Demo vs Live Accounts Slippage and Spreads

bella2175

Newbie
Jan 20, 2019
9
0
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45
Hi all,

Is it safe to assume that all brokers who have a demo account, the demo account matches the live account's slippage and spreads? When asking some of them directly, they said yes ... but want to get the take from the fellow community here :)

Thank you!
 

Enivid

Administrator
Staff member
Nov 30, 2008
13,614
608
144
Odessa
www.earnforex.com
No, the spreads and, especially, slippage will not necessarily match between demo and live accounts of the same broker. I would say that sometimes the spreads do match, but demo accounts lack spread widening ubiquitous during news releases and NY close time. Slippage is nearly always absent in demo accounts at all.
 

TJ Forex

Trader
Feb 5, 2019
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I have never seen a broker where the demo and real accounts have exactly the same slippage and spreads. There are always discrepancies, it is a reason why you can sometimes see a strategy work on a demo account, but then fail on alive account.
 

Dictorsto

Trader
Dec 23, 2018
54
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19
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I also think that there might be some differences in spreads and especially slippage between demo and live account. This is also one of the main differences between demo and live trading, which surprise many new and inexperienced traders. But everything else should be more or less the same.
 

J_C_Anderson

Trader
Aug 15, 2018
64
8
19
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Demo and real account execution could differ from broker to broker. This is one of the reasons why you should use only your broker`s historical data for backtesting (the most popular backtesting tool, the Forex Tester, allows to do so). That data would be recorded the way your broker does it - it is very important to get reliable results.

Another point is that you check the Terms and Conditions placed on the broker`s website.
 

37riched

Trader
Dec 26, 2018
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I have never seen a broker where the demo and real accounts have exactly the same slippage and spreads. There are always discrepancies, it is a reason why you can sometimes see a strategy work on a demo account, but then fail on alive account.
I agree with this. Slippage is almost always absent in all demo accounts and the spread is never exactly the same in demo accounts. That is why you must try a strategy several times on demo before being sure it can work in a real account. To play safe, you can try mini account for the real experience at lower risk
 

Zack King

Active Trader
Mar 4, 2019
130
26
44
Hi all,

Is it safe to assume that all brokers who have a demo account, the demo account matches the live account's slippage and spreads? When asking some of them directly, they said yes ... but want to get the take from the fellow community here :)

Thank you!
Slippage on demo accounts does not usually occur, in my experience, but as discussed above, demos should reflect the live market of the live account for that broker, and I actually tested this with Hugo's Way and never had issues with either demo or live. One of my brokers of choice right now.