5 Best Brokers for Paper Trading of July 2024
These brokers offer free paper trading accounts, several types of assets to practice with and $100,000 or more in fake cash.
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Best overall: TradeStation
Best paper trading investment selection: TradeStation, Schwab and InteractiveBrokers
Unlimited paper cash: TradeStation and Webull
Why you can trust NerdWallet's picks: Our writers and editors together have more than 50 years of experience writing about finance, and follow strict guidelines to maintain editorial integrity. We do a deep, independent analysis of dozens of investment firms, sorting through the details to find and evaluate the information investors want when choosing an investing account. To see our full methodology and learn more about our process, read our criteria for evaluating online brokers.
Best overall: TradeStation
Best paper trading investment selection: TradeStation, Schwab and InteractiveBrokers
Unlimited paper cash: TradeStation and Webull
Why you can trust NerdWallet's picks: Our writers and editors together have more than 50 years of experience writing about finance, and follow strict guidelines to maintain editorial integrity. We do a deep, independent analysis of dozens of investment firms, sorting through the details to find and evaluate the information investors want when choosing an investing account. To see our full methodology and learn more about our process, read our criteria for evaluating online brokers.
Paper trading is great for both beginners and advanced traders: Beginners can get comfortable with market fluctuations and advanced traders can hone their options and futures trading strategies.
Best Brokers for Paper Trading
| Broker | NerdWallet rating | Fees | Account minimum | Promotion | Learn more |
|---|---|---|---|---|---|
 Interactive Brokers IBKR Lite Learn more on Interactive Brokers' website | $0 per trade | $0 | None no promotion available at this time | Learn more on Interactive Brokers' website | |
 Charles Schwab Learn more on Charles Schwab's website | $0 per online equity trade | $0 | None no promotion available at this time | Learn more on Charles Schwab's website | |
 E*TRADE Learn more on E*TRADE's website | $0 per trade. Other fees apply. | $0 | Get up to $1,000 when you open and fund an E*TRADE account | Learn more on E*TRADE's website | |
 Webull Learn more on Webull's website | $0 per trade | $0 | Get up to 75 free fractional shares (valued up to $3,000) when you open and fund an account with Webull. | Learn more on Webull's website | |
 TradeStation Learn more on TradeStation's website | $0 per trade | $500 | Qualify for up to $5,000 when you open and fund a new TradeStation account. Offer Code: NERDAFJO. | Learn more on TradeStation's website |
Best Online Broker for Advanced Traders 2024
$0
per trade
$0
None
no promotion available at this time
Pros
Commission-free stock, options and ETF trades.
Large investment selection.
Strong research and tools.
Over 19,000 no-transaction-fee mutual funds.
High order execution quality.
Cons
High minimum to earn interest on uninvested cash.
Website can be difficult to navigate.
Why We Like It
Don't let the name fool you: IBKR Lite offers commission-free stock trading (including international trade capabilities), more than 19,000 mutual funds, and a well-featured platform.
$0
per online equity trade
$0
None
no promotion available at this time
Pros
Commission-free stock, options and ETF trades.
Above-average mobile app.
Large selection of no-transaction-fee mutual funds.
Strong retirement planning tools.
Cons
Low interest rate on uninvested cash.
High fee for transaction-fee funds.
Why We Like It
Charles Schwab is one of the best overall IRA providers, with high-quality customer service, no account minimum and low fees. The company offers a large selection of no-transaction-fee funds, gives users access to extensive research and charges no commission for stock, options and ETF trades.
$0
per trade. Other fees apply.
$0
Get up to $1,000
when you open and fund an E*TRADE account
Pros
Commission-free stock, options and ETF trades.
Easy-to-use tools.
Strong customer support.
Advanced mobile app.
Cons
Website can be difficult to navigate.
Low interest rate on uninvested cash.
No fractional shares.
Why We Like It
E*TRADE has long been one of the most popular online brokers. The company's $0 commissions and strong trading platforms appeal to active traders, while beginner investors benefit from a large library of educational resources.
$0
per trade
$0
Get up to 75 free fractional shares (valued up to $3,000)
when you open and fund an account with Webull.
Pros
Commission-free stock, options and ETF trades.
Easy-to-use platform.
Advanced tools.
Access to cryptocurrency.
High interest rate on uninvested cash.
High order execution quality.
Cons
No mutual funds.
Thin educational support.
Why We Like It
Webull will appeal to the mobile-first generation of casual investors with its slick interface for desktop and mobile apps. The brokerage also delivers an impressive array of tools for active traders and a wide investment selection, including stocks (plus fractional shares), options, ETFs, crypto, commodities and futures. However, its relatively weak educational content may leave true beginners in the lurch, and it lacks access to bonds and mutual funds.
$0
per trade
$500
Qualify for up to $5,000
when you open and fund a new TradeStation account. Offer Code: NERDAFJO.
Pros
Commission-free stock, options and ETF trades.
High-quality trading platforms.
Comprehensive research.
Advanced tools.
Active trader community.
Cons
No transaction-fee-free mutual funds.
Plans and pricing can be confusing.
Low interest rate on uninvested cash.
Why We Like It
TradeStation is a strong choice for active stock, options and futures investors who rely on high-octane trading platforms, reams of research and sophisticated analytical tools. Trades are commission-free.
What is paper trading?
Paper trading is essentially practice investing: You get to try buying and selling investments with fake money. Paper trading platforms, also known as stock simulators, are great for beginners who want to get comfortable with the process of investing, but they’re also helpful for experienced traders looking to try out new strategies.
The best paper trading platforms are free, offer a good amount of fake cash to play with, and give you access to a wide range of investments. Some trading platforms allow you to practice with riskier types of assets such as futures and options in addition to stocks. Note that the scores below show the broker's overall score, but brokers are included on this list for their paper trading offering.
How does paper trading work?
Paper trading works the same way regular investing works: You open an account and select your investments from there. The only difference is that with paper trading there is no real money at stake. Paper trading allows you to act like you purchased a stock (or other investment) and see what happens to your investment over time. It's also a great way to get comfortable using a platform before there is any real money on the line.
What is the best platform for paper trading?
This year, the broker with the best paper trading platform is TradeStation. TradeStation offers users unlimited cash and the ability to practice with stocks, options and futures. Schwab and Interactive Brokers also give you access to a wide range of practice assets, but with less initial practice cash. If you don't need access to the more advanced assets such as options and futures, Webull and E*TRADE make for good options as well. None of these brokers charge anything to open a paper trading account.
Can I paper trade for free?
Yes, you can paper trade for free. You will have to open an account to do it, but all the brokers listed here allow you to open an account for free.
Can you make money paper trading?
No, because the money you're "investing" with isn't real. But paper trading is a great way to learn and get comfortable with the process of buying and selling assets.
Is paper trading legal?
Yes, paper trading is legal. But since it's fake investing, you won't make any money from it.
Last updated on July 1, 2024
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokerage firms by assets under management, along with emerging industry players. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
We collect data directly from providers through detailed questionnaires, and conduct first-hand testing and observation through provider demonstrations. The questionnaire answers, combined with demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars).
For more details about the categories considered when rating brokers and our process, read our full methodology.
To recap our selections...