Protect Yourself from Fraud In CFD and Forex Trading

Fraud Protection Tips

If you’re thinking about investing any of your money in CFDs or forex trading, you’ll need to select a bona fide broker who you know you can trust. Here we go with some aspects you should pay your attention to before starting any trading:

Check the Security of the Trading Platform

Look out for SSL encryption protection on your trading platform. This will keep your payment details and funds safe from prying eyes. Also, look for advance deposits. Regulated brokers will always use these types of anti-fraud measures, so make sure to look out for them. If the platform you are currently using does not offer these prevention measures, stop using it straight away.

Look for Blacklist Entries

Trading blacklists are always worth a check to see if your current or potential broker can truly be trusted. Companies only find themselves on these lists if they have committed fraud or some other kind of misconduct. A lot of non-regulated companies will show up on them, so do take the time to check.

Use a Broker You Trust

Once you've satisfied yourself that your broker isn't on a blacklist and uses adequate security measures, you still have more to think about. Do you actually trust the broker in question? After all, they will be the ones looking after your trades. That’s why it’s a good idea to know better your broker before you engage them and discuss any concerns that might be troubling you. A decent broker will be happy to answer all of your questions. There’s nothing quite like talking one-to-one to give you a good impression of whether someone is reliable and can be trusted with your money. If everything checks out but your gut still tells you that there is something wrong then walk away. There are plenty more fish in the sea.

Conclusion

So, these are just a few common sense things to consider when you’re looking for a CFD and forex trader. Check that they are appropriately regulated, that their trading platform uses up-to-date security measure, see that they don’t show up in any trading blacklists and establish that you feel you can trust them. This may seem like a lot of effort to go to, but if it saves you from financial fraud further down the line then you will doubtless consider that it was worth it.

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