The difference between live trading and demo trading in forex

[Lens1000]

The Demo account is definitely the best way to practice forex trading and we have so many traders that have made so many gains trading the demo account. The amount one money made is not real but a virtual money. We also have so many traders that have made losses with the demo account, the bottom line is that the demo account is actually used so train and get acquainted to the assets in the forex market.

The main purpose of the demo account is for training and we don't really have emotions involved, because one is trading with the virtual money. When it comes to the live account, you are dealing with the real money unlike the virtual account where you are trading with virtual money. in this regard, the only difference is the risk and the emotions. The assets traded and their prices remain the same. This is why the live account is similar to the Demo account.

in the demo account , there's no risk but in the real account you have a lot of risk to bare and as a result, lots of emotions will come into play and that is why you need to study the market properly before you go to live training.

 

[Holicent]

The main difference between live trading and demo trading is that you are actually buying and selling real currencies when you trade on the live market. On the other hand, demo trading allows you to practice your skills at no risk.

If you want to learn how to trade currencies but don’t want to lose money as you do it, then demo trading is for you. You can practice all day long with virtual money until you are ready for live trading.

While there are many benefits to practicing on a demo account first, there are also some drawbacks. While it lets you trade without risking real money, it does not necessarily prepare you for what happens in the real world. It can also be difficult to know exactly what will happen when you have never traded before.

One of the best ways that traders can begin their careers is by using a demo account so they can practice without having any risk involved. Demo accounts allow traders to learn how to use different strategies without having any risk involved. By using a demo account first, traders can learn how to make money without risking any actual cash flow or capital investment into their businesses.

 

[Sotherefore]

I agree perfectly with you , demo trading is just for the main purpose of you testing your trading skill to understand if you are ready to enter into a live trading or not.
It is the best way you can use to train and master your trading skills after you have passed through the normal learning process.
Though with a demo account you will trade without emotion but the reality of attaching emotion to your trade will always come when you are in a life trade that involve either losing or gaining from a live account.

Trading a Live account is risky and at the same time profitable if you understand how trading can be done perfectly because you will use it to know when to enter and when to exit for proper profit. Trading Live account has generated profit to so many traders around the world without stress.

 

[FXOchartist]

Demo account still useful mainly for beginner to learn trading and understanding how to use trading platform. In demo account using virtual money from broker and this is free without any risk of losing money. FXOpen provided demo ECN to the clients trying the platform and trading condition.

The main different between live and demo account is money that used. In demo account only use virtual money or fake money, so making profit trader can't withdraw money, and losing money is nothing because it is not real money. In live account trader using real money, the impact could in the psychology because trade use real money will different feeling compared to use fake money.

 

[BinarySumo]

Demo trading involves using virtual money to practise trading in a simulated environment, while live trading involves using real money to trade in the actual market. The former does not involve any financial risk, while live trading involves the potential for both profit and loss.

 

[Jack Reacher]

Education is now quite easier than before because of the availability of internet. Read online e-books and watch video tutorials to flourish your knowledge. FXOpulence provides traders with a free education program. They also offer a free demo account to traders.