Safe Online Trading – 5 Steps to Avoid Fraud
by Mashum Mollah Business Security Systems 25 December 2019
Online trading can be tricky as all businesses have to deal with risks. To minimize the risk, people in the industry and traders have to go through certain precautions that save them from ending up losing all their money.
Not know the brokerage is the first and foremost problem that people face most of the time. Arabs and Europeans are very prone to fall victim to scam brokers and end up losing thousands of dollars within no time. If you are one of those poor victims and looking for tips that minimize this type of risk, then I must say that you have come to the right place.
Let’s get started.
1. Deal with only Premium Brokers:
This is one of the most critical factors that traders tend to overlook more often. Making quick money is something that everybody loves. In this modern world, there are plenty of scammers who hunt new traders so that they can make money without spending a single penny on their side. These fraudulent brokers will try to tempt you to deal with them. But, you have to stay away from them and deal with premium and trusted brokers. Be sure to trade only on regulated platforms like Q8 Trade and many more.
2. Research on the Broker:
The broker you choose should be an active user of B2B portals. They should carry a complete and professional profile. Do not deal with a broker that does not have the information about its operating company. Make sure that they have a real contact number and office address in their profile.
3. Seek out References and Reviews:
Look for authentic reviews of the broker online to know how their service is and how they treat their clients. This way, you’ll have a clear picture if they value their customers or they are only after their money. Be sure to read reviews only from established websites such as FXEmpire, Investopedia and others that have a high ranking in Google search results.
4. Check If You Can Get Your Money Back:
One of the major concerns of all traders is getting their money back. Who doesn’t? And to make sure if your broker is honest and trustworthy, try cashing out the funds in your account and see if they will process it without any delays. A company that cares for its clients won’t hold their funds and will even go the extra mile to make sure that they receive their funds.
5. No Big Deals at the Initial Stage:
Jumping off to large transactions is not something a smart trader does. Especially when it comes to new brokers. It is better to deposit in the minimum and avoid going all-in with your funds. This goes the same with the money that you’re going to invest in the markets that they offer. Be sure to allow only the smallest accepted amounts for a start and if you see that everything is going well including your withdrawals then taking it to the next level is the next best decision to take.
Always remember this:
There is a risk in every venture. However, you have to get the hang of risk management so that you can put an end to the risks and become successful in the long run. We strongly recommend that you follow the tips mentioned above to minimize your risks in the hopes of making a profit from your online trades.