Which site should I paper trade with? Google? Yahoo?

KenLong answered 2 years ago …

It depends on what your trying to learn to trade. I have a paper account listed in my portfolio tracker on MSN, you can create as many accounts with whatever names you like there. But I dont use it to paper trade. I use the portfolio tracker to keep track of my stock and option accounts, whether they are paper or real.

If you want real experience use a simulator. Treat it as real money. Use a real amount, that you could potentialy afford. Log it into a portfolio tracker and treat it is real. Trade it with the intention of growing your capital, as you would a real account.

If you want to play, test ideas, or experiment, open anouther simulator account. This way you can test all kinds of strategies. You can experiment with short term directional trading, day trading, swing trading, option trading using different strikes and time alotments, volitility trading, etc, as well as just working on the basic trading skills, setting and using limit and stop limit buy orders, setting and trailing stop losses, and just learning the trading platform.

OX (optionsxpress) has an ok simulator, but I like the simulator on TOS (thinkorswim) much better. TOS has a software based platform that has many advantages over the OX web based platform. I still use OX, they have certain other features I like, such as a value based pricer, and nice spread analysis tools. But TOS has far superior charting, a much faster to use platform, better pricing (dont hesitate to ask for better prices, they're competative and flexible. They gave me 1.50 flat rate option pricing with no minimum, OX has a 15.00 minimum, and OX is very expensive for stock purchases), as well they are constantly adding improvments to their platform, and they listen if you make sugestions.

My simulator on TOS was open right away, months before I got my account funded, as soon as I mailed the paper work in. Additionaly I've opened up Forex and futures accounts on the same platform, just so I can use the simulator, and I've never funded them.

Dont bother with IB (interactivebrokers) unless your an experienced and active trader. They charge extra fees for everything. Their base rates are the lowest in the industry, but they charge fees everytime you modify or cancel an order (this can really add up if your trailing stops on multiple small positons), they also have an inactivety fee, and they have fees for every perk and incentive that other brokers include in their package. They really only want experienced, high volume, very active traders. And if you fit that bill, its probably the best place out there you can trade. Nobody can touch their base prices.

Further, if your interested in Forex (you should be), every Forex broker out there is bending over backwards trying to give you free demo accounts, free trading tools, free subscription charting packages, free newsfeeds. There is absolutely no reason to spend money on anything extra if you trade Forex.

Have fun, experiment and practice untill you get it right. Practice until you can consistnetly repeat your results. Practice until you find a style that is easy and natural for you to follow.

Ken