If you’re interested in investing but don’t know where to start, there are many different resources to choose from. These resources can help you overcome the fear that many people have when they first start to invest. However, nothing helps you gain confidence like the real thing. If you are still hesitant to start investing after you’ve done some research, perhaps the next best step is to try an investment simulator.
Investment simulators let you go through the motions in an environment very similar to the real thing. That way, you try out your strategies in real-time and refine them without any real financial consequences. Importantly, not all investing simulators are created equal. Some of the most reputable options you might consider using include the following:
- Investopedia Stock Simulator
When you open an account on the Investopedia Stock Simulator, you get $100,000 in virtual cash to use in the stock market. One of the most appealing aspects of the simulator is its sense of community.
Through the program, you can connect with more than 700,000 other users to share ideas and learn from each other. This social component has helped many people refine their strategies and learn more about the intricacies of trading. In addition, the program has many educational articles available to read.
The Investopedia simulator only lets you trade in options, stocks listed in the United States, and exchange-traded funds. However, this is sufficient for most investors. This simulator uses data from the real stock market and is off by about 20 minutes, so it is important to keep that in mind.
2. HowTheMarketWorks
One of the first trading simulators to become available, HowTheMarketWorks remains one of the best, especially because of the large range of educational materials it offers. However, these materials are designed to help both novices and advanced investors, so even if you have a lot of background knowledge, you will likely still learn something new.
HowTheMarketWorks has both stock and ETF options available. While some of these are quoted in real-time, others have a small delay, so it can get a bit confusing. At the same time, many people like this simulator because they can create games to compete with their friends and family. The simulator also has a mode specifically for use in the classroom.
3. thinkorswim
TD Ameritrade owns the trading platform thinkorswim. This trading platform includes a simulator that gives users $100,000 to play with. One of the great things about the simulator is that you can add new simulated trades with the click of a button to test out strategies very easily. You can practice trading in both stocks and commodities, as well as options and futures contracts. In other words, if you want experience with some of the less popular trading options, thinkorswim is a great place to start.
Users can also take advantage of thinkorswim’s educational materials. The simulator is free for TD Ameritrade customers, and non-customers can get a free trial for 60 days. Since the simulator is based on the actual trading platform, it is a great option for anyone who plans to trade through TD Ameritrade.
4. MarketWatch Virtual Stock Exchange
People who want a completely real-time experience with a trading simulator should check out MarketWatch’s Virtual Stock Exchange. This is a free simulator that lets you build a portfolio and watch it perform in the current market. The simulator allows you to make many different market moves as well as set your budget. You can also choose to allow short selling, margin trading, and other advanced options.
After you register with the simulator, you must choose to join an existing game or start your own. If you start your own, you can invite friends and family to compete against you and find out who has the best strategy. While using the platform, you have access to the entire MarketWatch library, which can help you look up important information on the fly. In addition, the platform has a social element that allows you to start discussions with other people and see how they are investing.
5. Wall Street Survivor
If you like the competition aspect of these simulators, Wall Street Survivor should be on your shortlist. Once you sign up for the simulator, you have access to coursework that teaches you the basics of investing, like how to read stock quotes and the points to consider when deciding whether to invest. You can choose to skip these courses if you feel like you do not need them. After that, you get access to your virtual cash and can join or create a league. This is where the competition comes into play. Over time, once you feel confident in your strategy, you can join the Wall Street Survivor sponsored league. Each month, the top three investors in this league earn a cash prize. Of course, you can always try your luck out in this competitive league from the very beginning.