This trading FAQ for beginners gathers the questions readers ask most often. Each answer is deliberately short; follow the links for the full explanation, and use the glossary for any unfamiliar term. None of this is personal advice.
A few answers mention specific rules, such as leverage caps or trading hours. Those apply to the countries named in the answer and can change, so treat them as a starting point and confirm anything important with the relevant regulator or exchange. Where a question touches your own money, the linked entries explain the reasoning in full so you can apply it to your own situation.
Where to go for more detail
- Crypto basics: how crypto works, USDT and Bitcoin.
- Older markets: forex and stocks.
- Money matters: fees and checking a provider.
- Staying safe: spotting scams.
Reader questions
Is FeroxTrader an exchange, broker or trading platform?
No. Despite the name, FeroxTrader is an information website. You cannot open an account, deposit money, buy or sell anything, or receive trade signals here, and we do not manage money for anyone. We never contact readers through social media, messaging apps or phone calls to offer investments. Anyone who does so using our name is not connected to us, and we would like to hear about it through the contact page.
What is the difference between trading and investing?
Investing usually means buying assets such as shares or funds and holding them for years, relying on long-term growth and income such as dividends. Trading means buying and selling over shorter periods to profit from price moves, often with leverage. Trading involves more decisions, more costs and, for most beginners, more losses, because every trade pays a spread or fee and short-term price moves are close to unpredictable.
How much money do I need to start?
Many providers accept very small amounts: fractions of a bitcoin, micro lots of 1,000 currency units in forex, and fractional shares with some brokers. The better question is how much you could lose without it affecting your rent, bills or savings goals. That figure, not the provider's minimum deposit, should set your limit. Starting small also keeps the cost of beginner mistakes low while you learn how orders and fees work.
What is leverage, and why is it risky?
Leverage lets a small deposit, called margin, control a much larger position. At 30:1, $1,000 of margin supports a $30,000 position, and a 1% move against it costs about $300, or 30% of the margin. Regulators in the UK, EU and Australia cap retail leverage for exactly this reason, and positions are closed automatically if losses eat too far into the margin. The margin and position size calculators on this site show the numbers for any trade.
Is crypto riskier than forex or stocks?
Crypto prices are usually far more volatile than major currencies or large-company shares, and many crypto platforms offer weaker protection for customer assets than regulated brokers. Forex and CFDs, though, are normally traded with leverage, which can make losses just as severe. In practice the size of a position and the protections of the provider matter more than which market it is in.
What is USDT and is it safe to hold?
USDT is a token issued by Tether that aims to stay worth one US dollar, backed by reserves the company says it holds. It is widely used on exchanges as a trading currency and a way to move value between platforms. It is not a bank deposit and has no deposit insurance; its value depends on the issuer's reserves and on market confidence, and it has briefly slipped below one dollar during stressful periods. Sending it on the wrong network is the most common way people lose it.
Why did I receive less than I expected after a trade?
Common reasons are the spread, a commission or taker fee, slippage in a fast market, currency conversion and, for crypto withdrawals, a network fee. Overnight financing on leveraged positions can also build up unnoticed. Adding all of these up for a full round trip, from deposit to withdrawal, usually explains the difference. Our fees entry lists each cost with a worked example.
How can I tell whether a broker or exchange is legitimate?
Search for it on your national regulator's public register yourself rather than following a link, check that the website, email and phone details match the register exactly, read which legal entity you would actually sign with, and test a small withdrawal early. A legitimate firm never asks you to pay a fee, tax or deposit to release your own money, and it never needs your seed phrase or remote access to your device.
What trading hours apply to each market?
Crypto trades around the clock every day of the year. Forex runs from Sunday 17:00 to Friday 17:00 New York time, with a brief pause around the daily rollover. Stock exchanges keep weekday sessions in local time, for example 09:30 to 16:00 in New York, 08:00 to 16:30 in London and 09:00 to 15:30 with a lunch break in Tokyo, and they close on public holidays. The board on our home page shows which markets are open now.
Do I pay tax on trading profits?
In most countries, yes. Selling shares at a profit, closing profitable trades and disposing of crypto, including swapping one coin for another, can all be taxable, and losses may be usable to offset gains. Rules differ widely by country and change over time, so keep a record of every trade, deposit and withdrawal from the start and check your local tax authority's guidance or a qualified adviser.