If you’re new to the world of trading, it can be a bit overwhelming at first. You’ve got a lot to learn before you feel comfortable buying and selling stocks on your own. But if you want to start getting your feet wet, there are some great ways to do it without risking any real money.
Paper trading is the process of pretending to buy and sell stocks using fake money. It’s called “paper trading” because in the past, people would have their transactions written down on paper.
There are tons of great apps that you can use to practice paper trading – just do a quick search for “stock market simulator” and you’ll see what we mean. In this post we’re going to cover some of the best apps out there for paper trading, including:
Best Apps For Paper Trading
Paper trading apps allow you to buy and sell assets in a 100% risk-free environment. This is because you will be trading via the demo account facility offered by your chosen broker. In this guide, we discuss the best paper trading app of 2022. We’ll review each of our selection providers in terms of tradable assets, user-friendliness, spreads, safety, and more.
In This Guide[show]
Top 10 Paper Trading Apps
Here’s a breakdown of our top 10 paper trading apps of 2022. For more information on one of the apps listed below – scroll down!
eToro – Overall Best Paper Trading App
Capital.com – Best Paper Trading App for Cryptocurrencies
AvaTrade – Best Options Paper Trading App
FXCM – Best Forex Paper Trading App
Trading 212 – Great Paper Stock Trading App
IG – Best Paper Trading App for Android Users
TD Ameritrade – Best Paper Trading App for US Citizens
Forex.com – Best Paper Trading App for Currency Traders
FXTM – Best Paper Trading App for For Small Stakes ($10 minimum)
Plus500 – One of the best Paper Trading Apps for CFDs
The Best Paper Trading Apps of 2022
In order to find a paper trading app that meets your needs, you’ll need to look at more than just the demo facility itself. After all, it’s likely that you are looking for an app that you eventually plan to use for real money trading. If this is the case, important metrics to consider include:
Trading tools and features
Fees, commissions, and spreads
Tradable assets (forex, CFDs, etc.)
Supported payment methods
Minimum deposit amount
Regulation
Education and research materials
Taking all of the above into account, finding a suitable paper money trading app for you and your long-term financial goals can be time-consuming. As such, we’ve saved you the legwork by listing 10 of the best paper training apps currently in the market.
- eToro – Overall Best Paper Trading App
etoro logoIn our view, eToro is by far the best paper trading app available in the market. Compatible with both iOS and Android devices, this paper stock trading app can be downloaded free of charge. All you need to do to get started is open an account and that’s it – you will be given a paper trading balance of $100,000.
This is more than enough for you to learn the ins and outs of how online trading works. In terms of what you can trade, eToro offers most asset classes. In terms of direct ownership, you can buy shares, ETFs, and cryptocurrencies. If you’re keener on short-term trading strategies, eToro also offers CFDs. This covers many of the best stocks, indices, digital currencies, forex, commodities, and interest rates.
Irrespective of what you decide to trade on the eToro app, the provider does not charge any commissions. This means that when you eventually get around to trading with your own capital – you’ll be able to do so in a super cost-effective manner. Going back to the demo account facility momentarily, it is important to note that this mirrors live market conditions. That is to say, whatever you see on the paper trading platform is mirrored like-for-like with actual eToro buy and sell orders.
This ensures that you get the most from your paper trading endeavours. If you decide to upgrade to a real money account, eToro is licensed by the FCA, CySEC, and ASIC. The platform requires a minimum deposit of just $200 – which you can find with a debit/credit card, e-wallet, or bank transfer. Once you have funded your account, you will then have access to the eToro Copy Trading feature. This allows you to trade passively – as your chosen investor will buy and sell assets on your behalf.
eToro is one of few apps that offers stock trading to both US and UK users, as well as users from many countries around the world, so it’s both the best US stock app and the best stock trading app UK.
If you want to learn more about eToro, you can check out our eToro app review for a more detailed look at what this broker has to offer.
Pros
Regulated by the FCA, CySEC, and ASIC
Trusted brand with over 12 million client accounts worldwide
Trade forex without paying any commission or monthly charges
Social and copy trading features
Trade with leverage
1,700+ stocks listed on multiple international markets
Personalised eToro account where you can set up trading price alerts
Cons
Not suitable for advanced traders who like to perform technical analysis
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68% of retail investors lose money trading CFDs at this site.
- Capital.com – Best Paper Trading App for Cryptocurrencies
capital.com paper trading apps
If you’re looking to trade cryptocurrencies – then Capital.com should be at the top of your list. As you will be trading this asset class via CFDs, you will be accustomed to a range of benefits. For example, all UK and European traders can apply leverage of 1:2 when trading cryptocurrencies at Capital.com.
This means that a £500 balance would permit a trade worth £1,000. Higher leverage limits are available on other asset classes – including 1:20 on gold CFDs and 1:30 on major forex trading pairs. You will also have the option of placing a buy or sell order on your chosen market – meaning that you stand the chance of profiting from rising and falling prices. In terms of supported instruments, Capital.com offers both fiat-to-crypto and crypto-cross pairs.
Examples of popular crypto-cross pairs supported by the app include BTS/BTC, TRX/BTC, and ADA/BTC. Regarding the former, this covers Bitcoin, Ethereum, Cardano, Bitcoin Cash, and Ripple – all of which are paired against the US dollar. We should note that Capital.com offers more than just cryptocurrencies. On the contrary, you can also trade forex, stock CFDs, commodities, and indices. All markets on the Capital.com can be traded commission-free alongside tight spreads.
In terms of its paper trading app, this can be downloaded and installed onto iOS and Android devices. This gives you access to all financial instruments, markets, and order types. If and when you upgrade to a real money account, Capital.com requires a minimum deposit of just £20 when using a debit/credit card or e-wallet. Bank wires, however, require £250. Finally, the Capital.com trading app is regulated by the FCA and CySEC.
Read our in-depth Capital.com app review here.
Pros
Industry-leading spreads
0% commission on all asset classes
Great selection of currency pairs
24/7 trading
Clean and crisp mobile app
Deposit from just £/$20
FCA-regulated
Cons
Minimum deposit of £250 when using a bank account
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78.79% of retail CFD accounts lose money when trading CFDs with this provider.
- AvaTrade – Best Options Paper Trading App
avatrade best paper trading app
It was only until recently that options became accessible to the average trader. This is because they are complex financial instruments that are best suited for experienced investors. Nevertheless, by using a paper trading app like AvaTrade – you can learn the ins and outs of how options contracts work without risking a single cent.
In particular, the application gives you access to options in the form of forex and gold. This is a great way to gain exposure to your desired marketplace in a low-risk, high-reward manner. You can trade calls, puts and spots, and easily deploy combination strategies.
Regarding the latter, we like that the AvaTrade platform automatically reduces spreads when you utilise a combination strategy to trade options. This also means that the app is conducive for hedging – as your trading costs are kept to an absolute minimum. The AvaTrade app also stands out for its provision of risk management tools. This includes heaps of market orders, portfolio simulation, and the ability to trade with small stakes.
The AvaTrade app can be downloaded free of charge and is compatible with both iOS and Android devices. If you decide to upgrade to a real money account, AvaTrade requires a deposit of just £100. This can be facilitated with a debit/credit card or bank transfer. In terms of regulation, AvaTrade is licensed in several jurisdictions and thus – has a great reputation in the space.
Pros
Thousands of financial instruments supported
Super-tight spreads on forex pairs
Several trading platforms – including MetaTrader 4 and 5
Regulated in several jurisdictions
Great for news and market insights
Low account minimums
Cons
Best suited for more experienced traders
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There is no guarantee you will make money with this provider.
- FXCM – Best Forex Paper Trading App
fxcm paper trading brokerIf you’re looking to buy and sell currency pairs through your paper trading app – then it might be worth considering the FXCM forex app. This platform has a great reputation in the online and mobile trading scene, especially when it comes to forex. You will have access to lots of currency pairs – including plenty of majors, minors, and exotics.
Not only can you access these forex pairs without paying a single cent in commission – but spreads are very competitive. Each and every pair can be traded on leverage, too. As always, your limits will depend on where you are based, which currency pair you decide to trade, and whether you are a retail or professional client.
When it comes to the paper trading app itself – this comes pre-loaded with a $20,000 balance. You can use this on any asset class of your choosing – by it forex or CFDs. You will also have the option of trading via MT4 at FXCM. Once you open an account, you simply need to download the MT4 app on to your phone and log in with your FXCM credentials. This is well worth considering, as MT4 provides heaps of tools and features – including the ability to deploy automated trading robots.
If you decide to upgrade to a real money account, FXCM requires a minimum deposit of $360. However, if you are located outside of the EU or UK – then this goes down to just $50. Supported payment methods include a debit/credit card, bank wire, or e-wallet. We should also note that the FXCM app is super-safe – which includes a fully-fledged license with the FCA.
Read our in-depth FXCM app review here.
Pros
FCA-regulated
Lots of currency pairs to trade
Choose from several trading platforms – including MT4
Supports EAs and forex robots
0% commission on all assets
Tight spreads
Cons
Minimum deposit of $360 for EU clients
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There is no guarantee you will make money with this provider.
- Trading 212 – Great Paper Stock Trading App
trading 212 logoTrading 212 is an online trading platform that is proving popular with UK investors. If you’re based in the UK, Trading 212 is well worth considering. Its mobile trading app – which is available on iOS and Android devices, is split into three departments. This covers share and ETF dealing, CFD trading, and Stocks and Shares ISA.
If you’re looking to buy and sell stocks, the Trading 212 app allows you to do this on a 100% commission-free basis. This covers more than 4,000 stocks and ETFs – and there is no foreign exchange fee when purchasing non-UK assets. If you’re more interested in trading CFDs, you can also this without paying any commission. In order to get started, all you need to do is download the app.
There is no requirement to open an account to access to paper trading facility – meaning that you can get started straight away. If you’re an absolute beginner, Trading 212 is going to be sufficient for your needs. This is because the app is super simple to use and comes with an easy-on-the-eye colour scheme. The popularity of Trading 212 with UK traders is further highlighted in its app store ratings.
This stands at 4.7/5 and 4.5/5 on the Apple Store and Google Play, respectively. If you decide to upgrade to a real money trading account, this app provider does not have a minimum deposit in place. You can choose from several deposit options – including e-wallets, a debit/credit card, or bank transfer. When it comes to safety and security, the Trading 212 app is authorised and regulated by the FCA.
Read our comprehensive Trading 212 app review to find out more about what this brokerage firm offers.
Pros
0% commission on all asset classes – including forex
No minimum deposit
Your money is protected by the FSCS and FCA
CFD trading is also supported – as is leverage and short-selling
Excellent reviews on Google Play and Apple Stores
More than 500,000 trusted clients
Stocks and Shares ISAs offered for tax-efficient savings
Cons
Still relatively unheard of in the UK trading space
Limited fundamental analysis tools
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There is no guarantee you will make money with this provider.
- IG – Best Paper Trading App for Android Users
ig logoIf you’re after a paper money trading app that performs extremely well on Android devices, it’s worth exploring the merits of IG. This age-old broker was first launched in 1974 and is now a publicly-listed company. The provider gives you access to over 10,000 shares and 17,000 CFD trading markets. With that said, the IG paper trading facility is only available on CFDs.
This covers everything from stocks, hard metals, energies, bonds, indices, and more. The demo account comes pre-loaded with a $10,000 paper fund balance, and all market orders reflect real-world trading conditions. If you decide to join over 239,000 clients by opening a real money account, then you will benefit from commission-free CFD trading.
The only exception to this is stock CFDs – which come with a variable percentage fee. Spreads are very tight on most asset classes, and leverage is available on all CFD markets. If you opt for traditional shares at IG, then you will pay £8 per trade. If you are able to trade at least three times per month, then this is reduced to £3. IG offers two trading platforms – both of which can be accessed on your mobile phone.
This includes MT4 and IG’s native platform. In terms of opening a real account, you’ll need to deposit at least £250. IG supports debit cards, credit cards, and bank wire transfer. You fund your account with the Android app, but not iOS. Finally, it goes without saying that IG is heavily regulated. This includes licenses with the FCA and ASIC – so safety should be of no concern.
Want to learn more about the IG trading app? Check out our expert IG review.
Pros
Trusted broker with a long-standing reputation
More than 17,000 markets listed
Over 90+ currency pairs supported
Leverage and short-selling also available
0% commissions on forex trading
Access to dozens of international markets
Great research department
Cons
Minimum deposit of £250
US stocks have a $15 minimum commission
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There is no guarantee you will make money with this provider.
- TD Ameritrade – Best Paper Trading App for US Citizens
TD ameritrade
If you’re based in the US – then there is every chance that you have heard of TD Ameritrade. After all, the broker is one of the biggest and most trusted trading platforms in the domestic marketplace. Although most traders prefer to use the online platform – TD Ameritrade also offers a fully-fledged mobile app.
The mobile app – which is called ‘thinkorswim®’ is available to download and install from the Google Play and Apple Store. Best of all, you can start off with a paper trading facility to help you get to grips with how the application works. The TD Ameritrade app gives you access to most features and tools as found on its main desktop site.
This includes to ability to place real-time market orders, view and explore integrated charts and quotes, and even create watchlists. What we also like about this trading app is that you can set up price alerts. For example, if you want to trade Apple shares when the price hits $400 – you will receive a notification on your phone.
In terms of the specifics, real money accounts come with free stock and ETF trades. This is great, as TD Ameritrade was charging $6.95 as recently as 2019. You can also trade options at a fee of $0.065 per contract. Additionally, the TD Ameritrade app gives you access to over 11,000 funds – which is great for passive investments.
Pros
Trusted US brokerage firm
App is available on iOS and Android devices
Buy stocks and ETFs commission-free
Options can be traded at just $0.65 per contract
Fully-fledged paper trading account
More than 11,000 mutual to choose from
No account minimum
Cons
Not as user-friendly as other trading apps in the market
The sheer size of tradable markets on offer can appear overwhelming
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There is no guarantee you will make money with this provider.
- Forex.com – Best Paper Trading App for Currency Traders
forex.com logo
If you’re looking to gain exposure to the multi-trillion dollar currency trading scene – Forex.com is likely to be your best bet. This forex specialist offers its trading platform online or via a fully-fledged mobile app. You will have access to over 90+ currency pairs – which is huge.
While this includes all major and minor pairs, the Forex.com app is also great for exotic currencies. You can test the Forex.com app out for yourself via its demo account facility. Each account comes with a life span of 30 days – which should be enough time to get to grips with how the app works.
The application comes packed with tools and features. This includes technical indicators and chart drawing tools – alongside leverage. If you’re based in the US, then you will know first hand that this is capped at 1:50 on majors and less on other pair types.
If you decide to use the Forex.com app to trade with real money, there is no minimum deposit amount when opting for a bank wire. Debit and credit card deposits come with a minimum of $50. In terms of fees, you can choose from a commission-free or standard account. If opting for the latter, you will $5 per standard lot – but benefit from really tights spreads.
Pros
Specialist forex trading app
Access to dozens of currency pairs
Particularly strong when it comes to exotic currencies
No minimum deposit when opting for a bank wire
Also offers CFDs
Heavily regulated – including US licenses
Top-notch forex and economic news
Cons
Does not support e-wallets like Paypal and Skrill
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80% of retail investors lose money trading CFDs at this site.
- FXTM – Best Paper Trading App for For Small Stakes ($10 minimum)
fxtm paper tradingFXTM is a hugely popular online trading platform that now boasts a customer base of over 2 million users. You will be able to trade forex and range of CFD instruments. Leverage can go as high as 1:100 on this platform, albeit, this will depend on your trading status and chosen asset class.
All account holders have the option of trading with paper funds – which is accessible via the app or desktop site. To complement the demo trading facility you will also have access to heaps of educational material. This includes eBooks, videos, and even regularly hosted webinars. FXTM also offers a copy trading feature, albeit, this is nowhere near as good as what eToro offers.
Nevertheless, the FXTM app offers several account types. Options include a standard, cent, and ECN account. Some accounts offer commission-free trading, while others focus on industry-leading spreads. Customer support is available on a 24/7 basis via live chat, email, and telephone. Finally, FXTM is regulated by several tier-one bodies – including the FCA and CySEC.
Pros
Provides heaps of educational resources
Great for market insights and market research
Several account types supported
Extensive forex department
No commissions when trading currencies
Great reputation and heavily regulated
Cons
Does not support US traders
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There is no guarantee you will make money with this provider.
- Plus500 – One of the best Paper Trading Apps for CFDs
plus500 paper trading app
Plus500 is a market leader in the global CFD trading space. In fact, the platform is home to thousands of financial instruments across most asset classes. This includes everything from bonds, stocks, digital currencies, forex, indices, and commodities. All Plus500 account users get access to a paper trading facility.
This comes packed with a £50,000 balance which you can use as you wish. Best of all, if and when your paper trading balance gets down to £200 – Plus500 will reinstate your balance back to £50,000. This ensures that you can use the demo trading facility until you are ready to upgrade with a real money account. Once you are, Plus500 requires a minimum deposit of just £100. It supports several payment methods – including debit/credit cards, bank transfers, and Paypal.
In terms of trading fees, Plus500 is a 100% commission-free platform. This means that regardless of what you decide to trade – the only fee that you’ll pay is the spread. In most cases, you’ll benefit from tight spreads – which is great for keeping your trading costs to a minimum. Plus500 offers leverage to all account holders, albeit, your limits will be determined by the asset class and your location. If you’re in the UK or Europe, for example, then this is capped at 1:30.
When it comes to trading tools and features, the Plus500 app allows you to choose from a buy or sell position on all markets. There are several order types to choose from, as well as the ability to read and analyse pricing charts. Regarding the former, this includes take-profit, stop-loss, guaranteed-stop, and trialling-stop orders. As such, you can ensure that your trades are executed in a risk-averse manner. Finally, Plus500 is heavily regulated and its parent company is listed on the London Stock Exchange.
Read our in-depth Plus500 app review here.
Pros
Heavily regulated trading platform
0% commission on all forex trading positions
Leverage facilities available
Mobile app is highly rated
No transaction fees
Minimum deposit just £100
Heaps of forex pairs supported
Thousands of CFD instruments
Cons
Does not offer traditional investment assets
Best Paper Trading Apps Fees Comparison
We’ve now reviewed the best paper trading apps, but if you’re still struggling to choose, here’s a look at how they match up in terms of fees.
Paper trading apps Spread or commission? Amazon shares cost Overnight fees
eToro Free Free No overnight fees for stocks.
Plus500 Spread 0.75% Yes.
Capital.com Spread 0.25% No overnight fees for stocks.
AvaTrade Commission Free if more than three trades made in previous month, $10 if not. 0.1% commission for Australian shares. No overnight fees for stocks.
FXCM Spread 0.12% No overnight fees for stocks.
Trading 212 Free Free No overnight fees for stocks.
IG Commission Free if more than three trades made in previous month, $10 if not. No overnight fees for stocks.
TD Ameritrade Free Free No overnight fees for stocks.
Forex.com Spread 0.04% No overnight fees for stocks.
FXTM Spread 0.40% No overnight fees for stocks.
Best Paper Trading Apps Features Comparison
If you’re still can’t decide on the best paper trading app for you, here’s how our top picks compare in terms of the features and trading platforms they offer.
Paper trading apps Trading platforms Features
eToro Proprietary Social trading, copy trading, CopyPortfolios, fractional shares
Plus500 Proprietary Webinars, beginners course, news, blog
Capital.com Proprietary Trade assistant, news feed, educational app
AvaTrade Proprietary, MT4, MT5 Social trading, copy trading, options analysis
FXCM Proprietary, MT4, NinjaTrader, ZuluTrade, TradingView, Capitalise AI Copy trading, market insights, APIs
Trading 212 Proprietary News, trade assistant
IG Proprietary, MT4, ProRealTime Trading signals, algorithmic trading, APIs, DMA trading
TD Ameritrade Proprietary, Thinkorswim Stock screener, options scanner, custom indicators
Forex.com Proprietary, MT4, MT5 Trading signals, alerts, trade from charts
FXTM Proprietary, MT4, MT5 Fractional shares, market analysis, trading signals
How to Choose the Best Paper Trading App for You
With most online brokerage firms now not only offering mobile applications – but demo accounts, too – knowing which provider to sign up with can be time-consuming. For example, it’s more than likely that you are looking to use a paper trading facility with the view of getting to grips with how things work – or because you are interested in testing out a new strategy.
At some point, you might decide to upgrade to a real money account. With this in mind, you need to look at everything from fees and spreads, to supported payment methods and regulation.
To help point you in the right direction, below you will find a list of metrics that you need to consider before downloading a paper money trading app.
Eligibility
First and foremost, you need to ensure that you are eligible to open an account with your chosen paper trading app. At the forefront of this is the country in which you are located. For example, a lot of stock apps do not accept Americans as they are required to obtain regulatory approval from US authorities – which can be both costly and time-consuming.
Regulation
Once you have confirmed that you are eligible, you then need to check the regulatory standing of trading app provider. Take note, each and every trading app that we have listed on this page holds at least one regulatory license – often several. Some of the most reputable regulators to look out for as:
FCA (UK)
CySEC (Cyprus)
SEC (US)
ASIC (Australia)
MAS (Singapore)
If you’re chosen paper trading app doesn’t hold a license with a reputable body – avoid it.
Fees
Once you have assessed eligibility and regulation, you should then spend some time understanding the fee structure of your chosen app. After all, this will have a direct impact on your trading margins – should you decide to upgrade to a real money account.
eToro research
The main fee that you should assess is that of the trading commission. Most of the investment apps listed on this page do not charge any commission, which is great. But, if your chosen app does – this will normally be a percentage fee. For example, you might pay a commission of 0.25% – which is then multiplied against the size of your stake.
Other fees to look out for are:
Spreads
Deposit fees
Withdrawal fees
Overnight financing fees
Inactivity fees
You can check all of the above by heading over to the respective trading platform before opening an account.
Platform & Usability
It must be noted that trading on a mobile phone can be challenging. This is because you will be working with a screen that is much smaller in size than that of a desktop device. Sure, the process of placing buy and sell orders, checking the value of your portfolio, and depositing/withdrawing funds can be achieved with ease.
However, when it comes to performing advanced analysis and research – this can be somewhat cumbersome on a mobile phone. With this in mind, you should stick paper trading apps that excel in terms of usability. The good news is that your chosen app will be compatible with your specific operating system – be it Android or iOS.
Trading Tools & Features
Make no mistake about it – most traders in the online scene lose money. This might be for a variety of different reasons – such as the trader being unable to handle the emotions of losing money – or because they fail to implement sensible risk management strategies.
Regarding the latter, this is why you should ensure that your chosen app offers you the required tools to develop a risk-averse trading strategy. For example, this should include stop-loss and take-profit orders at a minimum – albeit, it’s even better if you have the option of trialling-stop and guaranteed-stop orders too.
Education, Research & Analysis
The best paper trading apps offer a good selection of educational tools. This might include handy guides and video explainers – or even regular webinars. If this is something you’re after, your best bet is eToro and Capital.com. This is because the aforementioned paper trading apps are perfectly suited to newbies.
eToro research
Additionally, you should also ensure that your chosen trading app offers a good amount of in-house research. This might include technical indicators and chart drawing tools – as well as economic calendars and financial calculators. When it comes to fundamental analysis, real-time news developments via the app is of great value.
Device Compatibility
Without intending to state the obvious, you also need to make sure that the paper trading app is compatible with your device. Most brokerage firms will launch an app on both iOS and Android. But, one version of the app might be inferior to the other.
A great example of this is IG. While its Android application gives you access to all account features – this isn’t the case with its iOS version. For example, you can’t deposit and withdraw funds through the iOS app – nor can you set up pricing alerts!
Payments
Assuming that you will one day be looking to use your chosen app to trade with real capital – you also need to think about supported payment methods. The easiest way to get money into and out of your brokerage account is to use a debit or credit card. E-wallets are just as convenient – as payments are usually instantly credited fee-free.
With that said, some paper trading apps only support bank transfers. This is somewhat of a draconian way to deposit funds – as you will have the wait several days for the money to arrive! Additionally, you should also check to see whether any fees apply to your chosen payment method and how long the broker takes to process withdrawal requests.
Customer Service
You should also stick with paper trading apps that offer top-notch customer support – especially if you are looking to eventually upgrade to a real money account. The best way to speak with a support agent is via live chat. Next, best is that of phone support – as you will benefit from real-time assistance. After that, you’ll be left with email or a support ticket.
How to Get Started with a Paper Trading App
Found a paper trading app that meets your needs, but not too sure how to get started? If so, we are now going to walk you through the process of setting up a demo account facility with eToro – which is our top-rated paper trading app. You can, however, use any provider of your choosing, not least because the process is virtually like-for-like across all platforms.
Step 1: Download and Install the eToro App
Step 2: Open a Paper Trading Account
Step 3: Switch to Virtual Portfolio
Step 4: Place a Trade
Step 5: Upgrade to Real Money Account (KYC)
Step 6: Deposit Funds
eToro – Overall Best Paper Trading App with Low Fees
In summary, paper trading apps are ideal if you are looking to start a career in trading – but you’ve got little to no experience. This is because most demo accounts come packed with all of the same tools and features as you will find on the provider’s real money account. Furthermore, the paper trading facility will usually mirror that of live market conditions.
This allows you to get a feel for how the financial markets work without you needing to risk your own money. With that said, paper trading apps are not only suited for beginners. On the contrary, a lot of experienced traders use them as a means to test out new strategies and ideas.
If you’re still undecided as to which paper trading app is right for you – we would suggest checking out eToro. This heavily regulated provider offers thousands of trading markets – all of which can be accessed on a commission-free basis! Your paper trading account will come packed with a pre-loaded balance of $100,000 – which is more than enough time to test the provider out before upgrading to a real money account.
paper trading websites
There’s nothing wrong with a little friendly investing competition. Especially when none of your actual money is on the line.
What is paper trading?
Paper trading is a way for people to learn how to buy and sell stocks without using real money. Investors use stock market simulators, and the people who generate the highest stock market returns are technically the “winners.” Except there are no losers here — the money used isn’t real, so there’s no risk. But what’s best about paper trading is the invaluable experience it provides new investors. Anyone can get their feet wet in a simulator before diving head first into the real stock market, where real money is at stake.
Can you make money paper trading? No, because the money isn’t real. But is paper trading a good way to learn? Absolutely, yes, says, Tela Holcomb, creator of Trade Your 9 to 5, a program that teaches people how to trade and invest.
“I always recommend people start with paper trading,” says Holcomb, who’s based in Las Vegas. “We have all of our clients start with it mostly because everyone who comes to us is brand new to the market and it can be scary.”
For example, she says, if you’re the first generation in your family to make enough money to invest, the fear of losing everything you worked for is real. She says stock market simulators allow you to start learning the market with “Monopoly money,” which removes some of that fear.
» Want a leg up on the competition? Read all about how to buy stocks
Why use a stock market simulator?
In the real world, investors aren’t competing against other players’ returns. “Winning” is about equaling or exceeding the performance of a benchmark index.
For example, if you’re picking and choosing individual stocks and after five years your average returns are less than the returns of the S&P 500, you may be better off investing in a low-cost index fund that tracks the S&P 500. However, if you manage to beat the index with your stock picks (mind you, research shows this is unlikely, even among professional investors), you could say you “outperformed” the stock market.
In the actual stock market, success isn’t determined over weeks or months, but years.
» Read more: How to begin (and survive) stock trading
4 reasons to try a stock simulator
You’ll get a general investing education. Many of these platforms offer a very real education in investing, with a library of articles, tutorials, demos and, at some brokers, the chance to interact with an online community available to answer technical and investing questions. “It allows you to learn what to look for when you’re trading,” Holcomb says. You can learn how long you want to hold and when and how you sell stocks.
It’s a safe space to learn the mechanics of placing trades and building a portfolio. There’s a reason student drivers take the wheel for the first time in abandoned parking lots. The best place to make all the rookie investing mistakes, such as mistyping ticker symbols or misunderstanding order types, is wherever you can suffer the least financial damage. Holcomb says removing that worry that you’re going to make a mistake and lose it all allows you to focus on your strategy.
You can test drive new investment strategies and types. Looking to expand your investing repertoire? Trying before you buy is especially important when venturing into new strategies, such as shorting stocks and trading options, and more sophisticated investing fare such as futures and commodities and foreign currencies (forex).
You’ll learn the importance of keeping emotions out of investing. As billionaire investor Warren Buffett says, one of the keys to being a successful investor is the ability to control the emotions that lead other investors astray. Even though investing decisions are less loaded when there’s no real money on the line, the brain doesn’t always fully absorb that concept — think haunted houses, roller coaster rides and scary movies. Using a stock market simulator will provide a preview of what emotions to expect when you encounter the real market’s unavoidable ups and downs. “People will step out there much more confidently about putting their money to work,” Holcomb says.
» Looking for some fresh ideas? Read up on these stock market strategies for beginners
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Where to find stock simulators
For a virtual-trading practice environment that’s close to the real thing, you can’t get much better than the simulated investing platforms offered by actual working online brokerages.
These practice accounts typically mirror the broker’s working trading platform.
Most are free, although they may require you to set up an account. The best brokers give test drivers access to a fully functioning setup with the same tools that active customers use: watch lists, stock screens, research and live or slightly delayed data feeds.
» Learn more: How to open a brokerage account
What is the best paper trading site?
Of the online brokers that NerdWallet has reviewed, the following received 5 stars for their trading platform functionality and offer paper trading accounts. We’ve excluded paper trading accounts that are only a part of a limited demo version of the product. Note that some of the brokers below may require opening and funding an account before gaining access to the paper trading account.
ETRADE: ETRADE Paper Trading
TD Ameritrade: TD Ameritrade paperMoney Virtual Stock Market Simulator
Interactive Brokers: Interactive Brokers Paper Trading Account
TradeStation: TradeStation Simulated Trading
Webull: Webull Paper Account
Nerdy tip: If you’re interested in checking out a broker that doesn’t offer a paper trading platform for potential customers, or if the qualifications for signing up are too onerous, contact customer service and ask if it can provide temporary access to a demo account.
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