Robinhood Demo Account

Robinhood Paper Trading (Demo) Account in 2022

Robinhood demo account for paper trading. Robinhood virtual money simulated trading on stocks and options.

Robinhood Paper Trading

Robinhood does not offer paper trading (also known as simulated or virtual trading) service. 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

Open Robinhood Account

Open Robinhood Account

What is a Paper Trading Account?

Paper Trading Account simply means that you are trading on the account that has pretend (not real) money. Your real money is on the different account, and it stays safe there. Lets take a look at TD Ameritrade's Paper Money account.

What is TD Ameritrade’s “Paper Money”?

TD Ameritrade’s practice account is called “Paper Money” and can be accessed through Ameritrade’s award-winning thinkorswim trading platform. When you go to login to thinkorswim (see below) just make sure you toggle the switch over to “Paper Money” and not “Live Trading”. Ameritrade’s paper money account has all the same features and functions as your live Ameritrade account, except that it’s using fake money. You can place equity trades, setup complex options trades, and research companies just like you would in your real account.

As you start to place paper trades you will see the account will start tracking your simulated gains (or losses) for you to study, including the costs of simulated commissions to make the experience as real as possible. If you make enough mistakes in your paper account and feel like you want to start over, you can “reset” your paper money account at any time and start fresh.

Robinhood paper Trading

Why Use a Paper Money Account?

There are two main reasons why investors, both beginners and experienced investors alike, choose to use a paper account. Getting as close as possible to real world trading experience (without risking money) is an invaluable opportunity for beginners and those who don’t yet have the funds to invest, while testing out a new asset type or strategy is a popular use of paper accounts for experienced traders. We’ll take a look at both of these reasons next.

Open TD Ameritrade Account

Open TD Ameritrade Account

Paper Money for Beginners

For anyone who hasn’t traded in the markets before but would like to begin, it’s certainly important to read up as much as you can on the different types of markets, assets, security types, and investing styles. But there's one critical ingredient to market success that you cannot get from reading – that’s real world experience. It’s one thing to write out your strategy and investment thesis on paper with detailed rules, but being able to stick to your plan in the heat of the moment when your money is at risk is a completely different animal.

When your wealth is on the line and its value is instantly changing, sometimes rapidly so, many of us can let our emotions cloud our better judgement, making it more difficult than imagined to stick to the plan. Paper money lets you experience this rush of adrenaline and clouding of judgement in a “safe environment” where regardless of how well or poorly you react, your wealth is safe.

Paper Money for Experienced Traders

You may be wondering why an experienced trader would be using a paper account, but the reality is that practice accounts have lots of value even for those already pulling in consistent profits. Many experienced traders like to use paper accounts to test drive a new asset type or strategy to make sure they fully understand it before risking real money. For example, someone who has been investing in their own stock picks for a decade may decide they want to try adding forex to their portfolio. They understand how currency futures work but just want to thoroughly test their understanding by paper trading them first to make sure they don’t run into any surprises that could cost them.

Robinhood demo account

Even a seasoned trader who has experience trading in all major security types may find a paper account to be helpful in testing out a new strategy. For example, maybe you created a nice screen that identifies companies with upside earnings surprises and you’ve used the screening logic to create a rules-based trading strategy. You think it’s fool-proof but want to see if it you can actually implement it as planned without any problems using a paper account to safeguard your capital.

Open TD Ameritrade Account

Open TD Ameritrade Account

Robinhood Overview

Robinhood app is well designed and easy to use and learn. Anyone with knowledge of how to use a smart phone should have no trouble getting started.

Robin hood Margin Rates

This is what users who have already set up their account see when they open the app. They may login in using their Touch ID or the old-school username and password.

Robin hood Margin Rates

The above screenshot is the “home page” of the app. At the top investors see their account’s total value, uninvested cash included. Below that value is the percentage that the account has moved for the time period selected on the graph. It defaults to the 1 day range, however, if the user selects an alternate range on the graph, the percentage will display for that selected time frame. The rectangle below the graph displays news articles from various sources that relate to the trader or the trader’s holdings.

Robinhood Margin Interest

Scrolling down from the app home, users will see the list of the stocks that they own. Stocks are identified by their respective ticker symbols. The app shows how many shares you own directly under the ticker symbol. The box to the left of each symbol represents the current price of one share. If the box is green, that means the trading price is up for the day. If the box is red, then the price is down for the day.

Robinhood Margin Loan

As the user continues scrolling down, they move past their holdings and see their “Watchlist.” These are usually stocks that the investor is interested in. Users can use the search tool on the upper left to add certain stocks to their watchlist.

Robinhood Website

One of the biggest drawbacks to the Robinhood brokerage account is the lack of desktop website to trade. The company’s website only features information, FAQ’s and fee schedules. There’s no way to sign in to your account through the company’s website. Trading, viewing account balances, and transferring money to and from a bank account is only available through the mobile trading app.

Robinhood Customer Support

The commission free trading offered by Robinhood comes at the expense of no brick and mortar stores, and no listed phone number for customer support. Robinhood only offers an email address for customer support.

Is Robinhood Safe?

The calling card of all Robinhood accounts is the absolutely zero commission on each trade which really sounds too good to be true. Worried that someone with easy access to your phone could drain your account of all your hard earned cash?

Well Robinhood allows users to secure the app and requires either a typed password or a fingerprint scan in order to open the app. While this can be cumbersome at first (as it requires users to log in again, even if the app was not completely closed), the safety added by this simple feature is completely worth the extra few seconds it takes to log in.

Robinhood does require new users to authenticate their identities, so adding money to your account will take about a week, but once the initial transfer has been added, subsequent transfers occur in two to three business days.

Robinhood Demo account

Robinhood Paper Trading Summary

Robinhood does not offer virtual trading but attracts investors for its low transaction fees. Along with Webull it is one of the best priced brokerage houses in the United States.

Updated on 5/2/2022.

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.