Best Paper Trading Options Platforms for Practicing Strategies Risk-Free

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Before diving into trading options with real money, a good first step for both novice and experienced traders is to practice their strategies and familiarize themselves with the platform they choose in a risk-free environment. Paper trading, also known as virtual trading, provides this opportunity by allowing users to simulate real market conditions without putting their money on the line. 

Many platforms offer paper trading capabilities, so selecting the one that best suits your learning style and trading goals is key. This article explores some of the top paper trading platforms for options, highlighting their key features to help you choose the ideal virtual space to refine your options trading skills. 

Quick Look at the Best Paper Trading Options Platforms: 

How We Chose the Best Paper Trading Options Platforms

We chose platforms based on their availability of options-specific paper trading, quality of the simulation tools, presence of real-time or delayed data and value of their built-in education resources.

5 Best Paper Trading Options Platforms

Best Overall: Interactive Brokers

Interactive Brokers (IBKR) provides a realistic paper trading environment for options, mirroring the sophisticated features and extensive market access available on its live trading platform. This makes it a great choice for traders of all levels who want to practice complex options strategies and familiarize themselves with a professional-grade platform without financial risk. 

Key features: 

• Fees: IBKR offers free paper trading.

• Investment access: The IBKR paper trading platform offers a range of options contracts across many global markets, just like the access available on its live platform. This includes single-leg, multi-leg and complex options strategies on stocks, indices and other underlying assets. 

• Platform experience: IBKR’s Trader Workstation has full functionality for paper trading on both desktop and mobile, allowing users to become proficient with a professional-grade platform with customizable layouts and advanced order types designed for options trading. 

• Tools/education highlights: The paper trading account has the same tools as the live platform, including advanced charting with technical indicators, options analytics such as Greeks, risk management tools and order book depth. IBKR also offers educational resources and webinars that can be applied to practice in the paper trading environment. 

• Drawbacks: The Trader Workstation platform’s complexity may be overwhelming for beginners. Realism is an advantage, but the learning curve may be steeper than that of other paper trading platforms. 

Who it’s best for: Experienced and active traders as well as serious beginners willing to invest time in learning a professional-grade platform. 

Best for Real-Time Market Data: TradeStation

TradeStation provides robust and granular real-time market data on its paper trading platform. This makes it a good choice for traders who rely on precise, up-to-the-second information for analysis and trade execution. It also allows for realistic simulation of fast-moving markets and the impact of timely order placement. 

Key features: 

• Fees: TradeStation’s trading simulator is free to customers with funded TradeStation accounts.

• Investment access: TradeStation’s paper trading platform aligns with its extensive market access, allowing users to simulate trading in a range of instruments, including stocks, exchange-traded funds (ETFs), options, futures and cryptocurrencies. The comprehensive access ensures traders can practice strategies across many asset classes with realistic data. 

• Platform experience: TradeStation’s desktop platform is known for its advanced charting capabilities. Time and sales data are available in real-time in the paper trading environment. Its web and mobile platforms offer real-time data, ensuring device consistency for monitoring simulated positions and executing virtual trades.

• Tools/education highlights: TradeStation’s analytical tools are available on paper trading accounts. These include customizable charts, a library of technical indicators, backtesting capabilities and simulated order execution. Its educational resources include webinars and tutorials that often emphasize the importance of real-time data in effective trading. 

• Drawbacks: Beginners may find the TradeStation platform too complex to start with. 

Who it’s best for: Active traders and those focused on day trading or other short-term strategies who want access to granular, real-time market data for accurate simulation and backtesting. 

Best for Low Cost: Webull

Webull offers a user-friendly and accessible paper trading platform for options that stands out for its commission-free structure and lack of account minimums. This makes it an attractive option for beginners and cost-conscious traders looking to practice options strategies without incurring fees.

Key features: 

• Fees: Webull’s paper trading account for options is free, allowing users to experiment with different strategies without costs impacting their learning experience.

• Investment access: The paper trading platform allows users to simulate trading various options contracts on stocks and ETFs available on Webull’s live platform. 

• Platform experience: Webull’s platform is known for its intuitive interface on mobile and desktop. The paper trading environment mimics this user-friendliness, making it easy for beginners to navigate options chains, analyze potential trades and execute simulated orders. The charting tools and basic options analytics are integrated into the platform. 

• Tools/education highlights: Webull provides basic charting tools with several technical indicators that can be used in the paper trading environment to analyze potential options trades. It also offers educational resources, including articles and tutorials, to support users in learning about options trading and practicing their strategies virtually. 

• Drawbacks: Webull’s platform is user-friendly but may lack some of the advanced analytical tools and sophisticated order types that more experienced traders are looking for. Real-time data and backtesting capabilities may be more limited compared to some platforms. 

Who it’s best for: Beginner options traders and cost-conscious investors who prioritize a simple, commission-free paper trading environment with a user-friendly interface.

Best for Social Trading: eToro

eToro integrates social trading features into its paper trading platform for options. This approach allows novice traders to practice their own strategies risk-free and observe and learn from the simulated trades of popular and successful virtual traders in the platform’s community. 

Key features: 

• Fees: Paper trading options on eToro is free. 

• Investment access: Users can simulate trading options on stocks and other assets on eToro’s live platform, which provides an environment to experiment with different options strategies.

• Platform experience: The platform is user-friendly and has a visually engaging interface on both web and mobile apps. The paper trading feature maintains this simplicity, making it easy for beginners to navigate options and execute virtual trades. The social feed integration allows users to see the simulated trades and strategies of other traders.

• Tools/education highlights: eToro’s CopyTrader feature allows users to automatically replicate the simulated options trades of other paper traders, providing a hands-on way to learn different strategies. The platform also offers educational resources such as webinars and guides that can be applied to virtual trading. 

• Drawbacks: The social trading is appealing to beginners, but relying only on copying others without understanding the strategies can inhibit the development of independent trading skills. The platform’s analytical tools are less advanced compared to platforms for more experienced traders. 

Who it’s best for: Beginner options traders interested in learning through observing and replicating the simulated strategies of other virtual traders on a user-friendly platform. 

Best for Beginners: Charles Schwab/thinkorswim

Charles Schwab’s thinkorswim is a feature-rich paper trading platform that, despite its professional-grade capabilities, is well-suited for beginners learning options trading. Its educational resources are integrated with a customizable and intuitive trading interface, offering a supportive environment for new options traders to learn and practice. 

Key features: 

• Fees: The thinkorswim paper trading platform is free for 30 days. 

• Investment access: The paper trading platform has several options contracts available across various underlying assets available on the live thinkorswim platform. Beginners can practice trading single-leg options as well as explore more complex multi-leg strategies as their understanding grows. 

• Platform experience: The thinkorswim platform’s interface is customizable, allowing beginners to tailor their workspace to focus on specific tools and information. The platform’s intuitive features help users analyze options chains, visualize risk profiles and place simulated trades on both desktop and mobile. 

• Tools/education highlights: Beginners have access to a library of videos, articles and on-demand courses explaining options basics and trading strategies. The platform’s analytical tools include Options Chain displays, Probability Analysis and Strategy Roller, which are presented in a way that can be progressively understood by new traders. 

• Drawbacks: The volume of features on thinkorswim may feel overwhelming to beginners at the start. The platform’s customizability and educational materials help mitigate this, allowing users to gradually explore its capabilities as they become more comfortable. 

Who it’s best for: Beginners who are serious about learning options trading and appreciate a comprehensive platform with educational resources and a customizable interface.

Choosing the Right Options Trading Platform

Choosing the right options paper trading platform depends on your learning style and objectives. Interactive Brokers offers a comprehensive and realistic simulation for experienced traders and serious beginners. TradeStation excels in providing real-time market data crucial for active traders. Webull stands out as a low-cost and user-friendly option for investors prioritizing affordability. eToro integrates social trading, allowing beginners to learn by observing others. The thinkorswim platform provides exceptional educational resources for new options traders. 

By aligning your learning goals with the strengths of each platform, you can choose the ideal virtual environment to develop your options trading skills.

Frequently Asked Questions