Security Tips Every Online Trader Should Know
Online trading has become the new way of investing. It is a much more convenient option than visiting your broker in person. But with convenience comes risk. Online trading platforms are rife with security threats, and some traders can be naive about the dangers of having their personal information compromised. Here are six things you should know to keep yourself safe while trading online.
Why Online Trading Is so Popular
Online trading is popular for a number of reasons. One of the main reasons is because of convenience. You can trade from anywhere, and you don't have to visit your broker in person. Secondly, online trading is safe- not only are your funds protected by the Financial Services Compensation Scheme, but you also don't have to worry about your broker going out of business and not returning your money to you.
Thirdly, there's lots of choice. You can trade on many different platforms, so it doesn't matter if you prefer one over another. And finally- trading online allows for some tremendous savings opportunities. There are often higher commission rates associated with traditional brokerage firms than with online brokers and discount brokerages. Trading online could save you hundreds of dollars a year in commissions alone.
The Risks of Online Trading
The biggest risk with online trading is the security of your personal information. You have to be careful about hackers when you trade online because they are constantly trying to steal data from websites. One way hackers do this is by sending malware links in a phishing email or posting it on social media. When you click on the link, malware is then installed without your knowledge, which gives the hacker access to your computer and personal information like usernames and passwords. In order to stay safe when trading online, make sure you're using anti-virus software on your computer and avoid clicking on strange links.
Another risk of trading online is forgetting that you've logged into a website while being logged into another account. This can lead to identity theft if someone else has access to your account and uses it to trade on your behalf. To avoid this issue, make sure you log out of each website you visit before logging into another one.
Another way hackers get personal information is by accessing their database through a back door or hacking their computers.
How to Trade Safely and Securely
Below are some tips to increase your online security when trading online:
1. Keep your antivirus software up-to-date
Antivirus software programs are designed to prevent and remove malicious computer viruses. It is recommended that you update your antivirus with the latest virus definitions because new forms of malware continue to emerge on a regular basis. Allowing outdated protection could put you at risk for identity theft, credit card fraud, or other potential threats.
2. Don't click on any emails with attachments that look suspicious.
Email attachments are the primary way viruses and malware enter your system. You can reduce the chances of being infected by opening email attachments only if you know who sent it, or when you're expecting a file from someone with whom there is an existing business relationship.
3. Use strong passwords for each site you log in
Use longer passwords: more than 8 characters. Do not use personal information like your name, phone number, address etc. Mix up letters and numbers in the password to make it harder for hackers. Also, don't use the same passwords for multiple websites.
4. Use VPN to increase online security
A VPN is a private network that creates an encrypted connection between your device and the internet. VPN can be used for different purposes, for example, using a China VPN to bypass censorship in China and using a Japan VPN to access Japanese TV shows from other countries. VPN can also help you with online security. With a VPN, you can prevent anyone from hacking into your personal data or accessing sensitive information when using public networks.
5. Use an external hard drive
If you're really concerned about security when trading online, use an external hard drive as an offline storage device for important documents like tax returns or investment statements.
Online trading is a great way to make money in the comfort of your own home. But it’s not without its risks. In this post, we’ve shared some important tips for trading securely and how to avoid the most common mistakes. After reading this post, you will have a better understanding of how to trade safely and securely.