How it works
It is useful for understanding order entry, charts and account mechanics. Demo prices and execution may resemble live conditions but do not necessarily reproduce every liquidity, slippage or emotional factor.
What to check
Use a demo to test workflows rather than to prove profitability. Check whether the provider uses the same contract specifications and trading hours as its live accounts.
- Practice platform mechanics
- Compare specifications with live accounts
- Do not treat demo profit as performance evidence
Limits and risks
Strong demo results can create false confidence because no real capital is at risk and execution conditions may differ. Treat simulation as practice, not evidence of future returns.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.