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10 Aug 2012
This isn't to imply that every online investment is suspect. In fact, many investors search on the internet to trade safely on a daily basis without ever becoming victims of stock fraud. What sets these investors apart is that they know the risks, and learn how to prevent the potential dangers.

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If you choose to trade online, realize that the convenience with which you can get trades is mimicked from the ease with which investment firms gain access to your money, meaning you might turn into a victim of securities fraud before even realizing there is a problem, unless you are constantly monitoring your accounts.

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Some firms, for example, may delay sending you trade confirmations. From your end, whatever you know is that you are clicking a confirm button, nevertheless the page is hanging, or refusing to reload. If you have ever worked with a pokey printer, you are aware that if you click the "print" button 16 times, you might end up having 16 copies of one's document. Resist the need to repeatedly go through the "trade" button or refresh the webpage. Should you choose, it's likely that you are in fact repeating the trade.

The greatest trouble with this is you will probably have difficulty pursuing a great investment fraud case once the firm providing the trades can easily blame a technical malfunction, or explain that you simply did, in fact, complete the trade 16 times.

Set Limits on Transactions to prevent Securities Fraud

It is possible to protect yourself from stock fraud, and from unintentional expenditures, by setting maximum limits about how much you might be ready to buy a specific stock. If you can't do this, you could find yourself paying a lot, specially when dealing with more volatile stocks.

Lack of of the is that you simply should set the absolute minimum limit in order to avoid letting go of stocks at lacking an amount and losing out on expected profits.

Watch out for Hidden Fees, Which might Constitute Investment Fraud

This could be also stated as, "read the fine print". Online investments often carry fees as well as those involved with standard trades. If you opt to invest online, it's more important than in the past that you simply scour every agreement you sign. The fact these trades take place in the nebulous arena of the web doesn't build your agreements any less binding.

Unless the fee was omitted from your agreement, you might have little recourse when wanting to pursue an investment fraud case up against the broker. On the other hand, don't think that you decided to a fee since you were charged for this, specifically if you don't remember seeing the fee detailed in your agreement.

Bear in mind

Avoiding securities fraud is really just like avoiding any other kind of fraud in terms of knowing how much money you ought to have at any given time. If you work with an agent who carries an equilibrium to suit your needs, know your minimums. Dipping below those thresholds could subject you to definitely further fees.

How to proceed if you feel Stock Fraud

If you feel you are the victim of fraud, and even if you're planning on using a broker but notice suspicious behaviors or vague wording inside your agreement, the U.S. Filing (SEC) has a number of available on the web tools for researching brokers and reporting complaints.


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