While the main goal of trading is making profits, sometimes you just need a risk-free environment with realistic market conditions to practice your skills or test new strategies. That’s why many brokers offer so-called paper trading services: these platforms allow you to trade simulated stocks with fake money without any risks, and it’s a great way to start your trading career. In this article, we explain how paper trading works and give you a list of the best brokers with paper trading features available in Australia.
How paper trading works
Paper trading platforms allow you to trade in a simulated environment: you can buy and sell real stock with virtual money provided by your broker. These platforms are also called demo accounts. They are very useful when you want to improve your trading skills and develop new strategies, especially when used in addition to a serious educational program. There are many brokers which allow paper trading in Australia, but you should always look for the most reliable, well-regulated, and convenient options.
eToro
One of the most popular brokers among novice traders, eToro offers its users a paper trading account for free. You get $100,000 of virtual money to trade on real markets and improve your skills. However, the broker’s educational program is not too impressive, but you can find a trading course somewhere else and use this platform for practice. You can also access your account via the eToro mobile app.
Degiro
Founded in 2008, Degiro is a Dutch investment company that’s known as a popular broker in Australia and Asia. Well-regulated and novice-friendly, this broker has a decent choice of educational materials, and you can use them to complement your paper trading activities. Degiro is also known for pretty low fees for trading stocks and some passive income options, so you can use it for real trading, too.
Interactive Brokers
Interactive Brokers is a well-known US investment company that provides reliable brokerage services all over the world, including Australia. The broker has a wide choice of trading instruments, convenient trading conditions, and a vast array of educational materials for beginners: webinars, articles, lessons, and so on. The broker has a free demo account that looks exactly the same as the real one. You can use it for 30 days, and your virtual capital limit is set to $1,000,000.
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