Microalgae have shown great potential in wastewater treatment. This study evaluates the growth and nutrient removal characteristics of five different microalgae strains, namely Chlorella vulgaris, Tetradesmus obliquus, Parachlorella kessleri, Hydrodictyon sp., and Scenedesmus quadricauda, in simulated domestic wastewater. The five microalgae could adapt to wastewater, but the growth potential and nitrogen removal capacity were species dependent. The nutrient removal effect of the microalgae used in this experiment was about 50% in the first two days. Parachlorella kessleri, selected from the five strains of green algae, shows good potential in removing nutrients from simulated domestic wastewater. For the simulated domestic sewage treated with Parachlorella kessleri, the chemical oxygen demand was almost completely reduced, and ammonium-N (NH4-N) and total nitrogen (TN) removal exceeded 70% at the end of the 10-day treatment. Total phosphorus (TP) removal was slightly worse, more than 65%. Parachlorella kessleri showed the best growth in sewage with the highest biomass reaching 366.67 mg L−1 and the highest specific growth rate reaching 0.538 d−1. This study can provide a reference for selecting suitable microalgae species to treat actual domestic sewage.