Thread: Best Demo platform = Best Real Platform?

A demo may provide you a good idea of how reliable the broker's technology may be and the features of their platform work but a demo is. For instance, say you want to place a trade for 10 lots at a particular price. On a demo, it'll get full every single time but in live trading, you may experience slippage in the price fairly frequently leading to an order for one price and an average fill at a lesser price.

Demo accounts do not offer any insight into liquidity on the market that for a start trader might not be a big issue but for traders moving bigger lots (or perhaps no more than one or two complete lots) may be a main concern.

Originally Posted by ;

A demo can give you a fantastic idea of how reputable the broker's technology can be and how the characteristics of the platform work but past that, a demo is the perfect trading environment that doesn't mimic true trading requirements. For example, say you want to put a transaction for 10 lots at a certain price. On a demo, it is going to get filled every single time but you might experience slippage in the price fairly often resulting in an order for one price and an ordinary fill at a worse price.

Demo accounts don't offer any insight into liquidity...

Hello Wacky Canuck thanks for your response. That what I believed- I am certain that there's a substantial difference between trading that is live and demo trading. I might just open a mini account of $100 at on of the brokers which I mentioned.
What do you think about the MT4? Can you work with it?

Originally Posted by ;

Greatest Display platform = Greatest Real Platform?

No, no and one more time no! Execution speed will be different.

Demo trade path:

You gt;gt; MT4 gt;gt; Broker gt;gt; Trade has been put.

Live trade path:

You gt;gt; MT4 gt;gt; Broker gt;gt; Liquidity Provider gt;gt; Trade continues to be put.

Demo and live can not be equal!

Regards,

Josef

Hi,

There's no Link Whatsoever between Demo and Real.

Main difference is in order execution.
If you implement order in Demo it instantly jumps from the order book of broker, which means you get exactly your price.
If you do the same on Real, your order goes to broker and then to OTC market order book. Both these ways can improve execution of order due to latency. Thats called slippage. You simply press buy, but order is implemented with price. Funny thing is, when there's a broker you get your trade is consistently againsed by slippage.

Order execution issue goes even farther. There also may not be a counterposition in actual market. In demo, it is unlimited bandwidth, but in actual while everyone is panic selling (for instance), you may not get position you want.

Taxes
You pay no taxes on Demos . Usually brokers want taxes to be paid by you, you need to report to government yourself.

I dont know which broker to recommend. I personally choosed Onanda, because they have plenty of customers = liquidity and low spreads. Nonetheless, it is Ltd. business, which is kinda funny. Hard to pick the best broker. If I was willing to put more money into FX, I'd be separating them between brokers. Some of them can go bankrupt.

T.

Originally Posted by ;

Hi thanks for your response. What I believed- I am sure that there is a significant gap between demo trading and trading. I could just open a mini account of $100 at on of those brokers that I mentioned.
What do you Consider the MT4? Do you work with this?

I work with MT4 and like it but unless you require it specifically, I would advise looking into other platforms like tradstation or ninjatrader. It is dependent upon how you want to use it. So that is why I use it I have tradstation was my favorite.

Whatever the case, if platform is a major concern for you, check out what different brokers have to offer.

Originally Posted by ;

Hello,

There is no connection at all between Demo and Real.

Main difference is in order implementation.
Should you execute order in Demo it instantly jumps from the order book of broker, so you get exactly your price.
Should you do exactly the same on Real, your order goes to broker then to OTC market order book. Both of these ways can improve implementation of order due to latency. Thats called slippage. You just press buy, but order is implemented with price. Funny thing is, whenever there is a very bad broker you get slippage agains your trade.

Order...

Hello. So I understand that mt4 is the most common platform for Foreign Exchange traders. Wacky, I have never heard of ninjatrader, what's the advantage of the platform?
Hey tom. . I understand that the implementation issue has become the most important here. Is that has something to do I head- ECN? Something about trading to the market's huge banks. . Is it relevant? Both oanda sunbirdfx claim to be ECN brokers. How do I test this?
Thanks all! You're very beneficial

I've been trying different trading platforms on various brokers (demo accounts). I am attempting to figure out what platform is your convince for a trader. Though it has some minuses thus far I haven't found anything better than the MT4.
Right now I've got a live account at ACM and I am trying the demo mt4 of Sunbirdfx and Oanda. Can a demo account provides me the picture of how the platform works on a real account ? Thank you