This trading FAQ for beginners gathers the questions that come up most often across the site. Each answer is deliberately short. For the reasoning, examples and caveats, follow the links to the full guides: how markets differ, forex, shares, crypto, USDT, trading costs and scams. Terms you do not recognise are defined in the glossary.
How to use this trading FAQ for beginners
The questions follow the order in which most readers meet the subjects: what this site is, how the three main markets differ, what it costs to take part, how leverage works, the stablecoin and network questions that cause the most support tickets, and finally how to check a firm and what to do if something has gone wrong. If you are completely new, reading the answers from top to bottom takes about ten minutes and gives you the vocabulary for everything else on the site.
If your question is about the numbers of a specific trade, the calculators will usually answer it faster than any explanation: the pip calculator, the position size calculator, the margin calculator and the crypto profit calculator all show their formulas.
Which questions do we deliberately not answer?
We do not answer "what should I buy", "which broker is best" or "where is the price going". Those questions depend on your circumstances, and any confident answer from a website that has never met you should be treated with suspicion. We also do not answer questions about individual accounts at any platform, because we have no access to them. What we can do is explain how things work well enough that you can ask the right questions of the firms and advisers who are responsible for your money.
A reminder that applies to every answer below: these are general explanations, not advice about your own circumstances.
Follow-up questions
Is ZentraTrader an exchange, broker or trading platform?
No. Despite the name, ZentraTrader is an information website. You cannot open an account, deposit money or trade here, and we never ask anyone for payments, wallet addresses or recovery phrases. Anyone offering those services under our name is not connected to us.
What is the difference between forex, stocks and crypto?
Forex is the exchange of one currency for another through a weekday dealer network. Stocks are shares of ownership in companies, traded on regulated exchanges during set hours. Crypto-assets are tokens recorded on blockchains and traded around the clock on many separate platforms. The rules on custody, leverage and investor protection differ widely between the three. Moving between them means learning new rules, not just new symbols.
How much money do I need to start?
Less than most people think in terms of minimums, and more than most expect in terms of learning. Fractional shares, micro lots and small crypto purchases make tiny positions possible. The more important figure is the amount you could lose without harm, and the size of each trade relative to it. Costs also matter more on small accounts, because fixed fees take a larger share of each trade.
What is leverage, and why is it risky?
Leverage lets a small deposit control a larger position. At 30:1, a 1% price move changes the position's value by an amount equal to 30% of the margin. Losses are calculated on the full position, so leverage speeds up losses exactly as much as gains. That is why retail leverage is capped in the UK, EU, Australia and the US.
Is USDT safe to hold?
USDT aims to stay worth one US dollar and is backed by reserves its issuer says it holds, but it is not a bank deposit and is not insured. It can trade below $1 under stress, the issuer can freeze addresses, and USDT held on a platform also depends on that platform. Holding it is a choice to trust both the issuer and wherever the tokens are kept.
Why do I need to choose a network when sending USDT?
The same token exists on several blockchains, such as Tron and Ethereum. A transfer only arrives if the recipient supports the network you send on for that address. Sending on the wrong network can make funds unrecoverable. Always check the network on both the sending and receiving screen, and send a small test first.
What fees should I expect when trading?
The spread on every trade, possibly a commission, overnight financing on leveraged positions, funding payments on perpetual futures, currency conversion, and deposit or withdrawal charges. Compare the total cost of a realistic round trip rather than the headline fee. For small crypto purchases, card and withdrawal fees often outweigh the trading fee itself.
How do I check whether a broker or platform is legitimate?
Search for it on your own regulator's register, reaching the regulator's website by typing its address. Confirm that the legal entity, web address and phone number match exactly, read the withdrawal terms, and be wary of any firm that contacted you first. A small early withdrawal is a useful test of whether the firm does what its terms say.
What is the MT4 platform?
MetaTrader 4 is trading software supplied by many brokers. It shows charts and sends orders, but it is not a broker itself. Your money is held by the firm that provides your account, so that firm is what you need to check. Fraudulent firms can offer the same software, so a familiar interface proves nothing.
What should I do if I think I have been scammed?
Stop sending money, keep all evidence, contact your bank or the platform involved straight away and report it to the police and your financial regulator. Be alert to recovery scams that ask for an upfront fee to get your money back. Genuine authorities and banks do not charge victims to investigate.