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Can You Identify A Legit vs Fake CFD Trader Using A Software?

Are you looking for a secure way to do online trading? You might be familiar with Forex and CFD trading if you are interested in online trading. Traditional trading methods still exist, but new ones have emerged, for example, CFD Trader software. There are risks associated with online trading, but this article will help you identify legitimate CFD Trader software and avoid scams

What is Contract For Differences (CFD)?

  • A contract for differences (CFD) is a financial derivatives trading arrangement in which the difference in settlement between the open and closing trade prices is settled in cash. CFDs do not require the delivery of tangible items or securities.
  • Contracts for differences (CFDs) are a sophisticated trading strategy utilised by seasoned traders that is not permitted in the United States.
  • A contract for differences (CFD) is a financial contract that pays the difference between the open and closing trade settlement prices.
  • CFDs are popular in FX and commodities because they allow investors to trade the direction of securities in the very short term.
  • CFDs are cash-settled, but they normally allow for a lot of margin trading, so investors only have to put up a small portion of the contract’s national payout.

What is CFD Trader Software?

It is an automated software that uses an algorithm to consult previous trading data and predict how the market will perform. All you have to do is set up a trading account and deposit your investment, after which you are connected to an online broker. A criterion needs to be set, based upon which the software finds profitable trading opportunities for you and automatically makes the trade. As simple as that!

Now that you know how the software works let’s look at ways to ensure the software you are using is authentic.

3 Features of Legitimate CFD Trader Software

  1. Verification

The CFD trading platform only asks for limited personal information, e.g., phone number and email. Thus, if the platform asks for any additional personal data, it could be a scam.

  1. Fees

A free-of-cost account with the CFD trading platform has to be set up, not with the online broker. Hence, you do not need to pay the broker any fee, but if the trading platform or broker charges you a fee, the software is not legitimate. 

  1. Payouts And Withdrawals

You receive your payout after each trade is completed. However, a small percentage of it is removed before being added to your account, making up for the software creators’ earnings. This shows that the software is legitimate because the creator would not let you use it for free. The remaining amount goes into your account, and the software should allow you to withdraw or reinvest it.

But what if you are not allowed to withdraw your money or are charged an extra fee for setting up a trading account? Fundstrace can get your money back!

It is a consulting firm that can recover funds lost to various scams. You can contact the company through a form on their website and expect a fast response. My aunt had invested approximately $250 in CFD trading last month and made a profit of $100 on it. However, she could not withdraw it and felt helpless until her friend recommended she contact Fundstrace. My aunt received a response in 1 day regarding her case, and the recovery process began immediately. The company asked for details regarding the trading software to form the evidence for the fraud. After three days, the company won the lawsuit filed against the trading software and recovered all the money. Moreover, I found that Fundstrace also offers a service to verify CFD trading platforms and software before you invest in them, making your online trading experience as secure as possible.  

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