Ways to avoid scams false promises and deception in online trading
In today’s world, unfortunately, a lot of scams prevailed in the field of online trading . And the number of bad people taking advantage of others increased by using scams and false promises to make quick profits. But the truth is that trading involves risk, and making profits over time requires knowledge and expertise.
What you should know in order not to be cheated in the trading world?
It’s not always easy to get into the online trading world. There are a lot of things you should know in order not to get scammed. The best way to avoid being duped is to increase your knowledge of trading and the tools of the global financial market in general, to be aware of everything before you engage in any vague or suspicious experience with any broker and start trading in the markets.
In fact, the games of the fraudulent trading companies are exposed. Below we show you a quick guide that includes 10 tips to avoid getting fraud:
1 – Look for regulatory bodies
Another quick way to find out if a platform is intended to defraud or not is to check whether it is regulated. There are many regulatory agencies that monitor the various trading and investment services. The regulated platform adheres to strict rules imposed to protect users – and thus you will gain a lot of confidence while trading on such platforms. Some examples of strong regulators include: The Australian Securities and Investment Authority (ASIC), the UK Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC).
2- Check the infrastructure
If you are offered a new online service or trading or investment app, the first thing you should do is check it out. Serious and legal trading platforms usually use a lot of resources to be among the technology used in their platform and design. But fraudsters who are looking for a fast way to steal people’s savings will not invest a lot of money in developing their platforms to be easy to use and will not implement high technology with them.
3- Make sure you are safe
You risk your money, so it is best for you to ensure that you invest it in a safe environment. Check the Secure Socket Layer (SSL) certificate for the website you are browsing by looking at the address bar. Most browsers have special icons that indicate whether the platform is safe or not. Moreover, you should know the services that the platform uses. Do you use first class banks? Do you offer a range of payment methods using well-known services? These are some indications of the safe platform.
4- Test the support service
Predators do not care about their customers All they want to get is the money of others. Consequently, they will provide few support services. When using a new platform, test customer support first. Know well if they really care about you as a customer, or if they are just trying to force you to deposit.
5- Verification of identity
Identity verification is crucial for maintaining the legitimacy and security of online trading and investment platform. If you want to subscribe to such a service and have not received an identity verification request (such as uploading an ID card picture and utility bill), this is more likely a trick to getting your money back. Regulatory authorities require platform operators to verify and verify the identity of platform users, as these measures protect their platform from corrupt activities.
6 – Repeated communications and deposit request
Another feature of fraud and deception companies, is the continuous repetition of communications, and the offer of “bonus” or free credit that promises you if you deposit funds. These companies never operate under the supervision of any regulatory authorities and do not have registration from any of the well-known regulatory licensing bodies. Remember that reliable and real trading companies contact the customer for the first time to welcome him and answer any questions, and they do not contact the customer again to entice him to deposit.
7 – Good reputation is very important
It is extremely important to remember that you are dealing with major financial intermediation companies. This means that good and innovative companies are always nominated for high-level awards. And if you find that the platform or service is referred to by a well-known media outlet, this greatly contributes to its legitimacy and credibility. It will not take much research to find out whether a company has a good reputation or not as a trading and investment platform. Therefore, you only need to search for it on Google.
8 – Learn about risk warnings
Risk warnings are the hallmark of well-regulated trading and investment platforms, and should be looked out for on the platform. Regulators require informing users of the risks involved in online trading and refraining from providing investment advice. If you notice these warnings, it’s a good indication that the platform is legal.
9 – Check out the company’s agendas
Unlike scammers, real trading platforms are concerned with preserving their clients. Consequently, they 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 environment
While you can ask your friends to know their opinions about a specific service or platform, you can also search for its activity on the social network. The legitimate platform will have pages on 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 opinions and know what people around the world are saying about this platform you are considering using
Educate yourself and avoid the risk of fraud. We hope that this article written specifically for you was really useful and will spare you the risks of swindlers, and help you reduce the chances of you being exposed to fraud and deception significantly.
Once you enhance your knowledge of the markets, investment tools and trading fundamentals, you are no longer an easy target for fraudulent companies. You will be able to distinguish the licensed broker with a name and good reputation in the market, and to disclose the credibility and transparency of fees policies and conditions for trading