Distinguishing Professional and Fake Brokerage Companies to Avoid Fraud Investment Cases

Brokerage company (Image source: kompas.money.com)

Investment is one way to make money comfortably and safely. But of course there are always bad guys who take advantage of investment names for personal gain. This is commonly known as fraudulent investment.

In plain view, real investment and fake investment have many differences, it's just that sometimes people are too lazy to dig up more information and are easily tempted by unreasonable profits. To avoid this, it's a good idea to know some things that can be our reference in choosing the best brokerage company where we put our money and make long-term investments.

To become a brokerage company that is recognized by the state and protected by the state all the rights of its customers are quite difficult and many things must be done by the owner of the brokerage company.

However, this goes hand in hand with the security of customers' money which is fully guaranteed by the government, so if we invest in an official brokerage company we don't have to worry about the whereabouts of our money.

The government also strongly encourages the public to invest in brokerage companies that already meet government standards, this is done only to protect these potential customers.

Following are the characteristics of a professional brokerage firm

1. Have a professional futures broker representative

What is a futures broker representative? Futures broker representatives are professionals in the field of trading who already have a certificate from the government and have proven their ability to help customers trade or invest. This is of course very important considering the trading business is not a small business, so the presence of a professional broker representative becomes a reference whether the company is really official or not.

2. Online trading and demo account facilities

Trading business is a business that is carried out in the electronic world at any time. Investment activities are carried out online, so online trading facilities and demo accounts are needed for the convenience of the customers themselves.

3. Daily transaction reporting

This is one indicator that the brokerage company where you invest is an official company. Because every official company always sends transaction reports to its customers every day.

4. Withdrawal of funds (withdrawal)

This is as important as the other features, because in investing, sometimes customers need their money from time to time. Well, an official brokerage company will not hold customers back from withdrawing their money. Because actually they are just a bridge so that customers can transact in the stock market. So, the customer's finances are held by the customer himself.

5. Segregated accounts

This is an absolute must-have for an authorized brokerage firm. Because every official brokerage company will not keep their customers' money in company accounts, let alone the personal account of the company owner.

All customer money is in a separate account that has been approved by CoFTRA, this is why customers will not lose a dime because their money is guaranteed by the government itself. This also avoids the opportunity for companies to run away from their customers' money.

Those were some examples of things that are owned by official brokerage firms. So it's actually very easy to see if the company is official or fake.

As a society who wants to invest, we must be smarter in seeing and distinguishing which ones are fake and which ones are official. Official brokerage companies have mushroomed in Indonesia. But there are just as many bogus brokerage firms. So all back to ourselves to be smarter to choose.


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