Investing and trading are two different methods of attempting to profit in the financial markets. Both investors and traders seek profits through market participation. Traders, by contrast, take advantage of both rising and falling markets to enter and exit positions over a shorter time frame, taking smaller, more frequent profits. Trading can be thought of as a short-term buy/sell decision with the goal of generating rapid returns. Investing is a long-term proposition where price appreciation is the ultimate objective.

Investments often are held for a period of years, or even decades, taking advantage of perks like interest, dividends, and stock splits along the way. The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds, and other investment instruments.

Trading CFDs carries risk of capital loss.

Trading profits are generated by buying at a lower price and selling at a higher price within a relatively short period of time. The reverse also is true: trading profits can be made by selling at a higher price and buying to cover at a lower price (known as "selling short") to profit in falling markets.While buy-and-hold investors wait out less profitable positions, traders seek to make profits within a specified period of time and often use a protective stop-loss order to close out losing positions at a predetermined price level automatically.

Investing takes a long-term approach to the markets. Trading involves short-term strategies to maximize returns daily, monthly, or quarterly. Investors are more likely to ride out short-term losses, while traders will attempt to make transactions that can help them profit quickly from fluctuating markets. When you invest in something, you are looking to grow your money. Some people invest for a long time, such as for retirement, while others invest for a short time to hit a specific goal, such as buying a car.

When selecting an online broker/platform, here are several essential things to consider;
Regulation: Ensure that the broker is registered to sell securities. Investors can do this easily by checking the Financial Industry Regulatory Authority’s BrokerCheck and entering the broker’s name in the search function.
Platform Security: To protect your funds and identity, select an online broker that has enhanced security features—such as two-factor authentication (2FA) and SMS/email notification login security alerts—and agrees not to sell your personal information to third parties.
Fees or Commissions: If you intend to trade actively, it’s important to choose an online broker that offers competitive trading commissions, as they can add up fast. Also, find out if the broker charges minimum deposit fees, annual or monthly account maintenance fees, data fees, and activity fees. Yes, some brokers will charge you for not trading within one calendar quarter.