Which Online Trading And Investment Apps Are The Most Secure?

Which online trading and investment apps are the most secure?

With the invention of the internet, individuals were able to trade financial instruments on various exchanges from the comfort of their own homes, making access to trading opportunities easier.

International brokers have taken advantage of this opportunity and created a variety of apps that allow them to connect with people regardless of where they are located.

Recently, there have been reports of security breaches on some trading apps, resulting in the loss of funds as well as the leakage of private information about customers. Tradesmen are expressing concerns about the use of trading apps as a result of this development.

Can these applications be trusted to be secure, on the other hand. In addition, when trading apps are used, how can private information and funds be protected?

Whether you are a trader or an investor, this article will address your concerns about the security of online trading apps.

 

Top Secure Trading and Investment Apps:

First let's take a look at Top Secure Trading Apps and Investment Apps:

Betterment – Best app overall

Invstr – Best app for education

Acorns – Best savings app for beginners

Wealthbase – Best app for trading games and contests

Wealthfront – Best app for portfolio management

Stockpile – Best app for gifting stocks

Fidelity Investments – Best app for managing money all-in-one

Robinhood – Best app for active trading

Charles Schwab – Best app for beginners

Ellevest – Best app for socially responsible investing

E*Trade – Fee-free trading and low-cost automated investing

SoFi Invest – Fee-free automated investing and active trading

Fidelity Go – No-frills automated investing

Robinhood – Active investing

Charles Schwab Intelligent Portfolios – Automated investing and large balances

 

Safety concerns when trading or investing through an online application

1. Data Breach at the Broker:

This term refers to an incident in which an unauthorised individual or group copies data from a broker's servers, which occurs in the context of cybersecurity. An individual or group typically gains access to a computer network and steals information.

The research conducted by Safe Forex Brokers found that in recent years, data breaches have become more common across brokers' online trading and investing platforms.

One of the largest forex brokerage firms in the world, FXCM, which accepts traders from Nigeria and provides online trading, has been hacked three times in the last six years. One of the first instances occurred in 2015 when funds belonging to a customer were stolen. Hackers may attempt to breach their network on a regular basis, despite the fact that they have confirmed that they have strengthened their security system..

According to the analysts at Safe Forex Brokers, "data breaches can also occur as a result of a broker's failure to adhere to industry-standard protective measures."

An investigative journalism team discovered in 2020 that FBS, a broker with millions of users and thousands of customers in Nigeria, had leaked approximately 20 terabytes of data containing millions of its customers' private information, including email addresses, passwords; passport numbers; social media IDs; personal photos; bank statements; and credit card numbers that had not been redacted. Among other things, FBS did not encrypt the sensitive information about their customers that was stored on the company's servers.

2. Phishing Attack: 

The term "phishing" refers to a type of fraudulent communication in which an impostor poses as a representative of an organization and requests sensitive information from its victims in order to gain access and obtain sensitive information about an individual's account or the company's database.

When cyber criminals hijack a computer system, they typically collect bank account information, login credentials, and other sensitive information until a ransom fee is paid.

Fraudulent communication is sent in a manner similar to how a large organization communicates with a large number of people, which is how phishing works. Typically conducted via email and text messaging, the correspondence contains links and attachments that, when clicked on, prompt victims to provide sensitive information about themselves, resulting in financial loss in the vast majority of cases in the majority of cases

Fraudulent emails, text messages, and phone calls are all methods of phishing.

3. Malware Attack:

Generally speaking, this refers to any type of malicious software that is designed to gain access to and damage any computer-based device, network, or service that relies on computer programs to function.

Typically, cybercriminals use malware to obtain information about their victims in order to defraud them of their money. Furthermore, they employ this malware to gain access to your credentials and to monitor the activities of your device.

Malware comes in a variety of shapes and sizes; viruses, worms, spyware, adware, hybrid malware, and ransomware are just a few of the types of malware we can encounter online.

As for a virus, it spreads throughout the computer system, infecting other components. A virus is attached to an email and when the user opens it, the virus infects the entire device on which it is installed.

In the case of ransomware, the device is encrypted, and the hackers retain control of the disruption key until the victims pay the ransom or comply with the request. Most of the time, this is done to government systems or to those of large companies and organizations. Spyware is software that listens in on your computer and copies data without the user's permission.

As a result of your mistakes or those of your broker, malware attacks on your online trading apps can occur.

4. Theft of one's personal information:

Identity theft, also known as data theft, is the act of obtaining a person's personal information with the intent of using it to commit fraud or other criminal acts against them. In turn, the general public and authorities are led to believe that the person whose identity was used committed such criminal acts. As a result, the use of online investment and trading apps in Nigeria is a significant source of concern.

When it comes to identity theft, financial identity theft is the most common type. This is when someone uses another's data to gain access to goods or services, obtain a loan, or engage in fraudulent financial transactions, to name a few examples. Even though there are other types of identity theft that occur all over the world, financial identity theft is the most common in Nigeria and one about which we should be concerned.

What precautions should you take to keep your online trading or investing account secure?

Tip 1: Ensure the security of your device and trading accounts 

Protecting your data and investment in this manner is one of the simplest methods available.

It is recommended that you use strong passwords to keep your device safe from hackers. It is risky to use a password that is easily guessable because it puts your account's security at risk. Using a combination of upper and lower case letters, numbers, and special characters in your passwords is highly recommended by security experts. It will be more difficult to breach as a result of these measures.

Furthermore, you should avoid using the same password for multiple online trading accounts, as well as passwords that contain personal information such as names, dates of birth, or residential addresses. Aside from that, make an effort to change your passwords on a consistent basis.

As an added security measure, you can enable Two-Factor Authentication for your trading account. This is a step in the log-in process that establishes a separation between the account owner and the password he uses. Depending on the situation, the account owner may be required to provide additional information about himself, or a code may be sent to his phone number or email address in order to verify his log-in attempt.

These precautions are necessary because we cannot rely solely on brokers to protect our sensitive information or our funds in the event of a financial emergency.

Tip 2: Learn more about how phishing works

You must understand how phishing works in order to avoid becoming a victim of it. It is a type of psychological manipulation in which the psychic abilities of the victim are manipulated by the perpetrator.

It is necessary to inspect email links and attachments in order to detect phishing, and never to provide personal information through email (No broker will ask for such over an email).

Make note of any pop-up windows, advertisements, or other similar items that appear, and avoid clicking on them if at all possible. Their websites have the capability of directing you to potentially dangerous sites with relative ease. Keep an eye out for bait that is social or emotional in nature. Typically, the majority of these phishing correspondences offer implausible incentives and benefits on bonus offers with extremely short deadlines, which are difficult to believe. However, before taking advantage of such a bonus offer, contact your broker or customer support to ensure that the bonus is legitimate.

Tip 3: Utilize a secure HTTPS connection as well as anti-virus 

HTTPS is an abbreviation for Hypertext Transfer Protocol Secure, and it is represented in the browser window by a padlock symbol. Because the data is encrypted and transmitted securely, it is more secure than plain HTTP.

You should use secure web browsers and a reputable anti-virus program to protect yourself from malware attacks and phishing attempts, as well as to keep your sensitive information safe from unauthorized access.

Tips 4: Stay away from unregulated brokers 

Choosing to trade and invest only with a regulated broker is perhaps the most important safeguard against scams and the theft of your sensitive data and investment funds. Just as important as regulations are the people who oversee them.

Regulatory authority over the Nigerian capital market is provided by the Securities and Exchange Commission (SEC), which also grants broker licenses. Only brokers that are registered with the SEC or a tier-1 regulator, such as the FCA in the United Kingdom or the ASIC in Australia, should be considered for forex trading accounts.

Before granting brokers licenses, these regulatory bodies impose stringent security requirements on them.

In the event that you do not register with a regulated broker, you put yourself and your investment at risk of attacks and scams for which you will not be compensated under any circumstances. A large number of brokers in Nigeria are swindlers who can easily steal your money or sell your personal information to identity thieves and fraudsters.

Prior to registering with a broker, it is recommended that you conduct a thorough background check on him/her.