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Synthetic indices demo account: how to use it well
The demo account is the best learning tool any broker offers… and also the one that creates the most bad habits when used like a video game. The difference is not in the platform: it is in the rules you use it with and in whether you record what you do.
What changes and what does not compared with a live account
| Aspect | In demo | Consequence |
|---|---|---|
| Money at risk | None | This is the fundamental difference: without real risk, the emotional side is not trained. |
| Execution conditions | May differ from live | Spread, latency and slippage may not match: the demo does not certify results. |
| Available instruments | Usually the same | It is useful for learning the contract specification with real data. |
| Recording and measurement | Identical if you want | This is where the real value lies: you can measure the system without risking capital. |
| Your behaviour | Tends to be more aggressive | It is the blind spot: in demo you risk what you would not risk with your own money. |
What it is really for
- Learning the platform at no cost: orders, stops, targets, execution types and Market Watch.
- Practising size calculation until it comes out without thinking, with the lot formula and your broker's contract data.
- Measuring a system with a broad sample (one hundred trades or more) and with constant risk.
- Automating the routine: trade journal, weekly review and limit control.
- Testing tools and expert advisors (installation of an EA, limits, automatic size calculation) before using them with capital.
What it is NOT for
- To conclude that you are profitable. Many trades in demo are closed with decisions you would not make with real money.
- To train emotional management of a loss: without money there is no loss to manage.
- To show off results: a demo proves nothing to anyone, not even to yourself.
- To skip record-keeping: if you don't note things down, there is nothing to learn from one hundred trades.
The five rules for making the demo useful
- Realistic starting capital: the same as you would put in real (not a virtual million). Unreal capital produces unreal sizes.
- Fixed risk per trade: the percentage you would actually use (for example 1%), calculated in the same way as in real.
- Complete record: reason for entry according to your rule, stop distance, size, result in R and what you did with the position.
- Do not reset the account when things go badly. The losing streak is the most valuable piece of data the demo will give you; deleting it is throwing away the work.
- Minimum sample before forming an opinion: one hundred trades and review in blocks of fifty. Before that, any conclusion is noise.
When to move to real (and with what size)
| Condition | Why |
|---|---|
| Measured sample with known expectancy | You know what to expect and what not to. |
| Acceptable maximum observed drawdown | It's what you'll really have to withstand, not what you'd like. |
| Risk per trade and written limits | Without written limits, the first losing streak decides for you. |
| Withdrawal test passed | Confirms that the money comes out without friction (see how to verify a broker). |
| Platform mastered | No handling errors at the moment of greatest pressure. |
Frequently asked questions
What is a demo account for?
To learn the platform at no cost, practise position sizing, measure a system with a large sample and automate the logging routine. It does not train the emotional side.
Are demo results equivalent to live results?
Not necessarily: execution conditions may differ and the trader's behaviour changes when their own money is involved. The demo measures mechanics, not future results.
How long should you stay in demo?
Until you have a sufficient sample: no fewer than 100 logged trades with written rules and constant risk, reviewed in blocks.
Is it bad to reset the demo?
Resetting to erase a bad streak is a mistake: it removes the most instructive data and creates a habit that is impossible in live. If you reset, write it down.
When do I move to live?
With a measured sample, acceptable drawdown, written risk and limits and a withdrawal test passed. And with the smallest possible size.
Practise with rules, not illusions
At the academy, the demo is used as a laboratory: the same rules as in live, the same log and the same review in blocks.
Keep reading
- Brokers with synthetic indices: how to chooseThe eight criteria in order of importance and how to compare two candidates with data.
- Which is the safest broker?How to verify the licence and registration, the withdrawal test and the warning signs.
- How to open an account and what to check before depositingThe five prior checks and the first 30 days of testing.
- Risk per trade: why 1%The figure you must respect equally in demo and live.