A paper trading account, also known as a demo account, simulator, or virtual practice account, is like a free trial to using a broker’s trading platform for investing or trading in the financial markets. Frequently these test accounts are funded with a free allotment of fake currency to test out the software by making simulated trades. Once you have familiarized yourself with the trading platform in demo mode, you can decide whether you want to open a live version of the trading platform by funding a real account.