Why Demo Account Performance Is Often Better Than Real Account Performance?

[DavidC1]

+1 on the sticky comment.

 

[kokillennium]

Great article .. keep it up

 

[fxstrategist]

The answer is simply psichology.

 

[fxarms.com]

apart from emotions, the broker is also a reason for making good profits in demo. because, there won't be any slippage in demo accounts and the execution of trades will be good.

 

[fxstrategist]

Some brokers say that their live account servers are even faster than the Demo server. I dont think that the slight difference in price or speed of execution is not the main reason as to why demo performance is usually better than live performance.

 

[workitout]

One of the other issues that doesn't appear to have been mentioned is that demo accounts always allow you to trade at the prevailing prices whereas in 'real' accounts the brokers do what they can to scupper the trade and give you the worst deal. This means slippage is the order of the day or even non-fills.
Why do you think so many brokers offer free software, free demo accounts and the enticement of 'free' money ? Simply because once they have your money they'll do their damndest (is that a word ?) to stop you getting it back.
Look carfeully before you open an account. Personally I use IB and operate using a great piece of one-click software called Button Trader (just Google it) to get me in and out quickly. I trade news, although not spikes and for me this combination works well.
Have fun.

offer free software that's much better, a free risk to connect with the online market, any new trader would glad to had such way of learning. well, most companies has different feed server between demo and real account.
all mt4 based platform has similar feature onec (C)Lick trading .
but there's lot of coder who offer similar function with more complex feature rather than just a button.

good for scalp, news trading, especially when the broker had minor slippage, and also applied these at positive slippage not only when slippage at negative one.

 

[iMusingKiMi]

Great article but unfortunately a lot of people still blaming their broker have something behind it. Ask yourself, how big funds of yours for the broker to play around with your account? Psychology is the hardest part for every trader to master in trading. Does EA works? I don't say they don't because probably do have some that works. But the reality is market behavior change everyday. Just wondering how those EA could imply on the changes of market behavior.

 

[fxstrategist]

some people keep blaming the broker for their underperformance. Just find yourself a good broker and see if your results change, which I doubt.

 

[Froso@FXNET]

Sometimes in certain times the forex market will show differents situation not like in demo account previously , its will have different result when use the indicator or even EA which not too always adapt in current market , Let says when previously the market just move in low range but when decide in real the market not as previous movement. So its will make differents perfomance also

 

[fxstrategist]

Very good to read all the different opinions and points of view.