How to Set Up a Mock Stock Trading Account
Setting up a mock trading account is something every new investor should do before committing real money to financial markets. Mock trading, demo trading, paper trading and simulated trading are all the same thing and can help investors test their strategies without the risk of losing real cash. In this How To we'll show you how to set up a mock trading account and find the best options out there.
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Instructions
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On Your Way to Mock Trading
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Find a mock trading account via an Internet search or by asking your broker if they have trading simulators available for clients. Many foreign currency brokers have free trading simulators, but most stock brokers do not. For stocks, you'll have to find a mock trading simulator through a third party that likely is not a brokerage firm.
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Figure out what security you want to develop for a mock account. Mock trading accounts are readily availalbe for stocks, options, futures and foreign currency.
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Piece together your portfolio. Find the stocks, options or currencies that you're thinking about investing in or trading and place them in your mock trading account. Make sure you track your entry and exit prices and reasons for getting into and out of the trades.
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Ensure you're not paying for your mock trading account. While most reputable brokers may limit how much time you have with your mock trading account, they should not be charging for the privilege. Most third-party stock simulators are also free.
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Tips & Warnings
Never pay for a mock trading account. Keep track of all your trades and study them.
