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Home » Robinhood Paper Trading – Is it Possible?

Robinhood Paper Trading – Is it Possible?

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Robinhood, known for its user-friendly interface and commission-free trading, has gained popularity as a platform for individuals interested in investing in stocks and the wider stock market. However, users constantly ask whether Robinhood paper trading is possible. Despite the overwhelming popularity of the trading platform, Robinhood does not offer paper trading. This answer might surprise some of you, but there’s a perfectly logical explanation. Before that, let’s first explain what paper trading is.

What Is Paper Trading?

Paper trading, also known as virtual trading or sim trading, is a practice where investors simulate the trading process. It involves simulating buying and selling securities without actually using real money. With paper trading, investors keep track of hypothetical trades and outcomes “on paper.” This “on paper” statement simply means the trading platform offers paper trading accounts, which cannot be funded and only serve the purpose of simulating the experience.

Because of this, paper trading has garnered a lot of popularity with beginner investors who are looking to hone their trading skills. Plenty of online brokerages offer paper trading accounts. But Robinhood doesn’t. So that begs the question, why doesn’t Robinhood offer paper trading?

Why Doesn’t Robinhood Offer Paper Trading Accounts?

Robinhood is against the idea of paper trading for a few reasons. We mentioned that there is a perfectly logical explanation, so let’s get into that.

Namely, Robinhood makes it possible for everyone to experience the beauty of commission-free training on their platform.  Moreover, they aim to make trading accessible and, more importantly, cheaper for everyone. Because of these two reasons, Robinhood has done more to make securities and cryptocurrency trading on its platform easily accessible and cheap for its users. So it’s logical for Robinhood to exclude paper trading as an available feature. But who knows, maybe Robinhood paper trading will be a thing someday. 

We know the answer isn’t what readers expected, but we will name a few platforms that allow paper trading. Before that, let’s explore the benefits of paper trading to educate readers on why they should try it before using their money. 

Robinhood Paper Trading – Can You Do It? 

While Robinhood provides a seamless and accessible trading experience, it does not currently offer paper trading. Paper trading allows individuals to practice trading strategies without risking real money, providing a valuable learning experience. However, Robinhood focuses on real-time trading with real funds, and as such, paper trading is not available on its platform.

3 Benefits of Paper Trading

Paper trading is a popular practice in the world of stock trading, especially for beginners. Why exactly? Let’s learn about the three benefits of paper trading.

Learning and Education

Paper trading enables newcomers to the stock market to gain hands-on experience without the risk of financial loss. It allows users to understand market dynamics, test different strategies, and learn from their successes and failures. Since paper trading essentially involves the use of “virtual” funds, it has no negative repercussions for the user.

Investors can try it and determine if securities or cryptocurrency trading is up to their liking. It’s purely meant to introduce users to the world of trading.

Strategy Development

You might be surprised, but paper trading is a feature plenty of experienced investors use quite regularly. That’s because paper trading is an excellent tool for experienced traders to test new trading strategies or refine existing ones in a risk-free environment. Traders can analyze the outcomes, adjust their approach, and improve their decision-making skills.

This means that experience traders, not just beginners, widely use paper trading. While paper trading introduces beginners to trading, it serves an entirely different purpose to the more experienced users.

Confidence Building

Practicing trading with virtual funds can help build confidence in making investment decisions. In addition, paper trading allows traders to develop a disciplined approach, gain familiarity with market patterns, and enhance their overall trading abilities. Simply put, paper trading has no downsides apart from spending time in a simulated environment.

Robinhood Paper Trading Alternatives

While Robinhood paper trading isn’t available, several alternative platforms provide this feature. Here are a few popular options:


Thinkorswim, offered by TD Ameritrade, provides an advanced paper trading feature, allowing users to simulate trading across various asset classes. In addition, it offers a real market environment, advanced charting tools, and extensive educational resources.


Known for its commission-free trading like Robinhood, Webull also offers a paper trading feature, unlike Robinhood. Users can practice trading stocks, options, and cryptocurrencies with virtual money. In addition, Webull provides a user-friendly interface and real-time market data, allowing users to learn the basics of trading in a simulated environment with no drawbacks.


TradeStation offers a comprehensive paper trading platform catering to beginners and experienced traders. It provides historical market data, advanced analysis tools, and customizable trading strategies.


While Robinhood paper trading isn’t an available feature currently, the platform remains popular for individuals seeking an accessible and commission-free trading experience. However, alternative platforms like Thinkorswim, Webull, and TradeStation provide suitable options for those interested in paper trading to develop and refine their skills.

Paper trading is an invaluable tool for learning, developing strategy, and building confidence in trading decisions. By utilizing these alternative platforms, individuals can gain practical experience, test different strategies, and enhance their understanding of the stock market without risking real funds.  So, while Robinhood may not have paper trading, several viable alternatives are available for those seeking to embark on their trading journey.


Does Robinhood allow paper trading?

Robinhood doesn’t allow paper trading. However, there are alternatives users can turn to give paper trading a go.

Is paper trading worth it?

Paper trading is definitely worth it for both beginners and experienced traders. Paper trading allows users to learn the basics of trading in a simulated environment. Moreover, it allows experienced traders to test strategies, refine trading approaches, and build their confidence before putting their money on the stock market.

Does Robinhood do penny stocks?

Robinhood does allow traders to trade penny stocks. But the penny stocks in question must be listed on Nasdaq or the NYSE.

How do I practice options trading on Robinhood?

The only way to practice any kind of trading is to try paper trading. Sadly, Robinhood paper trading is currently unavailable, and we’re unsure if it will ever be.

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