A demo account and a live trading account differ mainly in risk and psychology. On a demo account, you trade with virtual funds, so there’s no real financial risk or emotional impact. In contrast, live trading involves real money, which brings emotions like fear and greed that can influence decisions.
Additionally, order execution and market conditions can differ. Demo accounts may execute orders faster without real-world factors like slippage or spread fluctuations, which can significantly impact trades on a live account. Demo accounts are ideal for learning, while live accounts reflect true market conditions and psychological challenges.