Note (September 2026): The earlier version described iFX Brokers as a place to trade easily and safely and said individuals could hardly trade shares themselves; both statements have been corrected with the broker’s verified regulatory status and how share trading actually works.
To invest, trade and grow your finances, decide first whether you are investing (buying assets such as shares or funds to hold for years) or trading (buying and selling over short periods), then open an account only with a broker registered with your country’s regulator, diversify, keep costs low and avoid leveraged products you do not understand.
Key Takeaways
- Investing means holding assets for the long term; trading means buying and selling over short periods, which carries more risk and cost.
- Only brokers that are members of a stock exchange can trade on it, so individuals buy and sell shares through a registered broker, usually online.
- Check any broker on the regulator’s own register first: FINRA BrokerCheck (US), the FCA Firm Checker (UK), SEBI’s recognised intermediaries (India) or the FSCA’s FSP search (South Africa).
- Leveraged products are where most retail money is lost: SEBI found that 93% of individual equity F&O traders in India lost money between FY22 and FY24.
- iFX Brokers, mentioned below, is a South African CFD broker that states it is FSCA-authorised as FSP 48021; a licence is oversight, not a guarantee against losses.
Everyone wants to earn more money and increase it to many folds. However, this is not an easy task. To increase the money, investment is very important. The investment market has its own rules and regulations that need to be followed so that the money invested is safe and there is a high chance of an increase in the money.
There are many places where the money can be invested. Various companies share in the national stock market, which is open to the public to invest their money. Apart from these, some private shareholders share in the market, and people can directly buy and sell the share with the companies.
Share prices can change within seconds, and trading on a stock exchange is restricted to brokers who are members of that exchange. That is why individuals buy and sell shares through a registered broker; most brokers now let clients place their own orders online or through an app.
A broker is a firm or professional that executes buy and sell orders for clients. Full-service brokers also offer research and advice, while discount and online brokers mainly carry out the orders that clients place themselves. Various brokers are working in this field. The ifx brokers is the website of iFX Brokers Holdings (Pty) Ltd, a South African broker that states it is authorised by the Financial Sector Conduct Authority (FSCA) as financial services provider number 48021 and that it offers contracts for difference (CFDs) on forex, indices, commodities, cryptocurrencies and shares (as of September 2026). A licence means the firm is supervised; it does not make trading safe, and the broker’s own risk warning says clients could lose all of, or more than, their invested capital.
Why Is trading investment important
- In earlier days, trading and investment were not done at a personal level. These terms were more concerned with the government and the private industries. By prompting exports and receiving foreign investments, the developing countries expanded income and employment. Trading was not only done by money; technologies were traded to improve the technologies and services in the countries.
- In the present time, trade and investment have reached a personal level. However, the idea remains the same, which is to increase the income and employment in the country. As more people will invest their money in various companies, the companies will grow, which will increase the rate of income and job opportunities, which will, in return, help the investor gain a profit on the invested money.
How to choose a trading platform
Various forms of trading platforms are used by people today to trade their money. Investors can either work with a full-service broker who places trades on their behalf, or place orders themselves through an online broker’s website or app, such as the South African broker iFX Brokers mentioned above. In both cases the broker should be authorised by the regulator in the investor’s own country. Before choosing a trading platform, there are some pointers to keep in mind, which are as follows.
- Before choosing an online trading platform, the first thing is to make a note of what the individual requires from the investment and the future goals regarding the investment. Suppose a person is trading for the first time. In that case, it is better to make a demo account and prioritize with some basic features like educational resources, easy access to support staff, etc., before starting to trade with the real money.
- There are different options for trade. It depends on the investors what options they choose to trade on. There are short-term investments, and there are also long-term investments. In short-term investments, the investor has to be involved more in the trade as the market shows fluctuations continuously, and the investor has to be ready to make the trade at the right time to make a profit. Hence, it is better to look at the types of trades a trading site offers to its clients.
- The most important thing to check for a trading site is its authorization: look the firm up on the regulator’s own register, such as FINRA BrokerCheck in the US, the FCA Firm Checker in the UK, SEBI’s list of recognised intermediaries in India or the FSCA’s FSP search in South Africa, and confirm that the registration number matches. The trading site should be highly secured with fast connectivity for the money transfer during the trade. It should have a highly efficient cyber security team to continuously check for any attack and check for the bugs. It is also important to know about the terms and conditions that these sites have for their clients. There are some variations in terms of different trading sites. Therefore, the investor should choose the one they are most comfortable with.
There are several alternatives available to people when it comes to investing. One of the most well-liked methods is trading stocks, in which a person purchases stock in an organization in the expectation that their investment will increase in value and they will be able to resell it for a profit. Stock options are a different choice. These are agreements between two parties that grant the buyer the right (but not the obligation) to buy or sell a specific number of shares at a specific price within a specific time period. The key difference between stocks and stock options is ownership: a share is part-ownership of a company, while an option is a contract on a share. In US markets one option contract usually represents 100 shares; a call option gives the right to buy and a put option gives the right to sell at the agreed strike price. You may also visit Vector Vest to know more about this topic.
These are some things to keep in mind before starting to trade. None of them guarantees a profit: regulators in the UK and India have found that most individual traders of leveraged products such as CFDs and futures and options lose money.
What Is the Difference Between Investing and Trading?
Investing is buying assets such as shares, bonds or funds and holding them for years so that they can grow in value or pay income. Trading is buying and selling over short periods, from minutes to weeks, to profit from price moves. Both use the same brokers and exchanges, but the time horizon, workload and risk differ.
| Feature | Investing | Trading |
|---|---|---|
| Holding period | Years | Minutes to weeks |
| Main goal | Long-term growth and income | Profit from short-term price moves |
| Time needed | Periodic review | Constant monitoring |
| Typical products | Shares, index funds, bonds | Shares, options, futures, CFDs, forex |
| Costs | Few transactions, lower total fees | Many transactions, higher total fees |
| Leverage | Usually none | Often used, which magnifies losses as well as gains |
Before choosing either path, it helps to match your investments to your risk profile and to learn how the stock market works.
Where Are Shares Traded?
A stock exchange is a marketplace where stockbrokers and traders buy and sell securities such as shares and bonds. According to Wikipedia’s list of stock exchanges, the largest by the market capitalization of their listed companies as of May 2026 were:
| Rank | Exchange | Country | Market cap (US$ trillion, May 2026) |
|---|---|---|---|
| 1 | Nasdaq | United States | 34.99 |
| 2 | New York Stock Exchange | United States | 30.96 |
| 3 | Shanghai Stock Exchange | China | 10.18 |
| 4 | Euronext | European Union | 8.67 |
| 5 | Tokyo Stock Exchange | Japan | 7.64 |
How to Check Whether a Broker or Trading Platform Is Regulated
A broker’s regulatory status can be checked for free on the regulator’s own website. Use the register itself, not a link sent by the firm, because some firms pretend to be authorised or copy a real firm’s details.
- United States: FINRA’s BrokerCheck (help line (800) 289-9999) shows a broker’s or adviser’s employment history, qualifications and disclosure events.
- United Kingdom: the Financial Conduct Authority’s Firm Checker shows whether a firm is authorised, and its Warning List names unauthorised firms. The FCA’s consumer helpline is 0800 111 6768.
- India: the Securities and Exchange Board of India (SEBI), which received statutory powers on 30 January 1992, publishes lists of recognised intermediaries and of default and expelled stock brokers.
- South Africa: the Financial Sector Conduct Authority, which replaced the Financial Services Board on 1 April 2018, offers a search of authorised financial services providers and a Warnings and Alerts list.
- Everywhere: confirm that the name, registration number, website address and contact details you were given match the register exactly.
What Protection Does a Regulated Broker Give You?
Broker protection schemes cover missing assets if a firm fails, not investment losses. In the US, the Securities Investor Protection Corporation (SIPC) protects up to $500,000 per customer, including a $250,000 limit for cash, but SIPC states that it does not protect against the decline in value of your securities.
The FCA warns that people who deal with unauthorised firms will not be protected if something goes wrong and could lose all their money. That is the main practical reason to stay with a regulated broker.
Why Are CFDs, Options and Other Leveraged Products So Risky?
A contract for difference (CFD) is an agreement in which one party pays the other the difference between an asset’s value when the contract opens and its current value. CFDs are usually traded with leverage, so a small price move produces a large gain or loss relative to the money deposited.
- United States: the SEC and CFTC do not permit CFDs to be offered to retail investors.
- United Kingdom: the FCA confirmed permanent CFD rules on 1 July 2019, effective 1 August 2019: leverage limited to between 30:1 and 2:1 depending on the asset, positions closed when funds fall to 50% of the required margin, clients unable to lose more than the funds in their CFD account, and a standard warning showing the percentage of the firm’s retail accounts that lose money.
- Loss rates: a 2016 FCA analysis cited by Wikipedia found that 82% of CFD clients lost money. In India, a SEBI study published on 23 September 2024 found that 93% of individual traders in equity futures and options lost money between FY22 and FY24, with aggregate losses above ₹1.8 lakh crore.
Anyone who still trades leveraged products should build a written risk-management plan before placing real money.
How Does Diversification Help Grow Your Finances?
Diversification is allocating money in a way that reduces exposure to any one asset or risk. Holding a single company’s shares exposes an investor to both market risk and company-specific risk; holding a broad index such as all S&P 500 stocks removes most of the company-specific risk, although market-wide risk remains.
Low-cost index funds are one common way to diversify; see how index funds work for a plain-English explanation.
Step-by-Step: How to Start Investing and Trading Safely
- Write down the goal, the amount and the time horizon for the money.
- Decide whether the money is for long-term investing or short-term trading, using the table above.
- Shortlist brokers and verify each one on the regulator’s register in your country.
- Compare fees; a brokerage calculator shows the real cost of each trade, and Indian readers can compare features and pricing of major stock brokers in India.
- Practise on a demo account if the broker offers one, then start with a small amount.
- Diversify, avoid leverage until you understand how losses are calculated, and review the portfolio periodically.
Frequently Asked Questions
Is iFX Brokers regulated?
iFX Brokers states that its operating company, iFX Brokers Holdings (Pty) Ltd, is authorised by South Africa’s Financial Sector Conduct Authority as financial services provider number 48021 (as of September 2026). Readers should confirm the number on the FSCA’s own FSP search before opening an account.
What is the difference between investing and trading?
Investing means buying assets and holding them for years for growth or income, while trading means buying and selling over short periods to profit from price moves. Trading takes more time, costs more in fees and carries more risk.
Can individuals trade shares without a broker?
Individuals generally cannot trade directly on a stock exchange, because trading on an exchange is restricted to member brokers. Most people use an online broker, which lets them place their own orders.
Does a regulated broker protect me from losing money?
No. Regulation and protection schemes cover missing assets if a broker fails, not market losses. SIPC in the US, for example, protects up to $500,000 including $250,000 in cash, but not the decline in value of securities.
Are CFDs legal in the United States?
CFDs are not permitted for retail investors in the United States; the SEC and CFTC do not allow them to be offered to US retail clients. In the UK they are legal but restricted by FCA leverage limits and loss-disclosure rules.
How many retail traders lose money in futures and options?
According to a SEBI study published on 23 September 2024, 93% of individual traders in India’s equity futures and options segment lost money between FY22 and FY24, with combined losses above ₹1.8 lakh crore.
