Why do demo accounts differ from real/live accounts?

<p id="isPasted">Demo accounts are supposed to follow the same exchange rates as real accounts, but sometimes they do not. Demo and real accounts can have very different price feeds, which include bid and ask prices.</p><p>Live accounts execute trades on the market. But on demo accounts, they don't.</p><p>Demo trading is similar to playing a computer game. Your actions within the demo remain on your computer, and you only pay for what you request.</p><p>When trading live, there may be a difference between the price you expect and the price you receive.</p>

<p>Demo accounts are exact replicas of live accounts in terms of pricing and spread. On the other hand, the execution of a demo account takes place from the server-side, while on a live account, it takes place from the liquidity provider. When you keep on learning, the "L" becomes silent and you actually start "Earning" so if you think you want to try out trading, start with a demo account, learn how trading actually works, and then start with a live account.</p>

<p>Although demo accounts are designed to mimic real accounts, sometimes they fail to do so. There can be a substantial difference between the feeds of a demo account and a real account, including bids and asks.</p>

<p>Demo accounts are meant to simulate the real trading experience as closely as possible, but there are some differences between the two. One of the main differences is that demo accounts are funded with virtual money, while real accounts are funded with real money. As a result, there is no risk of losing money when trading on a demo account, but there is also no potential to make profits. Additionally, the spreads (the difference between the bid and ask prices) and other trading conditions may be different on a demo account compared to a real account, which can affect the performance of trades. Finally, the volume and liquidity of the market may be different on a demo account compared to a real account, which can also affect trade execution.</p>

<p id="isPasted">Demo accounts and real/live accounts differ in a few ways:</p><ol><li>Trading conditions: Demo accounts often have idealized trading conditions, such as no slippage, no spreads, and no commissions. In contrast, real/live accounts have realistic trading conditions, which can include variable spreads, slippage, and commissions, affecting trading results.</li><li>Emotions and psychology: When trading on a demo account, there is no real money at risk, which can lead to a lack of emotional attachment and a relaxed approach to trading. In contrast, trading with real money involves emotions such as fear, greed, and anxiety, which can impact decision-making and overall trading performance.</li><li>Market Liquidity: Demo accounts may not accurately reflect the actual market liquidity, and order execution may differ from live trading.</li><li>Time Delay: Demo accounts can experience a time delay in processing orders, while live accounts can execute trades instantly.</li></ol><p><br></p><p>Overall, demo accounts are a useful tool to practice trading strategies and get familiar with the trading platform. However, traders should keep in mind that real/live trading conditions can be different, and their performance on a demo account may not necessarily translate to live trade.</p>