Amateur Traders Chase Elusive Profits in Simulated Markets

The pitch is enticing: Learn to trade like a real Wall Street master of the universe. Pay a fee—typically starting below $100—and manage thousands in fictional funds in a simulated market of stocks, currencies or commodities. If you stick to the strict rules, and meet the profit target, you can become a “funded” trader for the firm. That means you could receive payouts of as much as 90% of the ersatz profits you make. If you fail, you can keep trying, by paying the fee again.

More than 400 companies offer forms of these challenges, up from 10 only five years ...