This trading FAQ for beginners gathers the questions that arrive most often in our inbox. Each answer is short on purpose; follow the links in the answers, or browse the glossary, when you want the full story. If your question is not here, the contact page explains what we can and cannot answer.
A reminder that shapes every answer below: RavixGlobal explains markets and the firms that serve them. We do not offer accounts or trading, and nothing here is a recommendation for your personal situation.
Reader questions
Is RavixGlobal an exchange or a broker?
No. RavixGlobal is an independent information site. It is not an exchange, broker, wallet or adviser, it cannot open accounts, take deposits or execute trades, and it never contacts readers offering investments. Anyone claiming otherwise is not connected to us.
What is the difference between investing and trading?
Investing usually means buying an asset such as shares or a fund and holding it for years, aiming to benefit from growth and income. Trading means buying and selling over shorter periods to profit from price moves, often with leverage. Costs, risks and the time needed are very different.
Do I need to understand forex to invest in shares?
Not in depth, but it helps to know that overseas holdings expose you to exchange-rate moves. A fall in the foreign currency reduces the value of overseas shares when converted back to your own money, even if the share price is unchanged.
What does leverage of 30:1 mean?
It means a deposit of $1 controls a position worth $30. A 1% move in the market becomes a 30% change relative to your deposit. That is why regulators in the UK, EU and Australia cap retail leverage and why losses can be rapid.
Why do most retail CFD traders lose money?
Leverage magnifies ordinary price swings, costs such as spreads and overnight financing are paid on every position, and short-term price moves are hard to predict. Regulated providers in the UK and EU must publish the share of their retail accounts that lose money.
Is crypto a good long-term investment?
We don't make recommendations. Crypto-assets have been extremely volatile, produce no earnings and carry custody and fraud risks that shares held with a regulated broker do not. Anyone considering them should be prepared to lose the whole amount.
What is the safest way to hold crypto?
There is no risk-free option. Holding on a platform exposes you to its failure; holding in your own wallet makes you responsible for your keys and backups. A hardware wallet with a securely stored recovery phrase removes platform risk but demands care.
How can I tell if a trading firm is legitimate?
Look it up on your regulator's own register, check that the website, phone and email on the register match the ones you are using, and search the regulator's warning list. A small test withdrawal is also revealing.
Which costs matter most for a long-term investor?
The recurring ones: yearly fund and account charges and, on leveraged positions, overnight financing. Over decades, a percentage point a year can take a large share of the final value.
Are your calculators accurate?
They apply standard formulas to the numbers you enter and run entirely in your browser. They do not include every cost a real provider may charge, such as spreads, slippage or withdrawal fees, so treat results as estimates.