Education Centre
No jargon. No sales pitches. Just the knowledge you need to stop losing money and start building wealth.
Investing Basics
Long-term wealth building with Stocks and tax-free ISAs.
Stocks & Shares Explained
When you buy a stock, you own a piece of a company. If they make money, you might get a dividend (profit share). If the company grows, your share price goes up.
- Risk: You can lose your initial investment if the company fails.
- Timeframe: Best for 5+ years. Interactive Brokers, Trading 212, and eToro are top choices.
The Power of Cash ISAs
A Cash ISA is a savings account where the taxman can't touch the interest. You can save up to £20,000 per year.
- Fixed Rate: Lock money away for 1-5 years for better rates.
- Easy Access: Withdraw anytime (e.g., Trading 212 Cash ISA, Atom Bank).
- Risk: Low. FSCS protected up to £85k. Main risk is inflation.
Active Trading
High risk, high reward. Understanding leverage is key.
CFDs (Contracts for Difference)
You don't own the asset. You bet on the price moving up (long) or down (short). You use leverage, meaning you can control a large position with a small deposit.
Spread Betting
Similar to CFDs (you bet on price points) but with a massive UK advantage: Profits are usually tax-free.
- Structure: Bet £ per point movement.
- Platforms: IG, Spreadex, Pepperstone.
Wait, what is Leverage?
Leverage is like borrowing money to trade, but dangerous. It multiplies your wins and your losses.
The Example: 10x Leverage
You have £100. You use 10x leverage to open a £1,000 position.
-
📈 Price goes up 10%: Position is £1,100. Profit £100.
(100% Return on your £100) -
📉 Price goes down 10%: Position is £900. Loss £100.
(100% Loss - Account Wiped Out)
Most new traders focus on the potential win. Professionals focus on the risk. High
leverage is the #1 reason beginners blow up their accounts.
Always start with low or no leverage until you are consistently profitable.
Future Finance
Digital assets and modern banking.
Cryptocurrency
Digital money not controlled by governments. Bitcoin is digital gold; Ethereum is a global computer.
- Self-Custody: You hold the keys (Zengo). Safer from hacks, but if you lose the key, it's gone.
- Exchange: They hold it for you (Coinbase, Kraken). Easier, but risks exchange failure.
- Risk: Extreme volatility. Unregulated.
Neobanks (Digital Banks)
App-only banks like Revolut, Monzo, and Starling. They blow traditional banks out of the water with features.
- Features: Instant notifications, fee-free spending abroad, savings pots.
- Safety: Monzo/Starling/Chase have full banking licenses (FSCS protected). Revolut is an E-Money Institution (Safeguarded).
Important Disclosure
Finance 4 You does not offer financial advice. The content on this site is for educational and informational purposes only. We are not financial advisors, and nothing here should be construed as a recommendation to buy or sell any asset. Investing puts your capital at risk. You should do your own research or consult a certified financial planner before making investment decisions.