This trading FAQ for beginners gathers the questions that come up again and again when people start investing. Each answer is deliberately short. Where a topic deserves more, the answer points to the guide that covers it, and the glossary explains any unfamiliar term.
If you are starting from zero
Questions are easier to answer once you have a map. A reading order that works for many new investors:
- How the main markets differ: what shares, bonds, funds, currencies and crypto actually are.
- How the stock market works: ownership, orders, indices, ETFs and dividends.
- The costs of investing: the fees that matter most over long periods.
- Choosing a broker: ten checks you can do yourself.
- Spotting scams: the patterns behind most investment fraud.
Only after those would we suggest reading about leveraged products such as forex or index futures, or about crypto, all of which carry higher risk than a diversified portfolio of funds.
Questions we do not answer
We do not say whether a particular share, fund, coin or broker is a good choice, forecast prices, or comment on individual situations such as tax or pensions. Those depend on your circumstances and, in many countries, on regulated advice. Our answers explain how things work so that you can ask better questions of anyone who does advise you.
We also avoid questions whose honest answer is "nobody knows", such as where a market will be next month or whether a crash is coming. Anyone who answers those with confidence is guessing, and a guess presented as knowledge is one of the most expensive things an investor can act on.
If your question is not here, our contact page explains what we can and cannot help with. We cannot give personal advice, but we do read every suggestion for new guides.
Reader questions
Is PrymoInvest a broker or an exchange?
No. PrymoInvest is an independent information website. It does not offer accounts, trading, deposits, prices or investment advice, and nobody from PrymoInvest will contact you to invest. Anyone claiming otherwise is not connected to us.
What is the difference between a share and an ETF?
A share is part-ownership of one company, so its fortunes depend on that single business. An ETF is a fund, traded on an exchange like a share, that holds many investments at once, such as every company in an index. That spreads the risk of any one company failing, in return for a small yearly fund charge. Our stock market guide explains both.
How do dividends work?
A company may pay part of its profits to shareholders in cash, usually quarterly or twice a year, though the board can cut or stop payments at any time. You receive a dividend if you own the share before its ex-dividend date. Funds collect dividends from the companies they hold and either pay them out or reinvest them, depending on the share class. Reinvesting dividends is a large part of long-term returns.
Can I follow the stock market live on PrymoInvest?
We do not publish prices. Our homepage shows which exchanges are open right now, and explains where real-time data comes from, such as your broker's platform and official exchange and index sources. Before the US open, index futures give an early read on sentiment, and our Nasdaq futures guide explains how to interpret them without over-reading them.
How much money do I need to start investing?
Many brokers allow small regular amounts and fractional shares, so there is rarely a high minimum. Before investing, most people benefit from building an emergency cash reserve and only investing money they will not need for several years. With small sums, check that fixed charges do not take a large share of each purchase.
What is a pip in forex?
A pip is the standard unit of movement in a currency pair: 0.0001 for most pairs and 0.01 for pairs quoted in Japanese yen. On one standard lot of a pair quoted in US dollars, a pip is worth $10. Because retail forex is usually leveraged, a few dozen pips can be a large share of the money in an account, which is why our calculators start from risk rather than from the size a broker allows.
Is crypto a good long-term investment?
We do not make recommendations. Crypto produces no earnings or dividends, has fallen by more than half several times and usually lacks the protections of regulated share accounts. Anyone holding it should size the position so a severe fall is survivable.
What fees should I watch for?
Look beyond commissions: spreads, currency conversion charges, platform fees and fund ongoing charges often cost more over time. Percentage charges taken every year compound against you. Our trading fees guide shows how a fund charged at 1% a year can end up with roughly a fifth less than a similar fund charged at 0.1% over 25 years.
How do I know if an investment offer is a scam?
Warning signs include unsolicited contact, promised returns, pressure to act fast, payment in crypto, and fees demanded before withdrawals. Check the firm on your regulator's register, compare its contact details with the ones you were given, and read our scam guide before paying anything. Never pay a fee to withdraw your own money.
Do stock markets close on public holidays?
Yes. Exchanges publish holiday calendars each year, and some have shortened sessions before certain holidays. Holidays differ between countries, so one market can be closed while others trade normally. Our live market board uses regular hours only, so check the exchange's own calendar on holiday dates.