How to identify a social trading network scam?
Asked 2 years ago
Hey guys, how do you know a legit social trading network from a scam? I'm keen to try it out, but I'm rather nervous about being conned. Any advice would be appreciated. Thanks.
Saturday, September 11, 2021
Social trading is not a scam. You just have to make sure you are using a reputable broker. A reputable broker will give you different experience brokers and their data, and it is your position to scrutinise their trading history and choose the one you will like to copy.
Friday, September 24, 2021
Knowing how to spot a social trading scam is not too challenging because they typically share the same negative attributes.
Here is a brief list of things you should look for:
- The trading platform is new (a couple of months old).
- The social trading outlet is not regulated or a part of any independent regulatory body.
- The social trading avenue might not be a scam, but some of the traders might be if they are pumping up penny stocks or they are outsourcing their trading signals to other parties.
You can diminish the risks for the overall industry by taking the effort to report a scammer to either the website or to a financial entity (SEC or FINRA, for example).
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