The Importance of Security and Trust in Mobile Trading Platforms

Since the introduction of mobile technology and the Internet of Things in the early 2000s in Nigeria, it has grown significantly, with widespread applications in communication, education, health, and commerce. In commerce, mobile phones through various foreign exchange trading platforms now make forex trading accessible to all and sundry. More so, some trading features like real-time […]

Since the introduction of mobile technology and the Internet of Things in the early 2000s in Nigeria, it has grown significantly, with widespread applications in communication, education, health, and commerce. In commerce, mobile phones through various foreign exchange trading platforms now make forex trading accessible to all and sundry. More so, some trading features like real-time data, and advanced charting tools which were hitherto exclusively for professional traders are now in the palms of even newbie forex traders. Of course, newbies with compatible smartphones and high-speed internet. However, these innovations and growth have not come without worry, they have raised concerns about how safe and reliable these trading platforms are. Here, we will discuss the importance of security and trust as a customer-centric approach to building and managing reliable mobile trading platforms.

Data Protection: Application Security and Network Security

Mobile trading involves the exchange of vast amounts of personal and financial information on-the-go. Any breach in the security of this data either on the mobile application or over the trading network might result in irreparable identity theft and financial fraud. Bank details, trading history, and identification documents will all be compromised. Traders will ultimately lose their funds, and confidence in the trading platform and that would most likely be the end of that platform.

The importance of data protection in trading platforms can never be overemphasised. Similar to what forex and commodities broker HFM has done by putting in place cutting-edge technology and innovative security solutions; adopting robust encryption methods, such as SSL/TLS, secure storage solutions like encrypted databases and secure access controls with multi-factor authentication protocols and regular security updates will help form an impregnable wall around traders’ data. Where this has been done accurately, it will prevent unauthorized user access, and reduce the risk of fraud and identity theft.

Fairness: Ensuring Integrity of Transactions

Where there is a lack of integrity, there will be a loss of privacy, an abuse of the platform’s admin authority and the data obtained during trading transactions will most likely be altered. Deliberate miscalculation errors and quoting fraudulent trades to defraud unsuspecting traders are common in this instance. If this continues, disputes will most likely arise over transactions which will further bring to bear the inefficiency of the financial exchange app. This lack of integrity more often than not ends up being catastrophic and will mark the debacle of the trading app.

But maintaining the integrity of transactions in mobile trading applications has more advantages than doing the reverse. They include; safeguarding user data, their finances, adhering to regulatory measures and reaping the benefits thereof. It will also enable the platform to operate efficiently and uphold the good reputation of the financial services industry. To add to this, operating with integrity as a prerequisite for doing financial exchange business is part of broader risk management strategies aimed at mitigating risks associated with financial transactions, including cyber threats and operational errors.

Laws: Compliance with Regulations

It is a must for mobile trading platforms and other financial institutions to comply with government regulations where they are operating. In Nigeria, the CBN, SEC, NCC, NDIC, NITDA, and NOTAP are some of the bodies vested with different responsibilities to regulate and promote fair play in the country’s digital mobile trading space. The regulations they enforce are constituted to not only protect traders but also the trading platforms themselves. However, non-compliance and flagrant disregard for these regulations can result in hefty fines and legal repercussions both for traders and trading platforms alike.

Be that as it may, where virtual trading platforms comply with prevailing government regulations and are not deliberately or ignorantly involved in activities that could mislead or harm traders, there are lots of benefits for all involved. The market will be stable with well-managed risks, void of trade manipulations and traders’ confidence in the system will be boosted. Compliance with regulations can also open doors for further opportunities to enable mobile trading platforms offer a broader range of financial products and services. This diversification benefits both the platform and its users/traders.

Business Continuity: Improving User Experience

As these mobile platforms continue to grow in popularity, ensuring robust security measures and fostering a trustworthy relationship with traders is paramount for improving their experience. In like manner, by implementing data protection policies and adhering to stringent authentication, application and network security protocols, the financial information of traders will be kept safe from compromise. Similarly, with mobile trading platforms operating transparently and complying with regulatory stipulations, they will have a secure and trustworthy environment for all traders to participate in the market fairly.

Be that as it may, it should be noted that improving user experience is not a one-off exercise. There must be a commitment from the developers and administrators of these apps and platforms to constantly evolve and adopt global best security and operational practices. There is an ever-increasing number of cyberattacks on the world financial market. Having systems and infrastructures in place to checkmate these attacks will guarantee traders’ protection, compliance with regulatory authorities and ultimately promote business continuity. There is therefore no room for compromise on the importance of security and trust in mobile trading platforms.