If you’re new to options trading, and if you’re like me, jumping in with real money can feel daunting.
Wouldn’t it be great if you could do practice trades in real time to not only boost your education, but boost your confidence?
Here’s the good news: that’s where an options trading simulator comes in.
Options trading simulators lets you practice, learn, and build confidence without risking a dime.
Below, I’ll walk you through the best simulators available, their pros and cons, and where you can try them out for yourself. In the end, it will be up to you to make a decision thats’ best for you.
Why Use an Options Trading Simulator
Before we dive into the top picks, let’s talk about why an options trading simulator is a must for new traders:
- Risk-Free Learning: Simulators let you practice options trading with virtual money, so you can make mistakes and learn from them without any financial consequences.
- Build Real Experience: You’ll get hands-on practice placing trades, managing positions, and testing strategies in real or near-real market conditions.
- Develop Discipline: Simulators help you stick to your trading plan and avoid emotional or impulsive decisions-skills that are crucial when you start trading with real money.
- Access to Education: Many simulators offer built-in tutorials, educational resources, and even trading challenges to help you learn faster. After all, it’s your education that will determine if you make a wise decision or not with options trading.
- Test Strategies: Whether you’re a beginner or an experienced trader, you can try out new strategies and refine your approach before risking real capital.
The Best Options Trading Simulators
Here are the best options trading simulators for new traders, with their advantages, disadvantages, and where to learn more:
1. Power E*TRADE Paper Trading
Power E*TRADE’s simulator is user-friendly and packed with educational tools, making it ideal for beginners. You can practice various options strategies and access over 100 technical studies.
- Advantages:
- Intuitive interface
- Free to use
- Risk/reward analysis tools
- Strong educational support
- Disadvantages:
- Some advanced features may take time to master, so, in my experience, it does require patience
Try Power E*TRADE Paper Trading.
2. Investopedia Simulator
This simulator is trusted by millions and offers $100,000 in virtual cash, plus a vast library of educational content and trading challenges. Sounds pretty great, right?
- Advantages:
- Free to use
- Huge community for support
- Trading competitions for extra motivation
- Disadvantages:
- No mobile app (but mobile browser works well)
- Limited advanced options features
3. ETNA Trading Simulator
Used by universities and brokers, ETNA offers life-like execution for options and equities, with advanced features like options chains and multi-leg orders.
- Advantages:
- Realistic trading environment
- Advanced order types
- Level II quotes
- Disadvantages:
- Interface may be technical for new users
4. TradeStation Simulated Trading
TradeStation is known for its real-time data, unlimited paper trading funds, and powerful backtesting tools.
- Advantages:
- Unlimited practice funds
- Advanced analytics and backtesting
- Supports complex strategies
- Disadvantages:
- Advanced features may be overwhelming for beginners, so give yourself some time to master it
Try TradeStation Simulated Trading.
5. Bull Bear Traders Simulator
This options trading simulator is packed with educational resources and is ideal for those who want to combine learning with hands-on practice.
- Advantages:
- In-depth virtual options trading classes
- Customizable tools and indicators
- Seamless transition to live trading
- Disadvantages:
- Not free after the trial
Try Bull Bear Traders Simulator
6. Warrior Trading Simulator
Developed with NASDAQ and NYSE, Warrior Trading’s simulator provides real-time data, $200,000 in virtual cash, and advanced reporting. These factors are why it’s one of my personal favorites.
- Advantages:
- Real-time trading environment
- Hotkey support for fast trade execution
- Advanced reporting metrics
- Disadvantages:
- Paid platform (with a free trial)
Try Warrior Trading Simulator.
The Bottom Line: Options Trading Simulators
I’ll be the first to tell you: an options trading simulator is the safest, smartest way to build your trading skills and test strategies before putting real money on the line.
Whether you’re just starting out or looking to refine your approach, the simulators above offer a range of features to help you learn, practice, and grow as an options trader.
Try a few, explore their educational resources, and get comfortable-so when the time comes to trade for real, you’ll be ready to make confident, informed decisions.
Looking for more information on options trading? Check out these options trading books.