Financial markets are more than just a place where investors take shots at making the most of their trading experience. It may be a market full of opportunities, but it is also one full of scam and fraudulent behavior. Luckily, we have a few tips on how to keep you and your investments safe.
Vigilance in picking a broker
There are numerous brokers out there, but unfortunately not all of them have their clients’ best interests at heart. Vigilance before making a deposit is very important, as it can help you distinguish a reliable intermediary from a dishonest one.
Watch out for entities that appear to have shady marketing practices, permissive withdrawal rules, exceedingly high commissions, and/or don’t try to educate you with regard to the financial market.
A good broker is interested in you sticking around for the long-term, as a loyal and satisfied client. For that to happen, you need to be offered fair trading conditions, transparency and proper education.
The Importance of Regulation
Regulation is a vital factor to take into account when trading. A licensed and regulated broker implies that its operations are strictly monitored by independent regulatory authorities. It ensures that the company is of healthy financial standing (so able to withstand trading losses), traders’ funds are kept secure, and fair dealing practices are maintained. In other words, you have a board looking out for you not to be cheated, scammed or mistreated.
Once getting familiar with a broker’s website, it’s vital to scan it for regulatory body authorization and a genuine license number. In the European Union, financial regulations are uniform, meaning that once a broker is regulated in one country – they are able to service clients all over the EEA, with certain local restrictions (Belgium, for example). With regard to other markets, different regulations apply, and you should make sure to stay informed about them.
Choosing to operate with an unregulated broker can put you at risk of significant financial loss and little-to-no sources of help, in case the situation gets out of hand.
Staying safe is vital for a successful trading journey
With the digital revolution, online trading platforms have gradually replaced trading floors. Internet and computing prove for a more hassle and stress-free way of doing business, but they also raise security concerns.
After all, when you trade, you are required to share a lot of personal and financial information that needs to be securely stored. A good broker has strong internet security practices, and users’ privacy policies, client agreements, risk disclosures, complaints’ handling procedures, and all other relevant documents are taken care of in relevant website sections.
Risk Warning: CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts, lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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|#2||CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010||Global Forex Broker||
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