Paper Trading

What is Paper Trade?

Paper trading, also known as demo trading, lets you trade with “fake” money and practice buying and selling assets. Everything is essentially the same as if you were trading with real money, except you can practice your hand at trading without any of the risk. Our system tracks your orders and you can see how much Profit or Loss (PnL) you have on your account. This helps you gauge how good you are at trading!

1. Practice trading with $100,000 of virtual buying power
  
  Trade stocks, crypto, indices, metals, energies and forex in a live market simulation.
2. Refine and optimize your trading experience
  
  See how changes to tool settings and organization can complement your trading workflow.
3. Open multiple accounts at any time you want
  
  Trade multiple times in case you burn through your account without any risk.
4. Track and evaluate your performance
  
  Leverage a range of virtual trade data, including profit and loss analysis, to help validate or refine your trading strategies.

Ready to paper trade?

Get a Free Demo account from FunderPro where you can practice trading on TradeLocker using real-time market data—all without risking a dime.

How does paper trading work?

Well, it’s basically a trading simulator that you can use to learn the basics of trading. It’s great for beginners and novice investors who want to get some practice before diving into the real thing. The idea is to treat paper trading as if it were the real deal. Think about your risk-return objectives, investment constraints, and trading horizon, just like you would with a live account.

You can apply paper trading to different market conditions. For example, if the market is volatile, you might experience higher costs due to wider spreads. You can also use paper trading to familiarize yourself with different types of orders, like stop-loss, limit orders, and market orders. Many platforms even provide charts, quotes, and news feeds.

paper trading

How are Paper Trading and Prop Trading Different?

Paper Trading

In paper trading, traders can simulate various market conditions and analyze their hypothetical performance. They gain insights into market behavior, learn to interpret market indicators, and refine their decision-making skills. This type of trading is especially beneficial for honing strategies, experimenting with new techniques, or getting accustomed to a new trading platform. However, since real money is not on the line, paper trading may not accurately replicate the emotional and psychological aspects of live trading.

Prop Trading

Prop trading, short for proprietary trading, involves financial firms or banks trading stocks, bonds, currencies, commodities, derivatives, or other financial instruments with the firm’s own money, as opposed to using clients’ funds. This type of trading enables the firm to reap the full benefits of a successful trade but also means it bears the full risk of any losses.

Prop traders are professional traders who use the firm’s capital to make speculative trades. They are typically highly experienced and skilled in market analysis and trading strategies. Prop trading can involve a variety of trading strategies, from day trading to long-term investments, and can cover a wide range of financial instruments.

Prop trading is distinctly different from client-driven trading, where trades are made on behalf of clients. It’s driven by the pursuit of direct profit for the firm and involves real capital, which means real financial risks and rewards. Unlike paper trading, prop trading requires a deep understanding of market risks, strict risk management controls, and high levels of discipline.

How can I become a prop trader?

Becoming a prop trader is a challenging yet rewarding career path, especially for those with a keen interest in financial markets and a talent for trading. You can become one by taking a challenge on any of the prop trading company, we suggest FunderPro since you can use TradeLocker on it.

Advantages and Disadvantages of Paper Trading

Advantages

The main benefit of paper trading is that it eliminates the risk of loss. That’s because paper trading involves the use of so-called paper or fake money. As such, you don’t have to use real money to trade stocks or other assets.

Paper trading allows you to study and test different trading strategies and techniques before you go live with the real thing. You can familiarize yourself and practice with as many tools as possible and decide which ones make the most sense for you, your comfort level, and your goals.

Disadvantages

Paper trading isn’t perfect as it doesn’t involve the use of real assets. As such, it may provide a false sense of security and often results in distorted investment returns. In other words, nonconformity with the real market happens because paper trading does not involve the risk of real genuine capital.

Since there is no risk of loss with paper trading, there is also no potential for a return. If a trader makes a good move using a paper trade, there’s no chance that they’ll be able to realize the gain because they aren’t using real money.

Paper trading allows for basic investment strategies, such as buying low and selling high, which are more challenging to adhere to in real life, but are relatively easy to achieve while paper trading.

Conclusion

In the end, trading can be risky, but paper trading can help mitigate losses and raise the potential for gains. It’s a great way to practice buying and selling stocks without risking any real capital. Just make sure to be realistic and treat your paper trades as if they were the real deal, using the same amount of capital you would deposit into a real account.

So if you’re new to trading or just want to try out some new strategies, give paper trading a shot. It’s a safe and effective way to learn the ropes before jumping into the real market.

Data	Purpose	Legal basis	Data retention
We collect and process: - Emails - IP address - Web Analytics The data that was given to us by third parties, such as providers of trading platforms that you choose for use of our services, and social network operators if you decide to link your social networking accounts to an account on the website, and data from social networks (username, profile picture, e-mail address associated with the account on the social network).	We process your data related to the settings of your user account. We use your personal information to communicate with you in relation to our services. We use your personal information to provide functionality, troubleshoot, analyse performance, fix errors, and the usability and effectiveness of TradeLocker Services.	Legitimate interest (to develop our products/services and grow our business). We ask for your Consent to process your personal information for specific purposes. You may withdraw your consent at any time, and we will stop processing your personal information for that purpose. The withdrawal of consent does not affect the lawfulness of processing based on consent before its withdrawal.	Contact Information such as your email address is retained on an ongoing basis until you (a) unsubscribe or (b) delete your account. Information collected via cookies, web page counters and other analytics tools is kept for a period of up to one year from the date of the collection of the cookie of the relevant cookie.
As our current or past customers, we can from time to time send you marketing communications that relate to our services.	Communication from marketing about our services and products or about events in which we take part.	If we have provided you with our services, we can from time to time send you marketing communications based on our legitimate interest.	To send business communications without your given consent, personal data are processed for no longer than necessary to the purposes for which we have collected or otherwise processed them.

Your right to be informed	A controller is obliged to inform you about all topics posted here, such as which data we collect, how we process them, how long we keep them and other topics.
Your right of access to your personal data	You have the right to obtain confirmation that your personal information is processed and to obtain a copy of it as well as certain information related to its processing. If you request it, we will also provide you with a copy of the personal data processed.
Your right to get your personal data rectified	You can request the rectification of your personal information, which is inaccurate and add to it. You can also change your personal information in your account at any time.
Your right to get our personal data deleted “right to be forgotten”	In some cases you can have your personal information deleted: If the data are no longer necessary in relation to the purposes for which we have collected or otherwise processed them; If you withdraw your consent to their processing and, at the same time, there will be no other legal ground for their processing (this only applies in the cases where we process personal data on the basis of your consent); If you object and there are no overriding legitimate grounds for the processing, or if you object to the processing for direct marketing purposes; or If your personal data are processed unlawfully. TradeLocker will not be able to act on the request for the erasure of personal data if their processing is necessary for exercising the right of freedom of expression and information, for compliance with any of our legal obligations, for the performance of a task carried out in the public interest, for the establishment, exercise, or defence of our legal claims, or for other reasons provided for by law.
Your right to data portability	When the processing of your personal data is based on your consent or based on a contract, you have a right to receive the personal data in a structured, commonly used and machine-readable format and the right to transmit those data to another controller without hindrance from the controller to which the personal data have been provided.
Your right to object to the processing of your personal data	You have the right to object to a controller processing personal data at any time. This means that you can stop the controller from using your personal data. This right applies in specific circumstances and, in particular, where your personal data is processed: For a task in the public interest; For the exercise of official authority; For the controller’s legitimate interests; For scientific, historical or statistical purposes; or For direct marketing purposes.
Your right in relation to the decisions taken solely by automated means	You have the right not to be subject to a decision based solely on automated processing, including profiling, which produces legal effects concerning you or similarly significantly affects you. This right does not apply where the decision: Is necessary for entering into, or performance of, a contract between the data subject and the controller; Is approved by Union or Members State law to which the controller is subject and which also lays down suitable measures to safeguard the data subject’s rights and freedoms and legitimate interests; or Is based on your explicit consent.
Your right to lodge a complaint with the DPC	If you consider that the processing of personal data relating to you infringes the GDPR, you have the right to lodge a complaint with the competent local authority against the controller involved and the case will be investigated accordingly.

Table of Contents

Paper Trade

What is Paper Trade?

Practice trading with $100,000 of virtual buying power

Refine and optimize your trading experience

Open multiple accounts at any time you want

Track and evaluate your performance

Ready to paper trade?

How does paper trading work?

How are Paper Trading and Prop Trading Different?

Paper Trading

Prop Trading

How can I become a prop trader?

Advantages and Disadvantages of Paper Trading

Advantages

Disadvantages

Conclusion

Unlock Potential. Lock in profits.

Introduction

Definitions

The Controller of your personal data and our relationship

The Cookies and other identifiers

The storage and data safety

Storage limitation

Data Collection, Purpose, Legal basis, and Data retention

The data sharing and transfers to third countries

Your Rights

The Notices and Revisions