How to Paper Trade on Webull

To paper trade on Webull, simply open an account, select the "paper trading" option and start practicing without risking real money.

Trading in paper trading or demo accounts involves trading with virtual money. It eliminates any real monetary risk the trader would otherwise take in a live funded account. Paper trading makes a lot of sense if you’re unfamiliar with trading, no matter whether you’re trading stocks, forex or in any other market.  

Demo accounts can now be opened with many online brokerages, including commission-free brokers like Webull. Webull’s paper trading account is funded with virtual money and comes with all of the features and functions of an actual trading account, so you can experience what it’s like to trade through the broker. 

Learn how to do paper trading on Webull now.

What is Paper Trading?

Paper trading is basically practice trading or trading with virtual money. When you open a paper trading or demo account with a broker like Webull, you’re taking no monetary risk. Paper trading lets you study the market and practice without losing or making any money. 

How Does Paper Trading Work?

Paper trading is a way for traders to practice without financial risk. It creates a risk-free space that mimics real trading experiences. Traders can test their ideas using virtual capital. The process involves several steps. First, traders choose a security, such as a stock or option. Then, they develop a trading strategy, like swing trading or day trading. After that, they place simulated orders and track their virtual portfolio's performance. While paper trading has benefits, traders must be aware of the risks involved with options trading. Market conditions and emotional reactions can vary in real trading. This can lead to unexpected results. Practicing with paper trading helps traders prepare for actual market challenges.

How to Paper Trade on Webull

Paper trading helps both new and experienced investors practice trading without risking real money. Webull provides a user-friendly platform for paper trading. Users can simulate trades and observe market trends. By following a few simple steps, they can set up paper trading and build their skills. This guide explains how to start and manage paper trades on Webull. It allows traders to explore the markets without any financial risk. Whether testing strategies for learning the platform, these steps will help you get started.

Step 1: Open a Webull Account

The 1st step for paper trading is to open a Webull account, which can be done either through your desktop computer or via your mobile device. You won’t need to fund the account since you’ll be trading with virtual money initially. 

To open a Webull account you’ll need to enter an email address to receive a verification code and specify a password of between 8 to 20 digits. After you’ve correctly entered your verification code, you’ll be directed to a page describing Webull’s additional insurance policy for clients and its Securities Investor Protection Corp. (SIPC) coverage. 

After registering an account, you can download Webull’s phone or desktop app. You’ll need at least 320 megabytes of storage space on your desktop computer for the application. 

Step 2: Log into the Webull App

Just log into the app with your email and password combination. You can also log in with your phone number if you signed up using your mobile phone. You may also qualify to receive a free 3-month subscription to Webull’s Level 2 market data.  

After you’ve accessed the Webull trading platform, you’ll need to press a button on the right side that says “Unlock Trading”. U.S.-based traders need to provide identification to open a trading account. If you don’t submit this identification information, you won’t be able to unlock the paper trading feature of the application. 

Many people who hold a valid U.S. driver’s license identify themselves by submitting photographs of the front and back of that ID card. 

You can also open an account with a valid U.S. passport; an E1, E2, E3, F1, H1B, H3, TN1, O1 or L1 visa; a Social Security Number (SSN) or an Individual Tax Identification Number (ITIN). 

Step 3: Select Paper Trading on the App

You’ll now be able to select a layout for paper trading or paper day trading by pressing on the small icon of a circle with a dollar sign on the menu on the left side of the desktop application. Mobile users can press the same icon on the app menu page. 

Step 4: Start Trading

Now that you’re completely set up with your paper trading account, you can begin to trade stocks on the Webull trading platform with virtual money. Webull provides a very generous amount of $1,000,000 to begin paper trading, so you can start trading virtually in just about any exchange-traded U.S. stocks. 

Selecting the stocks to trade depends on your own research. If you have a background in a certain industry or have familiarity with how a particular listed company does business, you might want to start trading those stocks. 

If you’re completely new to trading stocks, you’ll need to take some tutorials on how the stock market works. Fortunately, Webull provides a learning center that you can access on the trading platform via a book icon on the left side of the platform’s page. 

How to Use Charts on Webull

The Webull trading platform’s charting function lets you view price charts and display the standard technical indicators found on most other trading platforms. If you don’t know how to use charts, you can look over the various educational resources on technical analysis found on Webull, and you can also find a wealth of videos, articles and courses on technical analysis on the Internet.  

Can You Trade OTC Stocks on Webull?

Webull does not offer trading in over-the-counter (OTC) or pink sheet (OTCBB) stocks, although the broker does provide trading in penny stocks (stocks priced under $5 per share) that are listed on the New York Stock Exchange (NYSE) or the Nasdaq Stock Market. 

Benefits of Paper Trading on Webull

Webull offers paper trading for investors. It provides a risk-free way to practice trading skills and strategies. Users can execute trades, analyze market movements, and test investment techniques without losing real money. This is helpful for beginners to gain confidence and for experienced traders to try new strategies. Webull’s paper trading includes real-time market data and advanced trading tools. This helps users to decide wisely and gain insights. Overall, it is a valuable resource for improving trading skills before using real capital.

Risk-Free Learning Environment

Webull offers a paper trading feature that is ideal for new traders seeking practical experience without financial risk. Users can simulate real trades with virtual money, which helps them get to know the platform, understand stock market functions, and try out various types of trades (such as stocks, options, or ETFs) without the worry of losing real money. This is particularly advantageous for beginners, as it allows them to prevent expensive errors during their learning process.

Access to Real-Time Market Data

Webull offers real-time market data in its paper trading environment, unlike some platforms that provide delayed data for simulations. This feature allows users to engage with current pricing and trends, giving them a realistic perspective of their trades under actual market conditions. Access to precise data aids traders in comprehending market volatility, price movements, and the influence of external factors.

Strategy Development and Discipline Building

Paper trading on Webull is a useful tool. It allows traders to test and refine their strategies without risking real money. Traders can explore day trading, swing trading, or options strategies freely. This practice helps develop important skills like patience and discipline. Users can make informed decisions, manage risk, and analyze trades without emotional pressure. Over time, this builds confidence. As a result, traders are better prepared for actual trading.

Webull Commissions and Fees

Webull does not charge commission on stock trades, although you will need to pay several minimal fees associated with trading. These include Securities and Exchange Commission (SEC) transaction fees and regulatory fees from the Financial Industry Regulatory Authority (FINRA) that apply to stock, exchange traded funds (ETF) and options trades.

If you sell stock short, you will need to obtain a loan of the stock you want to sell and pay interest on the shorted stock’s value. This amount depends on the shorted stock’s availability, the prevailing broker loan rate and the interest charged on margin trading. 

Webull Promotions 

Free Stock #1: Get 20 Free Fractional Shares (Valued between $3-$3000 Each)

Eligibility: Open a new individual brokerage account with Webull and deposit between $500 and $24,999.99 during the promo period. Keep this balance for 30 days. Only new Webull clients are eligible. Claim your shares from the "My Rewards" page on Webull within 30 days after the account period ends.

Free Stock #2: Get 75 Free Fractional Shares (Valued between $3-$3000 Each)

Eligibility: Open a new individual brokerage account with Webull and deposit at least $25,000 during the promo period. Keep this balance for 30 days. This offer is only for new Webull clients, and the deposited amount must stay in the account for the specified duration to receive the shares.

Is a Webull Account Right for You?

Webull offers commission free trading for stocks listed on the NYSE and Nasdaq and it’s a good choice for beginners and seasoned traders alike who want to start paper trading. The broker’s desktop and mobile applications provide educational resources and are intuitive and easily learned by new traders.

If you are looking for a robo-advisor to help you pick your stocks, Webull also fits the bill. Webull supports 24/7 trading in Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC). 

On the other hand, if you plan on trading OTC or penny stocks not listed on the NYSE or Nasdaq, you may want to look for another broker since Webull does not support trading in those stock types. 

Frequently Asked Questions