For quite a number of reasons, a trader might hit a roadblock in trading and will need more practice. Of course, this cannot be done while live trading so there’s a demand for the best paper trading app.
They (paper trading apps) give traders a lifeline before diving while learning the craft.
What is Paper Trading?
When an investor or trader can place a trade without risking capital, it is called paper trading.
Before the advent of online trading platforms, traders who were still learning the craft practiced on paper as far back as the 90s before learning the craft. Hence, where the term ‘paper’ trading was coined from.
Today we have various simulators for forex, stocks, and options, improving the experience tenfold.
Furthermore, a few people reading will wonder what the difference is between paper trading and demo trading.
A demo account is provided specifically by brokers and trading platforms to give a taste of their services.
Factors such as spread, fees, and speed at which orders are placed can be tested to give retail traders a reason to deposit funds with them.
Yes, a demo account can be used to test strategies and concepts, too, but that’s secondary.
Merits of Paper Trading
Honestly, there’s a great parallel between paper trading and live trading. Traders can make more composed and relaxed decisions since no real money is on the line.
Regardless, paper trading can play a big role in shaping a trader’s career. You get an opportunity to make sure as many rocks as possible have been turned.
Things like the accuracy and margin of risk of a concept or strategy can be determined beforehand. Therefore, confidence in a trading system is acquired before moving to a live account.
With that covered, let’s go over the list of some of the best paper trading apps that can be employed.
1. Etoro
Etoro is a popular choice among traders since it’s been around for years, it’s arguably the best paper trading app.
The eToro platform is super easy to use and well organized while allowing you to follow/ copy trade other investors.
Furthermore, creating an account is quite straightforward. But for some unknown reason, their services aren’t available in certain regions (countries).
2. Meta Trader
In the forex scene at least, the Meta trader is the most used application. The meta trader platform gives users access to more options to work with while placing trades seamlessly.
Each broker provides traders with a meta trader 4/5 login after capital has been deployed.
It can be downloaded on iOS and Android devices in their respective app stores.
Alternatively, on PC, their official website has to be visited to get the software package.
The mobile version gives you access to create as many demo accounts as you need.
Once created, paper trading can begin and since trade records are sorted properly, they can be revisited later.
Contrarily, the desktop version of the MetaTrader platform is expected to pack more features. Beneath the view window, a forex simulator for paper trade can be found.
Moreover, other third-party simulators can be installed if the default doesn’t suit you. This franchise is packed with so many features so it’s no surprise many views it as the best paper trading app.
3. Trading View
Charts are easily customizable and they are loaded with the best tools for technical analysis. There’s also a large library of indicators to choose from.
In addition to that, a trading view mobile app can be downloaded so charts can be viewed on the go while receiving price alerts.
A reoccurring team with Tradingview is the most simplistic user experience is a priority and this goes for the paper trading feature too.
On the vertical panel by the right side of the site, an ‘order panel’ option can be found. By clicking on it, a window appears with the paper trading option.
4. Trade Inceptor
Trade inceptor is another popular app available on iOS and Android smartphones.
The usual charting tools can be found here, as well as a hundred technical indicators which are great.
Alerts at specific price levels of your choice can be placed conveniently and can be accompanied by new updates.
In relation to this piece, the application does provide paper trading by simulating old data of prices.
5. Thinkorswin
Sometimes, brokers provide special perks as an incentive to get more traders to procure their services.
Thinkorswin application has a feature named paperMoney trading simulator which strategies can be tested.
Besides, indicators can be added to charts and most importantly study tools that were created by YOU.
TradingView is more known for its aesthetically pleasing display of charts for all sorts of markets and its powerful charting tools. Compared to what they offer, every other platform’s chart looks inferior.
But they don’t stop there, TradingView is packed with tons of features most people barely use. One of them is the ability to paper trade right on the website.
To activate this feature, click on the ‘order panel’ option on the vertical menu by the right of the site. Then, a window appears where the paper trading can be found.
When an investor or trader has the means to place a trade without actually risking capital, it is called paper trading.
Therefore, the whole point of paper trading is to give traders the ability to buy or sell assets without actual money.
Before any money can be made in any financial market, you have to deposit with a broker. Then, you’d proceed to take trades with a portion of this deposit.
As opposed to the old days when paper trading had to be recorded on a piece of paper, there are tons of paper trading apps now.
A few of them are Etoro, Meta Trader, Trading View, Trade Inceptor, Thinkorswin, etc.
Summary; Best Paper Trading App For Traders
Paper trading has always been an extremely valuable tool to all traders since the 90s. All traders need to test the waters before investing in any stock/ pair.
Also, with the advancements in simulators, traders can use historical data to paper trade instead of waiting for markets to develop.
Besides, currency pairs can be backtested with this data to understand their behaviours.