What is the difference between a demo account and a real account?

Modified on Thu, 14 Aug at 10:56 PM

Here’s the optimized version of the differences between Demo Account and Real Account in English, presented in a table for clarity:

Feature

Demo Account

Real Account

Source of Funds

Uses virtual funds with no real money involved

Uses real money for trading, involving actual financial risk

Purpose

Used for practicing and testing trading strategies, gaining experience

Used for live trading with real money to experience actual market dynamics

Market Environment

Simulates a real market environment but with no risk

Real market environment where every trade involves risk

Psychological Pressure

No real risk, no psychological pressure during trading

Faces real financial risk, which can create psychological pressure that may affect trading decisions

Features & Services

Offers the same features and tools as the real account

Offers the same features, but involves real money trades

Fund Management

No need to manage real funds, no financial risk

Requires careful fund management and risk control


Summary:

  • Demo Account is primarily for practice and strategy testing, with no real financial risk, making it ideal for beginners to gain experience.

  • Real Account involves live trading with real money, subject to market fluctuations and psychological challenges.

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