Ethics is one of the must have elements for both seasoned and novice personalities who are engaged in trading CFDs. However, in a world where there is strong competition among investors and traders, some already forget their good trading manners because they have been eaten by greed and desire to earn more than anybody else. For introduction, we bring you the concepts regarding one unethical practice called Cowboy Marketing.
Defining Cowboy Marketing
Cowboy marketing is an informal term for an individual who is hired to promote stocks on a digital platform but fails to produce quality outputs because he markets via spamming instead of conversing. This method is regarded as unethical because the cowboy marketer can actually get paid even without producing sensible outputs.
Reasons to Avoid Cowboy Marketers
Because of its risk, most brokers and platforms for trading CFDs need to market their merchandise particularly stocks so they could easily sell it in the soonest possible time. Considering the fact that short selling requires strict compliance to time elements especially for volatile products, marketers help make the work easier through information dissemination. Digital marketing is a good idea for promotions but one needs to be careful towards hiring your marketers because A Cowboy Marketer can cause the following list of problems.
Because cowboy marketing is illegal, your company may be tolerating acams if one of several of your employees practice cowboy marketing. We all know that scamming is punishable by law so unless you wish to enjoy a complicated management between your company and its client, then hire anyone who is a well versed cowboy marketer.
- Unwanted Payments
Relevant to scamming, allowing a cowboy marketer to convince a client to sign up for a trading account, is like giving a privilege for someone to practice fraudulence by possibly making transactions outside the business area including untoward price manipulation in the market.
Unwanted marketing is like having a gate crasher on a very important occasion. Because they are marketers, they tend to be persistent towards calling or emailing you several times with just a single script is very irritating
- Prone to Virus
E traders are very prone to this threat especially when they have encountered a cowboy trader who sends files with virus. Whether it is intentional or unintentional, once you download a file that is infected by bugs, your trading account gets susceptible to hacking.
Avoiding Cowboy Traders
The best strategy to avoid cowboy traders lies in the careful analysis of trading platforms where you tend to open your account. As a wise CFD trader, you better watch out for the advertisements that are shown in social media sites. Moreover, do not input your contact number in untrusted forms or registration sites because they could serve as phone number reference for prospective victims. If you are working on portfolio diversification, always make sure that you open an account in trusted platforms to ensure that their marketers practice legal marketing. Finally, it always pays to do a thorough background check before dealing with anybody in the market.