Best paper trading platforms in the UK

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Best paper trading platform in the UK - Tickmill

Your capital is at risk.

Top paper trading platforms in the UK:

Tickmill - Best for all

FxPro - Best for comfortable trading

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

Revolut - Best For Trading crypto, precious metals, and EU/US stocks

Saxo bank - Best For 85 trading exchanges and platforms

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're 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 2023? This guide provides all the information you need to know so you can make an informed decision.

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 7 Paper Trading Apps in the UK

Best For Trial Period Markets $ Virtual Limit

Tickmill

All

Not limited

Currency pairs, Commodities market assets, Stock indices, Stocks, Bonds, and Cryptocurrencies

Unlimited

Read review

Open an account

Your capital is at risk.

FxPro

Best for comfortable trading

Not limited

Currencies, stocks, Indices, Futures, Metals, Energies, and Cryptocurrencies

Unlimited

Read review

Open an account

Your capital is at risk.

eToro

Copy Trading, Free US stocks trading

Not limited

US Stocks, Cryptocurrencies, Forex, CFDs

Unlimited

Read review

Open an account

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Degiro

Ultra cheap stock and options trading

N/A

US/UK/EU stocks and options

N/A

Read review

Interactive Brokers

30+ international stock and derivative markets

30 days

US/EU/UK stocks and options, 30 + other International stock markets

$1,000,000

Read review

Revolut

Trading crypto, precious metals, and EU/US stocks

Stocks and ETFs on European stock exchanges, and other options

Read review

Saxo bank

85 trading exchanges and platforms

14 days

Stocks, ETFs, options, bonds, futures, etc.

$100,000

Read review

Open an account

Tickmill Review

Open an account
Your capital is at risk.

Tickmill is a budget-friendly forex and CFD broker that delivers exceptional trading conditions across all live accounts. It is governed by the FSA and FCA, affirming it as a safe platform for carrying out trade activities. The process of account setup is quick, straightforward, and entirely digital, and users are offered several free options for making deposits and withdrawals. Tickmill provides a selection of CFD tools with among the most competitive spreads in the market. Moreover, they give you the opportunity to benefit from narrow spreads and attractive commissions through a PRO account. A downside is the outdated design of MetaTrader's trading platforms and the disorganized news feed. In conclusion, for traders seeking a cost-effective trading opportunity with competitive spreads and commissions, Tickmill proves to be a commendable option.

FxPro Review

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Your capital is at risk.

FxPro is a reputable forex and CFD broker that offers a wide range of trading markets and instruments. It operates in over 170 countries and has more than 2,188,000 client accounts. The company is regulated by multiple authorities, including the FCA, CySEC, FSCA, and SCB, which adds to its trustworthiness. FxPro is known for its real-time news, above-average product offering, and transparent pricing. However, it has relatively high fees and its demo account requires registration. The broker has a good reputation and is considered trustworthy, with a high counterparty credit rating. FxPro offers a variety of trading platforms, including MT4, MT5, cTrader, and FxPro Edge. It provides good quality educational materials and research tools. However, its pricing is higher compared to some other forex brokers. Overall, FxPro is a reliable and well-established broker with a satisfied client base

eToro

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

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.

Revolut

Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).

Saxo Bank

Open an account
Your capital is at risk.

The SaxoBank brokerage company was founded in 1992 under the original name Midas. In 2001, the broker was licensed by the FSA, a Danish Financial Supervisory Authority. After that, the company changed its name to SaxoBank. Today the broker provides online access to various financial markets to clients from 170 countries. In 2017, the SaxoTraderGO terminal was recognized as the best trading platform for active trading according to FX Week’s e-FX Awards and ADVFN International Financial Awards.

How to Start Paper Trading in the UK

Getting started in paper trading is a fairly straightforward process. Here's a step-by-step guide to help you get up and running in no time:

Step 1: Choose Your Paper Trading Platform

The best way to begin is by researching the best paper trading platforms that offer features that best suit your requirements. Consider the trading conditions the platform offers. What are the minimum starting capital, virtual account limit and supported markets? Consider whether the platform is regulated. The best paper trading platform in the UK will usually be regulated by the FCA or some other reputable agency.

Step 2: Create Your Account

Open an account with your preferred platform. You'll likely need to provide personal information such as your name, address and date of birth. You may also be required to upload supporting documents, such as a government-issued ID. After creating your account, you'll now have access to the virtual trading dashboard.

Step 3: Choose a Trading Strategy

There are many paper trading options offered by top paper trading platforms. You can decide between day trading and swing trading. Another strategy is scalping. Choose the strategy that best suits your trading goals. A good thing with paper trading is that you can try as many strategies as you'd like since you're not risking your capital.

Step 4: Start Placing Orders

Once you have a strategy in place, it's time to execute it. With paper trading, you can simulate real-time stock movements and track how your decisions would affect your returns had the order been placed with real funds.

Step 5: Monitor Your Performance

Keep an eye on your performance and take note of any mistakes you make. This can help you become a better trader in the long run. Also, feel free to try different strategies if your current strategy isn't working out.

What Paper Trading App in the UK Is Best for Beginners?

While most top paper trading apps do their best to make stock trading simple and straightforward, eToro stands out with its copy trading feature. Copy trading allows beginners to replicate the strategies of experienced traders with just a few clicks, so it’s perfect for those who are new to the game. The platform also provides access to multiple markets, so you can diversify your investments across a range of asset classes. Plus, eToro offers zero-fee stock trading and a user-friendly multi markets platform that makes it easy to buy and sell stocks.

What Are the Pros and Cons of Paper Trading in the UK?

Before delving into the world of paper trading, it's important to understand the pros and cons. This way, you can weigh your options and decide if paper trading is the right option for you.

Advantages of Paper Trading

Paper trading comes with numerous benefits for those who decide to try it out. Here's a quick overview of the advantages:

There's Zero Risk

Trading comes with a significant amount of risk. But with paper trading, you can get the experience without taking on any financial risk. If your trades don't do well, it won’t cost you anything.

It's a Great Way to Practice

Paper trading is an ideal way for new traders to practice and refine their strategies without putting in real money. The experience you gain from paper trading can help you make smarter decisions when it's time to trade with real funds.

You Get to Develop and Expand Your Knowledge Base

Novice investors can take advantage of paper trading to gain a better understanding of the markets and how various stocks, ETFs, options, futures or cryptocurrencies work. The more you know, the better your chances of success when you later start investing real money.

Seasoned Traders Get to Try Out New Strategies

Paper trading isn't just for beginners; even experienced traders can benefit from it. It's a great way to test strategies that they wouldn't normally try with real money. The results can then help refine their trading tactics.

You Get to Explore New Platforms

If your current platform isn't meeting your needs, paper trading can be a great way to explore what other platforms have to offer. This way, you can find the one that best fits your requirements.

Disadvantages of Paper Trading

Despite its many benefits, paper trading has some drawbacks too. Here are some of them.

Traders Don't Keep Their Gains

The whole point of investing is to make money. Unfortunately, with paper trading, you don't get to keep any of the profits as it's all virtual money.

It Can Lead to Overconfidence

Paper trading is that it can give you an unrealistic sense of how trading works. You won't experience the same emotions and feelings when trading real money, so it's important not to get too confident in your skills.

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 emotions in trading: One of the biggest disadvantages of paper trading is that there is little to no emotion involved. When there is real money on the line, emotions can run high, and traders may make decisions that they would not make in a paper trading environment

No slippage: Paper trading does not replicate the real-world costs due to slippage and commission fees. In real trading, slippage can occur when the price of a security moves against a trader between the time the order is placed and the time it is executed, resulting in a higher cost than anticipated

Commissions and spreads: Paper trading does not include the real-world costs due to commission fees and spreads. In real trading, traders must pay commissions on each trade and must also deal with the bid-ask spread

Paper trading is a valuable tool for beginners to gain experience and practice various trading strategies without risking money. However, you should be aware of the limitations of paper trading before you get into it.

Summary

Paper trading can give you the experience and confidence you need to become a successful investor. It involves no financial risks, so it's a great way for beginners to learn about the markets without putting in real money. Plus, seasoned traders can use it as an opportunity to explore new strategies before using real funds. With the right paper trading app, knowledge and preparation, you can start investing in Uk markets with confidence.

FAQ

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

Oleg Tkachenko
Author and expert at Traders Union

Oleg Tkachenko is an economist-analyst and a risk manager with a practical experience of working in financial institutions for over seven years. Oleg specializes in the analysis of commodities, Forex, stock markets and non-standard investment markets (cryptocurrency, hypes, peer-to-peer lending). He holds a Master’s Degree from the Ukrainian Academy of Banking of the National Bank of Ukraine, Kharkiv Banking Institute. Oleg became an author for Traders Union in 2018; in 2020 he joined the TU’s team of financial experts.

At Traders Union, Oleg is involved in expanded reviews of brokerage companies, and in monitoring the relevancy of the information provided in them. He analyzes trading strategies and indicators, and prepares educational articles on the topic of finance. In addition, Oleg carries out expert research in the Forex and stock markets, and also binary options and cryptocurrency markets. In particular, he checks brokerage companies, studies their performance and growth, tests new services offered by brokers, software and the level of customer support.

Oleg’s motto: Information is a force that opens boundless opportunities, but requires relevancy!

Dr. BJ Johnson
Dr. BJ Johnson
Developmental English Editor

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.

Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.

Mirjan Hipolito
Cryptocurrency and stock expert

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.