TRADE uses the industry standard FIX protocol which enables Portfolio123 to send orders to approved accounts. Only a few operations are permitted via FIX, like sending and cancelling orders (equities only) and retrieving account balances and positions. Any other operation, e.g. money transfers or account information changes, is not possible via FIX.
In addition to the inherent safety of FIX we've added other layers of protection for other types of breaches.
Two-Factor Verification & Encrypted data
When accessing TRADE, you are required to use Two-Factor Verification. You can choose the verify new locations via SMS code (recommended) or
an additional password. You will be alerted via email every time you access from a new locations as well.
In the unlikely event of an internal breach to our servers, we have also encrypted all sensitive information like passwords and brokerage accounts.
Finally, every broker account has customizable limits to protect you from accidental outlier orders. For example you can specify the minimum security price that is allowed
to be traded (TRADE will not send an order if the previous day close is less than $1). You can also change the minimum liquidity allowed and set a maximum/minimum order size (all based on historical end of day data).