Difference of MT4MT5 Live and Demo accounts' Trading Conditions

FBS offers both MetaTrader4 and MetaTrader5 as its trading platform.

MT4 is the most popular trading platform in the world and many brokers adopt the platform in its system.

Real/live MT4 and Demo MT4 are mostly same conditions and you can use same trading tools and see the exact same spread and price movement in them.

But there is no slippage or order rejections in Demo MT4 accounts.

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Profit/Loss results are different

If you run the same EA in real/live and Demo accounts or trade exactly in the same way in real/live and Demo accounts, you will see a different profit/loss result in each of them.

This is because Demo accounts do not reflect the market liquidity condition and there is no slippage in Demo MT4.

Demo accounts are still “Demo”, you cannot think that the result in Demo are real results in the financial markets.

No Market Liquidity in Demo

Every financial market are subject to market liquidity.

To execute(open and close) an order, there needs to be available liquidity for your order to be executed.

Meaning that if you want to buy EUR/USD, there must be someone who wants to sell EUR/USD, otherwise you cannot buy EUR/USD.

If there is not enough liquidity for your order to be executed, the trading platform(MT4) will find the next available price to be executed or simply reject the order by following the rules set by your broker.

Demo accounts are not connected to the real financial markets, so there is no market liquidity concerns and there is no slippage nor order rejections.

Psychological impact to your strategy

Another difference between real/live trading and Demo tradings is how you think of the tradings.

Risking your real money for trading are trading virtually is totally a different thing, and you cannot compare them as the same.

Well, everyone wants to earn more money and people do some irrational things in order to get it sometimes.

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FBS’s superior execution conditions

Positive Slippage

One great thing about FBS is that the broker allows positive slippage in its trading platform.

So slippage is no just a bad thing with FBS, but it could happen in favor of your trades.

Many brokers limits positive slippage as when it actually happens they reject the orders or execute the order at the original price which the trader has requested.

FBS is focused on its quality of order execution and allowing the positive is one of them.

So you could even get a better result in real/live accounts than Demo accounts in this case.

STP – Straight Through Processing execution

FBS guarantees that the broker does not act as a Market Maker.

So many brokers act as both a broker and a market maker, but FBS solely act as a broker.

This means that there is no interest of conflict between investors and FBS, so there shouldn’t be possible profit cancellation upon irrational reason from the broker side.

Traders can trade with the real exchange markets and have the Direct Market Access through MT4.

FBS wishes traders to earn more profits by trading, so the relationship would be win-win.

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