2025 Stock Simulation Account Beginner's Guide | Comparison and Analysis of Three Common US Stock Virtual Trading Platforms

Why Beginners Must Practice with a Virtual Account?

Many novice investors often make the mistake of rushing to use real money to trade. However, before investing actual funds, it is wise to familiarize yourself with the order process and test trading strategies in a virtual trading environment. Simulated accounts provide a risk-free learning environment where you can boldly try various strategies, accumulate practical experience, and avoid real losses.

Top 3 Virtual Stock Trading Platforms in the US Market

Mitrade｜The Most User-Friendly Entry Platform

Founded in 2011 and regulated by Australian ASIC, Mitrade allows account opening in Taiwan, Australia, Vietnam, Thailand, and other regions. Its biggest advantage is comprehensive Chinese-language support, including customer service, educational resources, and trading interface.

Core Advantages:

• Simulated account with $50,000 virtual funds, available immediately upon registration without complex application
• Practice trading for up to 90 days, ideal for beginners to start without pressure
• Supports both long and short trading, with adjustable leverage
• Zero commission, supports deposits and withdrawals in New Taiwan Dollars, friendly to small investors
• 24-hour Chinese customer service, available on web, app, and desktop platforms
• Complete market analysis reports and technical analysis educational resources

Real account opening requires KYC verification, and beginners can enjoy up to $100 cash back.

Interactive Brokers｜Professional Tool-Oriented

Established in 1977, a globally renowned online broker headquartered in the US, serving institutional investors, professional traders, and retail clients. Accounts can be opened in Taiwan, Hong Kong, Macau, and other Asian regions.

Platform Features:

• Wide range of trading products including stocks, futures, options, forex, bonds, etc.
• No minimum deposit for opening an account, but each trade incurs a fee ($0.005 per share)
• To open margin accounts for leverage, a deposit of at least $2000 is required
• Provides Chinese customer service and simulated account application
• Supports real-time quotes, technical analysis tools, and quick settlement

Note: The account opening process is relatively complex, with a steep learning curve for the interface. Real-time quotes may incur additional charges. Long-term inactivity in the simulated account may lead to account recycling.

TD Ameritrade｜Established US Brokerage (Now Acquired)

Founded in 1975 in the US, a veteran online broker now acquired by Charles Schwab. Investors in Taiwan, Hong Kong, Macau, and Singapore can open accounts. After acquisition, the $25,000 minimum deposit requirement was removed.

Services:

• Real-time market data without lag, comprehensive investment tools
• Provides Chinese customer service, with dedicated teams for Taiwan and Hong Kong
• Rich educational resources for learning while practicing

Two Ways to Access the Simulated Account: One is to open a real account first and receive a permanent simulated account automatically (requires detailed personal info); the other is to apply for a separate short-term simulated account with a 30-day trial period, no real account needed, but trading products are limited.

Practical Operations with a Simulated Account｜Using Mitrade as an Example

Five Quick Steps to Get Started

Step 1: Enter the Trading Page
Log in to your account, switch to the simulated account mode, and search for the stock code you want to trade (e.g., Tencent 0700).

Step 2: Set Trading Parameters
Enter the number of shares to buy, adjust leverage, and set take-profit and stop-loss levels.

Step 3: Confirm the Order
Review all settings, click “Buy,” and once the system shows “Order Successful,” the trade is completed.

Step 4: Monitor Your Position
You can check your holdings at any time. To close early, select the “Close Position” function to realize profits or cut losses.

Step 5: Review and Adjust
After trading, review your operation records, analyze profit and loss reasons, and continuously optimize your strategy.

Essential Tips for Beginners’ Settings

Even in a virtual environment, cultivate disciplined risk management habits:

• Set take-profit at 30%
• Set stop-loss at 10%
• Maintain a profit-to-loss ratio of at least 3:1
• Developing this habit can effectively reduce the risk of losses in real trading

Virtual Trading vs. Real Trading｜Understanding the Three Major Differences

Biggest Psychological Difference

When using virtual funds, knowing it’s not real money often results in less emotional response to gains or losses. However, in real trading, market fluctuations trigger genuine greed and fear, influencing decision-making. Many perform well in simulated trading but suffer losses in real trading, mainly due to psychological challenges.

The Reality of Market Conditions

Simulated trading often ignores real-world factors such as transaction fees, slippage, and liquidity constraints. Real markets involve delays, price volatility, and trading costs, making the environment far more complex than simulations.

The Difference in Financial Risk

Losses in virtual accounts do not affect actual assets, but every decision in real trading directly impacts your financial situation. Making correct decisions can lead to profits, while mistakes can cause losses and even severe economic consequences.

Essential Reading for Beginners｜Proper Practice of Virtual Accounts

Deepen Theoretical Understanding
Learn basic stock knowledge first, then use the simulated account to practice and concretize concepts. Combining theory and practice helps internalize investment knowledge.

Regular Review and Adjustment
After each trade, review your decision-making logic, identify areas for improvement. Continuous reflection and optimization will gradually enhance your trading skills.

Set Clear Goals
Even with fake money, set “profit targets” and “stop-loss points” seriously. This helps develop discipline. Losses are valuable learning experiences.

Pre-Plan Strategies
Before trading, ask yourself: How much risk can I tolerate? Am I aiming for short-term or long-term gains? What are my goals? Use the simulated account to verify if your strategies are feasible; if not, adjust immediately.

Avoid Developing Bad Habits
Common pitfalls include:

• Going all-in impulsively
• Gambling-like trading behavior
• Overconfidence, believing you won’t lose

If these habits form during simulation, they can cause serious losses in real trading.

Common Questions for Beginners

Q: How to choose a suitable simulated trading platform?
A: Prioritize three factors: (1) Ease and intuitiveness of registration and operation; (2) Platform stability and speed; (3) Availability of basic analysis tools and educational resources. Platforms that allow hands-on learning while trading are best for beginners to gain experience.

Q: Can experience from simulated trading be fully applied to real trading?
A: The trading logic and operation procedures are applicable, but the psychological aspect is entirely different. Profits in simulation are satisfying, but real trading can lead to tears. It’s recommended to develop good discipline in the simulated environment and then add psychological adjustment in real trading.

Q: How long should I practice with a simulated account before trading with real money?
A: It varies by individual, but at least you should reach consistent profitability in the simulated account, familiarize yourself with order placement, stop-loss, and risk management processes before confidently entering real trading.