The internet has made it easy for millions of people worldwide to become independent in their trading. You can research, monitor, buy and sell your financial assets in just a few clicks with a web trading platform. in
While online trading is a great way to make quick trades in the market, it also comes with some risks. Being aware is the best way to keep them at bay.
Risks Involved in Using a Web Trading Platform
Whether you are a new or an experienced trader, a lack of awareness can cost you. Here are some risks involved in using a trading platform and how to avoid them.
- Hardware, Software and Connectivity Issues
Web trading platforms operate on a computer device connected to the internet. Thus, any software, hardware or internet issue can directly disrupt your online trading. There might be server or internet issues on the mobile app or trading website that can hinder your trading experience.
The best way to avoid this is to use a dependable computer or smartphone connected to high-speed internet. Also, choose a reputed trading platform for better performance and fewer downtimes.
- Unverified Provider
There is a multitude of fraudulent trading platforms on the internet that lure in customers with offers that are too good to be true. When you register with them, you end up giving your personal and banking information straight into the hands of scammers.
Thus, it is essential to conduct thorough research on web trading providers so you can choose a genuine one. You can cross-check your provider in the Demat account provider list on the official website of CDSL and NSDL.
- Hacking & Security Issues
Your online trading account is exposed to hacking risk while connected to the internet. The computer you choose and the network you connect to are important to consider while using an online trading platform.
Do not use your web trading account on computers other than your own. Connect to a secure wifi instead of a public one. Choose a strong password with an alphanumeric combination and change it every 15 days.
- Constant Spamming
Many trading platforms are in the habit of spamming their customers with unsolicited trading and investment advice through SMS, calls and email. This can lead to missing out on important updates related to your account which you may discard considering a spam communication.
Reputed web trading platforms like Dhan provide a user-first policy, thus allowing a clutter-free trading experience devoid of constant spam.
- An overabundance of Uninformed Financial Advice
With the advent of online trading, various platforms offering free financial advice have cropped up across the internet. You can find novice traders giving strong recommendations on social media platforms, which can influence the decisions of others and may end up in losses.
You can avoid it by educating yourself and taking informed trading decisions. Take any financial advice with a pinch of salt and only from renowned sources and traders.
Conclusion
In the era of online trading, you have to take sole responsibility for conducting all your trades and ensuring the safety of your data. Knowing about the risk of online trading platforms can help you become a better trader. Lastly, don’t forget to weigh your options to select the best trading platform that offers you at most level of safety and privacy of data.
