What is a paper trading account?

Paper trading provides new and experienced traders a way to learn about new markets, test out strategies, or familiarise themselves with a trading platform without risking real money. The paper trading account is funded with a balance of virtual money, such as £10,000, but it’s traded like real money.

What is a paper trader?

The term dates back to a time when (before the proliferation of online trading platforms) aspiring traders would practice on paper before risking money in live markets. While learning, a paper trader records all trades by hand to keep track of hypothetical trading positions, portfolios, and profits or losses.

Is paper trading a good investment?

But what’s best about paper trading is the invaluable experience it provides new investors. Anyone can get their feet wet in a simulator before diving head first into the real stock market, where real money is at stake. Can you make money paper trading? No, because the money isn't real. But is paper trading a good way to learn?

Does TD Ameritrade offer a paper trading account?

The impressive thinkorswim trading platform by TD Ameritrade offers 2 different paper trading accounts. One consists of a standard margin trading account, while the other is an individual retirement account (IRA) more suitable for investors. Both paper trading accounts come funded with $100,000 of virtual money.