Online trading involves the online purchase or selling of stocks, bonds, futures and other financial securities.
Trading is not simple and does require experience and knowledge, especially if you are a beginner and just getting started. A small mistake and you might lose your hard-earned money in just a few minutes.
Thus, beginners or those who are not confident enough can take help from online brokers. IQ Option is a trusted and safe broker that offers different asset classes and tradable assets to select from for trading.
So, whether you wish to trade stock CFDs, binary options, digital options, or commodity CFD, IQ Option provides the opportunity on a single trading platform. IQ Option Europe Ltd. is registered at Cyprus and it is regulated by CySEC. IQ Option has won several awards over the years and is used by more than 50.000.000 in 213 and more countries.
However, there are a few security tips every trader needs to be aware of when trading online.
#1. Understand the Risks Involved
Prior to trading online, you should have an idea about the risks involved. Having knowledge of the potential risks will help you to find the right solution. Risk identification is of utmost importance.
Once you can identify the risk, you will be able to find a solution. The solution might be about using effective security software and setting automatic alerts.
You also need to secure your trading account by ensuring the security of entry points. For quick accessibility of data, in case of a data breach, you can store your data on the cloud.
#2. Set a Complicated Password
Never set an easy password! While setting a password, avoid using your name or surname, date of birth, the word ‘password’ or even your phone number. You can consider using a password management system to safeguard your password.
Also, keep changing the password frequently, preferably every month.
#3. Avoid Giving Access to Others
Granting your account access to a vendor and not removing the access later, might lead to a huge security threat. It is better to avoid giving access to your account to anyone.
However, if you need to give access due to unavoidable reasons, you must remove the access immediately after completion of the task. Strive to control the password and accessibility of your trading account on your own.
#4. Use Double Layer Authentication
Double layer authentication is used now, in order to provide the second layer of security. In banking or in other trading apps, and even in case of social media sites, this two-factor authentication is applied.
It makes accessing an account more difficult for hackers, as the password is not the only layer of security. You need to enter a code after providing a password for accessing the account. The code is sent to the phone or email, which means it is impossible for the hacker to get it.
#5. Take Care of Your Wallet
Cryptocurrency is the most trending component in modern trading. It refers to the virtual asset, designed to act as a medium of exchange to secure financial transactions during online trading.
Although the blockchain technology that is used for this medium of exchange offers a secure façade, the virtual wallet might become a weak point for the traders.
Once cryptocurrency is stolen, it is very difficult to track and return it. So, we must use a reliable wallet as well as a highly esteemed exchange.
#6. Use a Cybersecurity Suite
While trading online, the role of good anti-spyware software and a personal firewall can never be ignored. If you are using just an antivirus and nothing else, it might not be able to identify the hidden spyware, which the relevant software can easily trace.
Besides, using a personal firewall will enable you to have control over the sites, some of which you want to allow, and some of which you might want to block.
#7. Use VPN software
A VPN allows you to connect to the internet through a server run by the VPN service provider so your IP address is not revealed to destination sites and all data and information travelling between your computer or device and the VPN server is securely encrypted.
In addition to the privacy advantages, connecting via a VPN can potentially allow you to access content that is otherwise censored or prohibited in your own country — or enable you to set up an account on a trading platform that you might be geographically blocked from joining — unless the VPN itself has been identified and blacklisted.
These basics steps will help you improve your security on trading but moreover, you must look for a dependable broker based on the security solutions they offer. Take the steps that are prerequisites for secured online trading and enjoy the convenience of virtual trading.