Keep Your Trading Account Safe from Unauthorized Use?

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Opening a trading account could be easy for you as many discount brokers or full-service brokers offer free trading account opening facilities. But using the trading account safely is one of the important factors to keep your trading experience not only safe but also trouble-free.  And without having a trading account you cannot participate in the buying and selling in the stock market.

A trading account is the only gateway to enter into the stock market that provides you can online platform to buy or sell any stock or other underlying securities as per your ease. Hence, keeping your trading account safe and protected from unauthorized use is very important to keep your investment activities secured from various types of risks like cyber threats, various, malware and unauthorized access or avoid the legal penalties that cab be imposed by the regulatory authorities.

Why You Need to Protect Your Trading Account?

Unauthorized Use: You need to protect your trading account from unauthorized access, including from your near and dear ones who might accidentally or intensely get access to your trading account. If an unauthorized person executes unexpected transactions on your behalf it can cost you in terms of financial loss if wrong decisions have been taken while buying and selling any stock. Hence, keep checking your trading account to protect against any kind of unauthorized activity.

Threats from Cybercrimes: Cybercriminals keep targeting people doing online transactions or performing various types of online activities that are connected with their bank accounts. A trading account is directly connected to your bank account, hence such cybercriminals can use the mode of hacking, injecting malware or alluring the users with phishing emails or messages to either corrupt their trading account application or get unauthorised access and steal the key data or money.

To Avoid Regulatory Actions: While opening, using and maintaining the trading account you need to comply with the regulatory guidelines instructed by the regulatory authorities like SEBI and other stock exchange intermediaries like depositors and stock exchanges. You should be aware of the regulatory framework towards the trading account and its obligations or responsibilities of the users, as any kind of misuse or violation of rules can cost you by imposed penalties by such authorities.

Controlling Your Investments: Your trading account is use to trade or buy and sell securities online, hence it plays a major role in creating the portfolio of investment. Using your trading account you can buy stocks, ETFs, mutual funds and bonds issued by the designated authorities, hence you need to keep control of using your trading account. You can transfer the funds between your bank account and trading account; hence you need to keep control of your account for safe investment.

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

Protecting your trading account is not only important to keep your bank account and investments safe but it is also very important to make the right use of your trading account without the regulatory guidelines to avoid any penalties. To keep your trading account safe and protected from such unauthorized use you can follow the various preventive measurable tips discussed below.