Online trading is attracting thousands of newcomers to the financial markets every year. Through free education, live webinars, and social trading, anyone can become a trader. While millions are joining the online trading revolution there are sadly unscrupulous individuals that prey on unsuspecting traders, especially in Kenya.
So, how can you protect yourself and avoid being swindled? Today, CMTrading highlights the best ways to find the perfect broker and avoid being scammed online.
Scammers operating in Kenya
The financial markets can be a gateway to financial freedom but can also be a source of misfortune as there are thousands of scammers, duping many gullible traders, especially those new to the markets. These people promise huge opportunities with unrealistic returns.
One of the reasons scamming is becoming more prevalent is the rise of mobile money, especially concerning Forex trading. According to the Central Bank of Kenya (CBK), mobile money accounts hit $73.22 million as of November 2022.
Join a community of local traders
On January 18, 2023, Nairobi police arrested people belonging to a money syndicate that defrauded many Kenyans of millions of their hard-earned shillings.
In response, the Kenya Revenue Authority (KRA) is looking to integrate its systems with mobile money service providers to monitor Kenyan transactions.
When it comes to selecting an online broker, there are many key criteria you should be searching for and red flags to avoid.
5 things to look for when choosing a broker:
1. License and regulation
A good broker should be a licensed and regulated business entity. There are many unethical individuals and companies in the digital community. So, before you part with your hard-earned money make sure you’re partnering with a trustworthy business. A reputable broker should be overseen by a regulatory agency and has a trading license to conduct financial transactions within the market it’s operating in. Having both a trading license and a regularity body is critical, as they protect consumers. A major red flag is a business that cannot provide a license or isn’t regulated.
CMTrading is a fully licensed and regulated broker. The company is a Financial Sector Conduct Authority (FSCA) approved broker since 2012 and is also regulated by the Financial Services Authority (FSA).
2. Reputable business reputation
Before signing up with any company you should research all you need to know online. Questions you should ask include – How long have they been in business? Do they have physical offices? Have they won awards? Do they have a good reputation?
Scammers prey on individuals who do not do their research. Don’t be fooled by great offers and high profits – do your research. A straightforward way to spot fraud is a lack of online presence or a bad reputation through customer reviews.
CMTrading has been operating since 2012. It is an award-winning broker with offices all over the world including Kenya, Nigeria, and South Africa. What’s more, the company has “Best Performing Broker Africa” since 2017.
3. Educational materials
Trading is an investment – what you’re willing to put in you’ll get out. As such, education is extremely important. An online broker that offers educational resources will help you on your trading journey. The mark of a good broker tries to empower its clients through training and assistance throughout their trading journey. Scammers will never commit to free resources or training; they want your cash and the sooner they get it they can vanish.
CMTrading offers weekly free webinars expert courses. You’ll be able to trade from Day 1 through our expert courses. Your success is our success, and we strive to ensure all our subscribers gain the knowledge they need to be successful traders.
4. Separate accounts for clients
A good broker supplies the expertise, platform, and knowledge for clients to trade on their own. A decent broker will never offer to make trades on your behalf. Your funds should be kept separate from your broker and they should never have direct access to your money.
All clients’ funds deposited with CMTrading are kept in segregated bank accounts. These funds are fully separated from the company’s funds. This ensures that clients’ funds cannot be used for any other purpose.
Ready to start trading? Open an account today
5. Testimonials from clients
Anyone can make a great marketing pitch but it’s through honest reviews that a company rises or fails. One of the easiest ways to sift the good brokers from the bad is to find out what people are saying about them online. From Facebook comments to official review sites, you’ll be able to tell the good brokers from scammers by doing your research.
Be wary of brokers with many negative reviews or who are tagged as potential frauds. Look for reviews that mention funds, service, and overall time with the broker.
More than 1,000,000 subscribers enjoy CMTrading’s award-winning platform. But don’t just take our word for it – we encourage you to read our great reviews on Trustpilot and Benzinga as well as watch client testimonials on our YouTube channel.
Join Africa’s award-winning broker
In 2023, CMTrading celebrates 11 years of excellence. Since our establishment in 2012, we have managed to create our niche in the trading industry and established ourselves as a force to be reckoned with.
Our motto has always been “Founded by traders, for traders,” and that is a message we strive to convey. We believe in trust, transparency, and education and this is where we’ve carved our niche. We provide our investment service by prioritising education and a safe environment to trade. CMTrading aims to uplift our customers through knowledge and make them feel confident to place trades on their own.
___________________________________________________________________________________
Welcome offer
Take advantage of market movements with our exclusive offer and start trading today!
How to get your bonus:
1. Log in and verify your account
2. Deposit $250+ & get up to $1,000 bonus
3. Trade with our bonus
T&C Apply | Min. deposit $250 | Max reward $1,000 | New clients _____________________________________________________________________________________
Ready to start trading? Open an account today
Join CMTrading, the largest and best-performing broker in Africa, and discover more opportunities with an award-winning broker. Register here to get started
Related:
