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Written by Cari Scribner on June 12, 2021
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Can You Paper Trade With Firstrade?

One of the best first steps in getting into the stock market is to invest your time. That’s right, before you jump in and start making financial decisions that will affect your net worth, put in the time to do your homework.

When you are doing your research, there are key points you should aim to become familiar with, including:

  • Understanding how the stock market works
  • Selecting an online commission-free broker that’s designed for you as a beginner
  • Familiarizing yourself with everything an investing platform has to offer
  • Following the history of stocks you are eyeing

After you have mastered the basics, you will want to set yourself up for the best chances for success. One helpful way to do this is to test the ropes with paper trading. A paper trade is a simulated trade that allows you to practice buying and selling without risking real money.

This earned its name from the age-old practice before electronic trading when investors wrote their buying and selling activities down on paper. They also wrote down trading positions, portfolio activity and profits and losses.

In other words, you’re using “play money” without risking actual losses. Paper trading, also called trading simulation, lets you try out your strategies in a place where mistakes won’t be costly to you.

These trading simulators are designed to mimic actual investing platforms.

Education for newbies is the primary reason why some platforms offer paper trading. Firstrade does not, but you can find this helpful tool on Webull.

Paper Trading On Webull

Webull is one of a small handful of investing platforms set up for paper trading.

Paper trading will help you:

  • Become more familiar with the Webull platform itself. You can maneuver between the various options until you clearly understand the app
  • Test out your risk tolerance. Some investors are comfortable riding the roller coaster with the ups-and-downs of the market. Others are more conservative and prefer to make careful moves. Other investors may be somewhere in between
  • Take emotion out of the picture. Whims and guesses are probably not the best way to make buying and selling moves. Instead, most investors base their decisions on facts such as how the stock has fared historically
  • Build up your confidence. You are likely to make mistakes in paper trading, but it won’t cost you a penny
  • Try out a variety of investment strategies, such as short or longer-term passive investing

Keep in mind that while using your paper trading account on Webull, your cash gains are virtual. You cannot withdraw the portfolio balance in your simulated holdings or your paper trading account!

Webull Free Training

We put together a free 30 minute video training that walks you through the entire process, step by step. This training will help you get up and running in no time at all.

GET THE GUIDE

About Webull

Webull is a commission-free stock and ETF trading platform. Launched just four years ago, Webull is a new to the arena of online investing platforms. Experts designed Webull for the active trader who is looking for a more dynamic user interface than most free platforms are offering. This platform has features specifically for traders such as technical indicators, research agency ratings, financial calendars and more.

With easy access to advanced research tools and live data, Webull has built an ideal platform for active traders. Keep in mind, it is not designed for long-term passive investors. Instead it’s for investors who are actively trading.

Webull offers two types of individual accounts: Cash and Margin. Each user can have one of each. If you already own one kind, you will need to create a new login before applying for the other.

The platform also offers IRAs, including Roth and Traditional.

Conclusion

If you are a beginner just getting into the stock market, paper trading is an excellent way to practice buying and selling without risking actual cash. You are using fake money in the same way as real currency, however any profits you gain cannot be withdrawn or added to an actual trading account.

Although Firstrade does not offer paper trading, you can find this option on Webull.

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Article written by Cari Scribner
Cari Scribner is a career journalist with 20 year’s experience writing for newspapers and magazines. Now a freelance writer, she is also a published fiction writer with more than 15 short stories in literary mags. She recently completed a novel that is on the desk for consideration at two publishing houses. She lives with her two small dogs, Miloh and Lucy, in Upstate NY.

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