Demo accounts

Grace1995

Private
Messages
13
Advantages: You trade with virtual funds, no risk of losing your own funds.
Can take as much time as you want to learn trading properly without any risk
Can you compare the trading conditions of different brokers before trading with real money
You can test new strategies on demo account before directly using them to live account
Disadvantages: Real execution of a broker can only be checked by the live account as there is a difference in execution of trades in demo and live account.
Traders do not take the trades seriously until and unless real money is involved
Less slippage or requotes in trades are faced in demo account
Traders do not pay much attention to swap charges and commissions charged by the brokers in demo trades
 

Danuta

Private
Messages
19
Advantages: we can learn the platform, test and create strategies, we haven’t risk, different liquidity providers (from real account).
Disadvantages: there is any stress, emotions, as it seems to me less slippage than on real account
 

bigdolly

Sergeant Major
Messages
968
Advantages: we can learn the platform, test and create strategies, we haven’t risk, different liquidity providers (from real account).
Disadvantages: there is any stress, emotions, as it seems to me less slippage than on real account
There is no stress associated with demo account and its good. On the other hand you remain unprepared for trading on live account.
 

Summer_552

Recruit
Messages
6
Hi guys!
Can you name me some advantages and disadvantages of demo accounts?
Advantage: There are no risks on a virtual account with simulated money. Thus, mistakes made on a demo account will help you not only learn how to trade, but also avoid them in the future on a real account
Disadvantage: Forex demo trading provides a virtual environment for trading virtual money. This environment is much the opposite of real-time transactions. Lack of risk prevents traders from coming to terms with the fact that one wrong move can completely destroy their trading
 

TrapLok

Recruit
Messages
132
Advantage: There are no risks on a virtual account with simulated money. Thus, mistakes made on a demo account will help you not only learn how to trade, but also avoid them in the future on a real account
Disadvantage: Forex demo trading provides a virtual environment for trading virtual money. This environment is much the opposite of real-time transactions. Lack of risk prevents traders from coming to terms with the fact that one wrong move can completely destroy their trading
one more Disadvantage: during news there aren't slippages , real account - often has them
 

fxoday

Sergeant
Messages
246
one more Disadvantage: during news there aren't slippages , real account - often has them
Real account has different server than a demo, but quality server broker also affected to this matter, high traffic trading server could possibly make traffic jam and causing problem server busy, etc that influenced on trading execution
 

liability

Private
Messages
22
The only purpose of the demo account is to get adapted to trading with putting on your own style of trading strategy. It is an essential for every trader out there, whether that trader is beginner or experienced. It is a part of the trading and it paid off.
 

kingsman

Corporal
Messages
192
I just use the demo when I am testing a new broker or testing new strategy. Nowadays we can just use tradingview simulator for testing new strategies so demo accounts are not much needed to be honest. you cannot check broker trade execution on demo accounts as the real environment is way different than demo.
 

walpants

Corporal
Messages
78
Main advantage is you don't loose any money, Big disadvantage is you don't make any money.
I believe demo is great for learning, getting used to the way things work and generally getting to grips with applying your strategy but it doesn't teach you about the emotions you will feel when you have your own money on the table, that is something you can only learn from a live account and shouldn't be under estimated at all.
 
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