In this era of online trading, security is a top priority. With the increasing number of cyber threats and hackers, it is crucial to assess the safety features of your trading platform. It is your responsibility to ensure that your personal information and capital are well protected. Therefore, this article aims to take you through the essential elements to check when evaluating the security of your Trading Platform.
1. Data Encryption
The first aspect of security to evaluate is data encryption. Data encryption is the process of converting plain data into secured codes to prevent unauthorized access. Check the level of encryption that your platform uses, and compare it with industry standards. Often, new trading platforms will use high-level encryption technology, SSL or TLS. SSL (Secure Sockets Layer) is an encryption protocol that ensures data safety when transferring it between the trader’s browser and server. Similarly, TLS (Transport Security Layer) protects the platform from any data interruptions and prevents hackers from deciphering user information.
2. Two-factor Authentication
Another crucial aspect to consider is two-factor authentication (2FA). 2FA is an extra level of security that requires an additional code sent to your phone or email to confirm any user activity. It is a crucial feature to ensure that an intruder can’t log in to your trading account even if they have your login credentials. With two-factor authentication, you’ll receive a one-time code to verify or restrict any subsequent user access to your account.
3. Regulatory Compliance
To facilitate a secure trading platform, regulatory compliance is critically important. Trading platforms that follow regulatory guidelines are expected to comply with industry standards and set rules to ensure user safety. For instance, Trading Platform must abide by the regulations of financial regulators such as the Securities and Exchange Commission (SEC). To find out if your trading platform is regulated, look for a regulatory license and badge on their website.
4. Delayed Links
Another security feature that’s worth checking is delayed links. Delayed links help prevent ransomware attacks. Ransomware is a type of malware that intruders use to lock out users from accessing their own data temporarily. With delayed links, all links from a trading platform to external websites are temporarily held. It stops users from being redirected to an unintended or harmful website without their permission.
5. Strong Passwords
Lastly, having a strong password for your account is essential. A strong password should be complex, lengthy, and obscure. Avoid using commonly known words, phrases, or numerals as your password. An ideal password should have a minimum of fifteen characters, be composed of a combination of letters (uppercase and lowercase), numbers and symbols. It is also imperious that password username combination should not be the same across all their accounts.
In conclusion, evaluating the security of your trading platform is a crucial factor to consider if you want to protect yourself from cyber-attacks. Ensure that you conduct comprehensive research on the platform’s security protocols by looking at features such as data encryption, two-factor authentication, regulatory compliance, delayed links, and strong passwords. Additionally, be aware of the latest trends in cyber threats to ensure you are ahead of attackers and keep your accounts as secure as possible.