Trading forex can be an enjoyable and profitable experience, especially if you have the knowledge and skill required to succeed. That being said, the realm of forex hasn’t escaped the wave of cybersecurity issues that have plagued various investment markets in recent years. Anyone that actively trades forex needs to take account security extremely seriously—more seriously now than ever before. Below, we walk through the steps you need to take to make sure that you’re protecting your forex account and trading within a safe environment.
Understand Broker Regulation
Before you sign up for an online forex broker account, you need to understand how such firms are regulated. It isn’t a case of anyone being able to provide trading operations; financial regulation approval and licensing are often required. For those in the UK, the FCA stands as the key name in forex broker regulation, with each country seemingly having its own regulatory body. In order to achieve regulatory approval, a forex broker must prove its legitimacy. However, not every operation will carry such a stamp of approval, so it’s important to understand what goes into broker regulation before you opt to trade anywhere.
Only Register With a Reputable Broker
From regulation to reputation, it’s safe to say that no two forex brokers are the same in this day and age. For that reason, you need to make sure that you only register with a reputable broker. Look at the history of the firms that have caught your eye, and break down how they’ve met the demands of regulatory bodies, the trading options offered, and any associated fees and commissions. On top of that, you should also look to find out about a broker’s standing among other traders, as that can often be pretty telling.
Choose a Strong Password
It may sound incredibly obvious, but plenty of traders forget just how important it is to have a strong account password. Many accounts are hacked through the simple means of figuring out what the password is. It sounds like a ridiculous way of seeing your account stripped of its assets, so make sure your password is strong—and preferably—randomized. Also passwords should be reset regularly after they are issued and when you have experienced any other issues with the same password elsewhere.
Trade Behind a Firewall
Another obvious security measure that is often overlooked, but hugely pivotal is to make sure you trade behind a firewall. A firewall keeps your connection private and prevents any hackers or malicious parties from breaking through and obtaining your private information. It’s a basic security measure, but a firewall can be a lifesaver when it comes to keep your account secure. Adding a VPS server and trading on that can also help limit the amount of information about your account stored on your PC.
Avoid Trading on a Public Network
For some, trading on a public network is unavoidable, so this particular rule isn’t something that everyone will be able to implement. However, we strongly recommend that you avoid trading on a public network. The reason for this is clear—they aren’t secure. Anyone with malicious intent that uses the network will find it easy to exploit, meaning your personal data is at risk the entire time you are connected to the network. When it comes to trading, keeping matters as private as possible is always advised.
Don’t Log in to Your Account on a Co-use or Public Access Computer
Public computers are widely used the world over, but they should never be used for forex trading purposes. The risks are high because at many places these computers are monitored and almost always use a public network. Not only that, if you forget to log out or if you have someone looking over your shoulder, your account could easily end up in the hands of someone else.
Maintain a Virus-, Malware-, Spyware-, and Ransomware-free Computer
An untoward party isn’t just going to try and access your forex account through expected means—they may at times attempt to take the back door route. This will come about through small pieces of software implanted on your computer without you knowing. Viruses, malware, spyware, and ransomware can all be detrimental to your trading, so it pays to keep your computer clean. Implement anti-virus software, commit to regular PC scans, and avoid clicking any questionable links in order to remain safe.
Protecting yourself while forex trading is absolutely key. There is simply no excuse for not taking the steps required in order to keep your account information safe. We suggest that if you hold any interest in trading forex online that you implement all of the above measures. You’ll certainly be more secure for doing so.
The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.