Many brokers globally are claiming to be legitimate and trustworthy when it comes to managing your positions. However, it is up to you to verify their credibility so that you can avoid falling into the hands of scammers. Below is a comprehensive guide on how to spot a trustworthy trading platform. You want to trade with a broker that will give you the best experience while safeguarding your funds.
- Security/Regulations
This should be the first element to look into when seeking a trustworthy trading platform. Check its ability to maintain integrity while preventing unauthorized access to traders’ accounts. A trustworthy platform will be highly encrypted and store traders’ funds in segregated accounts. Plus, it must be regulated by world-renowned financial regulators such as the Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), and more. Keep in mind that confirming this element is easy since most platforms have this information on their websites. You can also refer to experts’ recommendations like this list of platforms for British traders.
- Charges
As a trader, you want a trading platform you can afford. Confirm the rates or commissions for trading the assets and ensure they fit your budget. Also, check transaction and inactivity charges. The minimum deposit requirement should be considered as well and ensure you invest with the amount of money you are comfortable losing. Some trading platforms have hidden charges, thus ending up confusing traders and making them spend a lot of money. Trusted brokers do not have hidden charges, and consider other options in case you encounter such trading platforms.
- Accessibility
The accessibility of a broker should be of utmost importance for you to enjoy your trades and recommend other traders. Therefore, a trustworthy trading platform must be user-friendly and easy to navigate. Also, trades must be executed at a high speed so that you never miss out on any arising opportunity that could potentially be profitable. It should also have a dedicated support service that you can lean on for assistance and guidance throughout your trading journey on the platform.
- Mobile Trading
Smartphones have taken over the technology world by storm and almost every trader owns one. Online brokers are also trying to keep up with the advancing technology by ensuring they update their trading platforms to operate on desktop and mobile devices. In this regard, consider a trading platform that will increase your potential even in a highly volatile market. They should be mobile-device friendly so that wherever you are, it is easier to track your positions and make moves based on the developing market trends.
- User Recommendations
It is important to consider the above elements to ensure a trading platform is trustworthy and fits into your trading needs. However, it is advisable to also look into what other traders had to say regarding their experiences with a trading platform. This helps clear any pending doubts about a broker’s credibility, thus making you start your ventures with a clear mind. In this regard, visit legit social platforms where users leave their reviews and testimonials such as Trustpilot, Google Play, and the App Store. Analyze the comments and ratings then decide whether you are comfortable with a certain broker’s trading platform.
Conclusion
The tips above will help you identify trustworthy trading platforms and avoid meeting fraudsters waiting to scam you. Note that it is one thing to find a trusted platform and another to utilize it fully and succeed at your ventures. Therefore, trade with an asset you are familiar with and analyze the financial markets to develop solid strategies. Since losses are inevitable, consider protecting your trades. You can start by trading using small amounts of money, which you will later increase as you gain confidence. Alternatively, apply risk management controls to curtail huge losses.
