Why trade forex?

Advantages:

Flexibility in trading: You can trade major currencies any time, 24 hours per day 5 days a week at any time during the day or night.

Low Spread cost: At GMT Markets we do not charge commission or any other hidden fees, our spreads are moderately lower than other brokers.

Go long or short: Unlike other financial markets, where it can be difficult to sell short, there are no limitations on shorting currencies. If you think a currency will go up, buy it. If you think it will fall, sell it.

Leverage: Because of the deep liquidity available in the forex market, you can trade forex with leverage. This can allow you to take advantage of even the slightest moves in the market.

High Liquidity: Forex is a $5 trillion market hence, there will always be people trading. This makes it easy to get in and out of trades at any time.

Low capital requirements: Traders can easily start forex trading with a small amount of initial capital, at GMT Markets we only require a minimum of $500 to trade.

Disadvantages:

High risk, high leverage: Just remember leverage is a double-edged sword and it can significantly increase your losses as well as your gains.

High Volatility: With no control over macro-economic and geopolitical developments, one can easily suffer huge losses in the highly volatile forex market.

Lack of transparency: When a brokerage is involved it often leads to lack of transparency and less outcome of the investment. It’s better advised to go and look for a broker who are regulated.

Price determination process: The process of price determination process in foreign trade exchange is often considered to be complex as the rates are influenced, and they fluctuate by multiple reasons.

Social trading: Free exchange of information on the internet is an advantage as it is easy to look up.  However, a beginner trader may follow the wrong inexperienced trader and result in lost profit.