Brokerage accounts and online stock trading from the warmth of the home has become the second nature of men in recent times.
Though all reputed brokerage firms try to provide as much security as possible to its investors, brokerage accounts may not always be secure due to various possible reasons.
1.
The foremost reason may be the prevailing market conditions.
The bullish trend of the market may be followed by overspeculation and investment, leading to a recession in the market.
This is a condition in which several companies may go bankrupt and cause individuals to lose millions.
The Securities and Exchange Commission (SEC) mandates that brokerage accounts must be kept separate from the brokerage firm's corporate finances; this gives them the security in the event of bankruptcy.
2.
The next is the question of security.
There are many circumstances that can expose online traders to the risk of "fraud" in online transactions through brokerage accounts.
Here, the investors must take some precautions to safeguard themselves from such situations.
a.
It is always advisable to use own PCs and laptops while accessing an online brokerage account.
This saves the risk of personal data being stolen through any device connected in any public computer.
The PCs should be kept up-to-date with the latest software updates, anti-virus, etc.
b.
Even if using a public computer when need arises, one should check if the computer has any external device connected to it.
The account should always be logged out of and the cache cleared of temporary files to prevent the next user from getting access to some confidential information.
c.
Website security is another major concern.
The websites starting with "https://" are more secure than those with "http://.
" Moreover, the security certificate of any website can also be checked to ensure that it is secure.
d.
These days, Microsoft and others provide a feature that volunteers to remember the password.
It should always be checked for "no" even if using a personal computer to prevent any transfer of confidential information to anyone.
The passwords chosen for online transaction should also be a combination of letters, digits, numbers, etc.
, so that it cannot be guessed quite easily.
e.
Hospitals, airports, and other places have Wi-Fi connectivity that allows one to remain online.
But these connections are not always secure.
It is advisable not to transact online through this connectivity.
It is better to switch off the wireless connectivity and sharing of information or printers over this network to prevent the possibility of data theft.
f.
Another menace can be what is called the "phising" e-mail that asks one for personal information like password or PIN.
These are information that a brokerage firm never asks for over e-mails.
So one should never respond to such e-mails with the valuable information.
g.
The monthly brokerage account statements should be scrutinized thoroughly to detect any discrepancy.
Also, social security number should not be used as PIN or password.
The credit report should also be reviewed to detect any possible breach of account security.
In spite of these precautions, if some emergency situation arises, the brokerage firm and credit institutions must be contacted and briefed about the situation immediately to investigate the theft.
Though all reputed brokerage firms try to provide as much security as possible to its investors, brokerage accounts may not always be secure due to various possible reasons.
1.
The foremost reason may be the prevailing market conditions.
The bullish trend of the market may be followed by overspeculation and investment, leading to a recession in the market.
This is a condition in which several companies may go bankrupt and cause individuals to lose millions.
The Securities and Exchange Commission (SEC) mandates that brokerage accounts must be kept separate from the brokerage firm's corporate finances; this gives them the security in the event of bankruptcy.
2.
The next is the question of security.
There are many circumstances that can expose online traders to the risk of "fraud" in online transactions through brokerage accounts.
Here, the investors must take some precautions to safeguard themselves from such situations.
a.
It is always advisable to use own PCs and laptops while accessing an online brokerage account.
This saves the risk of personal data being stolen through any device connected in any public computer.
The PCs should be kept up-to-date with the latest software updates, anti-virus, etc.
b.
Even if using a public computer when need arises, one should check if the computer has any external device connected to it.
The account should always be logged out of and the cache cleared of temporary files to prevent the next user from getting access to some confidential information.
c.
Website security is another major concern.
The websites starting with "https://" are more secure than those with "http://.
" Moreover, the security certificate of any website can also be checked to ensure that it is secure.
d.
These days, Microsoft and others provide a feature that volunteers to remember the password.
It should always be checked for "no" even if using a personal computer to prevent any transfer of confidential information to anyone.
The passwords chosen for online transaction should also be a combination of letters, digits, numbers, etc.
, so that it cannot be guessed quite easily.
e.
Hospitals, airports, and other places have Wi-Fi connectivity that allows one to remain online.
But these connections are not always secure.
It is advisable not to transact online through this connectivity.
It is better to switch off the wireless connectivity and sharing of information or printers over this network to prevent the possibility of data theft.
f.
Another menace can be what is called the "phising" e-mail that asks one for personal information like password or PIN.
These are information that a brokerage firm never asks for over e-mails.
So one should never respond to such e-mails with the valuable information.
g.
The monthly brokerage account statements should be scrutinized thoroughly to detect any discrepancy.
Also, social security number should not be used as PIN or password.
The credit report should also be reviewed to detect any possible breach of account security.
In spite of these precautions, if some emergency situation arises, the brokerage firm and credit institutions must be contacted and briefed about the situation immediately to investigate the theft.