Paper Trading is one of the commonly used terms in the world of stock trading. Also called virtual trading, paper trading can simply be defined as dummy trading where individuals can place trade orders but that don’t get executed in a stock exchange like BSE or NSE. The sole purpose of paper trading is to give new investors a kind of hands-on experience of stock trading without using the real money.

This kind of trading imbibes a simulated trading environment for people who can understand the process and elements of stock trading without facing any kind or risk or loss. In this post you will know everything about paper trading (virtual trading) and best paper trading apps.

What Is Paper Trading?

Paper trading, also known as virtual trading is a simulated stock trading scenario that is meant to educate new investors. Paper trading is performed similar to a way real trading but it doesn’t involve the use of real money. Its first and foremost purpose is to help investors get acquainted to stock trading basics and different trading strategies that can be quite useful for new investors in a real stock trading scenario. This also helps them in tracking their stock placements and portfolio in a simulated trading environment.

The majority of paper trading accounts trade on the stock exchange. Simulators operate quite similarly to a real trading account. Any genuine trading platform allows you to utilize the majority of order types, trade a variety of stocks, and test out a number of features. These trading strategies do have some limits, though, as they don’t take into account crucial factors like the trader’s emotions, the volume of the deal, etc.

What is Virtual Trading?

Similar to real trading, where equities may be bought and sold, is virtual trading, often known as paper trading. However, there won’t be any actual money involved. Stock investments may only be made using virtual currency. Stock simulators are trading programs that offer simulated trading capabilities.

You must sign up for one of the stock trading simulators in order to begin your virtual stock trading experience. You can practice trading with this money.

Salient Points About Paper Trading

  • Individuals who engage in paper trading, also known as virtual trading, replicate stock trading for educational purposes.
  • Investors can trade in stocks without risking their own money, accumulate experience and understand different trading tactics. Through virtual trading platforms that replicate genuine trading accounts and offer a realistic trading environment, this is accomplished.
  • Paper trading allows people to practice trading stocks without risking real money, with a primary concentration on the stock market.
  • Paper trading simulators closely mirror real trading accounts, offering a useful learning opportunity.

More Info About Paper Trading

Paper trading offers new and inexperienced investors a kind of stock learning environment where they may experiment with various stock trading techniques and make choices on the assets to be traded as well as entry and exit points.

Some brokers on the paper trade platform offer distinct paper trading platforms and stock simulator games, while others integrate virtual trading platforms alongside live platforms. Investors must choose the virtual trading option while using a live trading account.

Since they can be the same as your actual trading account, you might need to sign up for your paper trading account and purchase a market data subscription. To begin the trade-in, you are given a set amount of virtual money, such as an account whose value may fluctuate based on profit or loss.

Pros And Cons Of Paper Trading

Here, we will explain the pros and cons of paper trading or virtual trading.


1. Learn stock trading without facing the risk

Paper trading in stocks aids novice investors in learning about trading and gaining a sense of the stock market’s atmosphere. The fear of losing money is one of the main obstacles to beginning to trade. You have the option to perform transactions without any worry thanks to the virtual platform. You may investigate several investment philosophies to determine which approach is best for your company. You may compare your performance to other traders using this platform.

2. Space to commit mistakes

Paper trading enables you to make errors and learn from them without suffering financial loss. That could occasionally be the greatest perk of all. Every investor makes errors while trading and makes poor decisions, but our capacity to learn from them will enable us to attain our greatest successes.

3. Scope to learn different techniques

Growth, value, momentum, options, , bonds, commodities, , and mutual funds are all available. Each has advantages and disadvantages, and the simulators let you experiment with them all without any personal danger. Analytics play a big part in investing, and virtual trading allows you the opportunity to experiment with trading and develop a strategy that works for you.

4. Hands-on experience

There are numerous features of paper trading like it enables a real-time update of variation in a share’s price. You can get the MIS on each trade regularly. Understand each & every transaction related to the shares, the corresponding cost, and the running price of the share. Analyze overall profit and loss. Understand the complexities associated with different types of graphs.


1. A simulated trading scenario

The market circumstances in the paper trade aren’t always accurate. For instance, this form of trade may occasionally be delayed by a few minutes or even several hours. Therefore, even if you utilize real-time trading software or have a real-time trading account, the market circumstances will still differ since you will also be impacted while trading in real-time.

Your emotions are affected by your stress when they influence you, thus the general circumstances won’t be the same when you’re trading fake money as they are with real money. Your judgement will be more independent and laid back, for instance, if you engage in virtual commerce. In real life, though, your method can be different and the choice would be more influenced by emotional reasons.

2. No effect on the market

The fact that your trades have no effect on the paper trading market is another significant drawback. Therefore, keep in mind that companies often trade on volume, so if a company is trading 500,000 shares each day, for instance. Therefore, if you are investing in it, it is a 10 stock. So, for instance, investing 100,000 or 200,000 in that stock will very likely result in you moving it to the upside when you make the transaction or to the downside when you sell it.

Paper Trading vs. Real Trading

Paper TradingReal Trading
Helps people to learn and run various stock trading strategies in a virtual environment without investing real money.Involves the use of actual money to invest or trade in the stock market.
Zero riskContains some level of risk
Until you get the knowledge to execute trades without fear of losing actual money in such transactions, you might experiment with different tactics.Real trade involves actual money, and there is no time nor room for error correction.
Due to the fact that investors are aware there is no actual money being traded, they do not bring real-time emotions to the table.Real trading evokes many emotions like greed, fear and more.

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How Paper Trading Works?

In today’s fast-paced technological environment, using stock similar is no big thing. Below are the steps one need to follow.

  1. Register yourself on a paper trading application.
  2. Deposit virtual money into your account right away.
  3. Similar to actual trading, start trading in stocks.
  4. You may also keep an eye on your investments and frequently assess your profit and loss.
  5. You may experiment with various approaches and pick up the fundamentals of trading.
  6. Move on to real trading once you have gained enough confidence and expertise.

10 Best Paper Trading Apps In India

Looking to step into the world of trading with the best paper trading apps India? Here are some of the most popular paper trading applications in India to choose from.

1. TradingView

One of the best virtual stock trading websites or applications in India is TradingView. It offers resources like charts, technological tools, and more in terms of facilities. To begin your virtual trading experience, sign up for the tradingview application for free and connect to Paper Trading.

You should use Tradingview paper trading to practice live candlestick patterns, charts, or technical indicators tools while trading.

2. TrackInvest

You may study, grow, and enhance your investing abilities with the aid of TrakInvest, one of the best paper trading apps in India. It provides news and market data from ten different exchanges that have been carefully chosen. Additionally, it provides videos and instructions for novices, certification programs created by subject-matter experts, and competition simulations.

Additionally, you can keep an eye on other traders and utilize the ‘Copy Trade’ feature to duplicate their moves and look more closely at their portfolio. It provides newcomers with an easy-to-use platform for “Social” virtual trading.

3. Moneybhai

One of the top virtual trading applications in India, Moneybhai is powered by Money Control. Upon registration, this platform offers Rs 1 crore in virtual currency in a portfolio account with a Rs 1 crore intraday trading cap. This virtual sum may be used to invest in a variety of asset types, including currencies, commodities, equities stocks, and derivatives. Bonds, fixed deposits, and mutual funds.

You may construct limit orders, market orders, GTD orders, square off orders, short selling orders, and GTC orders using this platform. Gaining experience in stock trading with Moneybhai requires overcoming investing hurdles. On this website, you may register using a Google ID, Facebook ID, or cellphone number. All you have to do to begin your simulated trading to establish a new account.

4. Chart Mantra

Chart Mantra is another top paper trading app in India that is supported by the Economic Times. You may study the art of investing and assess the stock market technically with this software. You will receive Rs 1 lakh in virtual currency upon signing up for this program, which you may use to trade in the stock market. You cannot, however, invest in more than one stock at once. You may use your Google ID or Facebook ID to sign up for the Chart Mantra platform.

5. Dalal Street

Dalal Street is one of the greatest applications in India for learning simulated stock trading. It is a particular type of investment journal that, upon signing up and registering with your account, gives you Rs. 10 lakh as virtual money. The ability to experience real-time trading is the finest feature of this virtual trading program.

You may share your trading methods on this virtual trading platform, which helps you learn from others’ experiences and improve your stock trading abilities.

6. Webull

Users may practice stock trading risk- and commission-free with Webull’s free trading simulator. Users receive a limitless quantity of virtual currency to trade with.

Users may set up price alerts, see integrated charts with indicators, and get real-time quotations. You may perform indicator studies to your charts using 12 charting tools and more than 50 technical indicators.

As a result, they can quickly test out new trading techniques to evaluate what could be effective and what might not.

7. Sensibull

One of the first and largest options trading platforms in India is called Sensibull. With Sensibull, one can choose to practice options trading on the NIFTY, BANKNIFTY, and stocks without risking any real money.

It’s a great program, especially for newbies learning about options because it allows them to practice their trading plans and techniques in a simulated environment.

8. Zerodha Streak

One of the best paper trading apps for retail traders is Streak by Zerodha, which enables users to develop, back test, and implement trading strategies live on the stock market. The app primarily focuses on three areas, including technical, tactics, and scanners, etc.

You may get rapid technical summaries for items like stocks, currencies, futures, commodities, etc. from technicals. One may look through many categories to learn new tactics and employ them for nothing.

Using the exclusive strategy builder developed by Streak, you can even develop your own original strategies.

9. Neostox Trading

“Neostox Trading” is a user-friendly trade learning tool that helps users to learn more quickly and test their trading plans risk-free in the actual market.

Users can trade in stocks, futures, options, commodities, and other financial instruments using virtual funds up to $1 billion. Smart tools, analytics, basket orders, an options chain, hedge trading, screeners, and other features are also included with Neostox trading.

10. MoneyPot

MoneyPot is a virtual trading simulator was developed with the intention of establishing a platform for communication among the investing community. Upon signing up, players are given a specific amount of simulated money, which they may use to look for stocks on the local exchange, place orders, get recommendations, and manage their portfolios. Due to a delay in the price feed, trade execution takes almost 10 minutes; nonetheless, calculations are made using the prices that the player selected when the order was placed.

The Conclusion

So far, you know that virtual trading and paper trading are same and its first and foremost purpose is to simulate an actual stock trading scenario to help new stock investors in understand trading basics, different trading strategies, and other elements without using the real money that can help them in doing actual stock trading. If you are keen to stock trading, you can choose from the best paper trading apps or websites  in India that provide best-in-class virtual trading experience.


1.Ques:- What is paper trading?

Ans:- Paper trading, aka virtual trading is a type of simulated trading environment that allows individuals to practice trading without the use of real money. This is a risk-free trading mechanism that enables people to understand the basics of stock trading and different stock trading techniques.

2.Ques:- Can I do day trading in virtual trading?

Ans:- Luckily, a majority of internet brokers offer paper trading capabilities, allowing day traders to hone their skills prior to making real money investments.

3.Ques:- Does it make sense to do paper trading?

Ans:- Paper trading is seen as helpful for beginning traders, but it may be helpful for anybody; even seasoned traders utilize it when creating a new strategy. Although you might be ready to start trading with real money, there are several benefits to paper trading.

4.Ques:- How does virtual trading help people?

Ans:- Paper trading enables people to test their trading strategies in actual situations without putting their own money at risk. Therefore, investors should not be concerned about losing money.

5.Ques:- What is the importance of virtual or paper trading?

Ans:- Prior to entering the actual markets and making your own financial investments, paper trading enables you to get realistic trading experience. Before you enter the actual market and risk your own money, this might help you make better errors and learn from them. It is a risk-free way to test your trading approach and get useful information.

6.Ques:- Does paper trading bring in a profit?

Ans:- Since paper trading doesn’t use real money, you can’t actually earn from it. Prior to engaging in actual trading, it aids you in gaining experience and honing your techniques.

7.Ques:- Is paper trading risk-free?

Ans:- Since there is no actual money exchanged, paper trading carries no risk in terms of potential financial losses. However, it’s crucial to keep in mind that in live trading, market dynamics may vary and that decision-making is influenced by emotions.

8.Ques:- How similar is your virtual stock exchange to actual trading?

Ans:- Although there are some significant changes, it is fairly similar. For instance, most platforms charge a 3% interest rate on any cash you have in your account, which is probably not the interest you would receive in a savings account at any given time of the year. The actual trading mechanics, however, are quite comparable to trading in the real world since we complete all orders at the real-time bid ask prices.