10 ways to avoid scams and scams in the trading world
In today’s world, unfortunately, there are many scams in the field of online trading. And the number of bad people who take advantage of others using tricks and false promises to make quick profits has increased. But the truth is that trading involves risks, and making profits over time requires knowledge and experience.
What do you need to know in order not to get scammed in the world of trading?
It is not always easy to delve into the world of online trading. There are a lot of things you need to know in order not to get scammed. The best way to avoid being deceived is to increase your knowledge of the field of trading and the tools of the global financial market in general, to be aware of everything before you have any vague or suspicious experience with any broker and start trading in the markets.
In fact, the tricks of the fraudulent trading companies are exposed. Here is a quick guide that includes 10 tips to avoid being scammed:
1 – Find regulatory agencies
Another quick way to find out if a platform is intended to defraud is to check if it is regulated. There are many regulatory bodies that monitor various trading and investment services. A regulated platform has strict rules imposed on it to protect its users – so you will gain a lot of confidence while trading on such platforms. Some examples of strong regulators include: the Australian Securities and Investments Commission (ASIC), the UK’s Financial Conduct Authority (FCA), and the Cyprus Securities and Exchange Commission (CySEC).
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2 – Check the infrastructure
If you are offered a new online service or app for trading or investing, the first thing you should do is check it out. Serious and legal trading platforms usually use a lot of resources to include the technology used in their platform and design. But scammers who are looking for a quick way to rip people’s savings will not invest a lot of money in developing their platforms to be easy to use nor apply high technology to it.
3 – Make sure you are safe
You are risking your money, so it is best for you to make sure that you are investing it in a safe environment. Check the Secure Socket Layer (SSL) certificate of the website you’re on by looking at the address bar. Most browsers have special icons that indicate whether or not the platform is secure. Furthermore, you should know what services the platform uses. Do you use top-tier banks? Do you offer a range of payment methods using well-known services? These are some pointers on the secure platform.
4 – Test the support service
Scammers don’t care about their “customers”. All they want is other people’s money. Thus, they will provide few support services. Whenever you use a new platform, test the customer support service first. Know if they really care about you as a customer, or if they are just trying to force you to deposit.
5 – Verify identity
Identity verification is critical to maintaining the legality and security of the online trading and investment platform. If you wanted to sign up for such a service and did not receive a request to verify identity (such as uploading a photo ID and utility bill), this is likely a ploy to get your money. Regulators require platform operators to verify and verify the identity of platform users, as these protect their platform from corrupt activity.
6- Frequent calls and deposit requests
Another feature of fraud and deceit companies, is the continuous repetition of communications, and the offer of the “bonus” or free credit that they promise you if you deposit money. These companies never operate under the oversight of any regulatory authorities and they do not have registration from any of the well known powerful regulatory licensing bodies. Remember that reliable and real trading companies contact the customer for the first time to welcome him and answer any inquiries, and they do not contact the customer again to entice him to deposit.
7 – A good reputation is very important
It is very important to remember that you are dealing with major financial brokerage firms. This means that good and innovative companies are always nominated for high-profile awards. And if you find that the platform or service is referred to by a well-known media outlet, this contributes a lot to its legitimacy and credibility. It doesn’t take much research to find out if a company has a good reputation as a trading and investment platform. So, all you have to do is search for it via Google.
8 – Learn about risk warnings
Risk warnings are the hallmark of well-regulated investment and trading platforms and should be well looked for on the platform. Regulators require users to be informed of the risks involved in online trading and to refrain from offering investment advice. If you notice these warnings, it is a good indication that the platform is legal.
9 – Check out the company’s agendas
Unlike scammers, real trading platforms care about keeping their clients. Thus, it will always put forward good agendas and will regularly promote and develop them. By promoting responsible trading, these platforms help their clients reduce risk, which will be reflected in their long-term presence on the trading platform and customer retention.
10 – Ask your social circle
While you can ask your friends for their opinions on a particular service or platform, you can also look up its activity across the social network. A legitimate platform will have pages through social networks such as Facebook or Twitter or both and will have a lot of interactions. On the Facebook page, users will be able to write their opinions – so you should look at those reviews and see what people around the world say about the platform you’re thinking of using.
Educate yourself and avoid the risks of fraud. We hope that this article, written specifically for you, was really useful and will avoid the risks of fraudulent trading companies, and help you greatly reduce the chances of being exposed to fraud and deception.
Once you enhance your knowledge of the markets, investment tools, and trading basics, you are no longer an easy target for fraudulent companies. You will be able to distinguish the licensed broker with a good name and reputation in the market, and reveal the credibility and transparency of its fee policies and trading conditions.