Stocks and shares trading is the most traded market in the world and has a turnover of more than 4 trillion USD per day.
Currencies are traded against one another in this market . For example, it is possible to buy the Euro (EUR) while selling the US dollar (USD).
Anyone who is interested in stock trading can do so through a broker. You can See the List of TOP Brokers.
Once you become a trader, you will be able to choose currency pairs that you think are likely to change in value. The value of currencies change every single day and you can make trades by predicting whether the value of a chosen pair will increase or decrease. Stocks trading is done online and you can predict the movement of currency pairs and close trades.
Currency pairs rise and fall against each other and there are many reasons behind this. Some of the factors that affect their value include geopolitics and economics. Traders can profit from the changes in value that take place throughout the day. Stocks can be traded 24 hours a day and this is one of the reasons which make trading really popular today. Traders have a range of trading opportunities because the value of currency pairs keeps fluctuating on a constant basis.
Is Stock Trading a Scam?
In the stock and shares industry, scams are a big problem that is faced by traders. There are many traders who claim that this type of online investment is scam and there are many reasons for this. Some traders believe that brokers trade against them by taking the other side of their position. Some even claim that brokers run peoples’ stop to improve their profit which results in loses for traders. According to some traders, trading using a demo account is more profitable and when they attempt the same strategies using real funds, they end up making losses.
Different brokers handle things differently in the market.
There are many people in the industry who look forward to taking advantage of others such as newcomers in the industry. Online investing can be a legitimate business and just like a real business, it can be a successful opportunity, too. You should have adequate knowledge of trading and that you avoid scams.
Which Brokers Are Scam?
There is a list of brokers that you must avoid if you are looking to get into the industry. Based on findings and research, there are many signs of scamming associated with these brokers.
How To Avoid Online Scams?
The number of online stock trading brokers has increased over the years and while many are genuine, some are unscrupulous. This makes choosing the right broker difficult. For a novice trader, it can be hard to choose a broker that is reliable and trustworthy. Beginners can also fall victims to scams. So how does a novice trader avoid scams and choose a broker that is trustworthy? Given below are some ways in which scams can be avoided.
To Find Out Is Stock Trading Risky – Click Here!
First of all it is important to understand what a stock trading scam really is. You can find different definitions of online trading scam, but the most general is “a trading platform that allows traders to invest and trade online, but in the end defrauds traders.” The people who usually run these platforms fail to pay traders the amount that they owe. This can be done in a number of ways and the most common is when the trader tries to withdraw from his account and the account gets blocked.
There are a number of things that you as a trader must look out for if you are trying to avoid scam. These include the following:
- Promises of high results – this is one of the first signs of a scam. Trading is risky and there is no broker who can guarantee high results.
- Regulation – before you choose a broker, find out if the broker is regulated. If the broker is not regulated, then chances are that you can fall victim to a scam.
- Training and Education – for any novice trader, it is important to get all the information that you need before you risk your investments and start trading. Training and education is very important to be able to become a successful trader. When you look for a broker, you must check how educational the broker’s section is. You must look at the tools, resources and training materials that are available on their website that you can use to learn about stock trading. Look at the market information and see if the broker has a comprehensive library that you can utilize for education and training.
- Flexibility – find out if your broker offers tiered accounts. A good broker will always allow novices to start small until they gain experience and become confident traders. A personal account service manager must also be provided to guide you and help you understand the market better.
- Security – when you choose a broker, look at how secure their payment system is. If in doubt, also ask about handling of credit card clearing before you sign up.
- Service – does the broker have a physical office location? Is it possible to contact the broker for questions and complaints? Is it possible to interact with the broker? Are they easy to deal with? These questions should help you avoid scams and find a legitimate broker.
- Social Media Interactions – due to the huge popularity of social media marketing, every company, business and organization today is a part of it. Find out if the broker you are interested in trading with is a member of LinkdIn, Twitter and Facebook. Find out if the broker participates in communications through social media with their clients.