# Demo Account vs Live Account - When to Switch

> The switch from demo to live trading is one of the most significant transitions in a trader's development. Here is how to know when you are ready.

**Tags:** demo-account, live-account, trading-progression, beginners
**URL:** https://traderjournal.app/forex-basics/demo-account-vs-live-account-when-to-switch

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# Demo Account vs Live Account - When to Switch

The demo-to-live transition is where most retail traders discover that demo trading and live trading are fundamentally different experiences. Understanding why they differ - and what evidence suggests you are ready - helps you make the switch at the right time.

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## Why Demo Is Not the Same as Live

Demo trading uses virtual money. Intellectually, you know there is no real financial consequence to your decisions. This knowledge changes your behavior:

- You take setups you would hesitate on with real money
- You hold through drawdowns that would trigger emotional reactions with real stakes
- You do not experience fear, greed, or the physical stress response of watching real capital at risk
- You may ignore risk management rules because the consequences are not real

Demo trading validates that a strategy has mechanical edge when executed perfectly. It does not validate that you can execute it profitably with real psychological pressure.

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## What to Achieve on Demo Before Going Live

Minimum criteria before switching:

**Duration:** At least 60 trading days on demo. This gives enough time to encounter different market conditions.

**Trade count:** Minimum 80-100 trades. Small samples are misleading.

**Positive profit factor:** Above 1.3 net (after simulated spread costs) across the full demo period.

**Consistent rule adherence:** Your star ratings should average 3.5 or higher. If you are breaking rules on demo, you will break them more on live.

**No dramatic late-period decline:** Your last 30 trades should perform similarly to your first 30. If results declined sharply, investigate before going live.

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## How to Make the Switch

**Start small, not at your target size.** Open a live account with 10-20% of your intended eventual capital. Trade at micro or nano lot sizes. The goal is not to make money - it is to experience real psychological pressure at a scale where mistakes cost little.

**Apply identical rules.** Same risk percentage, same stop methods, same entry criteria, same daily loss limits as on demo.

**Journal both accounts simultaneously.** Connect both your demo and live MT4/MT5 accounts to Trader Journal. Compare the live results to the demo results. If live performance is significantly worse, identify the behavioral differences.

**Increase size gradually over 90 days.** If live results match demo results, gradually increase account size and position sizes. The psychological experience at 0.5% risk is different from 1.5% risk.

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Download Trader Journal at android.traderjournal.app or ios.traderjournal.app and connect both demo and live accounts.