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Abstract:Checklist for prospective traders Dany Mawas, regional director of Infinox, a worldwide contracts for difference (CFDs) trading broker that recently launched its IX Social mobile app in Africa, says that "unfortunately, many people who fall prey to trading scams are rookie traders, elderly, or those who are struggling financially." Mawas provides a check list that will enable potential traders to avoid con artists.
Checklist for prospective traders
Dany Mawas, regional director of Infinox, a worldwide contracts for difference (CFDs) trading broker that recently launched its IX Social mobile app in Africa, says that “unfortunately, many people who fall prey to trading scams are rookie traders, elderly, or those who are struggling financially.” Mawas provides a check list that will enable potential traders to avoid con artists.
It can be difficult to understand forex frauds, but WikiFX is here to the rescue. WikiFX is a forex research app that lets users rate and comment on brokers. You can download the WikiFX app from the Play Store or the App Store.
Conduct research
Finding the appropriate broker might be a difficult undertaking for a novice investor. When looking for the cheapest South African internet trading platform, exercise caution and seek out information from reliable, reputable sources. Spend some time conducting general online searches, reading media articles, and reviewing customer evaluations to have a better understanding of the broker you will be working with as well as customer insights.
Make sure the broker is licensed.
Brokers must register with a regulator in the nations where they conduct business. As a result, it is crucial to confirm that the broker you select is authorized and regulated. The Financial Sector Conduct Authority (FSCA) of South Africa or the Financial Conduct Authority of the United Kingdom are two examples of reputable regulating bodies (FCA).
Examine the broker's website.
A benefit of broker regulation is that it requires transparency so that traders may make the best decisions possible. One such transparency is disclosing the number of traders that lost money with that broker, expressed as a percentage.
Additionally, be sure the broker is listed with a physical address. Brokers may conduct business online, but having a physical site shows that they are dedicated to their organization, their teams, and ultimately their clients.
Brokers who make it too simple to open accounts, make deposits, execute transactions, and receive returns should be avoided, especially if there is no “paper trail”. Genuine brokers will request certified identification as well as other crucial personal data, such as bank account information, address verification, tax identification number, etc.
Watch your social media activity.
According to a report billed as “the number one guide to forex trading in South Africa,” social media platforms are where 50% of scams allegedly find their victims. According to the report's analysis of more than 400 responses, Facebook and Instagram are the most frequently used platforms by con artists and shady brokers. The largest reported theft totaled almost R650,000, while average losses for victims were R12,000.
According to the survey, 19.6% of frauds on Instagram and 34.2% on Facebook were perpetrated. Nearly 20% of victims who were conned by individuals paid their con artists with Bitcoin, accounting for 47% of victims. The platform JP Markets was put under final liquidation by the Gauteng High Court after the FSCA filed an urgent application to liquidate the company and freeze its bank accounts for failing to pay out client withdrawals, fail to post client deposits to their trading accounts, and manipulate data feeds. This platform accounted for 13% of all broker complaints.
Are there any safeguards in place?
One of the most vital things a broker offers is withdrawal and depositing money. These procedures need to be straightforward and secure for you to carry out. The identical patterns of high minimum deposits and low withdrawal limitations are typically used by con artists.
However, using a client site should make it simple for traders to deposit and withdraw money. Brokers that work with reputable payment companies that offer quick transfers and minimal fees can help with this. It is critical to have constant access to your money. Additionally, it's crucial to keep client funds separate from operating funds and other investment types. Brokers should also protect their clients by having an insurance policy in place.
According to Dany Mawas of Infinox, Africa is quickly rising to the top of the list of trading locations for all financial assets. As a result, he says, traders must be attentive about internet trading scams and make sure they do not fall for them.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
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