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Demo account explained (Paper Trading account)
Demo account explained (Paper Trading account)

Understand how Demo account works.

Updated over 5 months ago

Practice Trading in 3Commas without risking your funds!

You don't need to invest anything as a Demo account (ex. Paper Trading account) is a simulation where you get a virtual deposit for trading purposes:

  • Learn how to trade without risking real funds; you can find out about an allowable number of tools in this article.

  • Practice with the 3Commas features.

  • Practice your trading skills and test new trading strategies.

  • Experiment using TradingView custom bot messages or develop your own Apps with the 3Commas Developer API!

IMPORTANT NOTES!

  • Please note that trading with real funds will always be given priority of 3Commas system resources over Demo accounts, and therefore at times of high system demand, Demo trading processes may be interrupted or delayed.

  • Demo account is not designed to hold large amounts of money in various cryptocurrencies for asset-tracking purposes. For this purpose, you can create a Virtual Portfolio.

  • For best performance, we recommend Demo account balance does not exceed more than $350,000 in total funds, as the Demo account does not support a real order book, and large orders, particularly on illiquid markets, will not be subject to slippage or extended periods of time where your Bot and Trades place limit orders that are only partially filled (and therefore can take minutes/hours/days or longer to be "completely" filled) when trading on real exchanges.

    When assessing trading strategies and bot effectiveness, particularly on the Demo account, it is not about amount of profit received in a currency, but the percentages of profit/loss from the investment and the bot settings/strategy implemented.

    For example, if you had trading funds of 1,000,000 USDT, then you can simulate this with a Demo account with a 100,000 USDT balance (and reducing your order sizes by a factor of 10) - this will ensure your Demo account operates smoothly and with the most accuracy.

Thank you for your understanding.

Get a similar experience to real trading...

The Demo account replicates actual price movements. The price moves the same way as on a real exchange and in real-time. Demo account price movements are duplicated from real trading prices on the Binance.com Spot market!

BTC has good news and is rocketing to the moon?

ETH has terrible news and is bleeding hard?

It will be the same for the Demo account.

Demo account still requires funds to buy or sell, but you get them the easy way: press a button, and you'll have $10000 deposited to your Demo account!

Sadly, it's impossible to transfer profits made with the Demo account to your real exchange account, but you can reset your losses as often as you want.

You can master technical analysis with a Demo account, and your skills will become stronger when trading your real account.

3Commas features work the same way for both Demo and real trading, but the Demo account is isolated from your real accounts, so if you play with Smart Trade on the Demo account, you won't notice any change in your account balances after switching back to live trading. 

...But there's no trading volume simulation

Demo account doesn't simulate liquidity, so unlike real trading, there is no order book simulation and no partial fills. High liquidity pairs like BTC/USDT work well, even without the liquidity simulation. The difference is noticeable only on low liquidity pairs where there are fewer traders and thinner order books.

Differences between Demo account and real trading:

  • Orders fill when the price hits their level regardless of size.  0.1 BTC will have no difference from 10 BTC, but it feels different time on real trading. 

  • Market orders fill like there is always someone to buy & sell at the best possible price. On real trading, a market order might fill at the much worse price if there is no liquidity on the exchange order book.  

  • All trailing features in 3Commas rely on market orders, which means on Demo account, they will always have the best possible result.

FAQ

Q: What exchange does Demo account use (represents) for trading pairs and chart data?
A: ❗Demo account simulates Binance.com Spot markets

Q: Is it possible to add more than one Demo account?
A: No, only one Demo account is allowed. 

Q: Is there a maximum amount of active trades and/or active bots I can create on the Demo account?

A: Yes, in order to ensure the Demo account system runs smoothly and efficiently for all users, the maximum number of active deals and bots is set and varies from plan to plan. You can find out about the allowable number of tools in this article. The allowed number of tools described in this article apply to both Real and Demo accounts! For example, if you have an Expert plan and have 250 DCA running bots on a Real account, you cannot launch any bots on a Demo account.

Q: Does Demo account simulate fees?
A: Yes, 0.1% per order. 

Q: What is the starting balance for the Demo account?
A: You get the following balances:

  • 10000 USDT

  • 300 BNB

  • 50 ETH

  • 1 BTC

Q: Can I remove funds from the Demo account?
A: No, but you can reset Demo account balance and/or buy some coins that you won't use to leave yourself as much of the needed coin balance as you want.

Q: Is Demo account a paid feature?
A: Yes and no - you don't need to pay specifically for it but you should have one of the paid subscriptions to be able to use the Demo account. Please note that tools available in Demo account will match the subscription you have active.

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