Paper Trading Apps: Experience Investing without Risking your Money

Daniel Penzing
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Here are some of the pros & cons of using paper trading accounts.

If you haven’t invested in the stock market, you may be wondering how you can give it a shot without risking your hard-earned dollars. As a novice investor, it’s probably a good idea to start out with paper trading.

Some paper trading sites offer free accounts, but you’ll need to invest some time on your own to get the most out of this exercise.

Also, trading with virtual money is a great way to test out some of the strategies you’ve learned from investing books or online stock resources … you might just find yourself becoming a full-fledged investor in no time. There are many advantages to paper trading.

An important benefit is that you get to familiarize yourself with the feel of real trading without any pressure to succeed or lose money. Another is that you can use it to learn new stock trading strategies or hone your approach to make you more adept than you might have been otherwise.

Here’s a quick look at the pros and cons of paper trading accounts.

In this Guide:

As a trader, you are constantly faced with a barrage of risks that you have to consider.

From whether or not to enter a position at a time that’s best for you to ensuring that the trades you take using your capital are on the right side of the market, there is no shortage of considerations that need to be made.

However, there is one consideration that has consistently proved to be an obstacle for new and inexperienced traders, especially those who are just starting out: that is, risk management.

Yes, the reason why we decided to start an investment account and to trade assets/currencies/commodities is because we think there’s a lot of potential in our chosen market.

This is why we’ve decided that our limited funds are more than worth it.

But the challenging part is that when we begin trading, things like market volatility and unforeseen circumstances tend to throw our judgement out of whack. Sometimes, we enter trades that we should not enter, while sometimes we risk too much on good trades.

You would think that this is because we don’t know what we’re doing. But the truth is that no matter how well you know the norms of investing, you will always feel challenged by the risks that come with investing in intangible assets/commodities.

Best Paper Trading Apps

Paper trading is a great way for beginners to get some experience with day trading before they risk any of their own money.

On this page, I’ve got 8 of the best beginner-friendly paper trading apps for stocks, Forex, and cryptocurrencies. They all provide you with everything you need to practice before risking any real funds. All of them are also completely free to use.

When you sign up through any of the links on this page, I get a little cash. So that helps cover the cost of this website. But, I only recommend apps that I personally use and like.


E*TRADE is one of the larger online brokerage firms in the United States. They offer investment trading and saving accounts, and many different trading platforms.

They are well known for their paper trading feature, which allows you to test the waters of daily investment without costing any real money. It’s a great way to learn about trading and investing.

Webull Paper Trading

Account – What are they?
Paper trading accounts are prevalent in the stock industry, and they have been adopted with fervor by cryptocurrency traders often looking to increase their experience with no financial risk.

Webull’s paper trading option is not only unique in its existence, but also because it boasts some important features that are useful to inexperienced traders.

First of all, the platform allows traders to practice and gain experience in their market analysis and strategy before risking their own money. Smart traders know that investing is about educating yourself to see the opportunity where others don’t. This can take time that some novice investors don’t have, but with a paper trading account, you can carefully and thoroughly learn to develop your market sense.

The platform allows users to choose between the EUR/USD, USD/JPY, and the AUD/JPY currency pairs. You can trade in 1-pip trades, and you’ll gain access to updated quotes when the leading crypto currency changes by increments of 1 cent in price.

Traders can also set up advanced orders to boost earnings in their simulated trades. Intra-day market alerts are also available when you open your Webull account.

TD Ameritrade thinkorswim's paperMoney

The App allows you to enter positions into a mock account, harnessing the power of a trading platform with the familiarity of a calculator.

PaperMoney provides users with a set of tools to play with live prices in virtual accounts, virtually making trades without risking any real money.

USAA StockTouch App

This app doesn't require a membership in order to use the features, including real-time quotes for more than 2,000 securities. The USAA StockTouch app is available on iOS and Android devices.

The app keeps a historical record of the user's trading activity on the ticker of their choice, and allows the user to visualize their portfolio on an interactive graph.

TD Ameritrade Thinkorswim

This app gives investors access to the same powerful trading platform used by more than six million traders.

It allows the user to develop a routine that allows money managers to conduct all routine tasks in one place, whether on a smartphone or a computer. The app also offers access to financial, news, and company information.


Have you always wanted to invest but never been sure where to start? Paper trading technology makes it possible for everyone to test their trading strategies before risking a penny of their own money. Anyone can use the paper trading apps offered by their trading platform to simulate trades, as if they were trading on a real account. Paper trading is a great way to trade for free!

How to Paper Trade?

The interface of the trading platform will display your opening balances. By entering trades and adjusting your position size, you can realistically test your strategy. You can analyze and visualize your performance with charts and risk metrics.

How is Paper Trading Beneficial?

Paper trading will not only let you practice trading but also lets you do it without risk.

There is no limit on the number of paper trades you can place.

Papers trades are foolproof. You will not lose money due to mistakes you may make while paper trading.

Paper trading can help you determine your risk tolerance: The money you paper trade with is theoretical money. A paper trade allows you to see how you will react to emotions of fear and greed and therefore is similar to the real thing.

You can find out how you perform in different market scenarios by paper trading. How will you react to times of economic turmoil? What happens if a string of losses happens?

Stock Trading Games

If you are not interested in investing, but want to play with stocks, there are some online paper trading apps that you can try playing. Not many people know this, but it is possible to try playing with stocks via paper trading options when you want to test the waters before you actually experience it first hand.

There are websites that offer online paper trading services. These websites allow you to trade stocks with fake money. This makes it possible for you practice the same kind of trading techniques that experienced traders use, and you can try out different strategies without risking any money.

There are also some online trading games as well that allow you to play with stocks. Just as in real life, you get access to the same kinds of news, so you can get familiar with everything that is happening in the market.

Online paper trading or stock trading games can be very helpful for those who are interested in becoming good traders even if they have never invested in the real stock market before. These types of websites can give you a chance to feel what the real thing is like without having to risk your own money. Trading games can give you a good idea of how much you are prepared to invest, how good of a trader you can be, and how you can become successful.

Paper Trading vs. Live Trading

What is it?

Paper trading is another action prior to making actual trades. We can only paper trade on the paper markets.

We can trade on a demo account.

We can also treat it as a safe place to make mistakes and learn from them.

Why paper trade?

The next step is live trading, the main event.

Paper Trading is a practice of using a broker to execute trades on a demo account. They are practicing in a risk free environment. It is a time tested and effective way of expanding one’s knowledge about the market cycles, indicators, strategies, and techniques. There are several websites and software that allow you to practice trading in a paper trade environment.

This way, if you become successful in paper trading you will also be successful in the live trading scenario.

When we paper trade, we are using different setups in a simulation mode, and we are –seeing– what the real thing looks like. Paper trading is a template to learn all crucial setups online and to nail them down. It is like –a dummy” that the beginner will be able to copy and follow to strike big.

Let’s look at the different cool aspects of paper trading for getting educated and to learn how trades are done:

Pros and Cons of Virtual Trading Accounts

Virtual trading accounts are seen as a safe and convenient way for novice investors to gain investing experience without risking their own real money.


The graphics in virtual trading accounts can be quite exciting. For instance, some platforms offer a virtual trading office where you can call up a live person to give you investing advice in a margin account. You can even talk to a virtual broker on your computer or telephone. The advice may be useful to some novice investors, but, as with stock tipsters, you should carefully evaluate the advice to see if it suits your investing profile.

A virtual trading account is easy to open, thanks to the elimination of much of the paperwork and forms. Fee-free trading with no minimum deposit requirements are additional benefits for some platforms.

If the virtual trading account you select allows it, you may be able to trade other assets, such as commodities, bonds, mutual funds, and ETFs.

Virtual trading accounts can give you a lot of experience with technical analysis, such as charting, pivot points, currency rates, and high/low dots.

Many platforms offer additional investment courses and other education tools.

Since the amount of money you risk is limited, virtual trading accounts can give you an idea of how much you can make if you ever get started in real stock investing.

Paper Trading Benefits

Paper trading is an invaluable tool for investors. The main advantages of paper trading are learning to trade without risking capital and practicing the art of buying and selling securities.

The majority of online financial exchanges allow investors to practice their craft without risking their initial investment (through a paper trading account). Earning paper profits is very valuable to long-term investors who are new to the market. Being able to practice trades without risking capital is a huge bonus.

If you're a beginner, you want to paper trade for as long as you need to feel comfortable with high-risk trades. This helps guard against future overconfidence and reduces the chances of trading impulsive decisions.

Paper Trading Limitations

Using paper trading apps is a great way to practice investing. There are a few limitations that you need to be aware of. Trading exchanges often limit the number of trades you can make per day on paper trading apps. These limits can vary greatly, based on the exchange. If you plan to do a lot of paper trading on your app, make sure that you check these limits first.

If you are new to investing, paper trading is also a great way to get a feel for the structure of a trade. While you can set price targets and alerts, you can’t set stops and take profits. These kinds of trades will probably get you in trouble if implemented on a paper trading website so be aware of that. The biggest benefit of paper trading apps is that you can make trades and learn from them without risking the money in your retirement fund.

Virtual Trading Accounts: Try it before you buy it

Although there are over 5,000 exchange-traded funds (ETFs) to choose from, and countless mutual funds, S&P stocks, American Depository Receipts (ADRs) and other types of paper investments, it can still be difficult to know which ones are best. Many people prefer to rely on the advice of those in the know: brokers and institutional investors.

Brokers are an invaluable resource, but a broker can only offer advice based on their own perspective, which may or may not be what works best for you. In addition, the advice they offer is often costly. A stock broker’s services don’t come free of charge.

Investors can provide a good starting point for your research, but they still aren’t the same as the real deal. Before you invest any money in a paper investment, you need to be part of the process.

Knowing all the intricacies of investing can be a truly rewarding experience, but there’s no substitute for first-hand experience.

With a paper trading account, you can get a feel for paper investing without risking any of your hard-earned cash. A paper trading account grants you access to a simulated trading account with the same tools and technology used for the real deal.