Why Forex?: Forex vs. Other Markets

GFT Gives You the Access and Resources to Trade Forex

As a primary market maker in foreign currency trading, Global Forex Trading is able to offer trading access and forex services that were not always available to those interested in speculating in the currency market. Today, the range of transaction sizes offered makes the currency market extremely accessible. GFT lets you trade foreign exchange with as little as $250 and lot sizes of 10,000 units, up to trades of almost any size. 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. However, some of the traditional barriers that exist in other markets are removed, providing more trading freedom.

It was not until market makers like GFT entered the picture that individuals were able trade on more competitive rates and price movements as the large players who once dominated the forex market.

Look to see how forex compares to other markets:

Other markets		Forex markets
Available trading hours are dictated by the trading schedule of the exchange-floor and the local time-zone. This limits market open times. The forex market is open 24 hours a day, 5.5 days a week. Because of the decentralized clearing of trades and overlap of major financial markets throughout the world, the forex market remains open, thus creating trading volume throughout the day and overnight. Liquidity can be greatly diminished after market hours, or when many market participants limit their trading or move to markets that are more popular. Forex is the most liquid market in the world, eclipsing all others in comparison. Because currency is the basis of all world commerce, exchange activities are constant. Liquidity – particularly in the majors – often does not dry up during "slow times." Traders are charged multiple fees, such as commissions, clearing fees, exchange fees and government fees as well as platform and charting fees. 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. Trading restricted by large minimum capital requirements – sometimes as high as $50,000 – and high margin rates. Margin requirements can be as much as 50 percent of your capital in order to take a position. One consistent margin rate 24 hours a day allows forex traders to leverage their capital, as much as 400:1. In fact, GFT mini accounts allow traders to begin with as little as $250 and 400:1 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. No restrictions on short-selling (placing a sell order when you think the market will trend down), because you are simultaneously buying one currency while selling another. GFT offers multiple order types, including stop orders and trailing stop orders to help you manage your trading equity, which you can use even when short selling.

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