(Newswire.net — November 24, 2017) — Are you new to the world of stocks, investments, and trading? It can be a very exciting world to dip your toes in, but at the same time it can also be quite volatile. One of the issues going on today is social trading scams, which can end up costing you quite a bit of money if you find yourself caught in one.
Being able to take part in trading requires a bit of know-how and an understanding of what these social trading scams look like so that you can avoid them all together.
Always Look at the Regulations
The very first step you’ll want to take before getting involved in social trading is to take a close look at the regulations. Is the social trading platform even regulated at all? If it’s not, this is a huge red flag, and you’re going to want to steer clear. These regulations are made up of very strict rules that protect you on various trading platforms. Without these rules, you’re not being protected.
While you are looking at the regulations on the platform it’s also a good idea to get a sense of how the platform has been set up. If it’s legit then there should be some fairly impressive infrastructure and technology being used in the design. It shouldn’t feel as though it was thrown together at the last minute.
Does the Platform Offer Security?
Of course you don’t want to be moving money around in a platform that doesn’t use the absolute latest and most up-to-date security measures. The website should clearly display the SSL certificate so you know immediately that you’re protected.
What About the Website Content
Another area to look for red flags is with the website content. Does it offer tips, information, blogs, some sort of support network? All of these things are offered on sites that are legitimate. It shows the site wants your business as a customer and wants to retain your business. A scammer isn’t going to care about offering anything in terms of customer service, and they know you won’t be coming back. They just want that one quick transaction.
You can even do a little online research to look into the reputation of the platform. Has the media covered it, are there reviews from other users, do you know any friends who have used the platform, what kind of information can you find?
One great source of information is the https://investingoal.com/ website. Here you can find all kinds of information on social trading, including a list of the Top 10 social trading networks. This can be a great place to start your research even.
Using a Broker
If you plan on using a broker, this is another area where you want to do your research. Unfortunately there are scam brokers out there who are more than happy to lead you into a trading scam. Ask for references, look into their portfolio, and ask plenty of questions.
A Lot of Steps All Meant to Protect You
While it may seem like there are a lot of steps needed in order to identify scams, the fact is that all of these are meant to protect you and your best interest. It’s well worth putting in the time and effort to do your research first before you get involved in trading.