What is the difference between a forex live and a demo account?

For starters, let me welcome you to the business of trading.

A demo account is mainly for practice purposes. As a new trader, who is trying to navigate his market of interest with little knowledge of how such market works, it is always best to practise to see what works for you and what personal trading plan would suit your personality. Now it is not advisable to practise with real funds.

So what happens is, if you open a demo account, you'd be funded with virtual(not real) funds to trade in the market. Technically, what happens in the real markets also happens in demo(specifically referring to forex), the only difference is the funds in demo are not real. Hence, any profit or loss incurred in the course of your trading are not real. Demo is extremely crucial to anyone starting out trading.

It helps you develop, gives you an overview of how the market works, helps you develop trading strategies and trading plans unique to you. Demo is extremely important, no one should convince you otherwise honestly. You wouldn't want to get into something you don't fully understand without first testing the waters.

DEMO ACCOUNTS ARE GENERALLY FOR PRACTISE PURPOSES .

When you feel, from personal conviction and not from the advice of others, you are ready to start trading for real, you could open a live account(real account). In this kind of account, you put in real funds. This means you could make real profits and likewise losses.

GOOD LUCK IN YOUR TRADING JOURNEY.