In addition to comparing fees and services when choosing the right online share trading portal, one should also consider the level of security offered by the portal. Just like using internet banking, the security of your personal and financial details is paramount when trading online.
So, what makes a reliable and secure share trading platform? Consider these features:
- Encryption. Reputable online trading platforms rely on encryption technology to protect your sensitive information. This means that when you log into a broker’s website, no one will be able to see any of the information transmitted between you and the broker. RHB employs encryption to ensure security for all online trading customers.
- Login information. Check out what information you will need to provide in order to log in to your account. While many providers only ask for a username and password, others may ask you to enter an additional security code.
- Online checks. Does the provider offer online checks and restrictions to reduce the risk of fraud? For example, do you receive an SMS code that you will need to enter before trading, or do you need to answer an online security question? RHB TradeSmart requires customers to key in a trading PIN before placing an order
In addition to the above, consider the experience of the service provider. Is it backed by a large bank or financial institution?
Another important consideration is the type of support offered. What if something goes wrong with a trade? Or if you have a problem with your account? Can you get quick assistance from the bank? Our Call Centre is available Mondays to Fridays, from 8.00am to 5.30pm with the exception of certain market holidays.
Once you’ve taken these factors into account, you’re well on the way to staying safe when trading shares online.
How to protect your personal and financial information
Choosing a safe and secure share trading platform is only half the battle; you also need to stay safe when you buy and sell shares online. Some safety tips:
- Jail broken or rooted devices. Do not use such devices for your trading as their security may be compromised.
- Watch out for scams. From phishing emails to malware that infects your computer and tracks your keystrokes, scammers have plenty of ways to gain unauthorised access to your account.
- Keep your login details safe. This is an obvious tip but one you should always remember. Never give your account login details to a third party, and don’t leave your computer unattended while you’re logged into your account. Changing your password regularly is also a good idea.
- Choose a strong password. Avoid something simple like your “birth date”that may be easily guessed at. Choosing a password that combines upper- and lower-case letters with numbers is a simple way to increase account security. RHB TradeSmart requires you to key in a password that is between 6 and 10 alphanumeric combination.
- Keep a copy of your records. Keep a record of all your online share trading transactions and store in a safe place. This will ensure that you have evidence to refer to if something goes wrong with your account.
- Look after your computer. Keep your antivirus software up to date to protect your computer against malware and other viruses. Log in to the trading platform when you have a secure Internet connection. For example, try not to use the public Wi-Fi at local cafes or cyber café outlets to make trades.
- Check confirmations. If your online trading platform sends you emails or online messages to confirm trades, check these to make sure they apply to trades you have actually approved. Regularly monitor the trade activity and recent transactions on your trading account.
Signs of scam
These are some telltale signs:
- Your account balance has been emptied.
- There are transactions on your share trading account that you did not authorise.
- Your share trading platform contacts you to confirm a transaction that you did not place.
- The trade confirmations you are sent are different to the trades you have made from your account.
- Your password has been changed.
What to do if something goes wrong with your account
If you think you’ve been the victim of fraud or a scam, the first thing you should do is notify your online share broker immediately. Prevention is better than cure – make sure to update your antivirus software to protect yourself against any further cybercrime.
https://www.finder.com.au/safe-online-share-trading accessed 7 December 2017