MetaTrader Paper Trading

Category: Trading Platforms | Author: Trading Brokers | Date: June 29, 2023

Paper trading is an invaluable tool for traders to practice their strategies and gain experience in the financial markets without risking real money. In this article, we will explore the world of paper trading as it relates to MetaTrader, one of the most popular and widely used trading platforms in the industry. MetaTrader provides traders with a comprehensive suite of trading tools and features, making it an ideal platform for both beginners and experienced traders to simulate trades and refine their skills. We will delve into the concept of paper trading, discuss the key features of MetaTrader, guide you through the process of setting up paper trading in MetaTrader, and provide insights on how to effectively utilize the paper trading system within the platform.

Overview of MetaTrader

MetaTrader Platform

MetaTrader Platform

MetaTrader is a powerful trading software developed by MetaQuotes Software Corp. that revolutionized online trading across various financial markets. It serves as a versatile platform, connecting traders to different trading platforms and brokers, and equipping them with a wide range of features and tools to enhance their trading experience. With its advanced charting capabilities, multiple-account management, and comprehensive market orders, MetaTrader empowers traders to make informed decisions and execute trades with precision. One notable feature of MetaTrader is its programming language, which enables users to develop custom indicators, scripts, and trading robots. This flexibility allows traders to tailor their trading strategies and automate their trading processes, saving time and effort. MetaTrader is available in two versions: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). MT4, launched in 2005, has gained significant popularity among online retail foreign exchange traders. It provides a complete trading platform with a wide range of tools and indicators necessary for successful trading. Additionally, MT4 is renowned for its compatibility with Expert Advisors, offering traders access to automated trading systems that execute trades based on pre-defined rules. On the other hand, MT5, introduced in 2010, offers an expanded set of features and financial instruments. It includes partial order filling, multiple fill policies, various order types, depth of market view, a vast selection of technical indicators and graphical objects, diverse timeframes, an integrated economic calendar, and an email system.

What is MetaTrader Paper Trading?

MetaTrader paper trading is a simulated trading environment provided by MetaQuotes Software Corp. that allows investors to practice buying and selling securities without risking real money. It serves as a valuable tool for learning and honing trading skills by providing a risk-free environment. With MetaTrader paper trading, investors can explore the functionalities of the popular trading platforms, MetaTrader 4 (MT4) or MetaTrader 5 (MT5), without the need to use real funds. By using paper trading, investors can test and refine their investment strategies before applying them to live trading accounts. This allows for a thorough evaluation of the strategy’s effectiveness and helps in identifying potential pitfalls or areas of improvement. Additionally, paper trading enables investors to gain familiarity with the trading platforms’ features, order types, charting tools, and technical indicators without the pressure of real money at stake. Furthermore, paper trading competitions or challenges are often organized within the MetaTrader community, where participants aim to generate the highest returns in simulated trading. This fosters a competitive environment and provides opportunities for recognition and rewards for those who achieve outstanding performance in their paper trading activities.

How to Use The MetaTrader Paper Trading System

MetaTrader Paper Trading

MetaTrader Paper Trading

Here is a step-by-step guide on how to use the paper trading system in MetaTrader:

Step 1: Open the MetaTrader platform and log in to your account.

You can take a look at our best MetaTrader brokers to see where you can get the platform and start paper trading for free. To begin setting up paper trading in MetaTrader, launch the MetaTrader platform by double-clicking on the MetaTrader icon on your computer. Enter your login credentials (username and password) provided by your broker to log in to your MetaTrader account. If you don’t have an account yet, you will need to sign up with a broker that offers MetaTrader and create an account before proceeding with the setup.

Step 2: Click on the “File” menu and select “Open an Account”.

Once you are logged in, navigate to the “File” menu at the top left corner of the MetaTrader platform. Click on the “File” menu to open a dropdown menu, and then select “Open an Account” from the options provided. This action will open a new window specifically designed for account configuration and setup.

Step 3: Select “Demo Account” and click “Next”.

In the “Open an Account” window, you will be presented with different options for account types. Choose the “Demo Account” option to set up a demo or practice account. A free demo account allows you to engage in paper trading with virtual funds, providing a risk-free environment to practice and test your trading strategies without risking real money. After selecting the demo account option, click the “Next” button located at the bottom right corner of the window to proceed to the next step.

Step 4: Fill in the required fields in the “Personal Details” section and click “Next”.

In the “Personal Details” section of the account setup window, you will need to provide the required information such as your full name, email address, country of residence, and other necessary details. It is important to enter accurate and complete information to ensure the smooth setup of your demo account. Once you have filled in the required fields, click the “Next” button to move on to the next step.

Step 5: Select the appropriate “Trading Platform” and “Account Type”.

In the “Trading Platform” section of the setup window, you will have the option to choose between “MetaTrader 4” or “MetaTrader 5” based on the version you prefer or the one supported by your broker. Select the desired trading platform version by clicking on the respective option. Then, in the “Account Type” section, choose “Standard Demo” to set up a demo account. The “Standard Demo” account type provides access to all the features and functionalities of MetaTrader’s trading platform for practice purposes.

Step 6: Choose the desired server for your demo account.

The “Server” section of the setup window allows you to select the server you want to use for your demo account. The available servers may vary depending on your geographical region or the broker you are using. It is generally recommended to choose the server that is closest to your location or the one recommended by your broker to ensure optimal connectivity and trading performance.

Step 7: Set a password for your demo account and proceed.

In the “Password” section of the setup window, enter a secure password for your demo account. A strong password should be a combination of letters, numbers, and special characters. Make sure to remember or securely store your password as it will be required to log in to your demo account in the future. Once you have set the password, click the “Next” button to proceed.

Step 8: Select any desired options and click “Next”.

In the “Options” section of the setup window, you may have the option to agree to subscribe to newsletters from MetaTrader. If you wish to receive newsletters and stay updated with the latest news, market insights, and developments from MetaTrader, you can tick the corresponding box to subscribe. If you prefer not to receive newsletters, simply leave the box unticked. After selecting your preferences, click the “Next” button to proceed to the final step.

Step 9: Review your details and click “Finish”.

Take a moment to review all the information you have provided in the previous steps. Ensure that all the information is accurate and to your satisfaction. If you need to make any changes, you can go back and edit the respective sections. Once you have confirmed that all the details are correct, click the “Finish” button at the bottom right corner of the setup window to complete the setup process.

Step 10: Access your demo account and start paper trading.

After finishing the setup, you will be redirected to the MetaTrader platform. To start paper trading, select your newly created demo account from the list of available accounts within the MetaTrader platform. You can usually find the account selection panel on the left side of the platform or in the “Navigator” window. Once you have selected your demo account, you are now ready to explore the functionalities of MetaTrader, analyze markets, and practice trading using virtual funds.


In conclusion, MetaTrader offers a robust platform for paper trading, allowing traders to practice buying and selling securities without risking real money. By following the steps outlined in this article, you can set up a demo account on MetaTrader, access advanced charting tools, explore various financial markets, and develop and test your trading strategies. Utilizing the paper trading feature in MetaTrader provides an invaluable opportunity to gain experience, build confidence, and refine your trading skills before entering the live trading arena. Take advantage of this powerful platform to enhance your trading journey and increase your chances of success in the financial markets.

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