Online trading has become a very popular activity for many that could have never dreamt of investing their money in the market when things were more traditional. The internet, as well as trends like social media, have made an impact on how things are done when it comes to buying and sharing stocks.
Today, anyone with access to a computer, or even just a smartphone, and some money to invest can learn how to make a profit in the market. The ultimate goal? To increase your wealth!
Does it sound too good to be true? Well, it’s not that it’s impossible to become rich by investing in stocks, it’s just not as easy as it sounds.
First, there is the innate risk that comes from making deals in the market. For some to win, others must lose. Choosing the right investments requires research, knowledge, and a bit of luck.
Then, there is the problem that when there is a chance to make money, there are also a lot of fraudulent parts interested in taking a piece. So, traders should beware of scams, especially when it comes to choosing an online trading broker.
A good place to start is looking at reviews and opinions online, for example here to check if Pepperstone is safe.
Why choose a regulated broker?
Traders looking into getting started in the world of online trading, as well as those maybe looking into diversifying their investments, need to find a regulated broker.
So, first, what is a regulated broker?
Each country has its own institutions in place to regulate the activity in the market and the participants involved.
Regulating bodies are in charge of protecting the rights of traders and their solvency. Imagine a broker stopping their activities, traders will want to make sure they can get their money. In the same way, traders want to buy and sell stocks and know they are using a broker that respects the rules of the trading world.
To make sure your broker is regulated you should check their website where they have to list the regulations they comply with.
The second step is to check out the websites of the regulatory bodies where they list the brokers and financial companies registered.
If all checks out, the broker is serious and reliable, and online trading is safe with them.
How to avoid scams and fraudulent operations?
Online trading created a playground for scammers and fraudulent operations. Avoiding them is the best way to ensure your safety when trading.
Traders should be aware of data breaches, phishing, and identity theft.
The best bet to make sure your information and your money are safe online is to choose a serious and reliable broker.
However, there are a few things traders should keep in mind to be able to trade in total safety.
For example, having a system with two-step authentication assures that no other than you will enter your account, and you may even be notified if someone else is trying to access your account.
Doing a little bit of research to know how secure the brokers’ servers are is also time well spent. Secure servers have their antivirus and firewalls which adds security to the users accessing the server. Reliable brokers should offer always secure servers.
Finally, protecting your passwords is of utter importance. Having a password vault is a good idea, making sure it’s a serious app and will protect your identity.
Overall, it’s also important to use a bit of common sense in order to be able to trade online safely.