Paper trading on Fidelity lets you practice buying and selling stocks, options, and other securities using virtual money instead of real cash

Fidelity's paper trading tool is called Fidelity Investing Simulator, and it gives you a simulated account with $100,000 in virtual funds. You can place real trades on real market data without risking actual money. The simulator runs on the same market hours as live trading and uses actual Fidelity prices, so you see how your decisions would have performed in real conditions.

Paper trading is useful if you want to test a strategy before committing money, learn how the platform works, or practice options trading without the cost of mistakes. The account stays open as long as you use it at least once every 12 months. If you stop using it, Fidelity may close it, but you can reopen a new simulator account anytime.

Key Takeaways

  • Fidelity's paper trading account starts with $100,000 in virtual money and uses real market prices and live trading hours.
  • You access the Investing Simulator through your Fidelity account login — no separate signup is needed if you already have an account.
  • Paper trades execute on the same rules as live trades, so you see realistic fills, commissions, and timing.
  • The simulator closes if you do not use it for 12 months, but you can create a new one at any time.

How to access the Fidelity Investing Simulator

If you have a Fidelity brokerage account, you can open a paper trading account without a separate signup. Log into your Fidelity account online or through the mobile app, then look for the Investing Simulator option in the account menu or dashboard. Fidelity sometimes labels it under "Practice Trading" or "Simulator" depending on which platform you are using.

Once you select it, Fidelity creates a new simulator account linked to your login. You do not need to fund it — it comes with $100,000 in virtual cash. Your simulator account is separate from your real brokerage account, so trades in the simulator do not affect your actual holdings or cash balance.

If you do not yet have a Fidelity account, you will need to open a real brokerage account first. You can open one with no minimum deposit, though some account types have minimum requirements. Once your account is active, the Investing Simulator becomes available to you.

What you can and cannot trade in the simulator

The Investing Simulator lets you trade stocks, exchange-traded funds (ETFs), mutual funds, and options on the same securities available in your live account. You can place market orders, limit orders, and stop orders. Options trades work the same way as in a live account — you can buy calls and puts, sell covered calls, or execute spreads.

You cannot trade certain products in the simulator, including bonds, futures, forex, or cryptocurrency. If you want to practice those, you would need to use a different platform or open a live account with those products enabled. Margin trading is also not available in the simulator — all trades are cash-only, meaning you can only spend the virtual cash you have.

Dividends and corporate actions (stock splits, mergers) do not occur in the simulator the way they do in real accounts. If you hold a stock that pays a dividend in real life, the simulator will not credit your account with that dividend. This is a limitation to keep in mind if you are testing a dividend-focused strategy.

How paper trades execute and what fees apply

Paper trades execute using real Fidelity prices and real market hours — Monday through Friday, 9:30 a.m. to 4:00 p.m. Eastern Time for stocks and most ETFs. If you place an order during market hours, it processes the same way a live order would. If you place an order after hours, it queues for the next market open, just like a real order.

There are no commissions or fees charged on paper trades. Fidelity does not deduct money from your virtual $100,000 for executing trades. However, you will see bid-ask spreads reflected in your fills, because the simulator uses real market data. If you buy a stock, you pay the ask price; if you sell, you receive the bid price. This teaches you how spreads affect your actual cost.

Your virtual account also tracks margin interest and other costs that would apply in a live account, even though you cannot use margin in the simulator. This helps you understand what those fees would look like if you were trading with real money.

Tracking your simulator performance and results

Fidelity shows your simulator account performance in the same dashboard you use for your live account. You can see your total gain or loss, your return percentage, and a breakdown of each position. The platform tracks your trades in real time, so you can see how each decision affects your overall balance.

You can view your trade history, including entry price, exit price, and profit or loss on each trade. This record helps you review what worked and what did not. Some Fidelity platforms also let you export your trade history for analysis in a spreadsheet.

The simulator does not provide automated performance reports or backtesting tools built into the account itself. If you want to analyze patterns across many trades, you will need to track that yourself or use third-party tools that accept Fidelity data.

Switching from paper trading to live trading

When you are ready to trade with real money, you use your actual Fidelity brokerage account, not the simulator. The two accounts are completely separate. You will need to fund your live account with real cash before you can place live trades.

The skills and knowledge you build in the simulator transfer directly — the order types, the platform interface, and the market mechanics are identical. The only difference is that live trades use your real money and have real consequences. Many traders keep both accounts open: they use the simulator to test new strategies and the live account for their main trading.

If you want to close your simulator account, you can do so through your account settings. Fidelity will also close it automatically if you do not use it for 12 months. You can create a new simulator account anytime after that.

Frequently Asked Questions

Does paper trading on Fidelity cost money?

No. The Investing Simulator is free to use. There are no commissions, subscription fees, or charges for opening or maintaining the account. You only need an existing Fidelity brokerage account to access it.

Can I use the simulator on the Fidelity mobile app?

Yes, the Investing Simulator is available on the Fidelity mobile app for both iOS and Android. The functionality is the same as on the desktop platform — you can place trades, view your positions, and check your performance from your phone.

What happens if I lose all my virtual money in the simulator?

If your virtual balance drops to zero or below, you can reset your simulator account and get a fresh $100,000 in virtual funds. Contact Fidelity customer service or look for a reset option in your simulator account settings. You can reset once per calendar year.

Does the simulator include after-hours trading?

The simulator accepts after-hours orders, but they execute at the next market open using real market prices at that time. You cannot see real after-hours prices in the simulator the way you would in a live account with after-hours trading enabled.

Can I use the simulator to test options strategies?

Yes. You can place any options trade available in your live account — single legs, spreads, and covered calls. The simulator uses real options prices and the same rules as live trading, so you see realistic fills and profit or loss on each position.