Robinhood Paper Trading

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

Are you eager to explore the world of stock trading without risking your hard-earned money? By using virtual money, you can simulate real-time market scenarios and observe the impact of your trading decisions. Whether you’re a curious beginner or a seasoned investor seeking to fine-tune your approach, paper trading provides a valuable platform to learn, grow, and gain confidence in the dynamic world of stocks and investments. In this article, we’ll walk you through the ins and outs of paper trading, and explain what makes Robinhood special.

Exploring the Concept of Paper Trading

Paper trading is a simulated trading method that allows individuals to practice investing in financial markets without using real money. Instead of making actual trades with real funds, paper trading involves using virtual or simulated accounts to simulate the buying and selling of securities. It provides a risk-free environment for beginners to learn about investing, test different strategies, and gain hands-on experience in the market. Paper trading typically utilizes real-time market data, allowing users to track the performance of their virtual trades and see how their investment decisions would have fared in the real world.

For example, let’s say you’re new to investing and want to practice without using real money. With paper trading, you create a virtual account and receive $100,000 in simulated funds. You do research and decide to buy 100 shares of a stock at $50 per share. As the stock price fluctuates, you track its performance. If it rises to $60 per share, you can sell and simulate a $1,000 profit. However, if the price falls below $50 and you decide to close the trade at a loss, your actual capital remains unaffected. This way, paper trading allows you to gain experience and test strategies without risking real capital.

Understanding Robinhood

Robinhood is a popular financial technology company and brokerage platform that provides commission-free trading and investing services. Founded in 2013, Robinhood has gained widespread recognition for its user-friendly mobile app and democratizing approach to investing. The platform allows users to buy and sell a variety of financial instruments, including stocks, exchange-traded funds (ETFs), options, and cryptocurrencies. With its intuitive interface and zero-commission structure, Robinhood has attracted a significant user base, particularly among younger investors who are looking for accessible and cost-effective ways to enter the financial markets. In addition to its trading services, Robinhood offers features like cash management accounts and a paper trading system, making it a comprehensive platform for both beginner and experienced investors.

Does Robinhood Support Paper Trading

Unfortunately, Robinhood does not provide a paper trading feature, commonly referred to as a simulator or demo account. Consequently, users of Robinhood are unable to assess the viability of their trading strategies or learn from any potential errors they may make before committing actual funds. For individuals interested in accessing a free paper trading account, it is advisable to explore alternative brokerage platforms that do offer this functionality, such as these brokers. By doing so, traders can benefit from the opportunity to practice and develop their trading techniques in a risk-free environment, ultimately enhancing their trading prowess and decision-making abilities.

Alternatives For Robinhood in Paper Trading

By practicing in a simulated environment, traders can refine their strategies and learn from their mistakes. While Robinhood does not offer paper trading, there are several alternatives available. Here are some notable platforms:


AvaTrade is a popular brokerage that offers a comprehensive demo account to help traders practice their skills across various financial instruments. With AvaTrade’s demo account, you can immerse yourself in a realistic trading environment and gain valuable experience without risking real money. Whether you’re interested in stocks, forex, indices, or commodities, the demo account provides a wide range of assets to trade. It comes equipped with all the necessary tools and resources to simulate real trading scenarios, including real-time market data, customizable charts, and technical indicators. This allows you to refine your trading strategies, test different approaches, and analyze market trends, all while using virtual funds. AvaTrade’s demo account is an excellent option for both beginner and experienced traders looking to hone their skills before entering the live market.

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Our #1 Broker 2023

AvaTrade is an award-winning and multi-regulated broker offering a great selection of trading instruments including Forex, Cryptos, Stocks and Commodities. You can trade on all of your devices via user-friendly platforms with excellent trading conditions and no commission fees.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.


Plus500 goes beyond traditional paper trading by offering a demo account that specifically focuses on trading Contracts for Difference (CFDs). With this account, you can practice trading CFDs on a wide range of assets, including stocks, forex, commodities, and cryptocurrencies. The demo account replicates the actual trading conditions and provides you with virtual funds to execute trades. This allows you to familiarize yourself with CFD trading, understand the platform’s features, and evaluate your performance in a risk-free environment. You can experiment with different trading strategies, learn how leverage works, and gain insights into the impact of market volatility on your trades.

Founded in 2008, Plus500 is a regulated and leading online trading broker providing a large range of 2,000+ CFD instruments for trading on their proprietary trading platforms with very competitive trading conditions.

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.


OANDA is a well-known name in the forex and CFD trading industry, and their demo account is tailored to those interested in exploring these markets. With OANDA’s demo account, you can access a virtual trading environment that closely mirrors the real market. It provides you with virtual funds and real-time market data, enabling you to practice executing trades, analyze currency pairs and CFDs, and develop your trading skills. The demo account allows you to experiment with different strategies, understand the impact of market volatility, and gain confidence in your trading decisions. OANDA’s demo account is particularly useful for traders looking to gain hands-on experience and sharpen their skills in forex and CFD trading.

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Oanda is a multi-regulated and established online broker offering an excellent range of financial instruments via powerful and user-friendly trading platforms with industry leading trading conditions and a superb selection of premium trading tools for comprehensive market analysis.

Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone.

thinkorswim by TD Ameritrade

thinkorswim by TD Ameritrade is a powerful trading platform known for its advanced features and robust paper trading capability. With thinkorswim’s paper trading feature, you can simulate trades in a realistic market environment, offering an excellent opportunity to test and refine your trading strategies. The platform provides an extensive range of assets to trade, including stocks, options, futures, and forex. You can access advanced charting tools, technical indicators, and historical data, allowing you to analyze market trends and make informed trading decisions. Whether you’re a beginner looking to practice or an experienced trader testing new strategies, thinkorswim’s paper trading feature provides a valuable sandbox to sharpen your trading skills and evaluate the effectiveness of your approaches.

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TD Ameritrade is one of the best brokers in the USA with a fantastic range of investment products, powerful platforms, high quality tools and an abundance of educational resources to help you make informed decisions.

All investments involve risk, including loss of principal. Past performance does not guarantee future results.


E*TRADE, a popular online brokerage, offers a paper trading simulator designed to help traders practice trading stocks, options, and other securities without using real money. E*TRADE’s simulator provides a risk-free environment to learn and experiment with different trading strategies. With access to real-time market data, customizable watchlists, and educational resources, you can closely monitor price movements and make informed trading decisions. The simulator allows you to familiarize yourself with E*TRADE’s platform, test the functionality of various order types, and gain practical experience without any financial consequences. E*TRADE’s paper trading simulator is a valuable tool for both novice and seasoned traders to refine their skills and build confidence before venturing into live trading.


E*TRADE offers a variety of solutions for all kinds of investors and traders—with no account minimums and no confusing jargon. You can build your portfolio with access to intuitive tools, resources and help whenever you need it.

All investments involve risk, including loss of principal. Past performance does not guarantee future results.

By utilizing these platforms’ demo accounts, you can gain valuable hands-on experience, test different trading strategies, and refine your skills before committing real capital. It’s important to explore the features of each platform and choose the one that best aligns with your trading goals and preferences.


In conclusion, while Robinhood does not offer paper trading, there are several alternatives available that provide simulated trading environments for beginners to practice trading strategies without risking real money. By utilizing these alternatives, traders can gain valuable experience, refine their strategies, and build confidence before venturing into live trading. It is important to note that while paper trading provides a simulated trading experience, the emotions and risks associated with real trading may differ. Therefore, it is advisable to transition to live trading gradually and responsibly once you feel confident in your abilities.

Robinhood Logo

Robinhood gives USA clients access to modern investing platforms for commission free stock trading. They have some quality research tools and educational content along with excellent customer support.

All investments involve risks, including the possible loss of capital.

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