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Demo spreads that quietly lie

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Amanhasnoname
Posts: 1506
Joined: Fri Oct 30, 2026 9:45 am

Demo spreads that quietly lie

Post by Amanhasnoname »

A demo account can show a spread of 0.2 pips on EURUSD all day, even when the live account would show 0.8 during the same minutes. Brokers have little reason to make demo spreads look worse.

Another trick is stability. A live spread jumps around, widening at rollover, news, and handovers. Demo spreads often stay smooth, hiding exactly the conditions that hurt scalpers most.

To check, record the spread on both accounts at the same times over a week: London open, NY open, rollover, a news release. Compare the average and the maximum values. The gap is often a surprise.

If the demo spread is consistently lower, adjust backtest and demo assumptions upward. A strategy that works with a 0.2 pip cost and fails at 0.8 is not a strategy.

Also worth noting that live spreads can vary by account type, and a demo may mimic the most favorable one.

Has anyone compared demo and live spreads side by side, and how large was the difference?
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