If you’re looking to get started with paper trading on Interactive Brokers, you’re in the right place. Whether you’re new to trading or just want to test strategies without risking real money, IBKR offers a powerful way to practice.

In this guide, we’ll show you how to make the most of IBKR’s paper trading account by covering:

• Opening your IBKR paper trading account.
• Navigating the platform with its essential tools and features.
• Placing trades, with a breakdown of order types and execution processes.
• Tracking and managing your trades effectively.
• The pros and cons of IBKR’s paper trading experience.

Let’s dive in.

WARNING

Trading exposes you to the risk of losing more than your initial investment and incurring financial liability. Trading is suitable only for well-informed, sophisticated clients able to understand how the products being traded work and having the financial ability to bear the aforementioned risk.

Transactions involving foreign exchange instruments (FOREX) and contracts for difference (CFD) are highly speculative and extremely complex. As such, they are subject to a high level of risk due to leverage. Please keep in mind that CFD trading is banned in the US.

Information published on the NewTrading.io website is for informational purposes only and should not be construed as offering investment advice or as an enticement to trade financial instruments.

Getting Started With Interactive Brokers

Interactive Brokers (IBKR) is a go-to for traders looking for a wide range of assets—stocks, options, futures, forex, and more. Known for its low fees and advanced tools, IBKR gives you access to multiple platforms tailored to different levels of experience.

Here’s a quick rundown of your platform options:

• Trader Workstation (TWS): Packed with pro-level tools like algorithmic trading and market scanning.
  
• IBKR Mobile: All the power of TWS, optimized for mobile trading.
  
• IBKR GlobalTrader: A simplified mobile platform for easy trades.
  
• IBKR Desktop: Designed for beginners and intermediate traders.

Unfortunately, IBKR doesn’t offer a web-based paper trading platform. You’ll need to download either the mobile app or Trader Workstation on your desktop or laptop. If you’re using IBKR Desktop, note that you’ll need a full account to access it.

For an in-depth breakdown of IBKR’s platforms, check out our full review.

Here’s how to get started with IBKR’s paper trading:

1. Go to interactivebrokers.com.

2. Download Trader Workstation (TWS).

3. Open the app, choose paper trading, and sign up with your email.

4. Boom—you’ve got $1,000,000 in virtual funds to practice with.

While it’s fun to play with $1 million in virtual capital, it’s smart to adjust the amount to something more realistic. That way, your strategies reflect actual market conditions and help you prepare for live trading.

Want to change the virtual balance? Watch this quick guide:

IBKR Paper Trading Dashboard

Once you’ve got your IBKR paper trading account up and running, you’ll need to access it through Trader Workstation (TWS) or the IBKR app. Check out the video above for a quick walkthrough of the platform’s key features.

Here’s a breakdown of what you’ll find on the TWS dashboard:

• Watchlists: Add and track your favorite instruments—stocks, ETFs, futures, and options.
• Market Data: Get delayed quotes (approximately 15 minutes behind) and use charting tools with customizable indicators and multiple timeframes.
• Portfolio Management: Stay on top of your positions, account balance, and performance.
• Newsfeed: Get real-time news and research reports right within the platform.

While TWS is powerful and highly customizable, beginners might find it a bit overwhelming at first.

There’s a lot to explore, and the number of tools can be intimidating. If that’s you, the IBKR app offers a simpler, more intuitive experience. You still get the core features—watchlists, portfolio management, and charts—but in a more streamlined interface that’s easier to navigate.

For more seasoned traders, TWS shines with its ability to adapt to your personal trading style. The platform’s full customization options let you tailor the layout and tools to suit your needs.

Why IBKR Stands Out

One of the key advantages of IBKR’s paper trading environment is its diverse range of asset classes. Unlike some other paper trading simulators that may limit you to stocks and ETFs, IBKR lets you practice trading across multiple markets, including forex, futures, and options. 

This broad access allows you to test many strategies and refine your approach in a more dynamic, realistic trading environment.

Executing Trades On IBKR’s Demo Account

Whether you’ve chosen TWS or are using the mobile app, opening a trade is similar across both platforms:

1. Start by selecting the instrument you want to trade, either from your watchlist or by using the search function
2. Open the order ticket, which allows you to choose key details such as trade direction, quantity, order type, and timing
3. IBKR has a wide range of order types to choose from, from basic market and limit orders to more complex options like stop, trailing stop, and bracket orders, giving you in-depth control over your execution

Once you’ve adjusted the order ticket, click ‘Submit’ to place the trade. Once executed, your submitted trade will appear in the positions tab.

Monitoring And Analyzing Your Trades

After placing a trade, you can track its performance in the ‘Portfolio’ section, which includes information such as: 

• Open positions and running profit or loss
• Performance charts that show individual results and account history
• Risk exposure, including margin use

The level of detail in the paper trading environment is fairly impressive, giving you a clear view of how your trades and strategies are performing. It’s also possible to set price alerts, changes in news sentiment, and technical indicators to stay on top of your trades.

IBKR also allows you to set stop losses and take profit levels, two crucial features that mean you don’t always have to manually monitor your trades and can automate part of your strategy. 

Our Take On Interactive Brokers

IBKR’s paper trading account stands out for two reasons.

First, the good: it offers a comprehensive toolset and access to a wide range of global markets. If you’re an advanced trader looking to test strategies across multiple asset classes, the ability to simulate complex orders and use the same trading tools available as live accounts makes this a great platform choice.

However, now we move onto the bad: you’re blocked from any web-based paper trading unless you open a real account, which can be a barrier for those looking for a quick, no-commitment experience. Additionally, while TWS is powerful, it’s not particularly intuitive and is more functional than visually appealing. These two barriers make it more difficult—although not impossible—for beginners.

To help you find your next trade, IBKR provides access to several research tools, including a market scanner and a live newsfeed, to help inform your trading decisions. The range of tools allows you to test both simple and complex strategies within the paper trading account.

Overall, it’s a powerful paper trading experience, ideal for traders looking to sharpen their skills in a realistic environment. While needing to open a real account might be a deterrent, the depth of tools and market access make it worthwhile.

Pros

• Access to a wide range of markets
• Advanced order types
• Customizable dashboard on TWS
• Valuable flow of market data/news

Cons

• Platform complexity for beginners
• No web paper trading version