Day Trading Simulators – Practice Day Trading for Free

Buying and selling securities within a single trading day involves cashing in on even the smallest price movements. Trading in highly liquid stocks or currencies requires a strategy. Day trading simulators can be pricey, but fortunately, there are free options too. These simulators enable you to be able to practice day trading and access data to make decisions as if you were trading for real. The solution to many questions like how to execute day trades, use tools, monitor trades is a simulator. Trading simulations allow potential investors to test trading prowess without risking any capital.

  • Day trading simulators offer a lot of value for new traders and experts alike
  • While new traders can learn through simulations, experienced traders can test different strategies
  • Familiarise yourself with order types, patterns, indicators and replicate live trading using simulators
  • Simulators do not teach you risk management, however.
CFD Highlights

Simulations: Virtual Trading Platforms For Real Profits

Day trading simulators are the best learning tools available for prospective day traders to learn the ropes. As technology has advanced, trading simulations have become more sophisticated. Back-trading permits day traders to test strategies using real-life historical data. You can use simulators to test if a strategy yields positive outcomes. Taking advantage of tools like simulators offers a lot of value, especially for novice traders. Simulators can combine with analysis and charting software to provide potential investors with real-life results based on actual market activities.

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Day trading simulators also offer experienced traders a chance to validate and evaluate new strategies for specific markets. It also enables them to see how their results would have been different if execution of past trades followed another strategy. Managing trades differently is now simple. Day trading simulators free up time, optimise resources and open up an infinite number of possibilities.

Simulation tools permit traders to go back in time and then fast forward to observe the results a trade yields over a span of time. Some day trading simulators even allow traders to create their own market conditions to verify the results under an array of varying conditions. If you want to practice day trading and learn the basics before investing or test out new strategies, day trading simulators are invaluable.

Top 3 Stock Broker Comparison

1
of 10 Stock Broker Charles Stanley Direct
National fees £ 11,50
Custody fee 0,25%
Intl. fees £ 11,50
Dep. Protection 50,000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 10 Stock Broker Fidelity
National fees £ 10,00
Custody fee 0,35%
Intl. fees £ 10,00
Dep. Protection 50,000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 10 Stock Broker Bestinvest Brokerage
National fees £ 7,50
Custody fee 0,4%
Intl. fees £ 7,50
Dep. Protection 50,000 GBP
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Risk warning: Capital can be lost. Terms and conditions apply.

Practice Day Trading For Free

Simulators also allow traders to hone their strategy or test out a new approach without risking capital. For this reason, simulators offer value for those who want to practice day trading. Essentially, you get to assess if analysis and trends are correctly interpreted while formulating a day trading strategy. Tools are available for multiple markets including forex simulations, with historical data for analysis.

Brokers offer free use by clients with a broker account balance. So, day trading simulators free the prospective investor from coughing up hefty fees. Play the markets without spending a single penny of your money. Even paid day trading simulators are worth the value. The USP of the simulator is its ability to validate strategies without the risks that live trading inevitably comes with. But the biggest strength of the simulator is also its weakness, according to some experts.

The critics hold that simulators teach you nothing about the most essential part of trading – handling losses and risk management. With features like replay and rewind, you can go back or move forward in simulated trading, unlike live markets. So, the real value of the simulation software depends more on the trader. For traders who are novices, simulators are a great way to begin. For seasoned traders, it’s a wonderful way to experiment.

Top 3 CFD Broker Comparison

1
of 20 CFD Broker Markets.com
FTSE spread 1.5 Points
Dep. Protection € 20.000
Max. Lever 1:30
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 20 CFD Broker AvaTrade
FTSE spread 1.5 Points
Dep. Protection € 50.000
Max. Lever 1:30
Min. deposit € 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 20 CFD Broker Pepperstone
FTSE spread 1 Point
Dep. Protection £ 50000
Max. Lever 1:30
Min. deposit $ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.

A Valuable Tool?

A simulator is a valuable tool for educating and reinforcing investors, besides increasing their sense of confidence. But while day trading simulators free investors from the pressures of live trading, they also have their pitfalls. You cannot lose any capital. You cannot make gains either. Real-time tickets can monitor your trades, but you have to use the tools to understand the information. The optimal level of accuracy for competitive advantage may be hard to attain on account of technical failures. Executing trades efficiently and effectively is limited to back-testing only, as no stock simulator can replicate the realities of live trading.

Simulators may let you practice with no risk for as long as you want, but they may not better your skills to the degree required. On the positive side, simulators are the best way to practice day trading and gain consistency. Practising anytime you want is another convenient feature. If you work during market hours, simulations let you download the historical data and practice after-hours trading. Practice stock market trading in multiple sessions within a single day.

You don’t even need to wait for a window to trade again. While simulated trading has its limitations, it enables you to test out new ideas and adjust to different order types. Replay historical trades and learn from them via a simulator. If you are a seasoned trader who wants to try out fresh strategies or work on your weaknesses, the day-trading simulator is the perfect tool for this.

Features of Simulators For Day Trading

  • A day trading simulator has all the benefits of a normal demo account, along with enhanced features.
  • Simulators come with inbuilt trading statistics. Traders can see how many winning trades were placed, the average profits or losses per trade, and losing trades plus number of trades over a certain time period. This helps in fine-tuning trading strategies.
  • Simulators permit you to see what holding winners longer or cutting losses sooner does for the trade. Free day trading simulators are available for different types of markets and asset classes. The SoftEx Forex Simulation software, for instance, permits day-traders to practice on MT4. The simulator lets traders access up to 10 days worth of historical trading days for numerous stock indices, commodities, and over 33 currency pairs. It provides price data tick-by-tick so price movements can be tracked, much like live markets. Similarly changing spreads and moving indicators replicate real-time market conditions for traders to test their strategies.

For those looking to practice through day trading simulators free for futures, a great choice is NinjaTrader. There is also a service provided on its simulator called Market Replay Connection. This can be used to download historical days for different futures contracts and then, trade these as if they were live. The NinjaTrader Replay Connection can be accessed for free by signing up for a demo account. With a 30-day free trial, which can be renewed n number of times, this free day trading simulator is pocket-friendly.

Day Trading Stocks Using A Simulator

While futures and forex are some of the asset classes that are focused on, day traders primarily deal in stocks. Stock simulators like TradingView are perfect for day-traders who focus on stocks. This platform offers free demo trading and even real-time or live data for specific markets. It provides free data for stocks. Traders have to pay for the official live data, too. For those trading using historical data, TradingView comes with a Bar Replay feature which lets traders watch the historical data unfold.

But the downside is that this feature unveils completed one-minute bars on a consecutive basis, not tick data. This does not give the correct picture of how to buy and sell orders. This means the traders will outgrow the replay feature soon. It could be useful for beginners starting to place trades, though. Some stock simulators also let you day trade futures.

TradingSim is one such option. You can create watchlists or even see top stock losers and gainers for the day using this simulator. The only catch? It’s not free! While day trading is all about cashing in on volatility, simulations are for the risk-averse. This creates a conflict of sorts, leaving many wondering whether the simulator should be used before making live day trades with capital. There are some differences between live and simulated trading. Many simulators may not account for slippage, commissions or spreads. Others do.

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Simulators Versus Live Trading

While traders starting out extol the virtues of day trading simulators, what’s great (and not so great too) about these simulators are that they are not like a live trading setting. You can trade the specific part of the day again and again or trade multiple Opens on a single day, something unheard of in live trading. So, while this offers traders a chance to practice, it also creates an artificial trading environment which has no value for the real-world trader.

Simulators can never replicate the experience that comes from being a successful live trader. They do, however, give you the confidence to implement strategies in the real world and examine biases that stand in the way of successful day trading.  The air of finality is also missing. Simulators offer you the chance to go back and fix mistakes. This can create a false picture of how well traders are doing. Practising for free is also unlike real-life trading, where real money is involved and commissions are charged. For example, if you paper trade with a position size of 10,000 shares but the stock has only 100 or so shares at that price level, in reality, it makes no sense at all to use the simulator. Intra-day trading is a routine activity.

The real market does not stop for any trader. With a simulator, features like pause, rewind and fast forward are advantages the real world just doesn’t offer.

Simulated Day Trading: Pros & Cons For Professional Traders

a) Trading is a skill that evolves. As a day trader, you have to adapt to new types of market conditions. Staying focused and disciplines is a constant endeavour. Practising day trading is important because a few profitable trades don’t mean your skills are perfect. To improve consistency in day trading, you need to work on areas and take personal responsibility for your trading outcomes.

b) Practising strategies over and over again will help you to benefit from paper trading. While some claim simulators are of little value, as they do not replicate market conditions, others hold that the simulator is essential for honing skills. The truth is in the middle somewhere. If you comprehend how to use trading simulators based on an understanding of their benefits and drawbacks, the tool can be useful. Experienced or new, traders can build or regain confidence and attain trading education through simulators.

c) Simulators can be an excellent way to develop the knowledge base each winning trader needs, whether you’re buying, shorting, selling or covering. They are great for testing day trading strategies and scans or how well the watchlist is doing. But beware of the deadly traps a false sense of confidence and ineffective risk management can inflict. Knowing how to pull the trigger on a trade requires the urgency of live trading. Trading psychology, for example, is something a simulator just cannot help you with.

1
of 21 Forex Broker Cityindex
Currency pairs 84 Currencies
Max. Lever 1:30
Trading size Mini-Lot
Minimum deposit € 100
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Risk warning: Capital can be lost. Terms and conditions apply.
2
of 21 Forex Broker Pepperstone
Currency pairs 70 Currencies
Max. Lever 1:30
Trading size Mini-Lot
Minimum deposit $ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 21 Forex Broker Markets.com
Currency pairs 50 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit $ 100
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Risk warning: Capital can be lost. Terms and conditions apply.
4
of 21 Forex Broker AvaTrade
Currency pairs 47 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit $ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 21 Forex Broker Plus500
Currency pairs 61 Currencies
Max. Lever 1:30
Trading size Depends on underlying
Minimum deposit $ 100
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CFD Service. 80.6% lose money
1
of 6 ETF Broker Charles Stanley Direct
ETFs w/ discount
Custody fee 0 GBP
Min. deposit £ 50
Trading from 11,50 GBP
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Risk warning: Capital can be lost. Terms and conditions apply.
2
of 6 ETF Broker Fidelity
ETFs w/ discount 93
Custody fee 0 GBP
Min. deposit £ 2.500
Trading from 25 GBP
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Risk warning: Capital can be lost. Terms and conditions apply.
3
of 6 ETF Broker AJ Bell Youinvest
ETFs w/ discount
Custody fee 0 GBP
Min. deposit £ 0.00
Trading from 1,50 GBP
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Risk warning: Capital can be lost. Terms and conditions apply.
4
of 6 ETF Broker Bestinvest
ETFs w/ discount 216
Custody fee 0.4% annually
Min. deposit £ 500
Trading from 0 GBP
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Risk warning: Capital can be lost. Terms and conditions apply.
5
of 6 ETF Broker DEGIRO
ETFs w/ discount 740
Custody fee 0 GBP
Min. deposit £ 0
Trading from 1,75 GBP + 0,004%
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Risk warning: Capital can be lost. Terms and conditions apply.
1
of 10 Stock Broker Charles Stanley Direct
National fees £ 11,50
Custody fee 0,25%
Intl. fees £ 11,50
Dep. Protection 50,000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 10 Stock Broker Fidelity
National fees £ 10,00
Custody fee 0,35%
Intl. fees £ 10,00
Dep. Protection 50,000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 10 Stock Broker Bestinvest Brokerage
National fees £ 7,50
Custody fee 0,4%
Intl. fees £ 7,50
Dep. Protection 50,000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 10 Stock Broker DEGIRO
National fees £ 1,75 + 0,004%
Custody fee £ 0,00
Intl. fees 0,50 € + 0,004%
Dep. Protection 20,000 €
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Risk warning: Capital can be lost. Terms and conditions apply.
5
of 10 Stock Broker IG Stock
National fees £ 8,00
Custody fee £ 8,00
Intl. fees 10 EUR
Dep. Protection 50,000 GBP
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Risk warning: Capital can be lost. Terms and conditions apply.
1
of 20 CFD Broker Markets.com
FTSE spread 1.5 Points
Dep. Protection € 20.000
Max. Lever 1:30
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 20 CFD Broker AvaTrade
FTSE spread 1.5 Points
Dep. Protection € 50.000
Max. Lever 1:30
Min. deposit € 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 20 CFD Broker Pepperstone
FTSE spread 1 Point
Dep. Protection £ 50000
Max. Lever 1:30
Min. deposit $ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 20 CFD Broker Plus500
FTSE spread Variable
Dep. Protection £ 50.000
Max. Lever 1:30
Min. deposit $/€/£ 100
Go to Broker
CFD Service. 80.6% lose money
5
of 20 CFD Broker City Index
FTSE spread 1.0 Point
Dep. Protection £ 50.000
Max. Lever 1:30
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 14 Crypto Broker IG
Crypto currencies 6
Max. Lever 1:2
Min. deposit £ 250
BTC spread 65 points
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Risk warning: Capital can be lost. Terms and conditions apply.
2
of 14 Crypto Broker IQ Option
Crypto currencies 13
Max. Lever 1:1
Min. deposit $ 100
BTC spread 6 percent
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Risk warning: Capital can be lost. Terms and conditions apply.
3
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Crypto currencies 5
Max. Lever 1:1
Min. deposit € 0
BTC spread 0
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Risk warning: Capital can be lost. Terms and conditions apply.
4
of 14 Crypto Broker City Index
Crypto currencies 5
Max. Lever 1:2
Min. deposit £ 0
BTC spread 40
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Risk warning: Capital can be lost. Terms and conditions apply.
5
of 14 Crypto Broker Markets.com
Crypto currencies 5
Max. Lever 1:2
Min. deposit $ 100
BTC spread 140 Points
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Risk warning: Capital can be lost. Terms and conditions apply.
1
of 6 Social Trading Broker ZuluTrade
Underlying assets 0
Dep. Protection 0
Min. deposit € 0
Max. Lever 1:30
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Risk warning: Capital can be lost. Terms and conditions apply.
2
of 6 Social Trading Broker eToro
Underlying assets 866
Dep. Protection 50000
Min. deposit $ 200
Max. Lever 1:30
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Risk warning: Capital can be lost. Terms and conditions apply.
3
of 6 Social Trading Broker Ayondo
Underlying assets 90
Dep. Protection 1000000
Min. deposit £ 2000
Max. Lever 1:30
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Risk warning: Capital can be lost. Terms and conditions apply.
4
of 6 Social Trading Broker Tradeo
Underlying assets 122
Dep. Protection 20000
Min. deposit £ 250
Max. Lever 1:30
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Risk warning: Capital can be lost. Terms and conditions apply.
5
of 6 Social Trading Broker FXTM
Underlying assets 247
Dep. Protection 20000
Min. deposit £ 5
Max. Lever 1:30
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Risk warning: Capital can be lost. Terms and conditions apply.
1
of 9 Spread Betting Broker City Index
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:20
Min. deposit £ 100
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Risk warning: Capital can be lost. Terms and conditions apply.
2
of 9 Spread Betting Broker IG
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 0
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Risk warning: Capital can be lost. Terms and conditions apply.
3
of 9 Spread Betting Broker Core Spreads
FTSE spread 0.8 Points
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 10
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Risk warning: Capital can be lost. Terms and conditions apply.
4
of 9 Spread Betting Broker OANDA
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 0
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Risk warning: Capital can be lost. Terms and conditions apply.
5
of 9 Spread Betting Broker GKFX
FTSE spread 0.9 Points
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 20
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Risk warning: Capital can be lost. Terms and conditions apply.

Conclusion:

Day Trading Simulators

Day trading is a fast-paced investment strategy. Trading on the basis of small movements in prices of assets within a single day is hard. The market comes with a certain set of indicators and patterns. A large part of day trading is all about moving past the numbers. Your unique trading style is also important. While simulators can help you to get a feel of the markets, what you learn from them depends on you. Simulators also help in understanding how the market makes sharp moves and how to negotiate tough trades.

For day-traders, understanding the frenetic, frenzied and fast-paced markets requires discipline, time, focus, commitment and skill as well as plenty of practice. To this end, day trading through simulators can help you win, when it comes to expanding your knowledge and your strategies, without losing any money or risking a single penny of your capital.

These are some metrics that can really impact day trading returns. When money is not on the line, it is easier to adhere to trading rules too. Day trading depends on the strategies used. While some day traders rely on paper trading or demo accounts, others use simulators and back-test thousands of systems. Choosing a simulator that lets you understand the realities of the trading world as effectively as possible is the key here.

CFD Highlights