Go online and type “trading platforms” and you will see countless results coming up for your query. This may well be appreciated by someone on the lookout for a broker but, attaching the word ‘reputable’ to the search you will be thinking twice if you’ve come up with trusted sites. Almost all of them will claim that they are. But, are they really?
Together with the increasing popularity of online trading, are the gradual increases of scams that plague the niche it occupies. The reputation of legal brokers are being marred by the by the number of rogues websites, and more and more investors are losing money this way. No matter how creative and scheming these con-artists-cum traders are, there are several ways to check and avoid being scammed. And still emerge victorious in this type of economic exchange.
Check for the Software Used
You can test the software used by a platform when you create a demo account with them. Practice accounts serve its purpose by providing an opportunity to the trader to check their service and how the software operates. One good example is eToro which has a practice account called “Virtual Portfolio”. Features of the platform can be tested, as well as the quality of the trading experience that a trader can expect. Wikitoro, an online wiki site covers a lot of information about this broker including the eToro demo mode and other topics you should know about. If you’re interested to know more about it’s features then this site is worth checking out.
Check Country of Regulation
Another important thing in your checklist is researching if the site you have chosen is regulated. If you see that it is overseen by a poor regulatory infrastructure, then steer clear of it. Taking note of the country where it has its base of operations should also raise caution on your part. Online reviews play a big part in dispelling doubts and give a fair analysis on how these financial experts behave. Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) and Australian Securities and Investments Commission (ASIC) are among the top regulators in this industry. Plus500 is another good choice and the great news is that they have a license from the mentioned regulators.
Check for Customer Support
Establish an ongoing correspondence with the site’s customer support. Find the ways on how you can contact them. Is support accessible via live chat? Having a live representative at the other end speaks about a website’s commitment in engaging its customers. How about the provision of email or phone support? Receiving a response via this channel is a venue to analyze if the staff is knowledgeable and very well-trained to handle your financial affairs. InstaForex is well-known to provide excellent support and has lots of ways to contact them such as phone, email, live chat, Skype, Viber, Telegram, WhatsApp and QQ.
Check for Payment Methods
As there are several legal means to fund an account, a reputable website should be able to offer all types of legitimate third party payments, such as: major credit cards, PayPal, Bank Transfers as well as the regular wire transfers. As part of a responsible trader, check with the site’s FAQs if they accept the payment methods you prefer. Also, go over the site’s SSL encryption if it is activated, as this ensures the trader’s money and financial transactions online are secured. This is one of XM’s top advantages. They support multiple payment options so you won’t have to worry on how to add funds into your account.
Check the Process on How Bonuses are Deposited
Some service providers would welcome a trader by promises of a bonus when a deposit is made into their account. Traders would often deposit a large amount just to get a good bonus. Remember to read the fine print and disclaimers, should there be any. Take a look at the site’s terms and conditions before entrusting a huge amount of your trade money.
The rule of thumb is open an account only with a reputable broker. While online reviews are credible, there are other sources that you can consult for advice. See a trader-colleague and inquire about legitimate online brokerages, or you can join an online community or chat rooms where you can interact with fellow traders about dealing with a reliable company.