How Trading Simulators Benefit Brokers and Their Clients

6 min read

Stock trading has attracted a vast audience since it became easily available. Nowadays, the markets are unpredictable, and most newcomers have almost no clue what to do—they’ve come to invest their hard-earned money to have passive income and save for the future but instead have to grope their way through volatility. No wonder most of them quit!

The tendency is not healthy, and neither of the market players benefits from the situation. The number of potential traders isn’t infinite, and attracting new clients is more expensive than working with existing ones. That’s why it makes sense for brokers to provide their clients with educational materials and tools to increase clients’ lifecycles.

Why brokers benefit from educating clients

  1. Increased profit

More trading means more commissions. But if you’re riding the commission-free wave, your brokerage probably profits from payments for order flow.

  1. Reduced spending on advertising

Brokers devote a significant portion of their profits to marketing their services. However, successful investors can help reduce these costs by providing a stable base of loyal clients.

First, their lifecycle will be longer, so you don’t have to worry about client attrition and spend money trying to attract new investors to compensate. Second, as satisfied clients share their experiences with others, the broker’s brand gains more visibility and credibility. Thus, brokers can reduce their overall marketing expenses and focus on providing top-quality services to their clients.

That’s why it’s reasonable for brokers to aim to establish a community of accomplished and proficient clients who engage in frequent investing and generate consistent profits over the long run. This ensures the brokers’ survival in a highly competitive environment.

Practice-based learning

Trading technology is thriving: we see modern web and mobile apps with intuitive UI/UX and automated activity tracking in the form of trading journals. There’s no need to practice paper trading in its initial state when novice investors just write down their trades and speculate on possible outcomes.

Stock trading simulators have taken the podium to provide aspiring investors with practice-based learning. They don’t send orders to execution venues and don’t require real funds. But as fully functional trading platforms that equip users with a demo account and balance, they represent the epitome of practice-based trading education.

A trading simulator combines theory and trading experience with a strategic process. No need to learn the theory first and then try to apply it afterward. The ultimate target is to become a self-sufficient investor able to develop and grow over time.

While using a trading simulator, some investors might take risks that they wouldn’t take if real money were involved. A paper trading setting allows aspiring investors to get to know themselves on a deeper level. Maybe it’ll help them avoid trader’s high when they feel too lucky.

Why stock brokers should have a trading simulator

Having a trading simulator is a game changer for stock brokerages. Potential clients get to try the look and feel of your trading platform. They don’t need to invest money right away without this trial run, which means they don’t buy a pig in a poke. This increases your credibility as a broker.

You can also use this “demo” platform to prompt demo clients to sign up for a live account. You could send them an automated email or a push notification within the platform. Some trading platforms with integrated AI chatbots, like our DXtrade XT, even guide users through the onboarding process right inside the platform, automating document processing and AML/KYC procedures.

Those clients who already signed up can use a trading simulator to test portfolio strategies before implementing them live. They can even use it for copy trading—to test their selected trader’s performance before investing real money. This will definitely help your clients to make better-informed decisions.


The stock market is unpredictable and many newcomers struggle to navigate it. Brokers that educate their clients increase profits and reduce advertising costs.

In this regard, a trading simulator is a game changer for stock brokers who want to provide educational materials and tools for their clients to increase their lifecycles. Investors can use it for testing portfolio strategies and copy trading.

Trading simulators provide aspiring investors with practice-based learning to become self-sufficient investors. This benefits brokers by increasing profit, reducing spending on advertising, and establishing a community of accomplished and proficient clients.

At Devexperts, we’ve built a white-label market simulation solution for brokers and trading education institutions. Our product is based on DXtrade XT, a platform for trading stocks and derivatives. In the case of trading educational institutions, they don’t even need to partner with real brokers or acquire a broker-dealer license to be able to each. The deployed front-end eliminates the need to integrate with other technology vendors.

We have several success stories with various clients. You can read them here: