Ever since technology advancement escalates enough to make everyone’s trading experience as convenient as possible, trading platforms are continuously churned out like an epidemic. They come from so many different backgrounds, mostly the same, and offer drooling opportunities of financial success. For the untrained eye, these platforms may seem harmless enough for anyone to invest. From foreign exchange to commodities, cryptocurrency to altcoin, these people know exactly what they’re doing, what they’re looking for, and how to get it. Novice Traders don’t know these and it’s easier to give in to the temptation rather than taking a double check.
Before you dive in to the seemingly promising platforms and if you’re unsure whether a trading platform is safe enough to trust your money in, check out our tips to spot a sketchy platform below!
Easiest way to tell: their customer service
The trading industry is a risky industry — it is essential for the platforms to provide their users with the most elaborate care and support. How they support their customers is the one measurement to know if the platform really means business or not. Legitimate trading platforms will have at least an active customer support email and even better, 24 hours availability. Zero customer support should be a major red flag because if there is anything wrong happening during your experience there, the customer support should be your initial go-to.
Your money should be in safe hands. Reviewing their regulations goes more than just their business conduct. Financial services are commonly supervised and licensed, know if they are being regulated where they come from. Can you find their license number? Do they have concise terms and conditions? Is the judicial system of their home country trustworthy? If the company provides no regulations whatsoever, then it is most likely a scam. You can also check if their license has expired. If the license does not work, contact their regulators and ask if the platform can be trusted. If it seems like they no longer own their license, withdraw your money immediately.
Are they being transparent?
How does the platform make money? Do they charge you with additional fees for your trade? Is there any minimum balance for your trades? Their Frequently Asked Questions should answer all your questions about their business prospect — mark it as another shady fintech platform if they seem to be hiding something revolving around your trades and your money.
What do others say about it?
Lastly, the most reliable way to measure a platform’s reputation is by its user testing. There are lots of websites dedicated to showcase shady software and services waiting for you just a few clicks away. If they provide mobile app, their reviews on the App Store or Play Store may give you incredible insight as to what it’s like trading through their platform. Be mindful that some polished reviews can still be thrown in every now and then by internal parties.
The financial market is an intricate game to play, it should be no surprise if people try to reap as much money with only a domain. These types of business are churning out very rapidly and consumers need to be aware that not every one of them genuinely believe in what they’re doing. What do you think? How do you personally spot a sketchy trading platform? Let us know in the comments!