What is the difference between demo and real accounts?

The main difference is that real accounts involve trading with real funds, whereas demo accounts use virtual funds with no real value for trading.

While both accounts offer the same features and functionality, it’s important to note that simulations in demo accounts cannot perfectly replicate actual market conditions. One significant difference is that trading volume in simulations does not impact the market, unlike real trading volumes, especially with large deal sizes. However, the execution speed remains the same for both demo and real accounts.

Additionally, traders may exhibit different psychological behaviors when trading demo or real accounts, which can affect performance evaluation. Therefore, it’s crucial to remain cautious, avoid complacency, and refrain from drawing definitive conclusions based solely on trading in demo accounts.