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Functional capabilities of the demo account and the live account
are the same.
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Losses and profits on the demo account are virtual. No financial risk
is involved, as you do not invest money.
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On the demo account deals are processed automatically (by the server)
whilst on the live account they are processed manually (by a dealer).
Making a trade usually takes 1-2 seconds on the demo account and 5-15
seconds on the live account
(under normal market conditions).
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On the demo account you can trade on spikes. A spike is an obviously
wrong quote which appears in MetaTrader 4. On
your live
account you will not be able to trade at such prices.