Investing term

What is Two-factor authentication?

Requiring a second form of verification beyond your password to log in.

Two-factor authentication (2FA) requires a second proof of identity beyond your password — typically a code from an app or device — to log in. Because a stolen password alone is then useless, it dramatically reduces the chance of account takeover. For an account holding your investments, enabling 2FA (ideally via an app rather than SMS) is one of the simplest, highest-value protections.

For example

Even if a scammer steals your password, 2FA blocks them at the login code step — the second factor they don't have.

Two-factor authentication is taught hands-on in Stage 9 — Fees, Scams & Protecting Your Money.

See the lesson →

Related terms

ChargebackA consumer protection on credit-card transactions that lets you reverse fraudulent charges.Fee dragThe cumulative effect of every fee you pay on the return you actually keep.FX markupThe gap between the true (mid-market) exchange rate and the rate your broker gives you.Inactivity feeA fee charged if you don't trade enough times per year.
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