Investing can be a great way to supplement your income and bolster your bank balance, but only if you understand how to trade successfully. It’s important you educate yourself on the mechanisms that underpin your chosen investment instruments, and that you’re advised by those with the knowledge and authority to do so.
Unfortunately, not all of those who act as authorities on the subject are as they seem. There are many brokers offering deals that seem too good to be true, and while you may think you can trust them, this is not always the case.
So, how do you make sure those who are advising you are sufficiently knowledgeable? We’ve compiled this helpful guide to point you in the right direction.
Follow the EFCC’s guidance and recommendations
The financial markets represent many opportunities for wealth creation, but it’s not only legitimate traders and investors who take advantage of this. Some seek to profit off the backs of others, which is why those new to the markets must remain vigilant.
The EFCC, or Economic and Financial Crimes Commission, is the body tasked with ridding Nigeria of this type of criminal activity. Among their many goals is the effective coordination of efforts to wipe out investment fraud, and with this in mind, they provide extensive guidance to traders. In accordance with this, the EFCC caution against investing in certain indices due to the prevalence of investment-related crime. This includes the cryptocurrency market, which the body suggests is at a high risk of fraudulent activity due to its unregulated nature.
Choose regulated and reputable brokers
While it’s pertinent to be aware of the scams that are out there, it’s also important to remember that no man (or woman) is an island. You do not have to make decisions in isolation but can choose to rely on a regulated and reputable broker to inform, for example, your index trading efforts. Companies like INFINOX provide their traders with lots of useful and reliable information, allowing them to research indices, types of investment, and the spreads they’re interested in. Investors can do all of this without leaving their website while feeling safe in the knowledge that this data has come from a reputable source.
Secondary authoritative sources such as this can be invaluable in helping traders to make informed, and hopefully profitable, decisions.
Take advantage of directory sites
As we mentioned, it’s important to use regulated and respected brokers to make sure the advice you’re receiving is correct and will be beneficial to your investment strategy. However, finding such enterprises can be a challenge.
That’s why we recommend taking advantage of directory sites. These provide unbiased reviews and information on individual brokers, allowing you to select these based on the criteria that are most important to you. If you’re trading from overseas, for example, this might include multilingual support. Directory sites can point you to those who can provide it.
In addition, most will only list regulated brokers, so you know you can put your full faith in the professionalism and expertise of any company listed.
Follow this simple yet effective advice today to protect yourself and your profits the next time you trade.