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Paper trading accounts have been designed to offer users a user-friendly and safe environment without risking the loss of money. Moreover, paper trading accounts recreate real market conditions which makes them an interesting alternative for investors interested in securely testing their strategies. This guide will comprehensively examine the best platforms for paper trading in 2022.

Similarly, we will focus on their advantages and the most appropriate strategies to follow by your experience level.

Best Paper Trading Platforms UAE – List

1. eToro – Overall Best Paper Trading Platform For 2022
2. Capital.com – Suitable Paper Trading Platform For Beginners
3. Libertex – Best Paper Trading Platform with MT4 Compatibility & Tight Spreads
4. IG – Highly Recognized & Trusted Paper Trading Platform With Risk Management Features
5. Skilling – Impressive Paper Trading Option With Third-Party Platforms Support

Best Paper Trading Platforms Reviewed

1. eToro – Overall Best Paper Trading Platform For 2022

Free day trading simulatoreToro is considered one of the best paper trading platforms available in the market and is highly praised for being an excellent broker in the online space.

The registration process is quite simple and would take you a few minutes. Users can then start using the demo trading platform right away. As a result, no deposit is required to access the platform. eToro comes pre-loaded with a $100k demo balance. Most importantly, the eToro demo feature replicates live market conditions. Therefore, you can comprehensively understand how the online trading scene functions.
Virtual trading account

You can trade directly from your web browser, so you don’t need any software to start trading. The eToro mobile app is also available on iOS and Android. The platform is heavily regulated – with licenses from the FCA (UK), CySEC (Cyprus), and ASIC (Australia). Additionally, eToro is registered with FINRA (USD).

eToro’s straightforward user interface lets you easily switch from a demo to a real account. The broker offers more than 2,500 stocks, 250 ETFs, and more than 60 cryptocurrencies to trade on a demo account.

If you want to trade in the real mode, eToro accepts payment via credit/debit cards, e-wallets, and bank transfers. Furthermore, as a social trading platform, eToro offers a range of beginner-friendly tools to aid beginners.

Pros:

  • The demo account has a $100K allowance
  • With 20 million+ clients, it's super user-friendly
  • The FCA, CySEC, ASIC, and FINRA regulate the platform
  • Fee-free stock buying
  • Choose from 2,400 stocks and 250 ETFs across 17 international markets
  • Debit/credit cards, e-wallets, or bank accounts can be used to deposit funds
  • Copy the trades of other experienced traders
  • The FCA, CySEC, ASIC, and FINRA regulate the platform

Cons:

  • Does not offer a wide variety of trading tools for experienced traders

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Capital.com - Suitable Paper Trading Platform For Beginners

Practice investing onlineBeginners looking for a platform for paper money trading should look closely at Capital.com. There's nothing complicated about the trading platform this popular CFD broker offers.

Registering an account can take advantage of the paper trading facility as soon as possible. Trading can be conducted over the web using the Capital.com platform, or you can use MT4 if you are a beginner.

No matter what you choose, Capital.com's demo trading offers a replica of real-life trading conditions. The company offers thousands of stock CFDs from a wide range of markets - including forex, commodities, indices, cryptocurrencies, and ETFs. If you wish to upgrade to a real money account at Capital.com, you can trade all assets for a commission and with tight spreads.

Paper trading uae

It is also worth mentioning that Capital.com offers an extensive collection of educational tools as part of its platform. In addition, through the paper trading platform, you can access videos, guides, and mini-courses which will provide you with an easier way to learn. Lastly, when you're ready to start trading with real money - you only need a $20 deposit.

Payment options supported by this top-rated CFD broker are diverse. Several payment methods, such as debit/credit cards, e-wallets, and bank transfers, can be used. In addition, with Capital.com, you can rest assured that your money is secure since the platform is regulated by the FCA and CySEC.

Pros:

  • Markets with 0% commission
  • Tight spreads
  • Wide range of CFD instruments
  • Suitable for beginners
  • Just $20 as a minimum deposit

Cons:

  • CFDs are the only investments allowed

83.45% of retail investor accounts lose money when trading CFDs with this provider.

3. Libertex - Best Paper Trading Platform with MT4 Compatibility & Tight Spreads

Demo trading account uaeIn the third place of our best paper trading platforms, we found Libertex. It's safe to say that Libertex is one of the best paper trading platforms, especially with MT4 support.

On Libertex, you don't need to pay spreads because the quote you see on-screen applies both to the bid and ask price. Using this method, you can target small margins when day trading. Furthermore, Libertex doesn't charge any trading commissions on many markets.

With your Libertex login credentials, you can sign up for MT4 with your Libertex account. Upon doing so, you will instantly have access to €50,000 in paper trading funds. In addition, you will be able to explore all the features MT4 offers - order types, indicators, and chart drawing tools.

Most importantly, you can deploy fully automated forex robots or EAs. To install the software, simply download the appropriate file and install it into MT4. Then, with MT4/Libertex, you can activate the robot and watch its performance in real-time market conditions - risk-free.

Free day trading simulator
The minimum deposit for Libertex is just €/$100 if you use it with real money. Adding funds can be done with an e-wallet, a debit card, a credit card, or a bank wire. CFD trading instruments supported by the platform include stocks, commodities, digital currencies, indices, ETFs, etc.

Additionally, Libertex is a good option if you plan on trading with leverage. Brokerage firms offer up to 1:600 for professional clients and less for retail investors. The company is regulated by CySEC and was founded over two decades ago. You will benefit from such a broker's long-term track record in the industry.

Pros:

  • MT4 Compatible
  • Wide range of markets
  • Highly competitive commissions
  • Provide good educational resources
  • Long-term broker

Cons:

  • CFDs are all they offer

Your capital is at risk.

4. IG - Highly Recognized & Trusted Paper Trading Platform With Risk Management Features

Virtual trading accountSince 1974, IG has been a trusted and regulated brokerage firm, and more than 239,000 clients have used the platform to trade. In addition, it is licensed to offer trading services to more than 100 countries.

This UK-based broker provides its customers with a complete feature set of IG Markets paper trading accounts. For example, you can utilize a variety of options for risk management, as well as market monitoring.

In this account, you can also set alerts and notifications for any major price movements in the market. This way, you can take immediate action if possible. Moreover, you can trade any investment instrument with this account, whether forex, commodities, stocks or other asset classes.

Practice investing online

The paper trading account allows you to use IG Markets' real trading platform. Using this demo account, you can experiment with different investment assets and learn how to trade them.

IG also supports the MT4 platform. If you decide you want to open an IG paper trading account today, you can do so within a few minutes. IG paper trading does not require a deposit and can be opened immediately. When you are ready to perform live trading, it is good to know several supported payment methods, including credit/debit cards and bank transfers.

Pros:

  • Suitable trading platform for forex trading
  • There are more than 80 currency pairs available
  • Trade on the IG website or app
  • MT4 compatibility
  • Over 40 years in the brokerage business
  • Funding accounts with popular payment methods

Cons:

  • The minimum deposit is $250

Your capital is at risk.

5. Skilling - Impressive Paper Trading Option With Third-Party Platforms Support

Paper trading uaeWith Skilling, you can access over 800 CFD instruments on an easy-to-use online trading platform. In addition, numerous forex pairs, cryptocurrencies, stocks, and indices are supported.

On Skilling, traders can alternate between the live account with real money and the paper trading account with virtual money. These two accounts are both real-time and reflect the market accurately. Concerning funds, the paper trading account provides $10000 in virtual funds, which have the leverage of 1:500.

The good news for the account holder is that the account does not have an expiration date, and there is no fee to pay. That way, traders can practice as long as they wish and get comfortable with the process.

Demo trading account uae

Several third-party trading platforms are compatible with Skilling including MT4 and cTrader so that you can deploy automated CFD trading robots and forex EAs using these programs.

Regarding regulation, the FSA and CySEC control Skilling ensure its safety and reliability. The minimum deposit that Skilling requires is $100, and the deposits can be made using a debit/credit card, wire transfer, or an e-wallet.

Pros:

  • Supports over 800 financial instruments
  • Commission-free stock trading with tight margins
  • Perfect for beginners
  • With mobile apps for iOS and Android

Cons:

  • No support for ETF trading

Your capital is at risk.

Paper Trading In The UAE -  Guide

What Is Paper Trading?

The concept of paper trading is simple: it is just a tool for simulating trades. When people practice investing online, they can use this platform to simulate the shares and equities markets in a virtual environment which is remarkably accurate.

In order to learn how to trade in a realistic environment without losing money, beginner traders usually practice with virtual funds rather than their own money, which allows them to learn how trading works and how to make it work. This helps avoid losing large sums of capital if a strategy does not work as expected.

Considering this, there is no way to make money with paper trading. The profits you get are only meant for a virtual account on a simulation market.

It should also be noted that most paper trading platforms can be accessed by experienced investors and can be used for charting and testing features.

Free day trading simulator

What Are The Main Benefits Of Paper Trading?

Many paper trading UAE software providers are suitable for investors of all experience levels. Using such a platform as described above has numerous benefits, which will be discussed below in detail.

Learn To Trade For The First Time

When it comes to entering the live trading markets without the required knowledge and experience can be a demanding experience for a new investor.

Paper trading platforms best serve those who lack these skills since it provides an opportunity to learn how to trade in a risk-free environment. In addition, they can be used to introduce beginners to the platforms before they invest any real money into them.

Most of the time, traders may use the paper trading balance they choose for as long as they want without any time limitations. Alternatively, on social trading platforms like eToro, the best investors can be copied, allowing users to learn from them.

Test New Strategies

There are a wide variety of paper trading platforms to choose from, and you can choose the one that will most effectively meet your needs. Here are a few paper trading strategies you can try to get the most out of your paper trading accounts.

Scalping

In scalping trading, many short-term trades are placed in a short period. A scalp trader aims to take advantage of price movements at the start of a trend when they are more likely to be directional and strong. In contrast, the idea with scalping is to exit your trade before the price moves collapse or reverse - the trader does not wait for it to finish.

However, scalping trades typically have a low return. This is because the day-to-day earnings of scalpers are compounded by placing dozens of trades.

Swing Trading

Swing traders capitalize on momentum shifts to make money. For example, when there is a strong price movement, such as a breakout or reversal, you can take a position and then hold it as the movement evolve. This is a multi-day trading strategy. 

Price Action Trading

Rather than relying on technical indicators, price action trading relies on price data. This is because prices are offered information about where they are headed next based on their magnitude and speed, while technical indicators are typically several periods behind the market.

Traders can arrive at different conclusions about the price trajectory by analyzing the same setup, making this trading style different from another.

Risk-free Trading

In practice, you are trading through a demo trading account UAE. Therefore allows you to examine your strategies and determine whether you are at risk by using virtual funds and recreating the real market conditions. Then, it will be easier for you to draw better strategies and know when to act in the market when you are trading without the risk of losing real money.

Trial An Automated Trading System

Automated trading's key attraction is eliminating human emotional factors and using cutting-edge algorithms to raise the bar for success. As a result, this form of trading is becoming increasingly popular in the online investment orb.

The tool enables you to manage and trade your financial instruments on your behalf. Most often, this is achieved via a piece of software called a trading robot which is the software you can insert into trading platforms such as MT4. It will start trading on your behalf 24 hours a day as soon as you activate it in your chosen platform and link it to the broker you want to use.

You can test out a new automated trading robot in a low-risk environment by using a broker that supports MT4. To determine how effective a robot is, you would allow it to trade for a few weeks with funds on your demo account. You might consider using it with real money only after successfully using the robot during the trial period.

Get To Know A New Platform

For beginners and experienced traders, using a paper trading account is a safe way to make comparisons of different trading platforms and learn more about them.

Finding a reliable provider with hundreds of trading platforms available on the Internet can be challenging. Many brokerage sites now offer low-cost trading services to retail investors because there is little to differentiate them.

In order to test out a broker before committing financial resources, paper trading platforms are invaluable. You can make an educated decision by comparing the liquidity on the platform with what the spreads are and how easy it is to put an order on the platform.

Virtual trading account

Moreover, demo accounts will indicate how suitable a platform is for your needs. For instance, with the best paper trading platforms like eToro, you can practice trading, view the available markets, and use an straightforward interface to explore the available social trading options.

When you feel comfortable with the broker, have had an opportunity to experiment with them in demo mode, and are satisfied with your results, you can open a real money account with it.

Try A Trading Signal Service Risk-free

The best paper trading apps provide some very valuable advantages. These include testing the best forex signals in a risk-free environment.

The signal service will also discover the required take-profit and stop-loss order prices. In addition, experienced investors who conduct market research can provide you with trading suggestions.

It is advisable to use your preferred paper trading platform to place the proposed orders. If you find the trading signals profitable after a few weeks, you may want to consider investing real money to trade with.

Paper Trading Strategies

The most effective way to make the most of a paper trading account is to make sure you get the most out of it if you are using it to become an all-around investor.

Listed below are a few paper trading strategies you can use right now to maximize your trading account:

Bankroll Management

When maximizing your profits on paper trading platforms, it is crucial to implement an effective bankroll management strategy. If you eventually get around to trading with real capital, this should reflect the investment budget you have in place.

As an example, let's take a look at a real-world situation: 

  • Suppose that the amount you intend to invest is around $5000. However, you place paper trades equal to more than two or three times that amount. 
  • The amount you described would be unrealistic to be trading since it doesn't reflect the investment budget.
The ideal scenario in which you should make this decision is to set aside a buffer of $5,000 from your paper trading account and use this to cover the losses incurred.

Risk Management

Practice investing online

The use of a paper trading platform comes with the advantage of allowing you to learn risk management strategies as well. When you eventually get to the point of trading with real capital, you will be in a good position when you do this first. Since no additional risk is involved, many investors may decide to employ riskier strategies than they would in their regular trading accounts.

The first step should be creating a fixed stake plan. If you are investing a lot of money, it's recommended that you do not stake more than 1% to 5% of your funds at a time. Creating a diverse portfolio allows users to reduce the possibility that they will incur heavy losses from a single trade.

Furthermore, you can also limit further losses by using a stop-loss feature with each trade you execute. With the former, your investment will be sold to earn you a profit once it passes a certain fixed profit threshold. On the other hand, the latter will trigger a sale as soon as it dips below a particular point.

Calculate Risk Reward

Whenever you wish to do paper trading, you should ensure that your targets and objectives are clear for the trade.

For example, if you think there will be an upside of 10% on your chosen asset, make that clear in your take-profit order. Likewise, considering your paper trade, consider the downside as well.

As such, if you believe a further drop of 5% on your trading instrument could mean a longer downward trend, you should reflect this in your stop-loss order.

When you prioritize calculating your potential risk and reward with each trade you make, you will always have a clear vision of your entry and exit strategy.

How To Start Paper Trading In The UAE

Step 1: Open A Trading Account

If you are interested in using eToro's paper trading services, you will need to register an account. However, it will only take a few minutes to fill out basic personal information, such as your name, address, nationality, date of birth, and e-mail address.

Paper trading uae

eToro also asks for your mobile number to verify to prevent people from opening multiple demo accounts.

Before going forward, don't miss to save your username and password when setting up your paper trading account. This will enable you to log in and identify yourself when making trades.

Step 2: Switch To Demo Mode

When you have created an eToro account, you can immediately begin using the paper trading simulator to practice your trading skills. On the left side of the dashboard, click on the 'Real' button, then select 'Virtual Portfolio.'

Demo trading account uae

Upon switching to virtual portfolio mode, you will be prompted by a message box to let you know. Then, if you wish to keep going, click on the 'Go to Virtual Portfolio' button.

If you proceed with this step, you will notice $100,000 in virtual equity at the bottom of the screen.

Step 3: Start Trading

If this is your first time using eToro, you should note that even though you are in virtual mode, everything you see on your screen mirrors what you would see if your account was in real money. You can only place orders using the balance in your virtual account.

Select a market first before starting paper trading. Then, on your dashboard, click the 'Trade Markets' button to see what markets eToro supports. The top of the page has a search box that can also help you locate a market.

After selecting which market you wish to trade in, you must set up your order. Then, when you click the "Trade" button next to the market you want to trade in, a pop-up box will appear, allowing you to enter your order.

Free day trading simulator

It is possible to choose between buying or selling - depending on whether you plan on expecting the price to rise or fall. Furthermore, to minimize losses, eToro allows you to enter a Stop/Loss and a Take Profit option.

Click "Set Order" once you have completed your paper trading order.

Best Paper Trading Platforms UAE - Conclusion

Here we have reviewed the best paper trading platforms you can use as a beginner and experienced trader. It is interesting to note that most of the time, you do not need to deposit to gain access to the demo account. You can even test out new strategies, automated trading, or strategies in a risk-free environment if you're an experienced investor using paper trading platforms.

eToro is one of the best paper trading platforms for users to uncover the most beneficial and profitable trading strategies. Additionally, eToro's paper trading site perfectly replicates the conditions of live markets by including a variety of international markets and multiple asset classes. eToro's beginner-friendly tools make it an ideal platform for investors seeking a risk-free trading environment, including a copy-trading option that allows investors to practice interactive trading.

eToro's trading platform can be accessed by clicking on the link below. Creating an account takes just a few minutes, and once you do, you will have access to a $100k trading balance.

Virtual trading account

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

What is paper trading?

Investing in paper trading refers to a tool incorporated into trading platforms as a trade simulation tool. This feature allows users to buy and sell multiple asset classes risk-free using virtual money based on live market prices.

How to paper trade options?

Firstly, you should make sure that your preferred broker allows you to trade options. In this case, registering and creating a paper trading account would be in your best interest. After that, you must select which options to buy or sell on the broker's market, guess the strike price, and subsequently decide the option's timeframe.

What is the best paper trading platform in the UAE?

An ideal platform should let users select asset classes and have an interface that closely mimics a live trading environment to make paper trading as effective as possible. Because of this, we recommend eToro as a top-notch trading platform in the UAE for paper trading.

What is the best paper trading platform in Dubai?

As a paper trading platform in Dubai, eToro is considered the most reliable option. This is because it allows users to access demo accounts immediately after completing a quick registration process. Furthermore, keeping in mind that you can test out your trading approach easily and quickly with eToro's paper trading account will also ensure that you can quickly and easily determine if your trading approach is viable. In addition, their paper trading accounts offer access to multiple markets so that you can test out several trading strategies.

Can you paper trade in Dubai?

Yes, it is possible. Using a paper trading platform means not trading with real money. In other words, all the profits you make will be virtual, and, in turn, no capital gains tax nor any other government restrictions will be imposed on you.

About Omar Ortiz
About Omar Ortiz

Radio producer, interested in international media, long distance communications, technology and world cultures.