Chapter
12-15 min

Demo vs Real Account

Practice without risk: understand the difference between demo and real trading, and when it's time to make the transition.

5.1

What is a Demo Account?

A is trading on real quotes with virtual money ($10,000–$100,000). The platform provides full functionality: charts, orders, history, robot testing. Most brokers offer unlimited free demo accounts.

Key Features

  • Real prices and data flow
  • Zero financial risk
  • Full MT5 terminal simulation
5.2

Why Start with Demo

Demo accounts are essential for both beginners learning the platform and experienced traders testing new strategies.

Zero Financial Risk

Mistakes don't cost money. Learn from errors without financial consequences.

Platform Learning

Master orders, reports, and settings in a risk-free environment.

Strategy Testing

Document your expectations and rules. Test different approaches before committing capital.

Robot Testing

In MT5, robots work on demo exactly as they do on real accounts. Perfect for validation.

Psychological Preparation

Practice following your trading plan under various market conditions.

Pro Tip: Keep a trading journal on demo as strictly as you would on real. This builds discipline and good habits from the start.

5.3

Honest Differences: Demo vs Real Account

Demo is for practicing the process; real trading tests your psychology and execution.

Understanding these differences is critical before transitioning to real money.

Demo Account

  • Emotions: Low - no real fear or greed
  • Execution: Constant, predictable fills
  • Slippage: Usually none
  • Risk Discipline: Often loose (no consequences)

Real Account

  • Emotions: High - fear and greed impact decisions
  • Execution: Market-dependent, varies by liquidity
  • Slippage: Possible, especially during news
  • Risk Discipline: Must be strict (real money at stake)

Drag the slider, use arrow keys (←/→), or touch/swipe to compare demo and real trading conditions

The Psychology Gap

The biggest difference isn't technical — it's psychological. Demo is for practicing the process; real trading tests your emotions and execution under pressure. Many traders succeed on demo but struggle with real money. Start with nano/micro lots ($100-$500 deposit) to bridge this gap gradually.

Disclaimer: This is an educational visualization, not a guarantee of execution. Real conditions depend on broker, liquidity, time of day, and volatility.
5.4

Readiness Checklist Before Real Account

Check what you've already mastered — and move forward when ready.

Be honest with yourself. Rushing to real trading before you're ready often leads to unnecessary losses.

Readiness Checklist
Mark what applies to you (all recommended before going live)

Recommendations:

Start with nano/micro lots and limited risk ($100–$500 starting deposit for discipline training). Increase volumes only after confirmed stability.

Start Micro

Begin with 0.01 lot sizes. This lets you experience real trading psychology with minimal financial risk.

Strict Risk Limits

Never risk more than 1-2% per trade. Set stop losses on every position and honor them without exception.

Test EAs Thoroughly

Run Expert Advisors on demo for minimum 60-90 days before deploying to real accounts. Verify consistency.

Keep Records

Maintain a detailed trading journal. Review weekly to identify patterns and continuously improve your approach.

Test Your Knowledge

Take this quick 3-question quiz to reinforce what you've learned. You can skip if you prefer.

Important: Demo is a simulator. Real results depend on execution, discipline, and risk management. Success on demo does not guarantee success with real money.

Risk Warning: Trading involves substantial risk. Past performance does not guarantee future results. Only trade with capital you can afford to lose.

Not Financial Advice: All materials are for educational purposes only. Always consult a licensed financial advisor before making investment decisions.