Aurix Exchange

(Share) The Difference Between Demo and Real Trading?

Many traders wonder why their demo trading results are better than Live trading when using Forex Expert Advisors, and ask the question "why does demo trading deliver better results compared to real trading?"

The answer is very simple, demo trading accounts are offered on a virtual platform. It offers a trading environment where orders are not submitted to markets, it means all trades are executed exactly without any delayes or slippage.

When trading on an STP or DMA broker, your orders are filled directly by liquidity banks. The communication between your MT4 platform, the MT4 server and the banks takes some time (milliseconds) and to execute trades to the market. This can mean that in times of fast moving or abnormal market conditions, the price you want to execute at has passed and is no longer available, orders are then filled at the next available price and this is known as slippage.

At Yadix, we use the latest server and network technologies, hi-spec Forex VPS and highest capacity Forex Bridge to try to replicate demo trading as much as possible. The Equinix Financial Exchange ensures that our liquidity bank servers are co-located with our MT4 trade servers to ensure the lowest internal latency for the fastest possible execution speeds.

As a responsible broker focusing on providing a suitable trading environment for all trading strategies, we do recommend to clients that demo and live trading will have some differences and that demo is a good guide for checking our spreads, trading conditions and MT4 platform stability, and do recommend testing any trading strategy on the live trading environment.

I hope that this thread offers value and answers some reader's questions. For any clarifications, please feel free to respond.

Best regards,

Yadix Forex Broker
Auto-Trading Team
Yeah the difference is quite obvious! But sometimes people interchangeably trade with opposite mindset! It is thus very important to understand their difference clearly! BTW, I trade with FreshForex broker and they have both Demo and Real account in excellent conditions so that you can only focus on your trading. I have availed their Megarebate 2.0 which pays for rebate for every trade which adds good over time and you would also get sense of achievement & progress!


Demo accounts are offered by the brokers to test the processes they offer, they are more or less similar with the live accounts so good to test them in order to take insights as how the live accounts work.


The demo trading tool is provided by brokers for traders to learn about live forex and to test the broker's process because the live is more or less similar to the demo.

And the real trading account has real risk and capital involved, so a trader has to have certain skills and strategy developed before entering into real trading.


Demo trading has no risk and capital involved; there are no emotions involved, and it is for traders to practice or try out new strategies.

LIve trading has real capital and risk involved, It can affect a trader's emotions, and live trading can be risky if rushed without any proper strategy or broker.
The demo account has no real risks and capital involved in it. Beginners and experienced trading use it to build strategy and money management skills.

Real trading has real risks and money involved in it. Rushing into areal trading can lead to higher losses in capital, so traders need to obtain certain skills and strategies developed before entering into real trading.

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