Webull Paper Trading: How To Practice Trading

Webull paper trading, at its most fundamental level, is a way to practice trading and investing in financial assets like stocks and bonds. Practice is important for anything you do, and just as a prospective professional basketball player would practice their 3-point shot before a big game, a trader can practice their trading strategies before ever having to put any real money or skin in the game. Webull's paper trading is one of the best in the business, but there are a few features it's lacking. Before we break down how Webull's paper trading platform works and how to get started practicing trades without any risk!

What is paper trading?

Paper trading is the practice of placing trades with simulated money while tracking real-time market conditions. Put simply, it's fake trading, or practice trading, or trading without risking any real money. You can buy and sell stocks, ETFs, options, and even crypto as if you were a live investor, but without the financial risk. It's a sandbox in which the prices are real, the data is on point, but the cash and profit or loss are all virtual.

Think of it the same way pilots use flight simulators before flying passengers. No one wants their first takeoff to be in a real jet with lives on the line. The same logic applies to people investing their money; investors shouldn’t make their first trade with real cash. Paper trading gives you a safe runway to build skills before launching into the live market. It's also important to note that paper trading is not just for beginners. It's a great way for even the most seasoned of traders to test out a trading thesis or asset allocation strategy.

How does Webull's paper trading work?

Webull has a great paper trading setup, and that's not an exaggeration. Not all paper trading platforms or trading simulators are created equal; some are too basic to be useful, others are locked behind paywalls or overly complex for beginners. Webull manages to walk the line: powerful enough to keep seasoned traders engaged, yet intuitive enough for anyone starting their first practice trade. Here are the main reasons we like Webull's paper trading.

Platform accessibility

Webull makes paper trading accessible to everyone. It doesn’t matter if you’re funding your account or just opening the app for the first time; paper trading is free and built right in. There’s no minimum deposit, no hidden fees, no “premium” tier.

That means you can practice on your morning commute, over lunch, or at your desk in the evening. The experience is seamless across mobile and desktop. For a generation of investors who want flexibility, that’s a game-changer.

Tools and features

When you open your Webull paper account, you’re instantly handed $1,000,000 in virtual cash. That number isn’t random; it’s large enough to let you experiment with realistic allocations (like building a $50K or $100K portfolio) but also big enough to try ambitious moves, like options spreads or sector-concentration plays.

How Webull compares with other paper trading platforms

Webull vs. Robinhood

Robinhood doesn’t include paper trading, and that's honestly a huge minus on their part. If you want to simulate trades there, you’ll need to use third-party tools. That leaves a gap for beginners who want a safe place to practice before committing real money.

Webull vs. TD Ameritrade (thinkorswim)

TD Ameritrade’s thinkorswim platform has one of the most powerful simulators on the market. The trade-off is that it’s built for pros, with a steep learning curve and a dense interface. For someone just starting out, it can feel overwhelming compared to Webull’s simpler setup.

Webull vs. Fidelity

Fidelity offers demo tools, but they’re pretty limited. They’re useful for a quick walkthrough of how orders work, not for deep strategy testing. That makes them less flexible for people who want ongoing practice.

In the case of a preferred stock trading platform, I would always suggest looking at the needs first. Personally, I only need to be simple and reliable. I have not found people spending time on sites that are clumsy or slow. The site, such as Etrade or Webull, I can prove to be good at any level of employment for the individual, whether you are just starting to feel the water or you have been doing it forever. However, remember to look at the fees. It can be said that I discovered for myself that a platform with low or no fees can actually become wealthier faster because other commissions are small. Jimmy Fuentes, trader and consultant at California Hard Money Lender.

Getting started with Webull paper trading

Before you can sharpen strategies, you need to know how to get your Webull paper account up and running. Here’s a step-by-step guide that takes you from setup to your first simulated trade.

How to set up your paper trading account

How to place your first trade

How to track your results

After you’ve entered trades, head to your portfolio dashboard. Here you’ll see:

• Profit/loss (P/L) for individual trades.
• Percentage returns across your simulated portfolio.
• Allocation breakdowns to monitor diversification.

This dashboard mirrors the one you’ll use when real money is on the line. Think of it as a rehearsal for the reporting tools you’ll rely on when trading with the goal of building actual hard cash.

What can you test with paper trading?

With paper trading, an investor can test almost everything they would do with real money. That includes buying and selling stocks, ETFs, or options, placing trades at different prices, and tracking how those choices play out. It is a safe way to practice order types like market, limit, or stop orders without risking cash. People also use it to test trading strategies and to build discipline by sticking to entry and exit rules before moving into real markets.

Common mistakes to avoid in paper trading

Paper trading is where your investing habits are formed. The simulator removes dollar risk, but it doesn’t remove the risk of building a sloppy process, and those shortcuts will follow you into real markets. Treat every practice trade like real money: write a brief thesis, set entry/exit and risk limits, and review what actually happened. With that mindset, here are the common pitfalls to avoid, and the better habits to build instead.

Treating it casually

Paper trading is only as valuable as the effort you put in, so make sure you are focused. Random clicks equal random lessons and time is always an important asset. Treat every trade as if it’s real, write down your reasoning, and track your results.

Ignoring fees and execution

Paper trading doesn’t always replicate slippage or commissions. That’s fine, but you need to mentally factor them in before assuming your strategy is flawless.

Strategies that are not realistic

Going “all in” on penny stocks feels exciting, but it builds bad habits. Real portfolios demand discipline. Use your simulator to mimic the same allocation discipline you’ll need with real money.

How to turn paper trading into real money

Paper profits prove you can spot setups, but real hard-earned cash-money tests whether you can actually follow through. The point isn’t to ditch paper trading, it’s to use it as a bridge. Take the rules you practiced and move them into live trades, but with a small size and clear risk limits. That’s why you keep guardrails: position sizing, stop-losses, and even dollar-cost averaging. Keep the paper account as your lab, and let the real account run only your best, most consistent plays. That’s where practice turns into performance, and confidence starts compounding and taking off.

Real-world scenario: practicing with $50,000

Imagine you’re given $50,000 in Webull’s simulator. Instead of making random moves, here’s how you could build a diversified practice portfolio:

This simulated portfolio lets you practice balancing risk across multiple asset classes. Over time, track performance in both bullish and bearish markets.

• In a bull run, NVDA might drive outsized returns.
• In a downturn, your VOO anchor and JNJ dividend yield will soften the blow.
• Options strategies add complexity but also teach risk management in volatile conditions.

FAQ

How long should I paper trade before going live?

Graduate based on rules, not the calendar. When your journal shows 30–50 paper trades over 4–8 weeks executed under a written plan, with positive expectancy (avg. winner × win rate > avg. loser × loss rate), a max drawdown you can actually stomach, and at least 90% adherence to your entry/exit/risk rules, that’s your green light to start live, and to start small.

How do I make paper trading feel more “real”?

Keep your simulator honest by adding a little friction. Assume a modest per-trade cost (about $1–$2) even when commissions are $0, mark fills slightly worse than the last price (roughly +0.05% for buys and −0.05% for sells), and note partial fills in your journal by splitting size across two prices. Sanding off the simulator’s “perfect edges” like this keeps your results realistic.

What should I track in my paper-trade journal to know I’m improving?

Keep it simple and consistent. For each trade, log: ticker, setup name, entry/stop/target, position size, risk per trade (R), exit reason, result in R, and a one-line lesson. Review weekly for: win rate, profit factor, average R per trade, max drawdown, and rule adherence. If the stats trend stable and your process errors shrink, you’re building real edge, not just lucky runs.