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Difference between demo and real trading

  • #21
  • Nov 28, 2009 1:03am Nov 28, 2009 1:03am
Quoting drtsb
I'm very new to forex, been trading on a demo account from various brokers for 2 weeks. I'm very consistently making profit, so I'd like to start doing real trades. I've been practicing mostly with an Alpari demo account, and intend to register a real account there once ready. My trades go over a period of 10-15 minutes usually. The problem I'm having here is that it just doesn't make sense that you make such easy profit with so little experience, there has to be something I'm overlooking. The question I'd like to ask is: what is going to be difference...
The difference is huge, you will discover the real side of trading. Demo is just for testing the platform. It shouldn't be used to learn how to trade because it will set false expectations. Read this thread wrote by Merlin. http://www.forexfactory.com/showthread.php?t=82169
  • #22
  • Nov 28, 2009 9:44am Nov 28, 2009 9:44am
Quoting drtsb
It does interest me. But when posting the topic I actually considered stating: "apart from psychological factors, what's going to be different". In the end I didn't. The purpose of my thread is to decide to make a real account or not. Whether or not psychological factors will affect me in a negative way, does not affect my decision to start doing real trades: the only way to find out how psychology will affect me, is by finding out the hard way anyway. I'm looking for actual good reasons not to go into real trading yet, psychology is not one of...
You can make money off most any set of indicators with a slight edge, if you pick when it works and hold to stops. You don't even need indicators besides price bars or candles, with enough screen time. Given that, why do most fail at trading? Psychology.
It's first, no matter how you look at it. And trading as many ways as you can reveals different layers of psychology on how you trade -- Paper, simulator, demo, pennies, real. Then you can walk through and correct your psychological reactions to different trading situations and intensities, and spread your risk at the same time.
  • #23
  • Edited 11:13pm Jan 16, 2010 1:51pm | Edited 11:13pm
What is the difference of the data feed of a Demo account compare to a Simulated account using NinjaTrader with Zen-Fire data feed?

Are both data feeds considered real-time live market data?

(Not asking about the mental aspect of trading with both) Specifically asking about the external price feed.
  • #24
  • Jan 16, 2010 8:19pm Jan 16, 2010 8:19pm
From my personal experience, I've found that real trading and demo trading is quite significantly different due to emotional & mental acts of our trading behavior. Demo trading, for me at least, has stress free rather than my first step towards real trading. My first live trades were really tense..
  • #25
  • Jan 17, 2010 9:14pm Jan 17, 2010 9:14pm
Quoting Silversea
What is the difference of the data feed of a Demo account compare to a Simulated account using NinjaTrader with Zen-Fire data feed?

Are both data feeds considered real-time live market data?

(Not asking about the mental aspect of trading with both) Specifically asking about the external price feed.
Yes, they are 99,9% same
  • #26
  • Jan 19, 2010 4:55am Jan 19, 2010 4:55am
I lost a total of $1.18 trading microlots earlier this evening, over a series of 3 trades. And yes, we're talking a real live account. Did it bother me? Did I feel an adrenalin rush, sweaty palms, fear, panic at any point? Hardly. Demo and micros are all the same to me.

That's the beauty of forex - completely scalable stakes. The key is to stay within your personal tolerance level, stakes-wise - in fact, there's no excuse not to; let the account grow at a rate that performance, and your own confidence levels, dictate. And, at least for me, the second key is to know my risk - the worst possible scenario - dollar-wise, before I enter every trade. That's how I've managed to eliminate virtually all fear that I have of losing money. Well, that's my personal approach, but hey, I understand that everybody's different.

If your trading is causing you stress, then you're over-leveraged, and as the old adage states, scared money never wins.

I could easily throw a much larger sum at this, but why hurry, when it's neither a competition nor a race? I want to prove to myself that I have a real edge first. Otherwise I might as well donate all of my $$$ to the market, before I even begin.
  • #27
  • Jan 19, 2010 10:07am Jan 19, 2010 10:07am
in my experience the main difference is: in a real account you need balls. when you don't risk any of your money it's easy to let a position just run even if it's in minus, 'cause you guess it's going back to green in a little longer time frame.

i for myself have recognized that i often close positions in such situations with a small minus, cause i think that's better than a big minus. on a demo account i would just let it run.
same thing with to small stop loss in fear of losing too much.


i guess you have to lose that fear to become constantely profitable.
  • #28
  • Jan 19, 2010 11:38am Jan 19, 2010 11:38am
Demo and the real thing are completely different beasts.

Demo is a beast because it lulls you into thinking that trading is easy.

Live is a beast because your losses are real and self-esteem can get shattered as you change your plan and lose over and over again.

The key to success in my opinion is not necessarily to skip demo entirely, but if you have an account where you can start small enough that you can bust it 3-5 times without financially harming yourself, this may be the best option.

Nothing compares to the psychological damage of being wrong and losing money at the same time. Dive into it and master it.
  • #29
  • Jan 19, 2010 11:42am Jan 19, 2010 11:42am
Deposit $ 25 in an oanda account and start trading 1 units.

It is as good as a demo with all the benefits of a live trading.
  • #30
  • Sep 3, 2010 12:17am Sep 3, 2010 12:17am
Hello, guys! My forex experience is similar to that of the member who posted this thread, but my question is even rookier. Here it goes.

Let's say I have funded my account (which is standard) with 50$. My account balance would be 100 000. I open a trade and at one point the profit goes to -100. I am confused about which of the above figures this profit refers to. Does it mean that I will have lost my 50$? Or is -100 deducted from my account balance (100 000). In other words, if a price moves at that direction am I going to lose the money I have deposited or just disturb the account balance???

THANK YOU VERY VERY MUCH!
  • #31
  • Sep 5, 2010 8:19am Sep 5, 2010 8:19am
I've been with the real account for a couple of days and I can say that one of the difference is that the thrill and excitement is heightened to a whole new level.
  • #32
  • Sep 5, 2010 8:26am Sep 5, 2010 8:26am
Quoting hanover
That's the beauty of forex - completely scalable stakes. The key is to stay within your personal tolerance level, stakes-wise - in fact, there's no excuse not to; let the account grow at a rate that performance, and your own confidence levels, dictate....
What a very nice post.
  • #33
  • May 17, 2017 9:40pm May 17, 2017 9:40pm
I am new to FOREX i need some more in info on real and demo account.

Is Forex live account will ACT like bank account where i can hold all pair from different broker from one account.

how to find or verify that i am trading in a real account i mean with some broker i registered real account it will show my deposit balance. But i can see both real and demo account looks same so will there any way to back check my transaction with any centralized global Forex.

I want to put a question in this way.

If I BUY a one leg EUR/USD with first XXX broker 1 lot is there any way i can SELL it to another broker who is YYY. So this mean i am doing Forex in real account right
  • #34
  • May 18, 2017 1:07am May 18, 2017 1:07am
With my broker, the only difference between demo and live accounts is that in demo slippage cannot occur and for me it is as close to the real market environment as possible. The real difference would be that trading live involves a lot of psychological factors which you simply cannot experience and prepare for during demo testing.
  • #35
  • May 18, 2017 2:20am May 18, 2017 2:20am
Is there any EA or copier which will trade both in real and demo to check both of them executing on same value. Because i can see 99% will win on demo and loss on real. So need to check is winning in demo is only the psychological factors or price manipulation.
  • #36
  • Sep 27, 2017 9:48am Sep 27, 2017 9:48am
The demo accounts are pretty much like the genuine trading accounts offered by the said broker, so through testing any demo account we can undoubtedly discovered the real trading conditions offered by those brokers. Once a broker demo account is test and we choose to pick them, generally begin with little just to check their further procedures like withdrawal and so forth.
  • #37
  • Sep 27, 2017 10:02am Sep 27, 2017 10:02am
Yes, I do agree at your point. There is no different between demo and real account by the brokers. But sometimes we see the maximum different between two when we kick off a live account with a grand capital. This actually brokers fault. That’s why it is very difficult to choose a broker by its demo’s performance.
  • #38
  • Oct 13, 2017 2:33am Oct 13, 2017 2:33am
Quoting johto
Nothing should be differend on the technical side(trading platform, price movement etc), BUT the REAL difference will be YOU! Dont make the mistake to start trading large sums in the beginning. You should only deposit that amount of money, you are ready to wipe out. If (and it probably will) you lose your account, consider it as a learning fee
Nice post! Really, few traders are not serious in their demo session, they take demo as a fun! But when they start live trading, they want to make real money! That is impossible actually, because without trading skill success is not possible here!
  • #39
  • Oct 13, 2017 7:13am Oct 13, 2017 7:13am
Nothing should be different on the technical side, but it often is - different execution speeds, requotes, slippage, widening of spreads, etc.etc. It happens and unfortunately, it happens often.
  • #40
  • Oct 13, 2017 8:56am Oct 13, 2017 8:56am
There are always technical differences between demo and real accounts. The thing is that slippage, execution and wide spreads only really matter if you are scalping. With scalping every pip or even half of a pip matter so you need to be really careful.

If you are trading a higher TF and your avg pip expectancy is lets say 40+ pips, then those techincal things should not really matter much. Besides sometimes you get positive slippage so its not all bad.


As for the psychology, the difference is huge and the two accounts cant really be compared. Many traders are profitable on Demo but when it comes to trading Real money, they get beat up. Even a 10$ real acc and demo acc are completely different psychologically, let alone a demo and say a $30k account.

Trading might seem easy to some but its hard work. Dont believe "traders" who say they work 5min per day and living large. Thats bull****
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