Making your first investment can be a daunting prospect. If you’ve never bought or sold stocks or ETFs before, you may not even know how to place a trade — let alone whether you’ve chosen a suitable investment strategy. And that’s where a paper trading platform can help.
What is paper trading?
Paper trading is basically investing with fake money rather than real dollars and cents. Also known as a demo trading account, a paper trading account allows you to practice trading using real market conditions, but without putting any of your money at risk.
The aim of paper trading is to help you learn how investing works. You can practice buying and selling stocks, study the market and track the performance of your investments, and test your investing strategy to see if it has the potential to succeed.
Then, once you have more experience under your belt, you can graduate to trading with real money.
The best paper trading platforms and apps in Canada
The best paper trading platforms in Canada are:
Best paper trading account for integration with live trading: Interactive Brokers
Best paper trading for educational resources: Moomoo
Best paper for charting and analysis tools: Questrade
Best paper trading platform for variety of investment accounts: RBC Direct Investing
Best paper trading for tracking stock performance: Qtrade
Best paper trading account from a Big Bank: Scotia iTRADE
Best paper trading account for integration with live trading: Interactive Brokers
Interactive Brokers is an investing platform that lets you trade on 160 markets in 36 countries around the world. You can trade stocks, ETFs, index funds, bonds, options, futures, forex and more, and Interactive Brokers offers desktop and mobile apps to suit regular investors as well as more active traders. It also offers a free trial so you can practice with a demo account, or the option to access a Paper Trading Account through your live trading account.
Why it's one of the best:
Free trial. Interactive Brokers' free trial gives you a simulated trading account with virtual funds. You get access to all of the broker's trading platforms to learn about all of its features and tools before signing up for a live trading account.
Shares the data of your live trading account. The market data subscription you have for your live account is shared with your Paper Trading Account, allowing you to access the same real-time market data when paper trading.
USD$1 million balance. Both the free trial and a Paper Trading Account give you access to a virtual balance of USD$1 million to use for simulated trades.
Pros
Supports over 90 order types
Trade on global markets
Supports fractional share trading
Cons
Some more advanced features may be a little intimidating for beginners
Potential differences in data and pricing
Limited order types
Account Fee
$0
Account Types
RRSP, TFSA, Personal, Joint
Available Asset Types
Stocks, Bonds, Options, Index Funds, ETFs, Forex, Currencies, Futures
Moomoo is a stock trading platform where you can trade Canadian and US stocks, ETFs and options. It offers a free Paper Trading feature where you can practice trading, familiarize yourself with the platform and put strategies to the test. Moomoo also sometimes offers paper trading competitions to give you an added incentive to practice your skills.
Why it's one of the best:
$1 million balance. You get $1 million of virtual money to 'invest' however you like.
Real-time quotes. Real-time price quotes allow you to experience real market conditions, adding extra authenticity to your paper trading.
Educational resources. Moomoo also provides access to over 600 courses to help everyone from beginners to more experienced investors broaden their knowledge.
Pros
Large virtual balance
Free to use
Available on web, desktop and mobile
Cons
You can only access limited markets compared to some competitors
Web version only offers stock trading
No maximum trade fees
Signup Offer
Enjoy a 6% cash rebate plus up to $4,600 in trading perks. Offer ends May 27, 2025.
Account Fee
$0
Account Types
RRSP, TFSA, Personal, FHSA
Available Asset Types
Stocks, Options, ETFs
ETF Transaction Cost
USD$0.0099/stock
Option Fee
US stocks and ETFs: USD$0.0099/stock (min. US$1.99 per trade)
Best paper for charting and analysis tools: Questrade
Questrade
9.1
Excellent
Get $50 cash back when you open a self-directed account and fund it with at least $250. Use code FINDER50.
Questrade Global is a desktop and mobile platform that lets you trade forex and CFDs on international markets. You can trade with leverage on over 15 international exchanges, and there's also a Practice Account available if you want to try out the platform before deciding if it's right for you.
Why it's one of the best:
$100,000 virtual balance. You get $100,000 of virtual cash you can use to practice your forex trading strategy.
Trading tools. You can access a full range of charting and analysis tools to help you make informed trading decisions.
Free. The Practice Account gives you a chance to explore platform features and tools for free for 30 days.
Pros
Trade 24 hours a day
Trade international currencies and commodities
Trial all account features
Cons
Suited to more experienced traders
Only for 30 days
No stocks or ETFs
Signup Offer
Get $50 cash back when you open a self-directed account and fund it with at least $250. Use code FINDER50.
Best paper trading platform for variety of investment accounts: RBC Direct Investing
RBC Direct Investing
7.9
Great
RBC Direct Investing is the self-directed trading platform run by Canada's largest bank. It offers access to a wide variety of assets and account types, and a Practice Account that is integrated into its Online Investing platform. You can open an RBC Direct Investing Practice Account for free and start learning the basics of trading.
Why it's one of the best:
$100,000 balance. You get $100,000 of 'practice money' to play with as you hone your trading skills.
Open multiple accounts. You have the flexibility to open multiple practice accounts, with cash, margin and RRSP accounts all available.
Perform most transactions. You can perform most of the same transactions that you can perform with a regular account, including buying and selling stocks, ETFs, mutual funds and options.
Pros
Easy to use
Open multiple accounts
Access to trading tools and research
Cons
Real trading platform has higher fees than some competitors
Best suited to people who are already RBC customers
Qtrade Direct Investing is a user-friendly platform where you can trade stocks, bonds, ETFs, mutual funds, GICs and options. There's a wide range of account types available, plus plenty of research and analysis tools to help you make informed investing decisions. And if you'd like a chance to try out Qtrade before deciding if it's the right platform for you, you can take advantage of a 30-day free Trial Account.
Why it's one of the best:
Free trial. The Trial Account gives you a chance to explore the features of Qtrade and how it works for free.
Research and analysis. You can use your account to research stocks, check sample analyst reports and use screeners to find suitable investments.
Watchlists. You can also set up watchlists to track the performance of stocks.
Pros
Access market and economic news
Explore the trading platform for free
Research investing opportunities
Cons
Only for 30 days
You can't place trades
Discount brokers offer lower fees
Signup Offer
Get $50 upon opening and funding a new account, up to a maximum of $150 for 3 accounts. Use code OFFER2025. Valid until October 31, 2025.
Best paper trading account from a Big Bank: Scotia iTRADE
Scotia iTRADE
7.9
Great
As one of the Big Five, Scotiabank needs no introduction. Its Scotia iTRADE platform provides access to an extensive range of assets and markets, and provides plenty of research and trading tools to suit experienced investors. If you'd like to test out iTRADE and improve your trading skills, there's a free Practice Account available.
Why it's one of the best:
$100,000 CAD and USD. You get virtual balances of CAD$100,000 and USD$100,000 to play with.
Included features. Your Practice Account provides access to trading tools, research and analysis, market news and more.
Reset feature. You have the flexibility to reset your account and start over at any time.
Pros
Integrated with your regular account
Plenty of free educational resources
Easy to monitor the performance of your investments
$9.99 ($4.99 if completed 150 trades or more a quarter)
Option Fee
$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)
Inactivity Fee
$25/year
Stock Trading Fee
$4.99–$9.99
Account Fee
$100
FX Fee
Varies
Min. Deposit
$0
Finder’s investments experts reviewed 14+ brokerages available on the market to narrow down the best paper trading apps for trading.
We analyzed each platform based on 40 key metrics we collected directly from brokerages and assessed each provider’s performance based on five different categories, weighing each metric based on the expertise and insights of Finder’s investment experts. We then scored and ranked each provider depending on how it performed in each category.
See how we weigh the overall rating
Investment options
Trading costs, rates and fees
Features and amenities
User experience and support
Regulatory compliance
30%
30%
20%
10%
10%
We update our best picks as products change, disappear or emerge in the market. We also regularly review and revise our selections to ensure our best provider lists reflect the most competitive available.
Paper trading vs real trading
The main difference between paper trading and real trading is that paper trading is done with fake money and real trading is done with real money. This means that there’s no risk with paper trading, but there’s also no financial reward. Instead, the reward of paper trading is the knowledge and experience you gain as an investor.
But when there’s no real money involved, it takes emotion out of the equation. While this makes it easy to test out strategies and practice trades, it also means that you may make different decisions than in a real-world scenario.
Losing fake money on a paper trade? No biggie. But losing actual money on a real trade? Now that’s sure to cause an emotional reaction, which could in turn affect your trading decisions.
Depending on the broker you choose, there may be other differences between paper trading and real trading. For example, market data on a paper trading platform may be delayed instead of in real-time.
The demo account may also only be available for a limited time, such as 30 days, before you have to switch to a cash account.
How do paper trading and demo trading accounts work?
Think of a paper trading account as a simulation of trading with real cash.
When you open a demo account, you get a set amount of fake money to “invest”. The amount could be $100,000, $1 million or even unlimited.
You then use your account balance to place pretend trades. It all works the same way as if you’re really placing online trades — you get current market prices, you can choose from limit and market orders as well as a range of other order types, and you place your “trades” using the platform’s regular trading interface.
You can then track the performance of your investments using the broker’s software or app.
The only difference is that when your investments rise or fall in value, it only affects your theoretical account balance — there’s no real money involved.
How to sign up for a paper trading account
If you want to open a demo account, here’s what you need to do.
Choose a paper trading platform. Compare demo accounts to find the platform that meets your needs. Look for a full-featured account from a broker that offers access to all the markets and assets you want to trade.
Sign up for a paper trading account. Visit the broker’s website and click the link to sign up. Depending on the broker, you may be able to open a paper trading account on its own, or you may open a paper trading account and a cash account at the same time.
Enter your details. You’ll need to provide your name, address, contact details and SIN to create an account.
Verify your ID. Whether or not you need to complete this step will depend on the broker. Some won’t need to see any ID if you’re only opening a paper trading account, but others will ask you to upload a valid ID document like your driver’s licence or passport.
Start paper trading. Use your virtual balance to make your first paper trade.
Tips to get the most out of your demo trading account
Don’t treat it like a game
If you use your paper trading account as if there are no consequences, the experience gained from practice trading won’t be worth much in the real world. Treat your balance of fake money with the same respect that you would your own hard-earned dollars. It’s always a good idea to ask yourself, “Would I make the same trade if this was real money I’m spending?” If the answer is no, you need to rethink your approach.
Set goals
Make sure you have a clear idea of what you hope to achieve with your paper trading experience. Are you a complete newbie looking to grasp the basics? Do you want to understand the different order types available and learn how to place buy and sell trades? Or do you have a specific investment strategy you want to put to the test? Go in with a clear goal in mind and focus on making it happen.
Familiarize yourself with the platform
Use your paper trading experience as a chance to understand how the broker’s trading platform works. Learn what you need to do to place a specific order type, and how to perform regular tasks like monitoring the market and tracking your portfolio. Time spent familiarizing yourself with the ins and outs of the platform now will ensure a smoother and more efficient trading experience in the future.
Take advantage of educational resources
From how-to videos and articles to webinars and courses, many brokers offer a range of educational resources for new investors. Make the most of the available educational tools to boost your trading knowledge.
Track and review your performance
Keep track of every paper trade you place. Which trading decisions worked and why? Which ones turned out to be mistakes? Keep notes throughout the process so you don’t forget any of the knowledge you gain.
Can you use paper trading to practice options trading?
Yes, you can use paper trading to practice options trading — but not with all brokers. While some platforms only allow paper trading of stocks and ETFs, others will also provide access to options.
A demo account is a very useful tool if you’re new to options trading. Options are complicated, come with plenty of hard-to-understand technical jargon and also come with the risk of trading on leverage, so starting out with a paper trading account to practice trading is a good way to get started.
How to use a trading demo account for commodity trading
Some brokers also support paper trading of commodities. So if you plan on trading agricultural commodities like wheat and coffee, precious metals like gold and silver, or industrial products like oil and natural gas then you can use your demo account to refine your trading skills and strategies.
The way you trade commodities will depend on your trading strategy and appetite for risk. You could trade spot or futures markets, gain exposure to commodities through ETFs or mutual funds, or consider trading high-risk commodity CFDs.
What is the best trading demo account for commodity trading?
The best demo account for you will depend on your trading needs. The good news is that there are several platforms to choose from. Interactive Brokers, for example, provides access to a wide range of asset classes, including futures, options and ETFs that offer exposure to commodities. Questrade also provides access to an extensive range of asset classes and offers the ability to buy and sell precious metals.
How to choose a demo trading account
The demo trading account you choose will likely be offered by the broker you want to place real trades with in the future. So you’ll need to compare your options based not only on what their demo accounts offer, but also on your trading plans when you’re ready to invest real money. Consider these factors to find the best paper trading app or platform for your needs.
Demo account features
Research the broker’s paper trading platform to find out what it offers. Ask yourself the following:
How much fake money do I get to invest?
Can I access all the same markets and assets as the broker’s full trading account?
Do I get real-time market data or is it delayed?
Is the demo account only available for a limited time or on an ongoing basis?
Can I use the paper trading account on all of the broker’s platforms, including their mobile app?
Fees
Check what brokerage fees the platform charges or if it offers commission-free trading. You’ll also need to check what other fees may apply, such as market data subscription fees and currency conversion costs.
Tradeable assets
Check whether the broker provides access to all the assets and markets you want to trade. In addition to stocks and ETFs in Canada and the US, you may also be able to trade international stocks as well as bonds, forex, GICs, options and derivatives.
Ease of use
The right platform for you will be simple and intuitive to use, and that’s where a paper trading account is very useful. It gives you a chance to “try before you buy” and decide whether
Mobile app
If you plan on trading via mobile, check the App Store and Google Play to see how other customers rate its ease of use. You can also check whether you can access your paper trading account via the app.
Educational resources
Check whether the platform offers a range of educational resources to help new investors like you boost your knowledge. How-to articles and instructional videos will help you familiarize yourself with the trading interface.
Other features
You can also find out what other tools and features are available, such as:
Are there any free paper trading accounts in Canada?
Yes, most paper trading accounts in Canada are free, but you’ll need to provide your personal information and contact details to open an account. Brokers typically won’t charge you anything to open an account, and there’s no need to make a deposit until you’re ready to transition to investing with real money.
Can you make money from paper trading?
No, you can’t make money from paper trading. Even though your investments may soar in value, there’s no real money involved in trading. It’s simply a simulation, so any “profits” you make are virtual.
Pros and cons of paper trading
Pros
Learn the basics. Paper trading lets you get used to how a broker’s real-world trading platform works and get comfortable placing buy and sell orders. You can also learn how to read charts, research investments and monitor the market.
Test out strategies. A demo trading account gives you the opportunity to test out different investment strategies using real market conditions, seeing how your ideas perform when out into practice.
No risk. Paper trading is a risk-free introduction to the world of investing, so you don’t need to worry about potentially losing any money.
Build confidence. When you’re ready to trade for real, you can get started with a higher level of confidence that you know what you’re doing.
Cons
You won’t make any money. There’s no risk of losing money with a demo trading account, but there’s also no chance of making money.
You may trade differently than you would in real life. There’s always the risk that you may make different trading decisions than you would when using real money. Using real money brings emotion into the equation, but using fake money makes it easier to treat it like a game.
Limited features. Some demo trading accounts won’t fully replicate a real-world trading environment. For example, market data might be delayed, or you might not be able to access the same range of assets as on the broker’s full platform.
Limited time. Some brokers only allow you to access demo accounts for a limited time, such as for a 30-day trial period.
Bottom line
A paper trading account is a very useful tool if you want to test out trading strategies or just become familiar with the ins and outs of investing. Compare brokers that offer paper trading accounts to find one that’s right for you, but just remember that trading with fake money is never quite the same as when you put your real money on the line.
Frequently asked questions about paper trading in Canada
The best paper trading platform in Canada varies depending on factors such as what you want to trade and how much trading experience you have. Popular options worth considering include Interactive Brokers, Questrade, RBC Direct Investing, Qtrade, Moomoo and Scotia iTRADE.
Yes, paper trading is a good way for beginners to learn the basics of investing without putting any real money at risk. You can use it to learn how to use a trading platform, how to place buy and sell orders, and to test out investment strategies.
Paper trading is risk-free in the sense that you only "trade" with fake money, so you never put any real money at risk. But there are drawbacks to be aware of. For example, the trading decisions you make when trading with fake money could end up being very different to the decisions you would make if you had real money at stake, so you need to be aware that paper trading won't completely prepare you for the real thing.
Yes, most brokers that support paper trading typically also offer a paper trading app. If you plan on placing trades via mobile, be sure to practice paper trading in the app to familiarize yourself with its user interface.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
Questrade is a leader among Canadian discount brokerages, but is it right for you? Compare fees, features and alternatives here.
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