5 Best Simulated Options Trading Brokers

Options trading is not easy. If you're not careful, a bad trade could ruin your portfolio. That's where virtual options trading simulators come in. These platforms allow you to practice strategies, test the waters and build confidence without losing a penny.

We have gathered the best options trading simulators, which offer realistic simulation environments, powerful analytical tools and real market experience. Whether you are a beginner or an experienced trader fine-tuning your strategies, these simulators provide you with a risk-free way to learn the basics before starting live trading.

What is a Virtual Options Trading Simulator?

A virtual options trading simulator is an online tool or software platform. It allows users to conduct options trading operations in a virtual (risk-free of actual funds) environment. For beginners, it is a great way to familiarize themselves with the mechanisms of options trading, such as understanding the types of options (call options, put options), strike prices, expiration dates and other concepts. Users can also experience the changes in option prices under different market conditions, for example, how option prices change in a bull market, bear market or volatile market. Through simulated trading, they can observe the profit or loss effects of these strategies under different market situations, so as to find a trading strategy that suits them without worrying about actual financial losses.

Newcomers who are just starting to trade options can use the simulator to learn basic knowledge and master the trading process. The simulator can be used to test new trading strategies and optimize them before investing actual funds.

How to Choose the Right Options Trading Simulator?

Choosing the best demo account depends on your trading experience and goals. Please consider the following criteria:

Platform Reputation: Choose a trading platform that is regulated by formal authorities and can ensure the safety of funds.

Trading Conditions: Look for a realistic simulation environment that includes real market scenarios, order execution details, and fees.

Educational Support: Platforms that offer tutorials, guides, and video courses are ideal for beginners.

Advanced Tools: For experienced traders, advanced charts, technical indicators, and risk management features are crucial.

Accessibility: Ensure that the platform supports your preferred devices (desktop or mobile) and provides a simple, clear, and beginner-friendly interface.

Best Simulated Options Trading Brokers

Which brokers have a good reputation and provide simulators for trading? The following will explain in detail from multiple aspects.

Most Suitable for Beginners: E*TRADE Demo Trading

• Fees: Free

• Demo Trading Amount: $100,000

• Promotional Offers: None

E-Trade offers demo trading on its Power E-Trade online platform, providing $100,000 in simulated funds.

You can directly register for a demo trading account from the main page of the brokerage website, and then it will launch the virtual trading platform.

The platform is user-friendly, equipped with educational resources, strategy guides, and a concise interface that is easy to learn. Unlike some simulators that cater to advanced traders, E*TRADE's setup is highly suitable for those who are just starting out in options trading.

Most Suitable for Professional-level Simulation: Interactive Brokers

• Fees: Free for Interactive Brokers accounts

• Demo Trading Amount: $1 million

• Promotional Offers: None

Interactive Brokers (IBKR), as an established broker, is the top choice for many people. It provides traders with $1 million in virtual assets and allows you to trade using its Trader Workstation or IBKR mobile application in a real environment. The simulation trading mode is almost identical to real trading, including reflecting realistic market data, execution speed, and trading conditions.

You need to apply for a virtual account with separate login credentials, and you must have a funded account to activate the simulator. It is more suitable for traders who are already IBKR clients or plan to use the platform for real-time trading.

The following are the specific steps to register a demo account:

Visit the Advisor Portal, select Account Settings, and then choose the icon for Demo Trading Account Configuration.

Enter the username and password for the demo trading account and confirm the password. Then, click Continue.

Next, you will see that your paper account has been submitted.

If they receive your request before 4:00 PM Eastern Time on any normal business day, it will normally be processed on the next business day.

Orders submitted to the simulation trading account are not actually executed on any exchange or settled at a clearinghouse.

Most Suitable for Simulating Large Trades: Moomoo

• Fees: Free

• Demo Trading Amount: $1 million

• Promotional Offers: Receive a stock for free upon registration

Like the above two brokers, Moomoo provides $1 million in virtual funds for you to test with. Traders can practice and improve their trading skills in stocks, options, and futures using real-time quotes and over 100 instruments without the risk of losing real money.

This simulator offers real-time quotes, advanced charts, and Nasdaq Level II data, giving traders an advantage in formulating strategies. In addition, traders can explore over 900 educational resources, follow top users, and participate in virtual trading competitions. If you want to simulate large trades using institutional-level data, Moomoo's virtual trading platform is a good choice.

Most Suitable for Mobile Trading: Webull

• Fees: Free

• Demo Trading Amount: Customizable

• Promotional Offers: Earn a Cash Bonus When You Fund Your Account

Webull is a reliable financial application that also allows you to engage in simulated trading. You can trade options as well as stocks and cryptocurrencies. You need to register within the application, and then you can easily switch between trading with real money and paper money. You can track the long-term performance of options and view daily and total profit and loss statements. Webull's simulated trading, combined with other excellent features of the application such as charts, provides a powerful experience.

Most Suitable for Advanced Trading Tools: TradeStation

• Fees: free

• Demo trading amount: Unlimited virtual funds

• Promotional offers: None

The trading simulator of TradeStation offers non-professional traders free real-time data for strategy formulation, ensuring the simulated trading experience closely reflects real-time market conditions. With RadarScreen®, up to 1,000 symbols can be scanned and monitored simultaneously, and Matrix can visualize market depth and liquidity in real time.

This simulator gives users access to TradeStation's full set of advanced tools for a comprehensive learning experience. Users can practice with unlimited simulated funds, conduct numerous experiments without financial constraints, and seamlessly switch between simulated and real-time trading environments. Additionally, the simulator can backtest strategies using a vast historical database, helping users improve methods based on past market performance.

TradeStation's proprietary EasyLanguage® allows users to customize and automate trading strategies without extensive coding knowledge. This grammar-based programming language, designed for traders, enables them to develop new strategies, automate orders, and test custom indicators in the simulator.

However, the trading simulator uses simulated currency and is only available to customers who have funded their TradeStation brokerage accounts.

Differences in order executions

• Paper trades will be executed based on the last price in real-time quotes instead of the bid and ask quotes;
• Orders will be executed when price matches regardless of volume;
• For a buy order, it will be filled at your price or better when last price is lower than your price.
• For a sell order, it will be filled at your price or better when last price is higher than your price.

Aside from order execution, there are some other differences:

• Only market order and limit order are available for paper trading;
• Buying power in the paper trading account will be calculated as cash balance minus losses in short positions.

How to Simulate Real Trading in a Demo Account?

First, adjust the balance of your demo account to the actual amount you need. Most platforms will give you an unrealistic amount, such as $100,000, which makes it easy for you to take risks that you wouldn't dare to take with real money. Reduce this number to the amount you are willing to invest, such as $1,000 or $5,000. Once you've done this, stick to these limits. You'll start to feel the weight of each decision, just like in real trading.

Another tip is to trade at the same times as you would with real money. For example, if you plan to trade during U.S. market hours, open your demo account and observe the real-time market trends. Avoid falling into the trap of endless trading just because it's virtual. Instead, treat each trade as a real one. Look at the charts, carefully consider your strategy, and only trade when it really makes sense. In this way, you're not just clicking buttons—you're developing successful habits.

When to Transition to Real Trading?

You can switch to real options trading when you achieve the following goals:

• Consistent Performance: Achieve stable profits and positive results in your demo account.

• Clear Strategy: Have a well-tested and reliable trading method.

• Risk Management Skills: Know how to control losses and protect your capital.

• Emotional Preparedness: Be mentally ready to handle the pressure of real trading.

Start with a small capital investment and gradually increase the investment size as you become more confident in real-time market conditions.

Pros and Cons of a Virtual Options Trading Simulator

Frequently Asked Questions

What is a virtual options trading simulator?

A virtual options trading simulator is a platform that allows you to practice trading options using virtual currency, simulating real market conditions without financial risk.

What is the difference between a virtual options trading simulator and a demo account?

A demo account is usually a limited trial version of a brokerage platform, while a simulator is a fully-featured simulated trading environment designed for long-term practice.

Is the options trading simulator free?

Most of them are free, but some require a brokerage account to access.

Can I trade all types of options in a virtual simulator?

Most simulators allow basic and advanced options strategies, but availability varies depending on the platform.