Want to learn how to open a paper trading account in 2025? Whether you are just starting or looking to try new strategies without the risk, this guide will walk you through everything you need to know. You will find out what a paper trading account is, why it’s useful, how to open it, and which platforms are best in 2025. It is a simple way to practice, compare brokers, and get comfortable with the markets before putting real money on the line.
Quick insights
What is a Paper trading account & why use it?
What is a paper trading account? A paper trading account is a practice account where you can trade using virtual money. It allows you to experience trading without any of the risks because you are not using real funds. You get to test strategies, learn how the platform works, and get a feel for market conditions, without worrying about losing real money.
Why use it?
There are many benefits to using paper trading. They are as follows.
- Paper trading allows you to practice strategies without risking real money, helping you refine techniques and gain confidence.
- It replicates live market conditions, allowing you to understand the ups and downs of trading in a risk-free environment.
- It is perfect for experimenting with different approaches and evaluating what works, so you can fine-tune your strategies. One way to refine your strategies is by using technical indicators, such as moving averages. Learning how to use a moving average in Forex trading can help you improve your strategy.
- It helps you get familiar with trading platforms, order types, and tools without worrying about costly mistakes.
- Paper trading is typically cost-free, making it accessible to anyone wanting to learn and practice trading without upfront investment.
How to open a Paper trading account: A step-by-step guide
Getting started with trading but not ready to risk real money? Learning how to open a paper trading account is the perfect way to practice in a risk-free environment. Many new traders start here to build experience without risking their capital. The process is simple and quick, and in just a few steps, you will be ready to simulate real market conditions with zero financial risk. Follow these six easy steps to start trading with virtual funds and real-time market conditions.
#1 Choose a reliable platform
- Start by selecting a trustworthy trading platform that offers paper trading or demo accounts.
- Look for platforms with real-time market data, intuitive dashboards, and tools that mimic live trading.
#2 Register and set up your account
- Visit the platform’s website and sign up for a paper trading or demo account.
- This usually requires just your email and a password.
- Most platforms automatically provide virtual funds when you create your account.
- For a more detailed guide on setting up your trading account and starting your online trading journey, refer to how to start online trading.
#3 Fund your demo account virtually
- Once your account is active, you will receive a set amount of virtual money, often $100,000 or more.
- These funds allow you to simulate trades without any real financial exposure.
#4 Create or select a trading strategy
- Before placing trades, it is smart to have a strategy in mind.
- Whether you are testing a swing trading method or a day trading setup, define your entry and exit points, risk management rules, and profit goals.
#5 Start paper trading
- Begin trading just as you would with a live account.
- Use the platform’s tools to analyze charts, place market or limit orders, and monitor your trade outcomes in real-time.
#6 Monitor and review your performance
- Regularly review your trades to see what’s working and what’s not.
- Many platforms allow you to view trade history and metrics like win rate, average return, and more.
By following these steps, you will get hands-on trading experience without the stress of losing money, giving you the confidence to move into live markets when you are ready.
Best platforms for Paper trading in 2025
Paper trading is a great way to practice without risking real money. Whether you are just starting or testing a new strategy, these platforms make it easy to learn how the market works. In 2025, three platforms stand out for offering the best paper trading experience.
Interactive brokers – Best for advanced traders
- Interactive Broker is a top choice for experienced traders.
- The paper trading feature on the Trader Workstation (TWS) allows you to practice under real market conditions with a virtual balance of $1,000,000.
- You can trade markets including Stocks, Options, Forex, and more.
- It offers powerful tools and global market access, though the platform may feel complex for beginners. If you want a realistic, detailed trading experience, this is the platform for you.
Webull – Great for beginners and mobile users
- Webull is easy to use and great for beginners.
- Its built-in paper trading feature works on both desktop and mobile, and you get unlimited virtual cash to practice as much as you want.
- It offers real time data, interactive charts with over 60 technical indicators and 17 charting tools, plus the option to set price alerts.
- You can also try out different trading strategies to see what works.
- While it is not as advanced as some other platforms, Webull is perfect for learning and practicing on the go.
eToro – Best for social and Crypto trading
- eToro is a solid choice for those interested in social and Crypto trading.
- With $100,000 in virtual funds, you can practice trading risk-free.
- It allows you to trade Stocks, ETFs, and Cryptocurrencies while learning by copying top traders.
- The platform encourages discussion, making it a great fit for those who learn through community interaction.
- It’s user-friendly, perfect for seeing how successful traders approach the market.
Paper trading vs. live trading: Key differences
Paper trading allows you to practice without risk using virtual money. Live trading involves real money, where you face actual risks and emotions. The key differences between these two are given in the table.
| Aspects | Paper trading | Live trading |
|---|---|---|
| Risk | No financial risk – virtual funds | Real financial risk -actual capital |
| Emotions | No emotional pressure | Real emotional pressure from money |
| Market conditions | Simulated or historical data | Real-time market conditions |
| Execution speed | Instant execution | May experience slippage/delays |
| Psychological impact | No psychological impact | Stress, fear, and greed can affect decisions |
| Learning curve | Ideal for practicing strategies | Requires handling real risks and emotions |
| Account management | No real gains/losses to manage | Real profits and losses to manage |
As you transition to live trading, you might want to explore robot trading. These automated systems can help you manage your trades, taking the emotional stress out of decision-making in live markets.
Conclusion
Opening a paper trading account in 2025 is a fantastic way to practice trading strategies in a risk-free trading environment. By following the simple steps outlined in this guide, you can easily start using a paper trading account on a reputable platform.
This will help you get a feel for the markets, test different strategies, and learn how to use trading tools, all without risking real money. Whether you are a beginner looking to practice or an experienced trader trying new strategies, paper trading is the perfect way to gain valuable experience and boost your confidence.
Pro Tip
Paper trading helps you practice, but live trading brings real emotions. Start with small trades to get used to the feelings that come with real trading. Empower your investing journey with expert insights on Stocks, CFDs, Cryptocurrencies, and Banking. Use our broker finder tool to find the best Forex brokers for your needs. Join the conversation in the comments below and share your thoughts!
