What's the Difference Between Demo and Real Trading?

Many traders wonder why they get better results trading with Forex Expert Advisors on Demo trading accounts when comparing to Real trading accounts, and this leads to the question "why is demo trading successful and real trading not?"

The answer is very simple, demo trading accounts are offered on a virtual platform. It offers a trading environment where orders are not submitted to markets, it means traders do not get order slippage and all order entries and stops will be filled exactly!

When trading on an STP or DMA broker, your orders are filled directly by liquidity banks.  The communication between your MT4 platform, the MT4 server and the banks takes some time (milliseconds) and to execute trades to the market. This can mean that in times of fast moving or abnormal market conditions, the price you want to execute at has passed and is no longer available, orders are then filled at the next available price and this is known as slippage.

If you're broker is a dealing desk (market maker) you will trade at prices defined by the market maker and then the demo to real difference can be extremely different.  Alternatively, the dealing desk will have a "last look" and delay your order fill and the price has passed. It means that demo trading can never replicate exactly live trading regardless of broker model.

Yadix uses the highest level latest technology to provide the fastest low latency connectivity between clients trading terminal, the MT4 server and the co-located bank servers to ensure we are offering the fastest order execution we possibly can, and this reduces slippage.

As a true direct to markets broker, Yadix can assure fair and transparent order execution for all traders, this is evident in the best execution policy that provides price improvements for our traders to benefit from.

As a responsible broker focusing on providing a suitable trading environment for all Scalpers, EA and news traders, we do recommend that clients use the Demo platforms for checking spreads, trading conditions and MT4 abilities, and do recommend testing any trading strategy on the live trading environment for any clarifications.

To discuss trading with unrestricted and interbank conditions and spreads, please contact our professional support team at any time.