Best Paper Trading Platforms In The UK 2025

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Go to broker’s website Plus500 Overview

If you're too busy to read the entire article and want a quick answer, the best paper trading platform in the UK is Plus500. Why? Here are its key advantages:

Is legit in your country (Identified as United States )
Has a good user satisfaction score 6.83 out of 10
Risk-free environment
Performance tracking and analysis

Go to broker’s website Plus500 Overview

Below, we'll explain in more detail why we believe this and how brokers were evaluated.

Best paper trading platforms in the UK are:

Eightcap - Best broker to trade directly from TradingView charts
XM Group - Best Order Execution (99.35% of orders are executed nearly instantly)
TeleTrade - Best for learning trading basics (a lot of educational and analytical materials)
Vantage Markets - Best for trading CFDs on major U.S. Stocks (zero fees apply)
VT Markets - Attractive Forex bonuses (50% welcome bonus, 20% deposit bonus)

With a market cap of trillions of pounds, the UK stock market is one of the largest and most liquid in the world. It offers lucrative opportunities for savvy traders to make high returns. But getting started in the stock market can be daunting, especially for those who are new to trading. Paper trading apps offer the perfect solution to this problem. These platforms offer an opportunity to gain experience without risking their capital.

With a paper trading account, you can simulate real-time stock movements using virtual money and hone your skills before investing real funds into the market. But which paper trading UK platforms should you consider in 2025? This guide provides all the information you need to know so you can make an informed decision.

Best paper trading platforms in the UK

Paper trading is the practice of buying and selling assets using virtual money on a simulated platform. It allows traders to test strategies and understand market dynamics without risking real money. Paper trading is often used synonymously with demo accounts.

We have reviewed the top paper trading platforms in the UK to help you practice trading risk-free. Here’s a comparison of the best platforms to enhance your trading skills:

Best paper trading platforms in the UK
	Min. deposit, $	Max. leverage	Min Spread GBP/USD, pips	MAX Spread GBP/USD, pips	Open an account
Eightcap	100	1:500	0,8	1,5	Open an account Your capital is at risk.
XM Group	5	1:1000	0,6	1,2	Open an account Your capital is at risk.
TeleTrade	10	1:500	0,1	0,5	Open an account Your capital is at risk.
Vantage Markets	50	1:2000	0,5	1,6	Open an account Your capital is at risk.
VT Markets	100	1:500	0,4	1,4	Open an account Your capital is at risk.

Rules and regulation

In the United Kingdom, the Financial Conduct Authority (FCA) oversees the regulation of brokerage activities, ensuring firms adhere to stringent standards to protect investors and maintain market integrity.

Licensing in the UK

To operate legally, brokerage firms must secure authorization from the FCA. The application process involves several critical steps.

Registration. Firms must register with Companies House, establishing their legal presence in the UK.
Financial requirements. Payment of membership fees to a British bank is mandatory, ensuring financial accountability.
Physical presence. Maintaining an operational office within the UK jurisdiction is required to facilitate regulatory oversight.
Documentation. Applicants must prepare comprehensive documentation demonstrating compliance with all regulatory requirements and clearly outlining their business objectives.

Investor protection in the UK

The Financial Services Compensation Scheme (FSCS) provides a safety net for investors. If a financial firm fails, the FSCS compensates eligible clients up to £85,000 per person, per institution. This protection covers various financial products, including deposits and investments, offering reassurance to investors about the security of their assets.

Taxation in the UK

Income tax rates in the UK are structured progressively.

Personal allowance. The first £12,570 of income is tax-free.
Basic rate. Earnings between £12,571 and £50,270 are taxed at 20%.
Higher rate. Income from £50,271 to £125,140 is taxed at 40%.
Additional rate. Earnings over £125,140 are taxed at 45%.

It's important to note that these thresholds can vary based on individual circumstances, and additional allowances may apply.

For traders, profits are typically subject to capital gains tax (CGT). The CGT allowance permits a certain amount of profit to be earned tax-free each year, with gains above this threshold taxed at rates depending on total taxable income and the type of asset. Staying informed about current tax laws and consulting with tax professionals is advisable to ensure compliance and optimize tax liabilities.

How to start paper trading in the UK

Here’s how to start paper trading in the UK:

Choose your platform: research platforms that fit your needs. Look for trading conditions, virtual account limits, supported markets, and regulations (e.g., FCA in the UK).
Create an account: sign up by providing basic details and, if required, upload a government-issued ID. Once registered, access the virtual trading dashboard.
Select a trading strategy: decide between strategies like day trading, swing trading, or scalping. Experiment freely to find what works best for your goals.
Place trades: use real-time market simulations to execute trades and see how your strategies play out without risking real money.
Monitor performance: review your trades, learn from mistakes, and adjust strategies as needed. Continual practice helps refine your skills and build confidence.

What are the pros and cons of paper trading in the UK?

Before diving into paper trading, it’s essential to weigh its benefits and drawbacks to determine if it’s the right fit for you.

Zero risk. Practice trading without risking real money. Losses in paper trading don’t affect your finances.
Perfect for practice. Ideal for beginners to refine strategies and build confidence before trading with real funds.
Knowledge growth. Learn about markets, stocks, ETFs, options, futures, and cryptocurrencies to improve your investment skills.
Test new strategies. Even seasoned traders can experiment with strategies they wouldn't risk using real money.
Explore platforms. Try different trading platforms to find the one that best fits your needs.

No real profits. Gains in paper trading are virtual, so there’s no actual financial reward.
Overconfidence risk. It’s easy to feel overly confident since paper trading lacks the emotional pressure of using real money.

Limitations of paper trading in UK

Paper trading is a risk-free way to practice trading without risking real money. However, there are some limitations to paper trading that traders should be aware of, especially in the UK.

Limitations of paper trading in the UK include:

No emotional pressure. Unlike real trading, paper trading lacks the emotional highs and lows of risking actual money, which can lead to unrealistic decision-making.
No slippage. Paper trading doesn’t account for slippage, where price changes between order placement and execution increase costs in real trading.
No real costs. Commission fees and bid-ask spreads, common in real trading, are absent in paper trading, making it less reflective of true market conditions.

The best platform is one you’re comfortable with

As someone who has guided many aspiring traders, I can’t stress enough the importance of choosing a platform that aligns with your trading style and goals. The features may seem similar across platforms, but the little details—like user interface, customer support, and the availability of local payment methods—can make a world of difference, especially for beginners.

For example, some platforms are better tailored for specific markets or trading strategies. If you’re looking to experiment with copy trading, platforms like eToro offer intuitive features that simplify learning from experienced traders. On the other hand, if you’re exploring niche markets like cryptocurrencies or metals, a platform like Revolut might better suit your needs.

Always test the waters with demo accounts before committing. It’s a risk-free way to understand how the platform operates and see if it’s user-friendly enough for your day-to-day use. Trading is already complex; your platform shouldn’t add unnecessary hurdles.

Methodology for compiling our ratings of Forex brokers

Traders Union applies a rigorous methodology to evaluate brokers using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.

Key aspects of the assessment include:

Regulation and safety. Brokers are evaluated based on the level/reputation of licenses and regulations they operate under.
User reviews. Client reviews and feedback are analyzed to determine customer satisfaction levels. Reviews are fact-checked and verified.
Trading instruments. Brokers are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Fees and commissions. All trading fees and commissions are analyzed comprehensively to determine overall costs for clients.
Trading platforms. Brokers are assessed based on the variety, quality, and features of platforms offered to clients.
Other factors like brand popularity, client support, and educational resources are also evaluated.

Find out more about the unique broker assessment methodology developed by Traders Union specialists.

Conclusion

Paper trading is an essential tool for traders looking to gain real-market experience without financial risk. In the UK, platforms offering demo accounts and virtual trading environments provide opportunities to practice strategies, build skills, and explore different asset classes. Whether you are a beginner testing the waters or an experienced trader refining tactics, choosing the best paper trading platforms in the UK is crucial for long-term success.

Consider platforms that offer user-friendly interfaces, real-time market simulations, and comprehensive educational resources. Ensure they comply with UK financial regulations and provide advanced features such as performance tracking and multi-asset trading. By selecting the right platform, traders can build confidence, reduce learning curves, and prepare for the real market effectively. Use this guide as a foundation to choose a platform that aligns with your trading goals and personal preferences.

FAQs

How do I start paper trading in the UK?

You can start paper trading in the UK by signing up for a brokerage platform offering this service. You'll need to create a virtual account with virtual funds and use it to simulate trades.

How do I start a paper trading account?

Most sites have straightforward instructions on how to create a paper trading account. You'll need to provide some personal information and open a virtual account with a certain amount of virtual funds.

Can you make money with paper trading?

No. Paper trading is a zero-risk way of simulating trades, so you won't be able to make any real money. However, you can gain knowledge and experience that will help you when investing with real funds.

Which is the best platform for paper trading?

That depends on your individual needs and preferences. Different platforms offer different features, so it's best to research each one thoroughly before making a decision. For beginners, eToro is a great bet.

Team that worked on the article

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition. With expertise in search engine optimization (SEO) and content marketing, he ensures his work is both informative and impactful.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

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).