Inaya Mclaughlin
Paper trading is a way to test out an investing strategy with fake money before putting real money behind it. While Fidelity does not currently offer paper trading, there are other platforms that do. One such platform is the Virtual Stock Exchange hosted on MarketWatch, a financial news site. This platform allows users to create or join games where they compete against others to produce the best returns with their imaginary money. Another option is Investopedia's free stock market simulator, which also offers the ability to trade stock options and cryptocurrencies. For those looking to get a feel for the layout and features of an online brokerage, thinkorswim's paperMoney feature offers a highly acclaimed trading software with charting, screening, and other educational tools.
| Characteristics | Values |
|---|---|
| Paper trading availability | Not currently offered by Fidelity |
| Alternative | Fidelity Youth Account for 13-17-year-olds |
| Watch list feature | Allows custom lists of securities, editing quantities and prices to simulate a position |
| Watch list feature platforms | Fidelity.com, Active Trader Pro (ATP), and the Fidelity mobile app |
| Other paper trading options | Investopedia, WeBull |
What You'll Learn
Fidelity Youth Account
Fidelity does not currently offer paper trading as a feature on its platforms. However, depending on their age, individuals may be eligible to open a Fidelity Youth Account, which is designed for 13 to 17-year-olds to learn about saving, spending, and investing.
A parent or guardian must have their own Fidelity personal investing account for their teen to establish a Youth Account. While the Youth Account does not support paper trading, it offers a real-world opportunity for teens to gain financial literacy and make informed decisions about money management.
For those specifically interested in paper trading, there are other platforms that offer this feature. Paper trading allows users to simulate investing strategies with fake money and track their results without risking real capital. This can be beneficial for short-term day traders or cautious long-term investors who want to test their ideas before committing actual funds.
Some popular paper trading sites and stock market simulators include MarketWatch, Investopedia, Finviz, thinkorswim (paperMoney), and eToro. These platforms offer various features, such as investing in stocks, ETFs, options, and cryptocurrencies, providing a risk-free environment for individuals to practice and refine their trading strategies.
Mutual Fund Inheritance: Where to Input Tax?
You may want to see also
Watch list feature
Fidelity's watch list feature allows customers to create custom lists of securities. This feature is available on Fidelity.com, where it can be found under the "News & Research" tab by clicking on "Watch List". It is also available in Active Trader Pro (ATP) and the Fidelity mobile app.
Once a list is created, customers can edit quantities and prices to simulate a position. This can be a useful way to test out different investment strategies without risking any real money. For example, customers can add columns such as Day and Total Gain/Loss to their watch lists to track the performance of their simulated investments over time.
The watch list feature also includes streaming quotes, providing real-time market data to inform investment decisions. This feature can be particularly valuable for those who want to actively trade and make timely investment choices.
Overall, the watch list feature on Fidelity's platforms offers a useful tool for customers who want to experiment with different investment strategies and stay informed about market trends without putting their own capital at risk.
Index Funds: Low-Cost, High-Return Investment Opportunities
You may want to see also
Stock Market Simulators
For younger investors, Fidelity does offer a Youth Account for 13 to 17-year-olds. This account helps teens learn to save, spend, and invest, but it requires a parent or guardian to have their own Fidelity personal investing account. Additionally, Fidelity's watch list feature allows customers to create custom lists of securities and edit quantities and prices to simulate a position. This feature is available on Fidelity.com, Active Trader Pro, and the Fidelity mobile app.
The Stock Market Game is another valuable resource for learning about investing. It is an online simulation of the global capital market that engages students in economics, investing, and personal finance. The game has been shown to improve academic performance, financial knowledge, and saving and investing habits. It offers a competitive multiplayer feature where players can test their skills over a simulated 5-year period, managing stocks, bonds, and mutual funds.
Pension Funds: Where Are Your Retirement Savings Invested?
You may want to see also
Fidelity's online brokerage
Fidelity is an online brokerage that offers a wide range of investment and trading services to its customers. While paper trading is not currently available on Fidelity's platforms, the company offers a variety of other features and tools to assist investors in making informed decisions.
One such feature is the watch list, which allows customers to create custom lists of securities and simulate positions by editing quantities and prices. This feature is available on Fidelity's website under the "News & Research" tab, as well as on the Fidelity mobile app and Active Trader Pro (ATP).
Fidelity also provides advanced trading tools and platforms, such as the Active Trader Pro Platforms, which offer real-time, streaming market updates, direct and intelligent order routing, portfolio management tools, customisation options, and advanced order types. These tools are designed to help traders make smarter decisions and provide clear next steps.
In addition to its trading platforms, Fidelity offers a range of investment options, including mutual funds, exchange-traded funds (ETFs), and international stock trading in 16 different currencies. The company also has a Learning Center, which provides educational resources such as training videos, articles, and expert opinions to help build investment knowledge.
For those who are new to investing, Fidelity offers the Fidelity Youth Account for teenagers between the ages of 13 and 17. This account allows teens to learn about saving, spending, and investing, with the guidance of a parent or guardian who has their own Fidelity personal investing account.
While paper trading is not available, Fidelity's online brokerage provides a comprehensive suite of tools, resources, and investment options to help its customers make informed trading decisions and build their investment knowledge.
Money Market Funds: Where to Invest for Smart Returns
You may want to see also
Paper trading with other platforms
Paper trading is a great way to get comfortable with the process of investing and is offered by several online brokers. Here is a list of some of the platforms that offer paper trading:
Interactive Brokers
Interactive Brokers combines the best of paper trading and real trading. It offers a large number of tradable securities and a good amount of fake cash to play with. It also has low fees and an excellent platform. Interactive Brokers doesn't limit you to a certain number of securities, and you can paper trade any security it offers.
Webull
Webull is a good choice if you want an unlimited supply of fake cash for paper trading. It offers a slick interface for desktop and mobile apps and is popular among the mobile-first generation of casual investors. Webull offers commission-free stock, options, and ETF trades, as well as a high interest rate on uninvested cash. However, you need a separate app to trade crypto.
Moomoo
Moomoo is another platform that offers an excellent paper trading experience. It is suitable for more active traders as it offers free stock and option trades in an easy-to-use trading platform with low margin rates. However, it does not support IRAs or mutual funds.
TradeStation
TradeStation is a strong choice for active stock, options, and futures investors who want high-quality trading platforms, comprehensive research, and sophisticated analytical tools. It offers commission-free stock, options, and ETF trades, but does not have transaction-free mutual funds.
Charles Schwab
Charles Schwab is a well-known legacy broker that offers paper trading. It offers commission-free stock, options, and ETF trades, a large selection of no-transaction-fee mutual funds, and strong retirement planning tools. However, it has a low-interest rate on uninvested cash and a high fee for transaction-fee funds.
Other Options
Other platforms that offer paper trading include NinjaTrader, Zacks Trade, and E*TRADE. NinjaTrader is a good choice for experienced futures traders, while E*TRADE appeals to active traders and intermediate investors with its low fees and extensive educational resources. Zacks Trade stands out for offering free broker-assisted trades.
Private Funds Group: Investment Banking's Private Wealth
You may want to see also
Frequently asked questions
No, Fidelity does not currently offer paper trading on its platforms. However, depending on the person's age, they may be eligible to open a Fidelity Youth Account, which is designed for teens aged 13 to 17 to learn about saving, spending, and investing.
There are several paper trading sites and stock market simulators available, such as the "Virtual Stock Exchange" on MarketWatch, Investopedia, Finviz, thinkorswim, and eToro. These platforms offer various features, including the ability to trade with fake money, compete with others, and track the performance of your picks.
Paper trading allows individuals to test out their investing strategies with pretend money before risking their own capital. It is particularly useful for short-term day traders looking to test rules-based strategies, as well as cautious investors who want to buy and hold.
