Top 5 best paper trading apps in Australia for stocks and options
Best paper trading app in Australia for stocks and options - IC Markets
Top paper trading apps in Australia for stocks and options:
IC Markets - Best for all
XM - Best for novice traders
eToro - Best For Copy Trading, Free US stocks trading
Degiro - Best For Ultra cheap stock and options trading
Interactive Brokers - Best For 30+ international stock and derivative markets
Paper trading apps are the best way to advance trading skills for newbies and experienced traders. They simulate the provider's real trading platform and allow you to practice without risking your money. As such, you can practice stress-free and acquire skills.
In this article, our Traders Union analysts look at the five best trading apps in Australia in 2023 and why you should use them.
What is paper trading?
Paper trading apps are platform simulations that allow traders to purchase and sell their stocks with virtual cash. The name is a few decades old and there isn’t any “paper” being used, since the process occurs online. Paper trading is often used synonymously with demo accounts.
Most online brokers will offer paper trading capabilities that match their actual services exactly. Essentially, these platforms are used to practice trading using the live market as a frame of reference. No actual money is being risked, but users can trade their trade records, analyze their profits and losses, and develop strategies with paper trading apps. To put it simply, these handy little tools are extremely useful for learning the ways of the market, but also to improve existing strategies for experienced day traders. We recommend using paper trading apps in conjunction with broker educational materials, such as video, tutorials, workshops, etc. Research is at the heart of trading, and paper trading is a big part of that.
Top 5 paper trading apps in Australia
Various brokers offer their services to traders in Australia and have various advantages and disadvantages. Each is best for different reasons, and they provide various market sets.
Some offer demo accounts and free trial periods to help their traders familiarize themselves with their platform.
From the comparison below, eToro has the best demo account with an unlimited trial period and unlimited virtual limit, meaning you practice until when ready. Degiro offers the users no demo account as opening an account is free, allowing you to familiarize yourself with the platform before investing.
It is essential to analyze the various brokers and choose one that fits your trading needs.
| Platform | Best For | Trial Period | Markets | $ Virtual Limit | |
|---|---|---|---|---|---|
For all |
Unlimited |
Forex, Stocks, Bonds, Commodities, Cryptocurrencies, Indices, CFDs, Futures |
5,000,000 |
||
Novice traders |
Unlimited |
Stocks, Forex, Indices, Cryptocurrencies, Commodities, CFDs |
100,000 |
||
Copy Trading, Free US stocks trading |
Not limited |
US Stocks, Cryptocurrencies, Forex, CFDs |
Unlimited |
||
Ultra cheap stock and options trading |
N/A |
US/UK/EU stocks and options |
N/A |
||
30+ international stock and derivative markets |
30 days |
US/EU/UK stocks and options, 30 + other International stock markets |
$1,000,000 |
IC Markets
IC Markets is a popular Australian-based Forex and CFD broker with a reputation for providing competitive trading conditions. It offers a comprehensive paper trading platform for traders at all levels. The platform has a user-friendly interface. It also provides real-time market data and customizable features that enable traders to test their strategies effectively.
IC Markets is ideal for cost-effective traders. It offers low spreads and fast execution time. It also offers different account types to cater for different trading needs, offering advanced features for experienced traders. The app provides a level of confidence for traders since it is regulated by the Australian Securities and Investments Commission (ASIC).
XM
XM is a well-established paper trading platform known for its strong customer service and user-friendly interface. It offers a smooth and efficient trade execution for users. XM is regulated by various global financial authorities, such as the following:
Australian Securities and Investments Commission (ASIC)
XM offers an easy-to-use paper trading platform perfect for newbie traders. It has features designed to help beginners build confidence and learn the ropes before transitioning to live trading. Its wide array of educational resources makes it an ideal choice for traders beginning their journey.
eToro
eToro has been in the market since 2007 and is an excellent choice for novice traders. The company offers a Paper Trading Account with all required features. Clients can explore the full functionality of eToro’s trading platform. Paper Trading Platform is available in your browser and as mobile apps on iOS and Android. On the broker’s Paper Trading Account, traders have access to all trading instruments available on eToro. The broker also has a very good education section to help you improve your trading skills.
Degiro
DEGIRO is a Dutch investment company operating since 2008. The broker has been providing online services since 2013. Today DEGIRO is headquartered in Amsterdam and has offices in 18 European countries. Its activities are controlled by the Financial Conduct Authority (FCA), as well as regulators in the Netherlands: Financial Markets Authority (AFM) and Central Bank (DNB). DEGIRO was awarded over 86 international awards: financial publications of Germany, France, Denmark, and the Netherlands have repeatedly recognized the company as the best stock market broker.
Interactive brokers
If you want to get involved in forex and international markets, Interactive Brokers has the perfect paper trading account for your needs. With a thirty-day free trial, users can experiment with trading forex, as well as stocks and options. You get an impressive $1,000,000 in virtual capital to trade, and Interactive Brokers offers a wealth of courses and educational materials that can help new traders get a decent footing. You can even access the platform’s immersive glossary to become more familiar with trading terms and expressions as you learn how to trade.
How to paper trade in Australia?
Paper trading is a straightforward and costless way to learn various trading skills and strategies. Here are steps to paper trade in Australia.
Select an Australian (ASIC) regulated Forex Broker to ensure your investment is protected
Compare the trading assets and trading conditions. The best way is to choose a broker with AUD pair offers
Check the app’s features to find one with a user-friendly interface that makes it easy to use
Open a demo or trial account to test your skills before investing any real money
After the trial periods, choose the best broker for you and open a live account. Choose one with a more straightforward registration process to avoid frustrations
What paper trading app in Australia is best for beginners?
eToro is the best paper trading app for beginners in Australia. It is a leading social trading platform formed in 2007, a global entity with over 13 million users, and is regulated in the EU, UK, and Australia.
The eToro copy-trading technology allows users to mimic the best-performing traders’ strategies to increase their chances of success. Additionally, the platform enables users to trade US stocks at zero fees. You’ll access thousands of tradable instruments like CFDs, cryptocurrencies, and Forex in an easy-to-trade multi-market platform.
eToro also has a state-of-the-art search function and two-step authentication for extra security.
👍 Pros
•Low fees and commission for newbies
•Social trading option
•User-Friendly mobile app interface
•Multi-asset platform with stock, forex, and crypto
👎 Cons
•Best features are reserved for VIP users
•No base AUD support
Paper trading in Australia - top pros and cons
Paper Trading in Australia has its advantages and disadvantages. Here are the pros and cons of paper trading in Australia.
👍 Pros
•It helps you practice Forex Trading with no risk of losing money
•It allows you to try different strategies before using them
•Allows you to build your confidence in trading Forex
•It provides statistics on various strategies
•Allows you to make mistakes without any consequence
👎 Cons
•It doesn’t show you any hidden costs like slippage and commissions
•It doesn’t address the emotional reality of trading in the real world
•It fails to tackle the broad market’s impact on individual securities
How to Start Paper Trading in Australia
Select the paper trading app that best suits your needs and sign in for an account.
Familiarize yourself with the app and understand how to effectively navigate the platform.
Decide on a sum that reflects your live trading ambitions and set your virtual capital.
Select your financial instruments, such as stocks and options.
Start developing and testing your trading strategies using your virtual capital. Monitor your progress and adjust your strategies accordingly.
Regularly assess your performance and establish areas for improvement.
Summary
Paper trading is a great way to learn the ropes around Forex trading and prepare yourself for live trading. It allows new users to explore the market and familiarize themselves with the platforms before risking their finances. Additionally, it lets you try various strategies and get data on how they work before using them in real life.
Finding the best paper trading account is ideal for your practice and real trading. There are various paper trading apps in Australia, like Degiro, interactive brokers, eOption, and TD Ameritrade. However, we’d recommend eToro for newbies who want an easy-to-use app with an unlimited trial period and virtual amount.
FAQ
Can you trade options with paper trading?
Yes, most paper trading platforms in Australia allow users to trade options.
Where can I do paper trading options?
As mentioned in this article, the best paper trading apps that you can do paper trading options include the following:
IC Markets
XM
eToro
Degiro
Interactive Brokers
Is options trading available in Australia?
Yes. Options trading is offered in Australia via various trading platforms and brokerage firms, including the ones listed above.
Are paper trading options accurate?
Paper trading simulates an actual trading environment. While it is not entirely accurate, it provides a valuable learning experience for traders starting their journey.
What is the best trading platform in Australia?
eToro is the best trading platform in Australia. It has copy trading, the easiest way to start making money in stocks. Also, it offers zero-fee stock trading and an easy-to-trade multi markets platform
How do I become a day trader in Australia?
Research in the markets you can day trade in Australia, choose a strategy, practice via a demo account, and then open an account to day trade on live markets.
What is the cheapest trading platform in Australia?
eToro is one of the cheapest trading platforms in Australia, with no fees for US stocks trading.
Which is the best platform for paper trading?
eToro is the best platform for paper trading thanks to its unlimited trial period and virtual amount. It also has all the expected features of the live trading platform.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.