Spot Forex: Forex vs. Other Markets
Trade the World's Largest Market
As a forex dealer with more than a decade of experience, GFT provides traders with the market access and tools that were once only available to large banks and corporations. Today, individual traders in Australia and around the world have discovered the advantages of trading forex, with the comparable freedom it offers over traditional trading.
It wasn't until market-makers like GFT entered the picture that individuals and smaller companies were able to trade on the same rates and price movements as the large players who once dominated the market. With GFT, nearly anyone can begin trading forex with as little as $225. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.
How does spot forex compare to other markets?
Other markets |
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Spot Forex markets |
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| Market open times are limited due to the available trading hours being dictated by the trading schedule of the exchange and the local time zone. |
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The forex market is open 24 hours a day, 5.5 days a week. Because of the overlap of major financial markets and decentralized clearing of trades, the forex market can remain open, therefore creating trading volume throughout the day and overnight. |
| Liquidity can be greatly diminished after traditional market hours, as fewer traders participate or move to other markets. |
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As the most liquid market in the world, forex eclipses all others by comparison. Exchange activities naturally remain constant because currency is the basis of all world commerce. Trading volume — particularly in the majors — often does not dry up during "slow times." |
| Traders can be charged a variety of fees including commissions, platform and charting fees, clearing fees, exchange fees and government fees. |
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All you pay is the spread, which is built into the buy and sell prices — although market makers like GFT are compensated by revenues from their activities as a currency dealer. |
| Require large minimum starting capital — sometimes as high as $50,000 — and high margin rates. You could be required to front a margin that is as much as 50 percent of your capital in order to take a position. |
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Forex traders can leverage their capital — as high as 100:1 — with one consistent margin rate 24 hours a day. In fact, GFT green accounts allow traders to begin with as little as $225 and 100:1 leverage. It is important to know that without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains. |
| Restrictions on short selling and stop orders. |
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Because you simultaneously buy one currency while selling another, there are no restrictions on short-selling (placing a sell order when you think the market will trend down).
To help you manage your equity and risk, GFT offers multiple order types, including stop orders and trailing stop orders.
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