What Makes a Trading Platform Legitimate?
Most people are now putting all of their hard-earned cash into investment to ensure their future stability and betterment. However, a broker might lose their investment if they do not choose your platform correctly.
How would you identify a legitimate online trading platform? What are the signs to determine that that platform is authorized?
Online trading can be risky as fraudsters lurking around within any trading platform, but if you can determine which platform is legit and which is not, you will profit in the long run.
First, the broker can determine the trading platform’s legitimacy using the tool known as Brokercheck, built by the regulatory body FINRA. The tool will provide you with enough information, such as data, records, and the background of the chosen platform.
Also, using the same tool, you can validate your chosen platform if it was authorized in corrupt countries or offshore financial centers.
Using the Brokercheck by FINRA to validate the trading platform should not be enough reason to trust fully on the platform; it is essential to do your research and look for any online reviews in order to gain some background knowledge about your chosen venue.
Furthermore, choosing the right platform requires research and knowledge before you risk your cash. Consider all the red flags you encounter and pursue a trustworthy platform. And avoid unregulated brokers like Focus Markets or Bontobel, or many others.
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Online Trading Platform – Are There Legit Platforms?
We understand to have some fear when trying to invest in online trading because the online platform has become profitable not only for many legitimate brokers but also for many fraudsters lurking around the trading web.
Many brokers are still falling victim to the hands of scam brokers by making various schemes to fool brokers and steal their money. As a result, the Online trading platform has become the breeding ground for these con artists.
For some people, it may be hard to believe that there is a legitimate trading platform; they only need to dig in much more deeply and learn how online trading works to avoid getting scammed.
Online trading is a legitimate platform where you can gain a vast profit if you are equipped with proper knowledge and understanding of the risk of trading.
Here is the list of legitimate online trading platforms where you can put your hard-earned money and gain profit.
- Fidelity – Best and suitable for newbie brokers
- TD Ameritrade – Excellent Customer Service Record
- E*Trade – Best mobile 0nline trading platform
- Charles Schwab – Best broker podcast
- Interactive Brokers – Suitable for professionals and expert broker
Remember that it will always fall into your hands when deciding what platform you would choose for trading – making it essential to research before you trust your chosen venue.
What Online Trading Platforms Exist?
The online trading platform has been gaining a bad reputation and image for many people as many techniques of fraud schemes are being done within the trading venue. – making it hard to make a profit without enough experience in trading.
Due to the widespread fraud schemes, Online trading platform has been divided into three category of the trading platform below:
Straight up scams
- An online trading platform where no actual transaction is performed, by which many scammers are gaining profit because fraud schemes are fooling some brokers and ending up losing their hard-earned money.
Real trading platforms
- Trading platforms that use unfair means. For instance, there might be actual trading occurring, but the brokers might give financial advice without mentioning that the broker profits while their clients lose.
- A trading platform where brokers follow all the appropriate guidelines and rules to achieve clean and fair online trading – a safe place to put all your investments.
What Are Legitimate Brokerage Companies?
Identifying the legitimacy of the platform you plan to invest with is a crucial step when trying to invest and earn profit in online trading. However, it requires you to take some time to do research which later on can be rewarding.
You can go to the brokerage site to determine if the broker is authorized and licensed. You should be able to search the regulator’s registry on their website (ASIC, for example).
The broker website’s URL should be highlighted, copied, and pasted into the regulators’ website’s broker search box. They should be there if they are regulated.
You should look for a different investment opportunity if the firm is unregulated because they are almost certainly a scam. Remember that it is ideal if a regulatory agency in your nation oversees the company.
In this manner, you can quickly file a claim as a local if you ever have a problem or a disputant. This could make the dispute settlement procedure easier.
How To Identify Legitimate Trading Platforms? – Some Advice
Understand that an authorized corporation might nevertheless be deceptive and con its customers. Always search for the brokerage’s name and the phrase “scam” to see what other people are saying if you notice numerous complaints.
For instance, a trustworthy currency brokerage will never give financial advice. This is because breaking the law would violate the rules’ inherent prejudice. When their clients lose money, they profit.
Furthermore, a corporation is not automatically a legitimate network trading platform even though it is licensed. They may appear regulated, but since the financial regulating body they hired has no jurisdiction in your nation.
They may be scamming people without punishment. Check the regulator’s website or call them to find out if they are regulated in your area.