Virtual trading, also known as paper trading is a way to practice trading without risking real money. It is particularly useful for beginners who are learning stocks, Forex, or cryptocurrency trading. A virtual or paper trading app simulates real market conditions and provides a realistic trading experience. It includes real-time market data, financial instruments, and news feeds. In India, almost all brokers offer paper trading websites or apps. Some popular ones are Moneybhai, Sensibull, and Dalal Street.
Why Start with Virtual Trading?
Starting with virtual trading has several advantages. Generally, Forex and stockbrokers offer a free virtual trading platform or app that users can easily sign up for. They get a certain amount of virtual money allowing them to execute trades, develop trading strategies, and understand market conditions without the fear of losing money.
This experience helps understand how markets operate including factors like market volatility, trends, and the impact of global events on currency and stock prices.
Experienced traders also use paper trading apps to test and evaluate the performance of their trading strategies under different market conditions. This experimentation helps them adjust strategies before using them in the real market with actual capital.
Each trading app or platform has its own set of tools and interfaces. So paper trading also helps to familiarize yourself with these tools, including placing orders and setting stop-loss limits.
How to Start Virtual Trading?
You can start simulated trading in just a few steps. Several brokers in India offer paper trading apps such as Moneybhai which is an initiative of Moneycontrol.com. It is known for its user-friendly interface and is ideal for beginners.
Here is a step-by-step guy to opening a virtual account With Moneybhai.
- Go to the Moneybhai website.
- Click on 'Sign Up' and fill in the required details like your name, and email address, and create a password.
- Once registered, you'll receive ₹1 crore in virtual money for investing in the virtual stock market.
- Use the platform to buy and sell stocks. The platform offers trading in stocks, mutual funds, and fixed deposits.
- Keep an eye on your portfolio's performance. Use the information you gain to adjust your strategies.
Paper Trading Apps in India
Let's explore some of the best paper trading apps in India.
Neostox
Neostox provides a real-time paper trading app for the Indian market. It specializes in advanced charting tools, strategy builders, and real-time market data, which is excellent for beginners and experienced traders. The platform also allows users to practice trading in equities, futures, options, and currencies.
Neostox offers both free and paid versions. The free version has limited features while the paid version includes more advanced functionalities.
Sensibull
Sensibull focuses on options trading and its paper trading app is known for its easy-to-use interface and features like strategy builder. The app simplifies options trading for beginners while providing powerful tools for experienced traders.
It offers a free trial, but full access requires a subscription. The free version has basic features, while the premium version includes more advanced analysis tools
Dalal Street
Dalal Street virtual trading is offered by the Dalal Street Investment Journal. It is known for its realistic market simulation and provides real market conditions for trading stocks.
The app is free to use.
TrakInvest
TrakInvest stands out for its social trading and learning features. The paper trading app provides a simulated environment for stock trading.
It offers both free and paid options. The free version allows access to basic features while the premium version brings more advanced tools and resources.
Stock Trainer
Stock Trainer is a mobile-based paper trading app. It is known for its user-friendly mobile interface and real-time market data from over 20 stock markets worldwide. This app is mainly popular among users who prefer mobile-based trading simulations.
This application is generally free to use.
ChartMantra
Provided by the Economic Times, ChartMantra is an educational and gaming platform that focuses on teaching the basics of technical analysis in trading. It's an excellent tool for those looking to focus specifically on charting and technical analysis skills.
ChartMantra is a free platform.
Investfly
Investfly offers a virtual stock trading platform where users can create and manage their virtual portfolios. Its unique feature is its stock market game, where users can participate in trading contests and also automate their trading strategies using the trade automation feature.
The app has both free and premium options.
Wall Street Survivor
Although based in the U.S., Wall Street Survivor is accessible in India and provides a platform for paper trading. The platform is known for its extensive educational content including courses, articles, and videos on investing, trading, and personal finance.
Final Words
While it's possible to start with real trading and Demat accounts, but, starting with virtual trading is wise. It makes it possible to understand the volatile financial market without risking your hard-earned money. Platforms like Moneybhai and others offer realistic paper trading apps to start your trading journey.