How Stock Market Simulators Work

There’s nothing wrong with a little friendly investing competition. Getting in on a pickup game is as easy as downloading one of the dozens of virtual stock-trading simulator apps and racing to see who multiplies their Monopoly money the most before the clock runs down.

It’s all good fun — a risk-free way for investors to work out those daredevil day-trading urges, claim bragging rights and learn a little bit about how investing works. (Want to start with a leg up? Read about how to trade stocks.) That is, as long as you recognize that a stock-picking game isn’t truly like investing in the real world. Here articles will teach you everything you need to know about a stock market simulator and how to get the best stock simulator account.
 

Why a Stock Trading Simulator

The best stock simulators allow the user to hone their investment techniques. Regardless of your level of proficiency with money management and making investments, dealing with the stock market is still always a bit of a gamble.

Before the age of the internet, old-school traders, brokers, and certified public accountants (CPAs) used pen and paper for drawing charts and entering orders. (Back in the day, stock market orders were written on paper and then rushed from a brokerage firm’s order desk to a floor trader. Appropriately named stock market “runners” were hired at least partially based on how fast they could run.) The difficulties with traditional paper trading were endless, posing a variety of hazards. One of the most common problems was being unable to read whatever someone scribbled. Another was, at day’s end, being unable to find all the scraps of paper that documented the day’s trading.

Enter the present day and the advantages offered by high-speed computers, software, the internet, and all its associated technology. One of the major advances – and a boon for money managers, brokers, and financial advisors of any type – made possible by the development of sophisticated computer programs is the ability to create the best stock simulators or trading simulators for practicing trading techniques and testing out trading strategies.

For a virtual-trading practice environment that’s close to the real thing, you can’t get much better than the simulated investing platforms offered by actual working online brokerages. The best stock simulators have a fully functioning setup with the same tools that active customers use.

These stock simulators accounts — sometimes called paper trading accounts — typically mirror the broker’s working trading platform. Most are free, although they may require you to set up an account. The best brokers give test drivers access to a fully functioning setup with the same tools that active customers use: watch lists, stock screens, research and live or slightly delayed data feeds.

» Continue reading or download the most popular stock market simulator in the last 2 decades. Test it on a risk-free stock simulator account or use the code WELCOME30 for a 30$ welcome bonus in a real account.

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The Best Stock Simulator Account

Modern technology and web development make it possible to trade securities using multi-functional computer software — trading platforms. The trader places an order to buy or sell securities in such software, and the broker then makes a transaction on the stock exchange on behalf of the trader.

Successful stock trading begins with a comfortable and multi-functional trading platform. MetaTrader 5 is the best choice for the modern trader and the best free stock simulator today!

The MetaTrader 5 stock simulator provides cutting-edge functionality for trading on global exchanges, as well as powerful tools for technical analysis, algorithmic and social trading.

The rich functionality of the desktop version of MetaTrader 5 can be accessed from mobile devices. Mobile platform versions are available for Android and iOS powered smartphones and tablets. You can trade stocks anywhere in the world using the MetaTrader 5 Mobile platform.

>> Download the Stock Trading Simulator for Mobile for free and start trading right now!

MetaTrader 5 supports algorithmic trading, which implies trading on exchange markets by a preset algorithm using automated trading robots. Such trading robots can be developed, tested, debugged, and optimized directly in the platform. The built-in MQL5 Wizard will help any trader to create a custom Expert Advisor. If you do not want to create a program by yourself, you can purchase a ready-to-use trading robot from the Market or use an Expert Advisor Builder and generate one in a few clicks, without writing codes.


Why MT5 is the best stock trading simulator 

Flexible trading system

MetaTrader 5 features the powerful trading system with two-position accounting types, market depth, and a separate accounting of orders and deals

MetaTrader 5 delivers a powerful trading system with the Market Depth and a system of separate accounting of orders and trades. It supports both order accounting systems: the traditional netting system and the hedging option system. Four order execution modes are available to meet various trading objectives: Instant, Request, Market and Exchange execution. The platform supports all types of trade orders, including market, pending and stop orders, as well as trailing stop.

With such a diversity of order types and available execution modes, traders can use any trading strategy for successful work on the financial markets.

Professional technical analysis

Professional technical analysis in MetaTrader 5 allows examining stock and currency quotes from all angles.

The platform represents the all-in-one concept and offers impressive analytical tools. It allows opening up to 100 charts of currency and stock quotes at a time. The 21 timeframes available enable comprehensive detailed analysis of all minor price movements. More than 80 technical indicators and analytical tools, including graphic objects, provide detailed analysis of quote dynamics.

Furthermore, the analytical resources of the terminal are not limited to the built-in tools. Traders are welcome to choose between thousands of free of charge indicators from the Code Base, purchase or rent applications from the Market of more than 2500 ready-made algorithmic applications, as well as to order custom indicators from professional programmers through the Freelance service. With the high performance of the MQL5 programming language, you can create your own indicator with your own unique characteristics. All these features enhance the analytical capacity of your platform and your ability to achieve the most detailed and accurate technical analysis of quotes.

Fundamental analysis

Fundamental analysis in MetaTrader 5 allows you to assess the impact of various economic and industrial indicators on stock market instruments.

Fundamental analysis is another tool that can be used to forecast the price dynamics of financial instruments. The aim of fundamental analysis is the constant monitoring of various open-source economic and industrial indicators. Original fundamental data is available straight from MetaTrader 5.

News reports from international news agencies are broadcast directly into the platform, providing you with the essential financial information. The economic calendar features the main macroeconomic indicators of different countries, allowing traders to analyze their impact on various financial instruments.

Stay tuned and make more weighted trading decisions from the benefit of having access to financial news and economic calendar straight from your platform!

Algorithmic Trading

Algorithmic trading in MetaTrader 5 stock simulator means trading with the help of automated trading robots.

One of the most impressing features of your MetaTrader 5 is Algorithmic Trading. This feature implies automated trading using specialized applications — trading robots (Expert Advisors). The robots operate without the participation of the trader — they can analyze quotes and perform trading operations following an underlying algorithm.

Do you have a successful trading strategy? Robotize it and forget about routine market analysis and trading. The MetaTrader 5 system provides for the entire development environment to help you create and optimize your own trading robots. With the high-performance MQL5 programming language you can create Expert Advisors utilizing heavy calculations for the most accurate technical analysis and forecasting.

If you are not enthusiastic about programming, use an Expert Advisor Generator and create automated strategies within a few clicks, without writing codes.

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What’s in a Stock Simulator Account for You

Of course, brokers hope that people who sign up for stock simulator accounts eventually convert from dabblers to paying customers. But there’s no obligation — unless, of course, you have to sign up for an account to get access to the stock simulator program.

Even if the relationship remains superficial and temporary, you can get a lot out of the experience with a stock simulator account, including:

  • A general investing education: Many of these stock simulators offer a very real education in investing, with a library of articles, tutorials, demos and, at some brokers, the chance to interact with an online community available to answer technical and investing questions.
  • A safe space to learn the mechanics of placing trades and building a portfolio: There’s a reason student drivers take the wheel for the first time in abandoned parking lots. The best place to make all the rookie investing mistakes, such as mistyping ticker symbols or misunderstanding order types, is wherever you can suffer the least financial damage.
  • The chance to test drive new investment strategies and types: Looking to expand your investing repertoire? Trying before you buy is especially important when venturing into new strategies, like shorting stocks and trading options, and more sophisticated investing fare such as futures and commodities and foreign currencies (forex).

» Looking for some fresh ideas? High-dividend stocks to consider

  • The chance to practice deep breathing exercises for trying times: As billionaire investor Warren Buffett says, one of the keys to being a successful investor is the ability to control the emotions that lead other investors astray. Even though investing decisions are less loaded when there’s no real money on the line, the brain doesn’t always fully absorb that concept — think haunted houses, roller coaster rides and movies featuring vintage dolls that come to life and carry out evil capers after dark. The emotions you experience while investing in la-la land provide a preview of what to expect when you encounter the real and unavoidable market ups and downs.

Understanding what is a stock simulator and how does it work is important, but you need to practice trading in a stock simulator account to gain experience before investing real money.

>> Open a free MT5 stock simulator account or use code WELCOME30 to get a free 30$ no deposit bonus in the real market.

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Categories:  Education