Home/Blogs/Is Buying Stocks Online Safe?

Is Buying Stocks Online Safe?

stock market
Published Date: 12 Feb 2020Updated Date: 14 Jun 20236 mins readBy MOFSL
Buying Stocks Online

Successful stories of traders and investors who have earned well in stock markets are also surrounded with those about virus attacks and hackers. While it is quite understood that one might feel pretty uncomfortable using their information online, it also has to be understood that there is a lot of protection that is built into every trading system.

While there are concerns about online share trading, traders and investors can be assured that the brokerage firms that offer this service use a very high level of security. Most of these firms have the safety measure they implement mentioned on their website, which will make you feel comfortable and give you the confidence to trade online. Experts also state that online trading is as safe as offline trading as the financial transactions are always protected.

Having said this, it can also be said that nothing in our world is safe. Trading online in capital markets can give you profits by leaps and bounds, but it is also considered as a nest of vipers. If you are one of those who frequently trade in stocks online, it is important to know as to how you can make e-trading safe. There are a number of hackers who might steal your personal as well as financial information if proper safety methods are not implemented.

Steps to be followed to make online share trading safe and secure:

Use Anti-Virus and Anti-Spyware Software
This is the very first advice you are given when you plan to trade online. One needs to have a security software that can protect from unwanted malware or virus that can track and absorb the user’s information. Before starting to trade online, it is important to install antivirus and anti-spyware software and complete the full system scan. Also, make sure to keep the software up to date.

Research about Your Online Trading Provider
A number of online share trading frauds happen through fake websites that lure customers with offers and advice. These are those sites that gain the user’s information.  Before you provide any of your personal and financial information to your trading company, it is quite important to do a complete check on their background. One can check the legal demat account providers list of the official websites of NSDL and CDSL and traders can choose the firm that is reputed and well experienced.

Always Verify the Privacy Policy of the Company
Talk to any reputed trading company and they would tell you how well they protect the privacy of their customers. Any reputed brokerage firm or a DP would have a well-explained privacy policy as to how the information provided by the customer is used. The company can be sued if the trust is violated and never go with a company that has no privacy policy or a weak privacy policy.

Always Check the Encryption of the Company
Traders and investors should always check if the website of the e-trading company is SSL certified. SSL stands for Secure Socket Layer and this is most commonly used for online encryption. If you are into web-based trading, it is a must to check the encryption certification of the provider. This would ensure that all the transactions you are making are safe and secure.

Always Type the Address in Your Address Bar
While this might sound silly, this simple step can avoid the user accessing any identical website that has been created by an online trickster. A number of hackers create identical websites which look just like your regular trading web portal. Hence, it is advised to type the website address manually and avoid traps.

Always Choose a Reputable Company
It is always important to choose a well-reputed company for your online share trading as they have proven histories of dedication and service that they have provided to their customers. Most of these companies like us have reasonable fees with unbeatable features. Above all, they take good care of the privacy and security of the information provided by the customers.

Online share trading can be fun and is also quite a lucrative way to save for your retirement or to just make some extra money for those family vacations. Whatever be the reason, this can also turn out to be a wrong place if proper choices are not made. So, follow the above-mentioned tips and stay safe and make good money.

 

You may also like…

Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C
Click here to see your activities