The difference between the results of real and demo accounts is that the results of a real account reflect the actual trading conditions and execution of trades, whereas the results of a demo account are simulated and do not reflect real trading conditions. A demo account is typically used for educational or testing purposes, and the results obtained from it may not be representative of what would occur in a real account. Additionally, in a demo account, there is no risk of losing real money, whereas in a real account there is. Therefore, it is important to understand the differences and limitations of both real and demo accounts before making any investment decisions.

Demo accounts provide a risk-free environment for beginners to practice trading with virtual money, helping them understand market mechanics and test strategies without financial loss. However, demo trading lacks emotional pressure, leading to unrealistic confidence.

In contrast, real accounts involve actual money, introducing psychological factors like fear and greed, which significantly impact decision-making. Real accounts also face execution delays, slippage, and brokerage fees, unlike demo accounts, where trades are often executed instantly at ideal prices.

While demo accounts are great for learning, real accounts reflect true trading conditions, including market volatility and liquidity issues. Traders transitioning from demo to real accounts often struggle with emotional discipline, highlighting the key difference: real trading involves real risks and rewards.

While demo and real trading accounts use the same platforms and market conditions, their outcomes often differ due to psychological, execution, and market impact factors.

Psychological Pressure: Demo accounts use virtual money, eliminating emotional stress. Real accounts trigger fear/greed, leading to impulsive decisions.

Execution & Slippage: Demo trades fill instantly, but real accounts face delays, requotes, or slippage during volatility.

Liquidity Impact: Large real trades can move markets (especially in forex/CFDs), while demo trades don’t affect price.

Broker Behavior: Some brokers optimize demo performance but may widen spreads or reject orders in live accounts.

Withdrawal Effects: Real profits require risk management for withdrawals, unlike demo’s "play money" mindset.

Conclusion: Demo accounts are great for practice, but real accounts reveal true trading challenges—emotions, execution risks, and broker reliability. Always transition cautiously.