Fidelity Demo Account

Fidelity Paper Trading Demo Account in 2022

Fidelity virtual money simulated trading account. Can I use Active Trader Pro platform demo to paper trade stocks and options?

Fidelity Paper Trading

Fidelity does not offer paper trading (also known as simulated or virtual trading) service (not even on its Active Trader Pro platform). For a completely free virtual trading account, go to TD Ameritrade or learn about TD Ameritrade paper trading.

Free TD Ameritrade Account

$0 commissions + transfer fee reimbursement.

Open TD Ameritrade Account

Fidelity Overview

Although we give Fidelity a strong overall rating, there are some areas that we feel they could improve on. One of these areas is practice or paper accounts, where you can basically trade using pretend money to test the waters so to speak without needing to risk anything. New and experienced traders alike use paper accounts to get a feel for the markets or to test new security types or strategies before using their funds in real life.

Although Fidelity doesn’t currently offer practice accounts, a couple of brokers (like Webull) do, and so this article will discuss the benefits of paper trading.

Practice Accounts for New Traders

Many traders choose to gain real-world experience in the markets with a practice account before investing their hard-earned money. For someone who has never placed a trade or experienced the adrenaline rush of watching their investment quickly increase (or decrease) in value in real-time, paper trading can get them as close to this experience as possible without them taking on any real risk. Some new traders might think it’s a waste of time, but most who have tried it would agree it’s a valuable experience.

Paper accounts don’t just allow newbies to get familiar with entering different order types, but they allow you to feel what it’s like when you’re watching stock prices move in real time. You can really test your discipline when the market forces are trying to get you to act emotionally, and often irrationally. After market close, you can then review your actions to see if you acted objectively to follow your plan in the face of a fast-moving market without having to pay financially for any irrational decisions.

After you’ve gotten comfortable with paper trading and feel you’re able to react to the market’s movements in a logical and controlled manner you can make the easy switch to trading with real money. Your real account is a mirror-image of your paper account experience, except now you’re (hopefully) making real money.

Fidelity Paper trading

Recommended Articles

Brokers with paper trading
Fidelity after hours trading
Transfer Fidelity account to Webull

Practice Accounts to Experience More Complex Assets

Practice accounts aren’t exclusively for new investors; many experienced investors continue to use them throughout their investing careers to test out new security types and strategies. For example, most people stick to stocks and ETFs when they first start investing because these instruments are the most simple. But eventually, many traders expand their tool kit to include more complex instruments like options, futures, and fixed income securities. Paper trading these instruments can be a great way to familiarize yourself with how they work before putting your money on the line and risk making a costly mistake that’s due to not understanding how they work.

Paper Trading to Test New Strategies

Even after you’ve become a “master of the markets” and understand complex securities, paper trading can still be a valuable tool to test out new strategies and ideas before risking your capital. For example, maybe you built a custom quantitative stock screener and you want to see if you may have discovered Warren Buffet’s secret sauce by testing it out in real time. You could run the screen and then implement the resulting trades using a paper account and rerun the screen to rebalance the strategy in your practice account as needed. You could then monitor the strategy’s performance results via your practice account in real time.

Fidelity Paper Trading Conclusion

In summary, practice accounts are an invaluable tool that investors of all experience levels can benefit from. Whether you’re brand new to the markets, wanting to try more complex securities, or looking for an account to test out a trading strategy, a practice account can be very helpful. The best part is that they are offered for free by many respected brokers, most notably Webull.

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for, Chad can usually be found managing his portfolio or building a new home computer.