If you're using Paper Trade credentials for IB that are tied to your main account, only one instance of TWS (or IBGW) has access to your market data subscriptions at a time. (The non-paper-trading authenticated instance will always take precedence, I think.) As far as running two instances of TWS -- I never tried. What happens when you try? What if you tried to install it into two separate directories? If all else fails, you could run VirtualBox to simulate another OS environment, and run the second instance of TWS inside of a virtual machine.
This is incorrect. You can share the market data subscription with the paper account. At least I do without issue on the same machine.
Within TWS is it possible to switch from one account to another (e.g. from live to paper trade account). Is this what you need? Or do you really need two separate instances of TWS?
It's a setting in account management somewhere. You can choose another account with which to share your market data subscription (but only one).
http://interactivebrokers.github.io/tws-api/market_data.html Read the bottom section of the page. I did read about people using two instances of IB Controller and thus have two instances of TWS or Gateway. But I don't remember the details.
I have tried your method, it is fine to run another instance in the parallel desktop. but it looks like that it can't run in parallel in the same desktop after reviewing all the reply