Trading for Beginners_ Key Security Features to Look For

Trading for Beginners: Key Security Features to Look For

With the rise of online trading, several investors, including those interested in trading for beginners, enter the Indian stock market every year. In 2023 alone, 83.5 million unique investors were registered on the National Stock Exchange of India. Owing to the increasing demand, there has also been a rise in the number of stock trading apps for beginners. While such apps make it easy for investors to start exploring the stock market, they come with their fair share of risks. To ensure that your hard-earned money stays safe and you do not fall victim to cyber-attacks, hacking attempts, or data breaches, it is important to choose a safe and trusted trading app.

So, how do you decide which app is best for trading? Keep these ten things in mind before making a decision.

  1. Pick an app that ensures data-encryption

Encryption is very important nowadays to keep your data safe as it is transmitted online. When picking a trading app, make sure it uses SSL encryption to protect your information between your device and the platform. Robust encryption protocols, such as 256-bit SSL encryption, protect your account details, passwords, transactions, etc. from unauthorised access. Hackers are constantly finding ways to intercept data, but with proper encryption, they won’t be able to read or misuse any intercepted information.

  1. Enable two-factor authentication (2FA)

One of the most efficient security measures is two-factor authentication (2FA), an extra layer of protection. A second form of verification—such as an OTP sent to your phone—before you can access your account can stop hackers from gaining access even if they manage to steal your password. 

Most of the best trading apps in India have this feature. Make sure you enable this for the added safety of your funds.

  1. Activate biometric authentication

 Biometric authentication, along with 2FA, is a good way to ensure your account stays extra safe. Enabling fingerprint scanning or facial recognition provides another level of security. This unique verification method ensures that only you have access to your account. In this case, even if your devices get lost or stolen, an unauthorised person will not be able to access your account.

  1. Check for session timeout on the app

 An automatic session timeout feature logs you out after a period of inactivity. This prevents unauthorised access even if you forget to log out of your account. This reduces risk when you’re multitasking or on the go. Ideally, you should log out every time after you’re done using the app. But the best trading app for beginners will have this as an inbuilt feature. 

  1. Look out for data encryption at rest

 While you take all the precautions to ensure that the data on your app is secure, it is also important to ensure that the service provider takes equal care to protect the data stored on their servers. . Look for apps that operate data encryption at rest, indicating that even if the server is compromised, your information remains safe. This includes sensitive details like banking information, account numbers, and personal data. Even if a hacker manages to break into the server where your data is stored, encryption ensures that the information they access is secure.

  1. Update the app regularly

 A sure-shot way to know which app is best for trading is to check how frequently it gets updated. Regular security updates keep security threats at bay and patches software vulnerabilities. 

 Always opt for apps that have a clear updating policy. This will give you the peace of mind you need to focus on your investments.

  1. Ensure that the payment gateway integration is secure

Since stock trading apps are linked to a bank account or a credit card, it must provide secure payment gateway integration. This verifies that transactions, such as deposits or withdrawals, are encrypted. The transactions are processed securely through verified financial institutions. 

A secure payment gateway minimizes the risk of fraudulent transactions and protects your funds during any transfers.

  1. Turn on fraud detection alerts

 Turn on notifications on the app, especially to ensure that you receive alerts in case of fraud or any unusual behaviour. This empowers you to act quickly and fix issues before they escalate.

Security should be a top priority when you are choosing a broking app to trade on, more so in a world where cyber-attacks and phishing scams are rising everyday. 

While these features are very important, it’s also necessary to remember that personal caution plays an important role. Never share your login details, regularly update your passwords, and ensure your app is always up to date.

  1. Pick an app with a user-friendly interface 

An app that is easy to navigate and understand will help you trade confidently. Peace of mind is extremely important when dealing with money. If you’re able to navigate the app with ease, you can plan your investment strategies better and reach your goals.

  1. Choose a zero-brokerage trading app for secure investing

 A secure app should also provide cost-saving benefits, especially for beginners who are looking for stock trading apps. Choosing a zero brokerage trading app allows new investors to focus on building their portfolios without worrying about high fees cutting into their returns. This is quite important as it minimises the cost of learning and shortens the learning curve.

 The best trading app in India for beginners should enable you to embark on your stock market journey, making it empowering and rewarding.