A demo account is designed for practising on the trading platform using virtual funds.
A live account uses real money and operates under real trading and execution conditions.
A demo account can help you learn the platform, but it should not be treated as an exact simulation of live trading.
Does a demo account use real money?
No.
Demo balances are virtual.
Profits and losses generated on a demo account do not result in real financial gains or losses.
What can I practise on a demo account?
Depending on the platform, a demo account can be used to practise:
- opening and closing trades;
- placing Stop Loss and Take Profit orders;
- using charts;
- technical analysis;
- changing position sizes;
- using pending orders;
- testing trading strategies; and
- learning how the platform works.
Why can demo results differ from live results?
Demo trading may not reproduce all real-market conditions.
Differences can include:
- positive and negative slippage;
- liquidity;
- spreads;
- market depth;
- execution conditions;
- swaps;
- overnight financing;
- corporate actions;
- dividends;
- fees;
- rollover;
- leverage restrictions;
- margin close-outs; and
- instrument availability.
Can spreads be different?
Yes.
Live spreads respond to actual market liquidity and trading conditions and may therefore differ from demo spreads.
Can slippage occur differently?
Yes.
Live orders can be affected by actual market movement and available liquidity.
A demo environment may not reproduce slippage in exactly the same way.
Does successful demo trading mean I will make the same profit live?
No.
Demo results do not guarantee or predict live-trading results.
A strategy may behave differently under live execution, real spreads, liquidity and emotional pressure.
Is a demo account risk-free?
A demo account does not put real funds at risk.
However, the trading strategies or behaviours practised on demo can still result in losses if later used with real money.