Best Paper Trading Platforms – Practice Trading Strategies

Paper trading platforms are virtual market environments that allow investors to trade financial instruments in a risk-free manner. This guide provides a review of the most popular paper trading platforms and strategies for new and experienced traders. 

We will also summarize the benefits of paper trading simulators and show you how to start investing using the paper trading app below. 

Most Popular Paper Trading Platforms Reviewed 

There are various factors to consider while ranking the most popular paper trading platforms. For example, the amount of funds and the mirroring of live activities in your demo accounts can differ per platform. The paper trading sites also provide access to international markets and multiple asset classes. 

Considering all these factors, here are the most popular paper trading platforms currently available on the market. 

1. eToro – Overall Most Popular paper trading platform 

eToro is the most popular paper trading platform currently available in the market.

A global online brokerage, eToro provides its services to over 24 million users in over 140 countries, including the US and UK. You can start using the eToro demo account right after registering your account on the platform’s website or mobile app – available on iOS and Android. Moreover, users do not have to deposit any money to access the demo account. 

There are many reasons to use eToro as your trusted paper trading app. Firstly, the brokerage gives you a demo balance of $100K. Secondly, eToro mirrors live market conditions. 

Finally, eToro’s simple user interface lets you easily switch between your demo and real account. The broker offers more than 2,500 stocks, 250 ETFs and 60 + cryptocurrencies to trade on the demo account. 

Additionally, users can experiment with stock trading vs forex trading in a risk-free demo environment that mimics the live trading conditions of the financial markets. 

Once you are ready to trade in the real mode, eToro supports payment in credit/debit, e-wallets and bank transfers. eToro is also a social trading platform that offers a variety of beginner tools to help beginner traders. 

Through the “Copy Trading” tool, users can copy the exact trades of thousands of experienced traders and test out different investing strategies without risking any money. 

 Since eToro is a, it also allows new investors to copy the trades of more experienced investors. 

A worldwide exchange, eToro is heavily regulated by global regulatory bodies in the US, UK and several other European countries. 

If you want to practice investing in stocks and other asset classes, try eToro, as it’s the most popular paper trading simulator in 2023. 

Cryptoassets are a highly volatile unregulated investment product.

2. Webull – Paper Trading via Mobile App

With mobile apps proving to be the new norm for online brokerages, many paper trading platforms can be accessed on iOS and Android.

If you are based in the US and looking for the most popular paper trading stock app.

After researching the Webull website, we found out that Webull gives customers a pre-loaded allowance of $1 million on the demo mode. You can invest in U.S stocks, cryptos, ETFs, and penny stocks with your virtual funds.  

Although Webull takes no commission on stock options, other fees do apply. A monthly charge of $1 is solicited on your standard account. 

Most importantly, Webull does not charge any broker fees on deposits. The $1 monthly charge can be covered by accessing the Webull promotional scheme. After successfully opening an account, Webull offers free shares of stock valued between $2.50 to $250. 

If you invest a minimum of $100, the value of free shares goes up to $8 to $1600. You can claim this after buying stocks via credit card or the multiple other payment methods Webull offer. 

Cryptoassets are a highly volatile unregulated investment product.

3. XTB – Paper Trading on 2,100+ Markets with No Deposit

XTB is a global CFD brokerage platform that offers trading on more than 2,100 markets. Traders at XTB can buy and sell forex, stocks, cryptocurrencies, commodities, indices, ETFs, and more, all using CFDs. That means traders can easily go long or short on any position and access leverage – up to 500:1 for forex and up to 10:1 for stocks.

XTB doesn’t require a minimum deposit to open a new account, which makes its paper trading account one of the most accessible options available. The demo account can be reset at any time and offers access to all of XTB’s markets and trading tools. It’s a suitable option for traders who are using CFDs for the first time or who are interested in using XTB to access new markets to trade.

This broker has its own custom trading platform called xStation 5, which is available for the web and mobile devices. It’s packed with advanced charting tools and technical studies, plus offers handy tools like price alerts. Traders can use XTB’s paper trading account to test out new technical trading strategies in xStation 5.

Your capital is at risk. 76% of traders lose money when trading CFDs with this provider.

4. TD Ameritrade – Test Advanced Strategies on your Paper Trading Account

With over 11 million registered users, TD Ameritrade allows you to access advanced paper trading strategies via desktop, online and on their mobile app. 

TD Ameritrade has advanced web-based software – thinkorswim. The thinkorswim software gives you access to customisable trading tools to test out strategies and execute complex trades. 

Notably, the thinkorswim paper trading platform provides users with $100K pre-loaded on their demo accounts. The thinkorswim paper trading software is for those looking to trade in the equities and derivatives market with access to essential tools and features. 

If you decide to access the normal mode, TD Ameritrade will not charge you any trading commission on US stocks and ETFs either. The only drawback is that users have to deposit $500 to access real-time pricing quotes. 

5. Interactive Brokers – Paper Trading Platform for Accessing Global Markets

Interactive Brokers is a comprehensive trading platform that gives users access to a massive range of securities at affordable rates. 

You can buy assets worldwide by accessing any of the 135 global markets available on Interactive Brokers. 

The platform offers a wide variety of specialised tools to read charts and perform technical analysis – most of which are available on the paper trading app as well. Crucially, you can use Interactive Brokers to practice investing in a variety of long-term investments – including Futures, Forex, ETFs, index funds and options paper trading. 

Interactive Brokers provides commission-free trading on all U.S stocks if you choose to access the normal mode. Join the Interactive Brokers paper trading simulator to access a pre-loaded amount of $1 million. 

6. TradeStation – Back-Test on Stocks, Futures & Options

TradeStation traditionally focuses on experienced and active traders due to its robust platform that provides sophisticated charting and testing options. 

However, beginners and active traders can use TradeStation’s simulated trading feature to practice their strategies. 

Firstly, the platform provides an unlimited deposit on the free paper trading simulator. Secondly, TradeStation offers a unique feature on the paper trading account – Back-testing. This feature allows users to test the viability of a trading strategy by comparing their model with historical analysis.

Experienced traders can use the trade simulation to test out more advanced tactics – Strategy automation, advanced orders and alternate market types. With the unlimited deposit balance, users can access real-time market data to invest in Options, Futures, Stocks and ETFs. 

If you choose to upgrade to a standard account, options and futures can be accessed starting from $0.50 and $1.50, respectively. 

7. Etrade – Paper Trading Platform to Learn Technical Strategies

Etrade is an online trading platform that provides convenient tools and features to spot market opportunities.

Users can access the intuitive paper trading platform to test drive their stock and margin trading ideas through the Power Etrade app and website. 

Through the Etrade paper trading options, you can learn how to use interactive charts and access over 100 technical studies and scans to hone your craft. From simple translations of industry jargon to viewing market movements – the Etrade paper trading app is simple and effective. 

Without investing any of your real money, users can test out equities and option trading strategies with a pre-loaded $200K deposit. You are also given an additional $100K of virtual deposits for stocks and ETFs trading. 

8. TradingView – Paper Trading Platform to Practice Day-Trading 

TradingView is a powerful online trading platform that provides a free paper trading simulator option.

Catering to novice and experienced investors, TradingView provides technical analysis tools and superior charting systems to help in day-to-day trading. The paper trading demo platform of TradingView provides everything that your real money account would. 

Charts and screeners can be accessed to better navigate stocks, Forex, cryptos and ETF trades. To access futures on paper trading, users will require a futures data feed, which can be accessed by connecting a futures brokerage account to TradingView. 

On the paper trading simulator, you are given a pre-loaded value of $100,000. However, this can be reduced to your liking. For example, you can start trading with $1,000 on your demo account if you were to invest the same amount in your regular money account later on.

That way, you can proportion your funds according to your real-future investments. TradingView also offers you access to a community page. Through this, you can view charts and ideas of other community members on Tradingview. 

The Most Popular Paper Trading Platforms Compared

Read our comparisons for the most popular paper trading platforms below. We analyse each of the 7 platforms on the basis of the demo account balance, top-up features and more. 

What is Paper Trading?

Paper trading is simply a trade simulation tool. This platform allows investors to witness a virtually simulated environment that replicates the shares and equities markets. 

Paper trading is usually used by beginners to get an opportunity to trade in a realistic market setup without risking any money. However, many paper trading platforms offer complex charting and testing options for experienced investors. 

As we discussed earlier, many paper trading simulators will mirror live market conditions. As a result, you can assess the viability of your trades in the demo account.

Most online trading platforms provide a fixed amount of virtual money on your trading accounts.

However, other platforms may offer customisable amounts.

Benefits of Paper Trading 

The most popular paper trading platforms are suitable for beginners and experienced traders to test a variety of tools and strategies. We have assessed the benefits of using paper money trading apps and platforms below. 

Beneficial for New Investors

Entering the live trading markets without prior experience and knowledge can be challenging for new investors. 

Primarily, paper trading platforms cater to this demographic. The most popular paper trading simulators provide beginners with a medium to access their platforms prior to investing any real money. 

Testing out a New Platform 

Many traders access multiple trading platforms to gain different benefits. However, using a paper trading account is a safe way for beginners and experienced traders to learn about different platforms and compare them to one another.

Since there is very little separating the top brokerages, demo accounts give you further insights into a platform’s user interface and available asset classes. 

For this to be navigated appropriately, you should test out paper trading platforms that mirror live market conditions. With this added feature, users will get a sense of what to expect from real money accounts. 

Zero-Risk 

The essence of a paper trading platform is to provide investors with a zero-risk environment to study the market. Using a demo account is beneficial to both new and experienced investors.

On the one hand, beginners get first-hand experience assessing marketing conditions without the risk of any investment. On the other, senior traders can invest in high-risk asset classes and test out unfamiliar trading tools and charts for the first time. 

Allowing yourself the opportunity to assess the viability of your trades in a simulated environment will help build your confidence and skill-set. 

Futures & Options Trading

Day-traders and long-term investors often want a platform to test out complex futures and options trading strategies. Some of the most popular paper trading platforms provide traders with sophisticated charting options and tools for forex, options and commodities. 

Paper Trading Strategies 

The most popular paper trading platforms provide enough features to help you become a better investor. However, you may be looking for guidance on how to go about your demo account.

To get the most out of your paper trading accounts, try out a few of these paper trading strategies:

Deployment of Funds Strategy 

When using a paper trading platform, it is necessary to set up a fixed strategy while deploying your funds. Your virtual funds should ideally mirror the investment funds set aside for your real money account. 

• Many paper trading sites provide pre-loaded deposits starting from $100K and above. Deploying all these funds may not be sensible if your fiat purse is significantly smaller.
• For example, let’s say you have budgeted $5,000 for future investments. Begin your demo account with a similar amount. 
• This prevents you from having a huge trading disparity and setting unrealistic goals for your future investments.

Risk Management 

It is easy to get carried away on a paper trading demo account. Since there is zero added risk, many investors may implement riskier strategies than they would in their regular trading accounts. 

Thus, following a fixed risk management plan in your demo account is essential. 

Firstly, create a fixed staking plan. It is advisable to not stake more than 1% to 5% of your funds in any single trade. This gives users access to create a diverse portfolio and reduces the chances of heavy losses from a single trade. You can also invest in undervalued stocks to further expand your asset reach. 

Secondly, setting up a stop/loss feature per trade limits additional losses. While the former automatically cashes out your earnings after crossing a fixed profit threshold, the latter will trigger a sale after your investment dips by a certain value. 

Market Entry-Point Strategy 

The market-entry point strategy is a tactic used to try and identify suitable entry points for your investments. 

Many orders placed by investors after market close or before market open can increase volatility. The opening 15-30 minutes in the stock market is considered the most unpredictable. 

This is why it is advised to place a new order during the middle hours of market open. Day traders tend to use this strategy to maximise minute gains to benefit during trading hours. 

How to Get a Paper Trading Account 

So far, we have discussed the most popular paper trading platforms and suitable strategies to implement on your paper trading sites. 

Now, let’s take a look at how to get a paper trading account. You can open your own account with the most popular paper trading platform in the industry.

Step 1: Open An Account 

Visit a regulated broker’s website and complete the simple registration process. Provide your name, address, nationality and DOB to get started. 

Step 2: Switch to Demo Mode

After registering your account, you can instantly use the demo paper trading account. 

Step 3: Start Paper Trading 

In virtual mode, the prices of all asset classes represent their real-time values. However, you can now access all these options using your virtual funds. 

Step 4: Place Your Paper Trading Order

After selecting the market you wish to trade in, you have to set up the order. After clicking on the “Trade” feature next to your chosen market, a pop-up will appear to set your order. 

Choose between “Buy” or “Sell” – to decide whether you’re trading on the price to go up or down respectively.

Confirm your paper trading order by clicking “Set Order”. 

Conclusion 

In this guide, we have reviewed the most popular paper trading platforms that beginners and experienced traders can try out. In most cases, the paper trading sites provide risk-free trading without the requirement of any deposits. 

FAQs