Christopher Williams

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What is the difference between demo and live accounts?

A demo account uses virtual money to simulate trading conditions, while a live account involves real funds at risk. Demo accounts are ideal for beginners to practice strategies, learn platforms, and test execution without financial consequences. However, demo trading lacks the emotional pressure of real money, meaning performance in live accounts may differ. Live accounts expose traders to slippage, variable spreads, and real risk, which affect outcomes. Many brokers offer unlimited demo accounts, but transitioning to live trading with small amounts is recommended once a strategy proves consistent. Both account types are valuable at different stages of learning.