No more than a live account uses "true" money. When you open a live account, you have to spend your own initial capital to trade - which means that with every trade, you are risking your own capital! Whereas, in a demo account; no real money is at stake. The whole point of a demo account is that it allows a trader to practice trading as it provides traders a simulation of what is happening in the markets. Also, always bear in mind that because of the fact that real money is on the line when trading in a live account, this can considerably alter how you trade. I would suggest that if you are a new trader, always start out with a demo account first. Then when you move on to a live account, do not risk too much per deal as you are still feeling out how it is to trade real money on the line.