Stock Market Simulators: Complete Guide to Paper Trading 2025

Stock market simulators offer a risk-free environment to practice trading strategies, learn market mechanics, and build confidence before investing real money. Whether you're a complete beginner or an experienced trader testing new strategies, paper trading platforms provide invaluable hands-on experience.

Why Use a Stock Market Simulator?

Before diving into the best platforms, let's understand why paper trading is essential for investors at any level:

Risk-Free Learning Environment

Stock simulators allow you to:

• Make mistakes without financial consequences - Learn from errors when they don't cost real money
• Understand order types - Practice market orders, limit orders, stop-losses, and more
• Experience market volatility - See how your portfolio reacts to real market movements
• Test emotional responses - Gauge how you handle gains and losses psychologically

Strategy Development and Testing

Paper trading enables you to:

1. Backtest trading strategies against historical data
2. Forward-test strategies in real-time market conditions
3. Refine entry and exit points
4. Develop and perfect your trading rules
5. Build a track record before using real money

Top Stock Market Simulators for 2025

Here's our comprehensive comparison of the best paper trading platforms available today.

1. Investopedia Stock Simulator

Best for: Beginners and educational trading

Investopedia's simulator has been the gold standard for beginner traders for years. It combines an intuitive interface with extensive educational resources.

Key Features:

• $100,000 virtual starting balance
• Real-time market data integration
• Portfolio tracking and performance analytics
• Trading competitions and challenges
• Seamless integration with Investopedia's educational content
• Community features for learning from other traders

Strengths:

• Extremely beginner-friendly interface
• Extensive library of tutorials and guides
• Active community of learners
• Free to use with registration
• Mobile app available

Limitations:

• Limited advanced charting tools
• No options or futures trading simulation
• May not replicate professional trading platforms accurately

2. TradingView Paper Trading

Best for: Technical analysis and charting enthusiasts

TradingView offers one of the most sophisticated charting platforms available, and their paper trading feature lets you practice with these professional-grade tools.

Key Features:

• Industry-leading charting capabilities
• 100+ technical indicators and drawing tools
• Social network of traders sharing ideas
• Multi-asset coverage (stocks, forex, crypto, futures)
• Pine Script for custom indicator development
• Real-time data from multiple exchanges

Strengths:

• Best-in-class charting and technical analysis
• Works in your browser - no download required
• Active community sharing trade ideas
• Supports multiple asset classes
• Excellent mobile app

Limitations:

• Can be overwhelming for beginners
• Full features require paid subscription
• Simulated execution may differ from live markets

3. TD Ameritrade ThinkorSwim paperMoney

Best for: Serious traders wanting professional-grade simulation

ThinkorSwim's paperMoney is widely regarded as the most realistic stock simulator available. It mirrors the actual ThinkorSwim trading platform used by professional traders.

Key Features:

• $100,000 virtual account balance
• Full access to ThinkorSwim's professional tools
• Options, futures, and forex simulation
• Advanced options analysis (Greeks, probability analysis)
• OnDemand feature to practice with historical data
• Real-time streaming data

Strengths:

• Most realistic trading simulation available
• Comprehensive options trading simulation
• Professional-grade analytical tools
• Seamless transition to live trading
• Excellent educational resources

Limitations:

• Steep learning curve for beginners
• Requires TD Ameritrade account (free to open)
• Platform can be resource-intensive
• Interface may feel dated compared to modern apps

4. Webull Paper Trading

Best for: Mobile-first traders and commission-free practice

Webull has gained massive popularity among younger investors, and their paper trading feature maintains the same sleek, modern interface.

Key Features:

• $1,000,000 virtual balance
• Full-featured mobile and desktop apps
• Extended hours trading simulation
• Options trading with level 2 data
• Clean, modern user interface
• Community features and social trading

Strengths:

• Beautiful, intuitive mobile app
• Free real-time market data
• Large virtual balance for realistic position sizing
• Active trading community
• Smooth transition to live trading

Limitations:

• Fewer educational resources than competitors
• Limited advanced charting compared to TradingView
• Some features require account funding for full access

Comparison Table: Stock Simulators at a Glance

How to Get the Most Out of Paper Trading

Simply using a stock simulator isn't enough - you need to approach paper trading strategically to maximize its benefits.

Step 1: Set Realistic Parameters

Guidelines for realistic paper trading:

• Use a virtual balance similar to your planned real investment
• Account for realistic position sizing (risk no more than 1-2% per trade)
• Consider slippage and execution delays
• Track all costs including any potential commissions

Step 2: Create a Trading Plan

Before placing any trades, document your strategy:

1. Define your trading style - Day trading, swing trading, or position trading?
2. Set entry criteria - What signals will trigger a buy?
3. Establish exit rules - When will you take profits or cut losses?
4. Determine position sizing - How much will you risk per trade?
5. Create a watchlist - What stocks or ETFs will you focus on?

Step 3: Keep a Detailed Trading Journal

Document every trade with the following information:

• Date and time of entry/exit
• Stock symbol and position size
• Entry and exit prices
• Reason for entering the trade
• Reason for exiting
• Emotional state during the trade
• Lessons learned

Step 4: Review and Analyze Performance

Regularly review your paper trading results:

• Win rate - Percentage of profitable trades
• Risk/reward ratio - Average win size vs. average loss size
• Maximum drawdown - Largest peak-to-trough decline
• Sharpe ratio - Risk-adjusted returns
• Common mistakes - Patterns in losing trades

Step 5: Gradually Transition to Real Trading

Once you've achieved consistent results in paper trading:

1. Start with a small real account (only money you can afford to lose)
2. Trade smaller position sizes than your paper trading
3. Focus on execution, not profits
4. Continue journaling and analyzing
5. Gradually increase position sizes as you gain confidence

Common Paper Trading Mistakes to Avoid

1. Not Taking It Seriously

The Problem: Treating paper trading as a game leads to reckless behavior that would never work with real money.

The Solution: Trade your paper account exactly as you would a real account. Every decision should be deliberate and documented.

2. Ignoring Emotional Factors

The Problem: Paper losses don't hurt like real losses. The psychological aspects of trading are harder to simulate.

The Solution: Visualize your paper money as real. Some traders find it helpful to paper trade amounts they've actually saved for investing.

3. Overtrading

The Problem: Without real money at risk, traders often make too many trades, inflating their perceived skill.

The Solution: Set a maximum number of trades per day or week. Quality over quantity.

4. Skipping the Fundamentals

The Problem: Focusing only on price action while ignoring company fundamentals and broader market context.

The Solution: Research every company you trade. Understand why the stock moves, not just that it moved.

Advanced Paper Trading Strategies

Options Trading Simulation

If you're interested in options, use ThinkorSwim's paperMoney or Webull:

1. Start with covered calls on stocks you understand
2. Practice reading options chains
3. Understand the Greeks (Delta, Gamma, Theta, Vega)
4. Paper trade through earnings events to see implied volatility effects
5. Test spreads and multi-leg strategies

Backtesting Historical Scenarios

ThinkorSwim's OnDemand feature allows you to:

• Replay historical market data
• Practice trading during past market events
• Test how your strategy would have performed in different conditions
• Experience market crashes and rallies firsthand

Paper Trading Competitions

Many platforms offer trading competitions:

• Investopedia runs regular trading games
• TradingView has community challenges
• Some brokerages offer prizes for paper trading contests

These competitions add stakes without financial risk and can make practice more engaging.

Transitioning from Paper to Real Trading

When you're ready to start real trading, follow these guidelines:

Checklist Before Going Live

• Have you paper traded for at least 3-6 months?
• Is your win rate above 50% with positive expectancy?
• Have you survived both up and down markets?
• Do you have a documented trading plan?
• Have you saved capital you can afford to lose?
• Are your emotions under control during trades?

First Real Trades

1. Start with 25-50% of your planned position size
2. Focus on following your plan, not making money
3. Keep your paper trading account active for comparison
4. Expect different emotions - this is normal
5. Don't increase size until you're consistently profitable

Conclusion

Stock market simulators are essential tools for any investor, from beginners learning the basics to professionals testing new strategies. The best platform for you depends on your goals:

• Choose Investopedia if you're just starting out and want extensive educational support
• Choose TradingView if technical analysis and charting are your focus
• Choose ThinkorSwim if you want professional-grade tools and options trading
• Choose Webull if you prefer a modern mobile-first experience

Remember that paper trading is a means to an end, not the end itself. The goal is to develop the skills, discipline, and emotional control needed for successful real-world trading. Take your time, be patient, and treat every simulated trade as an opportunity to improve.

Further Reading

• TradingView Review 2025: The Best Charting Platform?
• Finviz Review 2025: Is This Lightning-Fast Stock Screener Worth It?
• eToro Review 2025: Is This Social Trading Platform Worth It?