  • Nov 30, 2021 12:37am Nov 30, 2021 12:37am
Wow, you've been trading demo for too long, it will be hard for you to start trading real money.
The major difference between demo account and real one is the psychological factor and responsibility. You'll experience some other emotions which you haven't had yet and at first, it will be scary. However, the only way for you to keep going is to make yourself get used to the fact that you are trading the real money. If you were a success trading demo, you can also be a success trading live if you pull your full effort to it. On the contrary, being a success on demo doesn't guarantee that you'll be a success on the real trading. My recommendation for you is to make a trading diary where you should write all of the deals that you make and the reasons which made you make this or that decision. This tool will definetely help you understand your trading strategy much better and search for the possible mistakes in the future in order to prevent yourself from constant losses.
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