Enterprise Business Experts

Top Menu

  • Reach Us

Main Menu

  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
  • Reach Us

logo

Enterprise Business Experts

  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
  • How to Choose the Perfect Ceiling Tile for Your Office

  • Keep Your Office Safe With Fire-Rated Plasterboard

  • Finding A Suitable Company To Do Your Office Renovation

  • How to calculate tax on mutual fund redemption?

  • Ways To Support Mental Health In Your Workplace

Finance
Home›Finance›What to do to Avoid Fraudulent Financial Market Trading Brokerage Firms

What to do to Avoid Fraudulent Financial Market Trading Brokerage Firms

By Danny Messinger
September 14, 2018
1060
0
Share:

Are you considering trading Forex, cryptocurrency, or Contracts for Difference (CFDs) online? If so, do you know which financial market trading company you are going to open an account with? If not, and you are in the process of choosing an online trading partner, it is vital to be cognisant of the difference between a fraudulent scammer and a legitimate broker.

It does not matter whether you are a beginner, intermediate, or advanced trader. Beginner traders run the risk of signing up with the wrong trading brokerage because they do not always have the necessary knowledge and skill to discern between a legit company or a scam. On the other extreme, advanced traders can become complacent and not do the requisite due diligence into a company before opening an account with them.

A scam or fraudulent scheme

Before we look a way to help you choose the correct online trading partner, let’s look at a succinct definition of a fraudulent scheme or scam:

The website www.jonesmutualfraud.com/ defines fraud as ““an intentionally deceptive action designed to provide the perpetrator with an unlawful gain or to deny a right to a victim.”Thus, in our case, this definition means that any person who aims to gain illegal access to monies that they have no right to take ownership of is committing an act of fraud.

Thus, it is safe to say that a genuine online trading brokerage will do their utmost to keep their traders’ monies safe and prevent hackers (or fraudsters) from gaining access to these funds.

Tips to help you choose a legitimate online trading partner

Therefore, here are a few tips to help you differentiate between a scam or fraudulent operation and a legitimate broker:

Is the trading risk level downplayed or emphasised?

Everyone who chooses to trade CFDs or on the Forex market must be aware of the high risks levels involved. A bona fide broker will display prominently the fact that online trading is a high-risk venture and should be undertaken with care and foresight. If you cannot find the risk disclosure statement on the broker’s website, then it is best to stay away from them.

In fact, in their 2011 published guidelines on what should be displayed prominently on a financial website, the FSA requires that a risk disclosure is prominently presented on all online financial trading sites. And because online trading companies like Jones Mutual comply with the FSA guidelines, they display the following disclosure statement at the bottom of each page of their website (it is in the page’s footer):

“Risk Disclaimer: Online Trading has the potential to yield high profits, but it also involves significant risks. For this reason, Jones Mutual advises consumers not to trade funds that they cannot afford to lose. The trading outcome is dependent upon an unpredictable market. It is possible to lose one’s initial investment, and we, therefore, recommend that traders devise a money management system, including seeking professional advice, in order to protect their investments”

Online trading platform and security measures

Once again, a legitimate online trading company will make sure that their network security systems are some of the best that is available in the marketplace. They will not take the risk of hackers breaking into their online trading platform.

Also, a genuine brokerage will use a well-designed, well-supported, highly-thought-of trading platform that is regulated by the industry-standard platform,  MT4. There are cheaper versions available; however, they are not as secure as MT4, and their customer support is not as good. Therefore, it makes sense to avoid an online trading firm that does not use an MT4-regulated or -compatible trading platform.

Final words

These two tips mentioned above are the first two aspects all investors should look at before signing up with a new online trading partner. There are, however, further considerations to take into account like website usability and quality, customer support, including a dedicated financial analyst, and whether the website has a comprehensive trading academy added to the site or not.

Finally, it is absolutely vital not to be gullible; not to chase the illusion of quick money. Thus, if you trade carefully, knowledgeably, and wisely, you will increase your investment portfolio and grow your wealth. However, it is not a quick and easy process. It is a journey, starting small and growing bigger as you gain the necessary experience to trade as an expert trader.

Previous Article

What are heat sealers?

Next Article

How to Store Your Inventory in A ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Finance

    How to deal with fear in the options market

    April 22, 2021
    By Danny Messinger
  • Finance

    Cash Loans Information

    October 24, 2018
    By Danny Messinger
  • Finance

    4 Reasons to Hire a Chartered Accountant

    July 12, 2021
    By Danny Messinger
  • Finance

    How to Invest in Metals: The Top 5 Ways

    March 18, 2022
    By Danny Messinger
  • Finance

    How altcoins are hugely beneficial for people?

    May 25, 2019
    By Danny Messinger
  • Finance

    A Guide to Agriculture Loans and How You Can Use Them

    March 6, 2018
    By Danny Messinger

  • Management

    How to solve potential Payroll issues

  • Finance

    Understanding Different Types of Alternative Financing Solutions

  • Business

    What You’ll Learn When Taking an HR Management Course

  • Recent

  • Popular

  • Comments

  • How to Choose the Perfect Ceiling Tile for Your Office

    By Danny Messinger
    January 20, 2023
  • Keep Your Office Safe With Fire-Rated Plasterboard

    By Danny Messinger
    January 8, 2023
  • Finding A Suitable Company To Do Your Office Renovation

    By Danny Messinger
    January 7, 2023
  • How to calculate tax on mutual fund redemption?

    By Danny Messinger
    November 26, 2022
  • Ways To Support Mental Health In Your Workplace

    By Danny Messinger
    November 22, 2022
  • How to Choose the Perfect Ceiling Tile for Your Office

    By Danny Messinger
    January 20, 2023
  • Benefits Of Hiring Event Companies

    By Danny Messinger
    January 12, 2016
  • Neglect The Options

    By Danny Messinger
    January 14, 2016
  • Deciding time for you to Sell a company

    By Danny Messinger
    June 3, 2016
  • Precautions to Take When Working on Electrical Wiring

    By Danny Messinger
    June 10, 2016

Recent Posts

  • How to Choose the Perfect Ceiling Tile for Your Office January 20, 2023
  • Keep Your Office Safe With Fire-Rated Plasterboard January 8, 2023
  • Finding A Suitable Company To Do Your Office Renovation January 7, 2023
  • How to calculate tax on mutual fund redemption? November 26, 2022
  • Ways To Support Mental Health In Your Workplace November 22, 2022
  • The Hygenic Qualities Of Food Wrap November 17, 2022
  • Why Early Learning Is Essential For Growing Kids. November 10, 2022
  • How the best audio and visual conference equipment will boost any forward thinking company November 10, 2022

Archives

  • January 2023
  • November 2022
  • September 2022
  • July 2022
  • June 2022
  • May 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • July 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • January 2016

Tags

Business Control your income Enterprise Enterprise Audio /Visual Conferencing Entrepreneurship Industrial industrial painting Perth Investment loan with no job Marketing office fit outs printing companies Pontefract Sheet Metal Companies Small Business soap production virtual offices sydney
  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
© 2022 Enterprise Business Experts. All Rights Reserved.