Most people who venture into trading foreign currencies are motivated by the desire to make profit. Since the market is relatively easy to access, beginner traders see it as an adventure towards massive income and easy earning. While these ambitions are in place, it is crucial to consider the high-security risk associated with online trade.
Forex, like most online trades, is not immune to cyberattacks and cybercrimes. However, theft is not the only thing that can ruin your trading experience or drain you of your investments—losing valuable information such as account information, or the sudden crash of your forex broker software can cost you lots of investments.
Trading forex is already a high-risk venture with high volatility and unpredictability. There is no need to add to your worries by making avoidable mistakes that will further jeopardise your investments. In this article, we explore some security tips every forex trader should be mindful of.
Five security tips you must know as a forex trader
To protect your investments and maximise your trading experience, here are five key tips you should take note of.
#1 Register with the traders union
An often overlooked security caution is to start by registering with the association of forex traders worldwide in the Traders Union. The registration is free and doesn’t require membership fees.
In addition to free coaching sessions by experts, the platform gives you legal protection in the event of disputes with brokers. You can also discover approved brokers here, and that minimises the risk of investing with incompetent brokers.
#2 Use a reputable broker
The security of your investments begins with who you choose to meditate for you in the market. Before you commit your money to any broker, do your due diligence to ascertain the credibility of that broker.
One of the core things to look out for is to ensure that your preferred broker is registered and compliant with the terms of the regulatory bodies in the region. Any reputable broker, for example, the FBS brokers, should have been in business for a minimum of 5 years with a track record of reliability and credibility.
#3 Use a strong password
Protect your account from cybercrime by using a strong password. Most traders make the mistake of using common passwords like qwerty or 12345. Such passwords are easy to breach, and that leaves your account open to hackers.
Strong passwords comprise alphanumeric data and symbols. You can also use the password suggestions by password generators and vaults. These password management systems also offer to remember the rare combination passwords and even suggest an update occasionally.
#4 Protect your trades over a firewall
As basic as it is, most traders ignore this security tip and expose themselves to dubious opportunists. By trading behind a firewall, you will be able to keep your connections and trading activities private. You can incorporate the use of virtual providers to limit the information you save on your device too.
#5 Trade on your private device
The rationale behind this is simple — public computers are often monitored, leaving private information to public glare. Also, in any event you forget to log out, anybody can access your data and ruin your investments.