Best Trade Simulator Apps for New Investors

What Are the Best Trade Simulator Apps?

The stock market can be an intimidating place for new investors. If you have no training or background in finance, investing your hard-earned money seems like a huge gamble. There is always some level of risk associated with investing. However, the best trade simulator apps allow you to test the waters before you dive in head first. Creating and trading with a virtual portfolio lets you learn through experience without risking real money.

How Do Trade Simulator Apps Work?

In essence, trade simulators use practice accounts, also referred to as paper trading accounts, as an experiential educational tool. Even better, most of them are free once you set up your account. The purpose of these apps is to provide a learning environment for new investors within real time market conditions. Users have access to the same tools utilized by active investors, including live feeds and tickers, watch lists, and stock screens. However, since you are using “play money,” you eliminate all financial risk.

Additionally, you can use trade simulator apps in a variety of ways. Individual investors can test new ideas and strategies before making any changes to their actual portfolio. You can also make a game of it by inviting friends, family, or coworkers to join a friendly competition. Investors that get the highest returns at the end are the winners. But, since you are not investing real money, there are no losers.

What Benefits Do Trade Simulator Apps Offer?

As an educator, I firmly believe that the best way to learn something is by doing it. The only way to get better at something is through practice and repetition. If you have never invested or learned about the stock market, trade simulator apps are a great place to start. Here’s why:

1. There is no risk since you are investing fake money.

The best part about trade simulator apps is that there is zero risk. Since you are trading with virtual currency, you can be as conservative or aggressive as you like. If it is your first time investing, these apps allow you to get your feet wet without risking your retirement accounts. If you make a bad trade, it is a lesson learned rather than a nest egg lost.

2. You can test new investing strategies and individual stock picks.

Trade simulator apps provide a safe place to learn the basics. You can begin with the fundamental mechanics of investing, then move on to other trading options. Since it is virtual money, you are free to take more chances and make mistakes as well.

Furthermore, it gives your room to explore potential strategies and ideas. Although financial experts tell you to avoid taking advice from just anyone online, these trading platforms act as a safety net. Not only does it protect your finances, but it will also help you determine which advisors have the most credibility.

3. You have access to their full library of educational resources.

In addition to real-time trading, you also can get a focused education through their resources. You can find articles, tutorials, videos, and demos on nearly every investment topic imaginable. Moreover, you can also join the online communities where you can interact with other investors and discuss strategies.

These free resources will help you become a more savvy investor by learning and mastering the basics. They can also teach you how to factor in outside variables, such as trading costs, and perform stock analysis. Understanding how these factors affect the market will help you see the broader economic picture and become a more successful investor.

4. There is less emotional investment in the outcome.

Lastly, trade simulator apps remove emotion from the equation. They grant you a more objective view since your money is not at stake. Riding the markets’ highs and lows can bring a roller coaster of emotions. However, the apps give you a preview of market volatility and how you will react to them.

What Are The Best Trade Simulator Apps?

There are a lot of trade simulator apps out there. However, these three are consistently recommended by financial experts and analysts across the web.

Wall Street Survivor

This trade simulator app has withstood the test of time…and for good reason. Wall Street Survive is a fountain of personal finance and investing knowledge. It offers more than 30 courses which you can complete at your own pace. Each one provides step-by-step instruction to help you succeed in the stock market.

Once you are ready to invest your virtual cash, it is time to get in the game. You can join the leagues and work your way to the top, or start your own game. All the while, you can apply different trading strategies as you play the stock markets. As you improve, you will earn more virtual cash, badges, and even compete for real prizes.

Market Watch Virtual Stock Exchange

This app is also popular with adult investment clubs and first time investors. Just like the other trade simulator apps out there, you create a virtual portfolio to trade real-time stocks. However, as you develop you investing strategies, you can also turn on more advanced features. Once you join, you are also able to join their discussion groups to compare strategies with skilled traders.

However, as an educator, I will admit that I do have bias here. In my opinion, the Market Watch Virtual Stock Exchange is one of the best resource for teachers. It even has lesson plans with required readings, videos, and report cards to help you track your progress. Public and private games allow you to interact with other users or challenge those you know to test their skill. It’s both a fun and educational way to gain experience trading stocks, mutual funds and ETFs.

HowTheMarketWorks

HowTheMarketWorks is another app that has been around for quite some time. It remains at the head of the pack because it is specifically tailored for beginners. It offers all the tool and resources you need in their Education Center. In addition to basic instruction and advanced techniques, it also provides career guidance if you are interested in a future in finance.

However, this app isn’t just for beginners. This simulator gives you the ability to practice trading in the global market, mutual funds, ETFs, options, and commodities. Since you can customize your private competitions, it is another excellent resource in the classroom.

Reality Over Simulation

While trade simulator apps are a great resource, there are certain things they cannot do. Unfortunately, some lessons can only be learned through real experience. However, simulators ensure you will be better prepared to jump into the stock market.

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One thought on “Best Trade Simulator Apps for New Investors

  1. Rob S. February 24, 2021 / 1:29 pm

    Anyone that’s looking to make real-life investments should consider downloading one of these apps. They’re risk-free, as you detailed here, and they provide a good expectation heading in.

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