Why Traders Should Consider Using A VPN To Enhance Security

In recent times, internet access and tech advancements have made trading easily accessible to anyone who’s interested in this kind of activity. These days, people can trade stocks with the same ease they shop online. All it takes is a smart device, a good internet connection, a trading account and enough money in the bank account and one can start trading right away. Besides, there’s a plethora of digital tools and services that can support traders in their endeavors, helping them make smarter decisions and streamlining the entire process. 

Unfortunately, for newcomers, it can be quite difficult to figure out which of these tools are worth adding to their trading arsenal, and sometimes they tend to overlook solutions that can help them keep their trades safe and sound. Case in point: VPNs. A VPN is not exactly the first thing that comes to mind when starting a trading journey. Other tools such as charting platforms, stock scanners, trading journals or heatmaps seem to be much more valuable and useful for a first-time trader. However, VPNs are also important for a variety of reasons. 

So, if you’re new to the world of trading and you’re wondering what a VPN can do for you, here’s what you need to know. 

Encrypt your intent traffic 

Online trading implies sending sensitive information via the internet and as you may already know, the virtual space is brimming with all sorts of threats and malicious entities that are always looking for a chance to get their hands on people’s private information. Trading accounts are particularly appealing to hackers given that they hold sensitive information such as bank details, user’s name and social security number, important financial data and so on. 

Imagine what would happen if a third party gains access to your online activity. They could break into your bank account and steal all your funds, use your identity to open accounts or make purchases in your name, or ask you to pay ransoms to avoid having your personal information exposed. Well, VPNs can help you avoid all these dreadful scenarios by encrypting the data you send and receive over the internet, so other parties can’t view or misuse it. Having a VPN is especially important if you’re using an unsecured network for trading purposes, such as the free Wi-Fi in coffee shops. 

Mask your device's IP address

You may not know this, but even if you take all the necessary precautions to protect your personal data from other internet users and maintain your privacy, there are still things that can give you away. Your IP address is one of them. While IP addresses don’t reveal much personal information, they can be used to learn your approximate location, your internet service provider (ISP) and the times when you’re online/offline. 

Hackers can find ways to exploit even the most innocuous data to their advantage, so if the trading platform that you’re using falls victim to a cyberattack, any information linked to your IP address is also compromised, and there are many ways in which this can affect you. Fortunately, VPNs can once again keep these risks at bay and offer the protection you require as they change your IP address and keep your real location hidden. 

Ensure data privacy 

The internet serves as a window to the world. It gives you the opportunity to see many things, but it can just as easily let other people look inside. Every time you go online, you leave traces of information behind you, including location details and browsing history, and there’s no telling what ill-intentioned users can do with that. At best, they can invade your privacy, but in some cases, these intrusions can be financially and emotionally taxing, especially if you engage in online trading.  

Even if you don’t fall victim to cyberattacks, there are still several entities that can gain access to your private data if you leave it unprotected. This includes your IPS, apps and services you use on a daily basis such as social media platforms, or government institutions. The only way you can limit the amount of data they can collect from you is by using a VPN.  

Trade anytime, anywhere 

There’s certainly no shortage of online trading platforms for all kinds of traders and investors. However, you might not be able to access all of them due to geo-blocking – a technology that restricts access to certain content or services based on users’ geographical location. This can drastically limit your options in terms of the trading platform that you can use, and lead to a frustrating trading experience. 

But let’s not forget that VPNs are able to hide your IP address and make it seem that you’re trading from a different location than your real one. That means you can access any trading platform from anywhere in the world, without having to worry about annoying restrictions interfering with your plans.   

Improve your internet speed 

If geo-restrictions don’t pose a problem, poor internet speed might. There’s nothing more frustrating than trying to conduct a trade on a slow-working network. Unfortunately, even in a day and age when fast intent connection is something we take for granted, this issue is a lot more prevalent than expected. That’s because ISPs can restrict your internet bandwidth through throttling, based on how much data you use, and that results in slower internet speed.  

The good news is that your VPN can hide information about the amount of bandwidth you use, so you’ll be able to enjoy good internet speed at all times and avoid connectivity issues while you’re trading. 

Bottom line 

Online trading is a lot easier today than it was merely a decade ago. However, the right tech tools can make your trading go much smoother, and VPNs provide a great example in this regard. Now, all you have to do is search for the best VPN service so you can enjoy a safe and satisfying trading experience. 

Image sourced from Vecteezy

This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice. Benzinga does not make any recommendation to buy or sell any security or any representation about the financial condition of any company.