Robinhood does not offer a built-in paper trading feature

Robinhood does not have a paper trading tool within its app or web platform. Paper trading — also called simulated trading or virtual trading — lets you practice buying and selling stocks, options, and other securities with fake money so you can test strategies without risking real cash. Robinhood removed this feature years ago and has not brought it back.

If you want to practice trading before you use real money on Robinhood, you will need to use a separate platform. Several brokers and financial websites offer free paper trading tools that work independently of your Robinhood account.

Key Takeaways

  • Robinhood does not have paper trading built into its platform, so you cannot practice with virtual money in the app.
  • Other brokers like TD Ameritrade's thinkorswim, E*TRADE, and Webull offer free paper trading accounts you can use to learn.
  • Paper trading lets you test stock and options strategies without risking money, though simulated trades do not match real market conditions exactly.
  • You can open a paper trading account on another platform while keeping your real Robinhood account separate.

Why Robinhood removed paper trading

Robinhood originally offered paper trading but discontinued it as the company scaled up. The company has not publicly stated a specific reason, but the removal happened as Robinhood focused on its core brokerage features and mobile app experience. The feature was not a priority compared to adding new asset classes and expanding its user base.

This means if you are new to investing and want to practice before depositing money into Robinhood, you will have to look elsewhere. The good news is that several alternatives are free and do not require you to commit to using that broker for real trading later.

Free paper trading platforms you can use instead

TD Ameritrade's thinkorswim is one of the most popular paper trading platforms. You can open a free thinkorswim account without opening a real brokerage account with TD Ameritrade. The platform includes stock, options, and futures trading in a simulated environment. It also has educational resources and charting tools that many traders use to learn technical analysis.

Webull offers a free paper trading account called "Paper Trading" that mirrors real market hours and prices. You get $100,000 in virtual cash to practice with. Webull's paper trading includes stocks, options, and fractional shares, so you can test strategies similar to what you would do on Robinhood.

E*TRADE provides a free virtual account called "E*TRADE Virtual" with $100,000 in simulated funds. Like thinkorswim, you do not need to open a real E*TRADE account to use it. The platform covers stocks, options, and ETFs.

MarketWatch's Stock Market Game is a simpler, free option if you want basic practice without advanced charting tools. You get $100,000 in virtual money and can trade stocks and ETFs. It is less feature-rich than thinkorswim but works well for beginners.

What paper trading teaches you and what it does not

Paper trading shows you how to place orders, read charts, and track positions in a real-time market environment. You learn the mechanics of buying and selling without the emotional weight of losing actual money. This is valuable for understanding how your broker's platform works and testing whether a strategy makes sense on paper.

However, paper trading has real limits. Simulated trades execute instantly at the price you see, but real trades sometimes fill at different prices, especially during fast market moves or with less liquid stocks. You do not experience the psychology of watching your own money go up and down, which affects how you actually behave when trading for real. Paper trading also does not teach you about taxes, commissions (though Robinhood has no commissions), or the costs of options strategies.

Think of paper trading as learning to drive in an empty parking lot. It teaches you the controls, but the real road is different.

How to set up paper trading on another platform

The process is straightforward. Go to the website of the platform you choose — thinkorswim, Webull, or E*TRADE. Look for a link that says "Open a Paper Trading Account" or "Virtual Trading" or "Demo Account." You will usually need to enter an email address and create a password. Most platforms do not require a Social Security number or bank information for a paper trading account.

Once you log in, you will see a dashboard with virtual cash (usually $100,000) and the ability to place trades. The interface will be similar to the real trading platform, so you are learning the actual tools you would use if you decided to trade for real on that broker.

You can keep your paper trading account open as long as you want. There is no time limit, and you do not have to fund a real account to keep practicing.

Should you use paper trading before opening a Robinhood account

If you have never traded before, spending a few weeks on paper trading is worth the time. You will learn whether you understand how stocks and options work, whether you can follow a plan without panic, and whether trading is actually something you want to do with real money. Many people discover through paper trading that they do not enjoy it or that they do not have a strategy that works.

If you already understand the basics and just want to start investing, you can open a Robinhood account and start small — with a few hundred dollars in one or two stocks. That is a form of learning with real money, and it is a valid approach if you are not planning to trade frequently or use leverage.

The key is honesty about your experience level. Paper trading is free and risk-free, so there is no downside to trying it first.

Frequently Asked Questions

Can I practice options trading on paper trading platforms?

Yes. thinkorswim, Webull, and E*TRADE all include options trading in their paper trading accounts. You can practice buying calls and puts, selling covered calls, and other strategies without risking money. This is especially useful because options are more complex than stock trading and benefit from practice.

Will my paper trading account transfer to a real account later?

No. Paper trading and real trading are separate. Your virtual trades and positions do not carry over if you open a real account. You start fresh with real money. However, the skills and strategies you test on paper will carry over.

Is paper trading realistic compared to real trading?

Paper trading is close but not identical. Execution is usually instant in paper trading, but real trades can fill at different prices. You also do not feel the emotional impact of real money, which changes how you make decisions. Use paper trading to learn mechanics, but expect real trading to feel different.

How long should I paper trade before using real money?

There is no set timeline. Some people paper trade for a few weeks, others for months. A useful benchmark is to paper trade until you have gone through at least one full market cycle and feel confident placing orders and managing positions without second-guessing yourself.