The Investopedia Simulator is designed to help anyone learn the mechanics of buying and selling securities in a risk-free environment by simulating activities investors experience when placing orders through a broker. The Investopedia Simulator will track the value of a user’s portfolio when adding or closing positions. Users can also compare results to other practicing investors’ performances through Simulator games.
Key Takeaways
- The Investopedia Simulator is a virtual trading tool designed to help potential investors improve their skills at trading and investing.
- It has powerful tools for conducting research and placing simulated trade orders.
- It tracks the value of investing positions close to real-time.
- Simulator users can participate in games in which they compare their investment performance to those of others.
Getting Started
To access the Simulator, create an account by clicking Get Started. The free account only requires an email, username, and password.
A new account has a default virtual balance of $100,000 to buy virtual shares that track the same as real shares. It is easy to discover how the Investopedia Simulator works just by exploring the interface and trying out its functions for Stocks and Crypto. Users are directed to Your Portfolio. On the top right, two options allow users to toggle.
Investopedia
Stocks Simulator
The Stocks interface includes four functional areas: portfolio, trade, research, and games.
- Portfolio: List the positions users are holding and the current value of those positions based on market data.
- Trade: Permits users to see price quotes and place orders like the functionality of an actual broker.
- Research: Helps users study price charts and review company information behind the stocks available for simulated trading.
- Games: Users can join up with simulated investing competitions or even start one of their own.
The portfolio section shows performance history, including annualized returns, remaining cash, and buying power. The historical trade data can be sorted into stocks, options, and short-selling positions. A small panel displays the user’s rank among all other active Simulator users.
How and What To Trade
Investors may review the business statements of a company before deciding to buy stock. This fundamental analysis helps investors put money into a stock with a long-term investing strategy. Other investors are comfortable simply reviewing price charts and conducting technical analyses of stocks.
The Investopedia Simulator’s research section helps users by clicking on one of the ticker symbols displayed on the research page. A stock screener is included so users can specify one or more attributes of companies they’d like to research. Selecting the trade tab helps users execute orders. Users specify whether they are making a stock or option trade and then specify the ticker symbol or the underlying stock of the option contracts they want to trade.
Users can review the price at which the stock is currently trading. Trading actions include: buying, selling, shorting, or buying to cover. This is the same functionality on retail broker accounts with margin trading. However, only the most common three order types used in retail broker accounts are available: market, limit, or stop orders. The Simulator runs on data that is delayed by about 20 minutes.
A max link allows users to see the maximum number of shares they can buy based on the available virtual cash in the Simulator account. Users who want a portfolio with more than one stock position should avoid buying the maximum number of shares.
Learning and Investopedia Academy
The Investopedia Simulator includes several “How To” guides with instructions on how to make trades and articles such as “How to Trade Cryptocurrency on the Stock Simulator.” Additionally, the Investopedia Academy offers self-paced, online courses in finance and investing. Courses such as “Investing for Beginners,” or “Pick Stocks Like a Pro,” can be purchased with a one-time fee.
Using the Simulator With a Group
The Investopedia Simulator hosts investing contests among friends, colleagues, and classmates. The Simulator’s functions make these games easy to get started and conduct. Both stock and option trades can be included in the challenge for a wider range of experiences.
For use by friends, family, students, and the like, the Simulator uses the Investopedia Trading Game as the default starting contest. However, users can join any of the thousands of public games that run without an end date. In the Games section, search for games in the Join Game section. Users can be members of multiple games simultaneously.
Create a Stock Trading Game
To get started, click Games and then click Create Game. Each game has optional features that increase the Simulator experience’s realism. There are tooltips throughout the form that appear. Users can click on the little blue “i” next to words for a detailed explanation of what each field is for and then choose the following:
- Game Name: Make it something the group will remember and is unique.
- Game Description: What should the group know about the purpose and goals of the game?
- Game Type: Is the game’s membership exclusive or something anyone can join?
- Starting Cash: By default, everyone gets $100,000 to start, but users can increase or decrease the amount to between $1,000 and $1 million.
- Date Range: When will the game begin and end?
- Trading features: Will the group be able to trade on margin, short sell, or trade options? Can members view each other’s portfolios?
- Advanced Game Rules: Users can determine market delay, commissions, forced diversification, minimum pricing, quick sell restrictions, margin rules, and more.
Click Create Game. Private games require a password. Leaders should provide the group with instructions that include the game name, password, and other specifics such as date range and starting cash. To track the group’s performance, check the Leaderboard under Games.
Crypto Simulator
The crypto environment in the Investopedia Simulator allows users to look up and trade 25 of the most popular cryptocurrencies. The top 11 coins featured are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- USD Coin (USDC)
- BNB (BNB)
- Binance USD (BUSD)
- XRP (XRP)
- Cardano (ADA)
- Solana (SOL)
- Dogecoin (DOGE)
- Polkadot (DOT)
Investopedia
When users click the Trade button, it brings up this list with the financial details about the coin, including price, percentage change, market cap, launch date, circulating supply, total supply, 52-week high and low, today’s high and low, and previous close. Within a crypto portfolio, users can track the performance of their trades over the last week, month, three months, six months, and one year.
Are There Classes Available on How To Trade Stocks?
Yes. In addition to courses offered by the Investopedia Academy, classes are available from companies such as Udemy or at the university level. A high-quality online stock trading course partners well when using a stock simulator.
Are There Other Stock Trading Simulators?
While Investopedia offers one of the best options on the market, it is not the only paper-trading platform. Charles Schwab offers Thinkorswim, and the SIFMA Foundation offers The Stock Market Game.
What Does Paper Trading Mean?
A simulated stock trading platform is a paper trading platform. A paper trade is a simulated trade that allows investors to practice buying and selling financial assets without risking real money. They are an excellent way to test a new investment strategy or to learn how the financial markets work.
The Bottom Line
The Investopedia Simulator allows interested investors to practice trading skills no matter their level of investing experience. Users have access to research tools, the ability to see the value of investing positions, and the opportunity to compete with other users.