How do I just cut letters out?

Hello

What kind of a bit can I use to just cut out letters?

And what other software can I use to draw or create a design?

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that depends on the size of font, fusion 360, Vectric along with several others depending on what your trying to do .

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I use Inkscape to create svg files that I can then cut on my CNC. If Iā€™m cutting out simple letters or numbers, I typically use a 1/8ā€ straight endmill.