Paper trading lets you practice trading strategies with virtual money before risking real capital. It is the safest way to learn the markets, test new strategies, and build confidence. This guide compares the best paper trading platforms available today.
Why Paper Trading Matters
Every professional trader started somewhere. Paper trading offers a risk-free environment to:
- Learn how to use trading platforms
- Test strategies before committing real money
- Understand how orders work in real market conditions
- Build emotional discipline without financial consequences
- Track performance and identify weaknesses
Pro Tip: Treat paper trading like real trading. Use realistic position sizes, follow your rules, and track every trade. The habits you build in paper trading carry over to live trading.
Top Paper Trading Platforms
1. Thinkorswim (Charles Schwab)
Thinkorswim paperMoney is widely considered the gold standard for paper trading. It offers:
- Full access to the professional thinkorswim platform
- Real-time streaming data
- Advanced charting with hundreds of indicators
- Options analytics including Greeks and probability
- Customizable watchlists and scanners
- $100,000 virtual starting balance
Best for: Options traders and those who want professional-grade tools. The learning curve is steep but worth it.
Cost: Free with a Schwab account (no minimum deposit required)
2. Webull Paper Trading
Webull offers a clean, modern paper trading experience:
- Intuitive mobile and desktop apps
- Real-time market data
- Extended hours trading simulation
- Technical analysis tools
- $1 million virtual starting balance
- Easy reset to start fresh
Best for: Beginners who want a simple interface and mobile trading practice. Great stepping stone before moving to more complex platforms.
Cost: Completely free
3. TradingView Paper Trading
TradingView combines world-class charting with paper trading:
- Best-in-class charting capabilities
- Huge library of community indicators
- Works directly from charts
- Pine Script for custom strategies
- Social features and idea sharing
Best for: Technical analysts and chart-focused traders. The charting alone makes it worth using.
Cost: Free basic version, paid plans for more features
4. Interactive Brokers Paper Trader
IBKR offers a realistic simulation of their professional platform:
- Access to global markets
- Advanced order types
- Realistic fills and execution simulation
- Margin calculations
- Portfolio analysis tools
Best for: Serious traders who plan to use IBKR for live trading. The platform has a learning curve but offers unmatched capabilities.
Cost: Free with IBKR account
5. Fidelity Paper Trading
Fidelity Active Trader Pro includes paper trading:
- Professional desktop platform
- Real-time streaming quotes
- Options strategy builder
- Research and screeners included
- Seamless transition to live trading
Best for: Investors who want strong research alongside practice trading. Good balance of features and usability.
Cost: Free with Fidelity account
6. TD Ameritrade (Now Part of Schwab)
The original paperMoney platform, now merged with Schwab:
- Same features as thinkorswim
- Excellent educational resources
- Active community and support
Note: TD Ameritrade accounts are migrating to Schwab. New users should go directly to Schwab.
Comparison Table
| Platform | Best For | Virtual Balance | Options |
|---|---|---|---|
| Thinkorswim | Options traders | $100,000 | Yes |
| Webull | Beginners | $1,000,000 | Yes |
| TradingView | Chart analysts | $100,000 | Limited |
| IBKR | Active traders | $1,000,000 | Yes |
| Fidelity | Investors | $100,000 | Yes |
How to Get the Most from Paper Trading
1. Use Realistic Position Sizes
Starting with $1 million virtual dollars is fun, but not realistic. If you plan to trade with $10,000 in real money, paper trade with $10,000. This builds realistic habits and expectations.
2. Follow Your Rules
Create a trading plan and follow it strictly. If you would not make a trade in real life, do not make it in paper trading. Treat every dollar as if it were real.
3. Track Every Trade
Keep a detailed journal of every trade. Record why you entered, your thesis, the outcome, and what you learned. This data is invaluable for improving your strategy.
The Paper Trading Gap
Paper trading cannot replicate the emotional impact of real money. You will likely perform better on paper because there is no fear or greed. Be prepared for a adjustment period when you go live.
4. Test One Strategy at a Time
Do not try to learn everything at once. Pick one strategy, practice it for several weeks, and master it before moving on. Depth beats breadth in trading education.
5. Set a Graduation Timeline
Paper trading indefinitely is not the goal. Set milestones for when you will transition to live trading. For example: profitable for 3 consecutive months with at least 50 trades.
Paper Trading Limitations
Paper trading is valuable, but it has limitations:
- No emotional stakes: Real money creates fear and greed that paper trading cannot simulate
- Perfect fills: Simulators often give you ideal prices that may not happen in real markets
- No slippage: Real markets can move against you during execution
- Unlimited do-overs: You can reset your account, which is not possible with real money
When to Go Live
Consider transitioning to real money when:
- You are consistently profitable for 2-3 months
- You have completed at least 50-100 paper trades
- You can execute your strategy without hesitation
- You have a written trading plan
- You understand risk management
Track Your Paper Trading Progress
Pro Trader Dashboard helps you analyze your trading performance, whether paper or real. Track your win rate, average gains, and identify patterns in your trading.
Summary
Paper trading is an essential step in becoming a successful trader. Choose a platform that matches your intended trading style, use realistic settings, and treat it seriously. The best paper trading platform is one you will actually use consistently.
Start with Webull or TradingView if you are a beginner. Move to thinkorswim or Interactive Brokers when you are ready for advanced features. Most importantly, use paper trading as a learning tool, not an end in itself.
Ready to choose a broker for live trading? Read our guide on how to choose a stock broker or learn about mobile trading apps.