Overview
Paper trading or demo trading is a popular way for traders to gain the necessary trading experience and skills before they enter a live trading environment. There are many companies, forex brokers, and trading platforms that have started offering day trading simulators, the answer to tackling the complexity associated with forex trading in a safe, risk-free environment.
A simulated environment provides an opportune environment in which novice traders can gain more experience and more advanced traders can test their trading strategies. It also provides a fundamental understanding of the financial markets and how instruments are traded.
There are many day trading simulators available today, and the following are the 15 best in the industry.
AvaTrade
Features
AvaTrade is a popular and reputable name in the day trading industry, with AvaTrade as one of the main forex brokers that offers traders access to comprehensive, user-friendly trading simulators through MetaTrader 4 and MetaTrader 5.
All traders need to do, is register an account with AvaTrade, verify their account, and start using the day trading simulator immediately. Traders are given access to the full suite of tradable instruments, including forex, commodities, and several other asset classes.
Pros and Cons
| PROS | CONS |
| Commission-free trading | CFD trading only, no traditional stock ownership |
| Wide range of tradable instruments | |
| Educational material provided | |
| Well-regulated broker |
TradeStation
Features
TradeStation is a reputable trading platform that has seen increases in popularity, especially considering that it offers flexible solutions to speculation on price movements, especially where traders take long/short positions and use leverage to trade.
TradeStation is one of the best US-based brokers and trading platforms in the world that offers a range of tradable instruments, with a focus on stocks. To use the trading simulator, traders are required to sign up with TradeStation so that they can use it, allowing them full access to start practicing trading while using their chosen trading strategies.
Pros and Cons
| PROS | CONS |
| Commission-free trading on stocks | Lack of international assets |
| Suitable for experienced traders as well as beginners | |
| Thousands of stocks to choose from | |
| Excellent reputation in the industry |
TradingSim
Features
TradingSim is a popular web-based trading simulator that is typically used by stock traders. The day trading simulator provides traders with historical data that can be dated to the previous 9 months.
Traders can also fast-forward the market movements by three times, allowing them to play out scenarios. In addition, traders also have access to a range of technical indicators and order types.
TradingSim offers a 5-day trial before traders must commit to lifetime access at $199.00 (2,849.82 ZAR) if they want to continue using the simulator.
Pros and Cons
| PROS | CONS |
| No downloads necessary | The trial period is only 5-days long |
| Comprehensive technical indicators | Expensive lifetime access |
| Up to 9 months of historical data | Lack of real-time process |
X Trader
Features
X Trader was developed by Trading Technologies, a leader in trading solutions, especially in derivative markets. X Trader offers a comprehensive day trading simulator that is offered as an order-matching engine refined to offer realistic prices derived from real-time feeds.
X Trader also offers X_Study, which is a user-friendly solution providing a wide range of options for day traders. Many forex traders can use X Trader’s two-week demo but when this expires, traders must register an account funded with capital to continue using the simulator.
Pros and Cons
| PROS | CONS |
| User-friendly | Lacks custom indicators |
| Perfect for beginners and professional traders | Charting incomprehensive |
| Supported by many brokers | Two-week demo before having to register with a broker |
Trading 212
Features
Trading 212 is a reputable and well-regulated broker and a popular trading platform that offers traders CFD trading and share dealing. Trading 212 is especially popular among beginner traders because it offers commission-free trading, no minimum deposit requirement, and a user-friendly, intuitive interface.
Trading 212 offers a comprehensive trading simulator alongside a demo account, allowing traders the perfect environment in which they can either practice trading or test their trading strategies against real market conditions.
Pros and Cons
| PROS | CONS |
| User-friendly and mobile-friendly | 0.5% forex fee on CFDs |
| Well-regulated | Not suitable for experienced traders |
| Allows leveraged trading | |
| Low minimum deposit |
FOREX.com
Features
FOREX.com is a popular and reputable forex broker in the industry with a proven Execution Scorecard for the best trading speeds in the industry. However, this is not all that FOREX.com is known for.
FOREX.com also offers one of the best trading simulators in the industry, especially for forex trading, the perfect financial market for day trading strategies.
To start using the free trading simulator that FOREX.com offers, traders can register a demo account with the broker. The account is available for 30 days before it expires, after which traders must register a live account to continue the simulator.
Pros and Cons
| PROS | CONS |
| Specialist forex trading app | KYC process is time-consuming and tedious |
| Access to a wide range of forex pairs | |
| Minimum deposit is not necessary when opting for a bank wire transfer | |
| Well-regulated and secure broker |
Interactive Brokers
Features
Interactive Brokers is one of the most reputable online brokers that offer an excellent day trading simulator. The proprietary IBKR mobile trading app is one of the best trading platforms for smartphones, a perfect trading medium for traders who want to test their trading strategies.
The IBKR mobile app has a variety of features, tools, and a risk-free environment in which traders have the freedom to build and test their day trading strategies. In addition to this, traders are granted access to the entire suite of tradable instruments that Interactive Brokers offers.
Traders are given real-time data fees while they use the day trading simulator, giving them accurate pricing and an indication of market movements.
Pros and Cons
| PROS | CONS |
| Significant portfolio of instruments offered | Not suitable for beginner traders |
| Advanced trading features offered | The fee structure can be confusing |
| Advanced chart analysis tools provided | |
| No minimum deposit required |
NinjaTrader
Features
NinjaTrader is a popular social trading platform and one of the most popular day trading simulators. It allows for retail traders, whether they are beginners or professionals, to hone their trading skills while they maintain the option to trade with a large range of supported partner brokers.
NinjaTrader offers comprehensive trading features including advanced charting, custom technical indicators, and the option to trade directly from charts. In addition to this, NinjaTrader also records all simulated trades and offers traders a performance review.
NinjaTrader also has a Market Replay option that is useful for day traders, allowing them to review charts over a certain period, allowing them to refine their trading skills after the markets have closed.
Pros and Cons
| PROS | CONS |
| Powerful platform with a variety of trading tools | Limited account funding options |
| Educational material offered | Commissions are not the lowest |
| Perfect day trading simulator |
Libertex
Features
Libertex is another popular and reputable day trading simulator provider and platform that is offered free of charge. Libertex offers traders access to a wide range of tradable instruments with zero-spread charges.
When using Libertex, retail traders can trade forex, commodities, ETFs, Stocks, and several others and with an industry-standard minimum deposit, traders can easily register an account to start using the comprehensive day trading simulator offered.
Pros and Cons
| PROS | CONS |
| Zero-spread CFD trading | CFD trading only – no physical assets |
| Competitive commissions | |
| Decent educational materials |
Capital.com
Features
Capital.com is one of the best brokers that offer a comprehensive demo account to traders alongside a powerful, flexible proprietary trading platform that is also a day trading simulator that caters for the trading needs and objectives of both professional and beginner traders.
However, to access the day trading simulator, traders must register an account with Capital.com and after they have verified their accounts, they can sign in using their credentials to start exploring what Capital.com has to offer.
Pros and Cons
| PROS | CONS |
| Commission-free trading | CFD trading only, no traditional investments |
| Tight spreads offered | |
| Wide range of tradable instruments | |
| Powerful proprietary trading platform |
FXCM
Features
FXCM is another popular and well-regulated CFD and forex broker that has been in operation for decades. FXCM is popular among day traders and those who utilize automated trading strategies through algorithmic systems or expert advisors, more commonly known just as EAs.
When trading with FXCM, traders can use a wide range of algorithmic strategies and systems through the proprietary day trading simulator that FXCM offers free of charge. To use this, traders must register a trading account with the broker so that they can access the simulator which comes preloaded with $50,000 in virtual funds (equivalent to 716,035 ZAR).
Pros and Cons
| PROS | CONS |
| Well-regulated | A high minimum deposit for EU clients |
| Variety of instruments | |
| A choice in powerful trading platforms | |
| Commission-free trading offered |
MetaTrader 4
Features
MetaTrader 4 is the most popular trading platform in the industry, known as the “Golden Standard” of trading platforms worldwide, despite new and emerging technologies. MetaTrader 4 is offered by hundreds of brokers worldwide and it is the perfect trading simulator for both beginners and professional traders, despite their unique trading needs and objectives.
MetaTrader 4 offers a variety of trading tools, charting capabilities, chart timeframes, drawing tools, technical indicators, and more.
Pros and Cons
| PROS | CONS |
| Offers free day trading simulator and demo account | It may be underwhelming for experienced traders |
| Variety of trading tools provided | |
| Range of tradable markets |
OANDA
Features
OANDA is a large, well-regulated, and reputable broker that offers a comprehensive day trading simulator that provides traders flexible solutions. OANDA offers an unlimited free paper trading facility along with a powerful proprietary trading platform that can be used on desktop PCs, mobile phones, and various web browsers.
Traders can also expect rich trade functionalities, a plethora of features and trading opportunities, advanced charts, and access to real-time quotes obtained from live markets.
Pros and Cons
| PROS | CONS |
| Well-regulated by reputable regulators | Fixed spreads not offered |
| Choice in retail investor accounts | Inactivity fee charged on dormant accounts |
| Range of funding methods | |
| Trading guides and education offered |
TD Ameritrade
Features
TD Ameritrade is a trusted and reputable United States-based broker and trading platform that offers a comprehensive day trading simulator, and the best demo accounts for retail traders despite their trading experience.
TD Ameritrade’s proprietary trading platform, think or swim, is a popular trading platform that provides access to a plethora of trading tools, various market indicators, and a comprehensive paperMoney account that provides traders access to day trading simulation in a safe, well-protected environment.
Pros and Cons
| PROS | CONS |
| Trusted brokerage firm with strict regulation | Not as user-friendly as other platforms |
| App available on iOS and Android devices | The sheer size of markets can be overwhelming to beginner traders |
| Commission-free trading on ETFs and stocks | |
| Comprehensive paper trading account and day trading simulator |
eToro
Features
eToro is known as one of the best online forex brokers and the leading online social trading platform. The platform is user-friendly and offers access to a wide range of tradable instruments.
When traders register a trading account with eToro, they also have access to one of the best day trading simulators and a paper trading account that mirrors real market conditions perfectly.
Pros and Cons
| PROS | CONS |
| Well-regulated broker and social platform | US clients are not accepted |
| Online social trading supported | |
| Leading social trading platform | |
| Large online community |
FAQ
What is day trading?
Day trading is a trading strategy used short-term by day traders who want to profit from small, quick changes in the financial markets, especially forex and cryptocurrencies.
What is a day trading simulator?
It is a mirror of the financial market presented on a virtual trading platform where you are given virtual funds to trade.
How much money do you need to start day trading?
Day traders can start trading from $100 (1,432 ZAR), and less. However, traders are advised to start trading with at least $1,000 (14,321 ZAR) and more to cover trading and non-trading costs and any losses they may incur.
Why does a day trading simulator need the relevant regulation?
To ensure that client funds are kept safe and to ensure that the broker is operating fairly and safely.
What are the risks of day trading?
There is an inherent risk involved with the loss of capital, the market moving against the trader, and more.
What do you need to start day trading?
You need enough starting capital alongside extensive knowledge of trading, how to read and interpret charts, how to do technical analysis, and when to enter and exit positions using a tried and tested trading strategy.
Is day trading right for me if I am a beginner trader?
No. Day trading is one of many ways to approach the financial market, but it is a risky trading strategy reserved for experienced traders.
Top 4 Brokers
