What is a trading demo account?

A trading demo account is a type of account offered by trading platforms that allows a prospective customer to experiment with the trading platform before activating an account. Demo accounts are used by stock trading platforms, foreign exchange trading venues, and commodities exchanges.

Should you move to live trading after a demo account?

However, when a person moves to live trading after the demo account, there are several changes they should anticipate. Demo accounts can provide some benefit to new traders because they allow the trader to become familiar with trading software and get a sense of how the market works.

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

There is a huge difference between trading successfully in a demo account and a real live money account. Even if the prices are basically the same, and you should be able to trade profitably just the same in one as in the other, psychological factors make the two experiences feel completely different for the vast majority of human beings.

How do demo accounts fill a market order?

Demo accounts will normally fill a market order at the price showing on the screen. When an order is placed in the live market, it is subject to slippage.