Are prices different for real and demo trading accounts?

Prices might differ between real and demo trading accounts
Written by Nikolas Papakonstantinou
Updated 2 months ago

In most cases, prices are identical for both real and demo trading accounts. Both account types receive market data from the same brokers. However, some differences can arise due to market conditions and account features:

1. Market conditions

  • Real Accounts: You may experience slippage or delays during high volatility, especially around news events.
  • Demo Accounts: No slippage is typically observed as the demo environment simulates ideal market conditions with perfect execution.

2. Order execution

  • Demo Accounts: Orders are executed instantly, as demo accounts simulate ideal market conditions.
  • Real Accounts: You may experience slight execution delays or liquidity issues, especially during major price movements.

3. Spreads and commissions

  • Real Accounts: Brokers may apply higher spreads or commissions to cover operational costs and liquidity provider fees.
  • Demo Accounts: Spreads are often tighter to simulate favorable conditions for practicing.

While prices between demo and real accounts are generally similar, demo accounts may offer smoother and more ideal execution. Real accounts, however, are influenced by market conditions, liquidity, and slippage.

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