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Demo VS real


bringpeace

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The demo account is used to build strategy and skill without involving any real capital, and it is risk-free. It can also be used to check the brokers trading performance.

The real account involved real capital and risk. Traders use the real account to make profits with practiced skills and strategy.

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The demo account is a useful tool in forex for beginners to learn about their brokers trading conditions and build skills because of its risk-free trading system, which is why even experienced traders use it to try new strategies.

The Real account requires good skills, risk-taking and real capital to trade live, and if successful, the profit earned is more than the invested capital.

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On DEMO accounts:

1. Liquidity is limitless and
2. Executions are instant, so DEMO orders get decent (i.e. reasonably good) fills even during new spikes (i.e. just some minor slippage).

On the other hand on REAL account executions can slip easily during major news DUE TO:

1. LACK OF LIQUIDITY and also due to
2. BROKER SERVER OVERLOAD causing significant EXECUTON TIME DELAYS.

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  • 2 months later...
  • 5 months later...

Trading with real money tends to help us learn faster than using a demo account to learn. In spite of that, we should practice with demo accounts as beginners to avoid exposing our real capital to the risk of high losses. No one can argue the importance of using a demo account before entering the real market... In terms of regulation and how to use, there is no difference between the two... There is only one difference between fake money and real money. The difference is in the way you trade. 

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A demo account is a free tool offered by many brokers. It is risk free with no real money involved in it and can be used to develop new skills and strategies.

The real account is risky, and traders can become successful only if they trade with good strategy and skills. It consists of higher or lower profit and losses.

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  • 2 weeks later...
On 4/20/2022 at 7:30 PM, Vaabum said:

It is important to understand that these accounts are completely different. At least for training, I used the demo account of the ExpertOption broker.

I am doing my Forex Trading with the ECN Forex Broker FXOpen Markets and they allow me to do News Trading and Scalping :D

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2 hours ago, Vaabum said:

I think that the conclusion here is quite understandable and does not require explanation. Demo account - for learning, real - for work. When I started working with a broker from ExpertOption, I did it in a similar way.

I have been doing my Forex trading from the last 10 Years with the International and Reputed Forex Broker FXOpen Markets :D
They are a True ECN Forex Brokers.

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  • 2 months later...

The demo account has no real risk or money involved in it, so traders have no emotions attached that can have an effect during trading. The demo account is mostly used for practice to develop skills and strategies.

While live trading accounts involve real risk and capital, this can have an impact on traders' emotions during live trading.  Live trading brings in real profits or loss and demo trading brings in fake profits or losses.

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  • 3 months later...

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