Top tips on staying safe when online trading

Online trading can be one of the most exciting ways to make money – and many people have turned online trading from a hobby into an occupation using a trading platform. But there are a few things you need to know before you get started. What are the benefits of online trading, and how can you keep your stock trading safe?

What are the benefits of online trading?

Many people are looking for ways to leave their 9-5 behind and focus on earning money from home. At the same time, other people are looking for a way to make the most of their money and start making investments.

Online trading has many benefits, and aside from understanding how to stay safe, it’s essential to know why online trading is a great option.

Fast transactions 

When you handle investments and trades online, money moves fast. You can transfer money between your accounts at speed and make sure that you never miss a trade.

Control

Having control over how and when you trade can be one of the most significant benefits of online trading. Traditionally, you’d be required to go through a broker, but you can trade instantly when you go through a trading platform. You can monitor all of your investments and have more control over your trading.

Cost

While you should expect some fees to be paid to the platform you are using, they are minor compared to the fees you’d pay a traditional broker. Some venues offer generous reductions in fees when you are a high-volume trader.

Education 

One of the best things about using online trading platforms is they offer the opportunity for people who want to get into trading a place to learn. Often offering free trades and blog posts with information, guides, and support at all times.

Convenient 

You can make trades as long as you have an internet connection and either a mobile phone, tablet, or another connected device. It is as flexible as you need it to be, and there are different markets for you to explore.

But to enjoy all of these benefits, you must make sure that you are trading safely.

Top tips on staying safe when online trading

Safety is a priority, with millions of people trading online or planning to start trading. You can do many things to protect your stock and your actions online.

Platform reputation  

POne of the first steps is to ensure that the stock trading platform you use has the best reviews. A strong reputation, especially for professional stock traders, is something that you should search for. Before signing up to any platform, take some time to read through reviews on sites like Trustpilot. This will give you a good indication of other people’s experiences. You should also make sure that you check that they are licensed.

You can even reach out to customer services to see what kind of support you can expect.

SSL 

One of the things you need to make sure that you look for is the padlock on the URL bar. The padlock indicates that there is a layer of encryption on the website. This encryption layer is often considered invulnerable, which means the data you share with the website is safe.

Multi-factor Authentication

You can add an extra layer of protection to your online account. Adding two-factor authentication means that when you log into your account, you will be emailed a code, or a text will be sent via SMS.

There are alternative methods using an authenticator app too. If someone tries to access your account, you will be alerted by the arrival of the authentication notification – and they won’t be able to access your account.

VPN

Most of the methods of securing your account will be distributing access to your information. Alongside the SSL certificate on the website, and your active prevention using two-factor authentication, you can also use a VPN.

A virtual private network will give you a secure connection to the website that you are using. This is even more important if you use WIFI in public places to do your trading. For example, if you want to sit in a local coffee shop, use the internet as you enjoy a macchiato – a VPN will keep you safe.

Safe browsing 

Something that can make a substantial difference in your safety online is considering your everyday browsing. Many websites are not secure and have something malicious underlying. All it takes is signing up for something and not reading the terms and conditions or agree to something without reading it, and your personal information and device can be exposed.

When you begin online trading, you need to always put the safety of your stock at the forefront of your mind. Take steps to secure your internet connection and all of the information that you share online, and most importantly, use a reputable online trading platform.