Is It Safe To Use Online Stock Trading Apps?
The introduction of online trading platforms has completely revolutionized trading. Retail traders and young adults have begun to explore investing in the market in vast numbers. However, there are still concerns surrounding the safety of online stock trading apps.
While buying and selling stocks using your mobile phone is conveniently a matter of a few clicks, you need to check certain things while choosing a share trading app.
Safety And Security Measures Provided By Online Stock Trading Apps:
All online trading applications follow specific security and safety protocols to secure your transactions. Web-based trading platforms and trading terminals also apply the same protocols. So, trading via an online stock trading app is as secure as trading using an online terminal.
Unique identification codes and details are typically required to be provided to open and run these online applications. This makes them more secure unless you share the same with someone else who can misuse your account.
You are also required to fill in a one-time password (OTP) to open the applications on these online trading platforms. This secures the app’s usage since only the person with the registered mobile number can use the account and the application.
Things you need to consider while choosing/using an online trading platform.
1. Anti-spyware software
While trading stocks using online trading platforms, make sure to use anti-spyware software. It will help protect your device against malware and spyware that can breach vulnerable gateways to harm the device and software. So, before you start using any online stock trading apps, you must buy top-rated anti-spyware software and install it on your devices to prevent hackers from accessing your accounts.
2. Be aware of the brokerage house’s privacy policy
Investors and traders generally use the trading software provided by the brokerage house. But before you begin your transactions, read through the firm’s privacy policy to ensure they do not sell your data to any third party.
Pay close attention to how the information you enter for opening your account or using the online platform for trading is used.
3. Never trade stocks from unknown websites
There are thousands of websites and online stock trading apps for trading, and every day just adds to the list. However, only a handful of the applications are useful and genuine.
You must use the trading applications provided by your brokerage house and make sure it is reputable.
4. Check the encryption certificate
All online stock trading apps and platforms have encryption certificates or SSL certificates. SSL stands for Secure Socket Layer, which is used for online encryption of data and information.
You need to verify whether the company whose online trading platform you are using has an encryption certificate.
While online trading platforms have simplified trading, brought many retail investors into the market, and influenced young adults to take part in the market, there is still a long way to go to ensure the complete safety of online transactions and stock trading. As a vigilant user, you must arm yourself with information before every transaction you make.
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