Top 3 Stock Simulators for Practice & Learning

The best stock simulators allow the user to hone their investment techniquesStock Investment StrategiesStock investment strategies pertain to the different types of stock investing. These strategies are namely value, growth and index investing. The strategy an investor chooses is affected by a number of factors, such as the investor’s financial situation, investing goals, and risk tolerance.. Regardless of your level of proficiency with money managementAsset ManagementAsset management refers to the process of developing, operating, maintaining, and selling assets in a cost-effective manner. and making investments, dealing with the stock market is still always a bit of a gamble.

Before the age of the internet, old-school traders, brokers, and certified public accountantsAmerican Institute of CPAs (AICPA)The American Institute of CPAs (AICPA) is a non-profit organization of certified public accountants in the U.S. who creates and grades CPA examinations. (CPAs) used pen and paper for drawing charts and entering orders. (Back in the day, stock market orders were written on paper and then rushed from a brokerage firm’s order desk to a floor trader. Appropriately named stock market “runners” were hired at least partially based on how fast they could run.) The difficulties with traditional paper trading were endless, posing a variety of hazards. One of the most common problems was being unable to read whatever someone scribbled. Another was, at day’s end, being unable to find all the scraps of paper that documented the day’s trading.

Enter the present day and the advantages offered by high-speed computers, software, the internet, and all its associated technology. One of the major advances – and a boon for money managers, brokers, and financial advisors of any type – made possible by the development of sophisticated computer programs is the ability to create the best stock simulators or trading simulators for practicing trading techniques and testing out trading strategies.

Best Stock Simulators – Tools for Professionals or Individual Investors

Anyone who is in the business of serving clients involved in stock market investingStock Investment StrategiesStock investment strategies pertain to the different types of stock investing. These strategies are namely value, growth and index investing. The strategy an investor chooses is affected by a number of factors, such as the investor’s financial situation, investing goals, and risk tolerance. wants to take advantage of the best tools available that will help them serve clients better. Individual investors seek out the best stock simulators that will guide them in becoming better investors. The choice of a stockStockWhat is a stock? An individual who owns stock in a company is called a shareholder and is eligible to claim part of the company’s residual assets and earnings (should the company ever be dissolved). The terms "stock", "shares", and "equity" are used interchangeably. simulator depends largely on how well a given simulator meets your specific individual needs.

There is no one stock market simulator that we would point to and declare as “THE best” in all situations. However, the three examined below are, at the very least, “among the best”. They have consistently received high marks from both users and reviewers. We urge you to examine them from the perspective of your own specific needs and goals.

Using the Best Stock Simulators for Practice and Strategy Trials

A good stock market simulator serves as an excellent practice tool for making investments and trying out trading strategies. Additionally, it offers the opportunity to learn and master finance and investing basics. Simulators can help you learn how to factor in trading costs, sell short, and perform stock analysis. Simulators utilize popular analytical tools such as financial ratios like price/earningsPrice Earnings RatioThe Price Earnings Ratio (P/E Ratio is the relationship between a company’s stock price and earnings per share. It provides a better sense of the value of a company. and debt/equityDebt to Equity RatioThe Debt to Equity Ratio is a leverage ratio that calculates the value of total debt and financial liabilities against the total shareholder’s equity.. Simulation trading can also help you perceive how the larger economicEconomicsCFI's Economics Articles are designed as self-study guides to learn economics at your own pace. Browse hundreds of articles on economics and the most important concepts such as the business cycle, GDP formula, consumer surplus, economies of scale, economic value added, supply and demand, equilibrium, and more picture and business-related news affect markets and stock prices.

#1 Wall Street Survivor 

Wall Street Survivor is a tried and true stock market simulator. It has been “in the game” for quite a while and definitely qualifies as one of the best stock simulators. It offers a wealth of personal financePersonal FinancePersonal finance is the process of planning and managing personal financial activities such as income generation, spending, saving, investing, and protection. The process of managing one’s personal finances can be summarized in a budget or financial plan. and investment knowledge you can absorb at your own speed. While you’re practicing and becoming more proficient at trading, you can also effectively be earning a graduate degree in investingInvestment MethodsThis guide and overview of investment methods outlines they main ways investors try to make money and manage risk in capital markets. An investment is any asset or instrument purchased with the intention of selling it for a price higher than the purchase price at some future point in time (capital gains), or with the hope that the asset will directly bring in income (such as rental income or dividends)..

Articles, videos, and other source materials are updated daily, so you’ll never want for information. To assess your skills or knowledge, you can take one of the hundreds of tailored quizzes. These are designed to help you digest and integrate information that you’ve studied.

You can use Wall Street Survivor to trade your way to the uppermost tier of investors playing the game. As you put into practice the investing skills you’ve learned, you can earn additional virtual cash, badges of achievement, and prizes that include eBooks, subscriptions, and even real cash.Cash EquivalentsCash and cash equivalents are the most liquid of all assets on the balance sheet. Cash equivalents include money market securities, banker's acceptances So Wall Street Survivor might be a good choice if you need some extra investment capital.

http://www.wallstreetsurvivor.com/

#2 HowTheMarketWorks 

This is another veteran entry in the world of stock market simulators. HowTheMarketWorks is near the head of the pack among free simulators tailored for the beginning investor. This simulator is a streaming stock market game played in real-time. It’s used by nearly half a million investors, financial professionals, and school classes every year. HowTheMarketWorks, just as its name indicates, is ideal for beginners. It offers all the educational materials and tools needed to obtain a firm, basic understanding of how the stock market works.

This simulator isn’t just for beginners though. It offers sophisticated trading and investing simulations with the ability to practice trading global stocks, ETFsExchange Traded Fund (ETF)An Exchange Traded Fund (ETF) is a popular investment vehicle where portfolios can be more flexible and diversified across a broad range of all the available asset classes. Learn about various types of ETFs by reading this guide., mutual funds, optionsStock OptionA stock option is a contract between two parties which gives the buyer the right to buy or sell underlying stocks at a predetermined price and within a specified time period. A seller of the stock option is called an option writer, where the seller is paid a premium from the contract purchased by the stock option buyer., and even commodity futures.

As soon as you sign up, you are instantly offered access to thousands of articles, quotes, charts, Wall Street analyst ratingsEquity Research ReportAn equity research report is a document prepared by an analyst that provides a recommendation for investors to buy, hold, or sell shares of a company., news, and financial statementsThree Financial StatementsThe three financial statements are the income statement, the balance sheet, and the statement of cash flows. These three core statements are from publicly-traded companies. A complete package, HowTheMarketWorks provides users with tools such as financial calculators, lesson plan rubrics for teachers, and hours of informative and entertaining videos.

This simulator is noteworthy because of its suitability for the classroom. It has gained a wide following among educators. The gaming features include the opportunity to create customized, private competitions for individual classes, grades, or other groups. You can design competitions or tailor-made investing scenarios with specialized rules such as specific commission rates, trading competition time frames suited to the term of a class, and varied initial cash balances.

http://www.howthemarketworks.com/

#3 MarketWatch Virtual Stock Exchange

The MarketWatch Virtual Stock Exchange (VSE) Game allows users to create a portfolioInvestment PortfolioAn investment portfolio is a set of financial assets owned by an investor that may include bonds, stocks, currencies, cash and cash equivalents, and commodities. Further, it refers to a group of investments that an investor uses in order to earn a profit while making sure that capital or assets are preserved. and trade stocks in real-time. Once you’ve joined a game, you can discuss strategies with other players. You can also develop your own game for others to join and compete in. You begin by choosing a list of stock symbols to trade in your portfolio and then develop a custom Watch ListTrading Watch ListIn investment banking, a trading watch list is maintained by the compliance group to comply with legal and regulatory requirements, mitigate conflicts of alongside your holdings. When you’re ready, turn on advanced features like limit and stop loss orders.

By providing access to interact with other traders, this program offers the opportunity to learn from a variety of skilled traders with diversified backgrounds and trading strategies. In the end, this stock simulator can be an excellent platform to help you build up your investing muscles.

https://www.marketwatch.com/game

Amazon Financial Modeling and Valuation Course

Want to learn more about how to value large public companies like Amazon? Check out CFI’s Advanced Financial Modeling Course on Amazon. In the course, you’ll learn how to build a detailed financial model from scratch and use discounted cash flow analysis to calculate the net present value of Amazon’s shares.

The above image shows the detailed dashboard you’ll create by the end of the Amazon Course.

The Bottom Line on Stock Simulators 

Trading stock markets is a tricky business and there is rarely a single investor – beginner or otherwise – who becomes hugely successful right out of the gate. It’s a simple fact that, as is the case with learning and developing any new skill, practicing at stock trading can become a very valuable aid in becoming a super-successful investor. Using a stock market simulator allows you to practice the art of trading while you’re learning the game of investing, ideally helping you to ultimately become a more skilled and successful investor in real life.

Read More About Investing

We hope you’ve enjoyed CFI’s rundown on the three best stock simulators. CFI is the official provider of the Financial Modeling & Valuation Analyst (FMVA)™ certificationBecome a Certified Financial Modeling & Valuation Analyst (FMVA)®CFI's Financial Modeling and Valuation Analyst (FMVA)® certification will help you gain the confidence you need in your finance career. Enroll today!. To know more and advance your career, these additional resources will be helpful:

• Technical Analysis – A Starter’s GuideTechnical Analysis - A Beginner's GuideTechnical analysis is a form of investment valuation that analyses past prices to predict future price action. Technical analysts believe that the collective actions of all the participants in the market accurately reflect all relevant information, and therefore, continually assign a fair market value to securities.
• CryptocurrencyCryptocurrencyCryptocurrency is a form of digital currency that is based on blockchain networking. Cryptocurrency like Bitcoin and Ethereum are becoming widely accepted.
• BitcoinBitcoinBitcoin is the forerunner of the cryptocurrency market. Operating on blockchain technology, Bitcoin is set to disrupt the currency market. Invented in 2008
• BlockchainBlockchainBlockchain networking allows maintenance of a growing list of records. Blockchain authentication is what supports cryptocurrency security.