GMG Markets Review

WHO IS GMG MARKETS?

According to research in South Africa, Global Markets Global, or GMG Markets, is a UK based online forex broker with its headquarters in London.

The broker differentiates itself by offering a wide array of globally traded financial products delivered through a Straight Through Processing, or STP model.

GMG Markets offers competitive spreads and commission across these various asset classes provided on advanced and user-friendly trading platforms.

As such, GMG Markets has grown rapidly since its inception and has acquired a broad client base across Europe, Asia, South America, Africa and Australia.

SAFE OR SCAM?

The forex market is extremely volatile, linked as it is to fluctuations in global currencies which in turn are determined by various market movements and global events.

While this very volatility contributes to more enhanced and lucrative trades, particularly for regular traders, it also means that a certain level of security is required within the forex trading environment in order to ensure full profitability.

Most forex brokers aim to provide a certain level of security through some form of authorization under relevant regulatory bodies. The most recognized of these bodies include such organisations as the FCA, CySEC and ASIC.

However, such regulation can also present certain restrictions, such as on the level of leverage which regulated brokers may offer.

While these restrictive measures are put in place in order to protect traders, some investors may seek out brokers with less regulatory restriction to benefit from concurrently enhanced trades – a risk which is ultimately taken at the trader’s own discretion.

GMG Markets is regulated by the highly reputable Financial Conduct Authority (FCA), which is based in the United Kingdom.

As such, the FCA is one of the strictest regulatory bodies in the forex and investment industry, providing a range of client protection measures which include a comprehensive compensation fund, which covers clients in the case of broker insolvency.

PROS AND CONS

LEVERAGE

Most brokers on the forex market today offer some form of leverage, which is essentially a small loan granted on behalf of the broker to their clients in order for them to make larger trades and increase their potential profits.

The entire forex and CFD industry to some extent relies upon the use of margin and leverage.

Leverage is the opportunity provided by a forex broker to open a speculative position worth a much larger amount of money than you have at their disposal. Leverage is expressed in ratios like: 200:1, 100:1, 50:1, etc.

For example, if your online trading company blocks €1,000 from your trading account to open a 100,000 EUR/USD position, it means you are using a 100:1 leverage. Put in different words, you control €100,000 with only €1,000.

As such, leverage is a great way for smaller traders to potentially make larger returns than they would have been able to with the investments already at their disposal.

However, making larger speculations with borrowed money also carries a higher risk of significant losses, particularly for those intending on investing large sums of money.

It is for this reason that many regulators made the decision to cap the maximum leverage which brokers operating under their authority could offer, so that most regulated brokers can now offer a maximum leverage of 1:30.

Being regulated by the FCA, GMG Markets is authorized to offer a maximum leverage of 1:30 for major currencies, 1:20 for minor currencies and 1:10 for commodities.

However, professional clients who qualify for the broker’s Pro Account can enjoy leverage levels of up to 1:400, which is relatively high within the forex industry.

ACCOUNTS

The forex industry is arguably the largest financial market in the world today, and as such abounds with a wealth of different traders of all experience levels and trading styles.

In order to facilitate this varied base of client traders, most forex brokers provide a selection of different accounts which each cater to the specific needs of traders, and are  often designed according to experience level and investment styles.

Many of these accounts come with their own spreads and commissions also tailored to the requirements and the investment potential of specific traders.

GMG Markets offers two types accounts which are tailored to different trader experience levels and trading strategies. These are the Standard Account and the Pro Account.

Standard Account

The Standard Account is tailored for less experienced traders, or smaller retail traders, and comes with the following conditions:

• Minimum deposit: $ 200
• Leverage: 1:30
• Spread: From 1.1 pips

Pro Account

As the name suggests, the Pro Account is designed for more experienced and professional traders, and comes with the following conditions:

• Minimum deposit: $ 10 000
• Leverage: 1:400
• Spread: From 0.1 pips + $10 commission per lot

MARKET INSTRUMENTS

GMG markets offer wide trading instruments range including FX, Indices, Gold, Silver, Energies, and Treasuries, which can all be accessed via one platform available on multiple devices.

FEES

Different forex brokers will offer different fee structures based on how they make a profit and on the type of traders which they target, or cater for.

Most forex brokers make a profit on the commission, or the spread, or both, and some offer more competitive structures, while others charge higher commissions in return for more lucrative trading options.

Traders will ultimately have to choose a broker whose fee structure best suits their trading style, the investment they have at their disposal, and their trading strategy.

GMG Markets offers very competitive spreads, which start from as low as 1 pip, and commission free trading on the Standard Account.

While the Pro Account is not commission free, $10 commission per lot is a very good offer on the forex market.

This commission is based on a flexible tiered commission structure linked to trade volume, with price competition from liquidity providers at the Top of Book.

DEPOSIT AND WITHDRAWAL

Traders often examine a broker’s deposit and withdrawal options in order to determine how the associated rates charged by the broker might affect their profitability over the long term.

Traders also often seek out brokers who provide a wide range of deposit and withdrawal options in order to make for a more streamlined and cost effective process.

Both deposits and withdrawals from GMG Markets can be made through Credit and Debit Cards or the Bank Wire transfer, and unfortunately the broker does not provide many of the more popular e-wallet payment methods.

GMG Markets has a relatively high minimum deposit of $200 on the Standard Account, while the $10 000 minimum deposit on the Pro Account will of course be inaccessible for smaller traders.

GMG Markets does not charge withdrawal fees, though banking fees from financial institutions may apply.

TRADING PLATFORMS

GMG Markets provides the highly popular MetaTrader 4 platform, which has become an industry mainstay due to its multiple charting tools and fast execution on a user friendly interface.

Traders also have access to the MetaTrader 5 platform, the updated version of MT4, and the broker’s STP execution model provides access to liquidity providers through latency servers and a no requotes policy.

These platforms are also available in the mobile app version, which is both iOS and Android compatible.

HOW TO OPEN AN ACCOUNT

Opening an account with GMG Markets is a straightforward process which consists of the following steps:

1. Enter the broker’s website and review the account types of accounts available. These can include small-scale accounts with low minimum balances designed for beginning traders; or accounts with sophisticated features designed for active traders.
2. Complete an application form.
3. Upon completing the application, you will be registered with a username and password that will give you access to your account.
4. Log in to the brokerage’s client portal.
5. Arrange for the transfer of funds from your bank to deposit funds into your account. This may be through check, credit or debit card, or electronic transfer from your bank account. Note: Using a credit card for this purpose can be subject to interest charges.
6. Once your account has been funded, you are now ready to start trading. At this point, you will want to review any recommendations or special details that your broker provides regarding use of their trading platform before actually making your first trade. Some brokerages may offer trading simulator programs to allow traders to practice before actually putting money into trading.

CUSTOMER SUPPORT

GMG Markets is renowned for offering fast and efficient customer support provided by a professional customer support team.

The broker can be contacted through telephone or email, and there is a live chat option for more pressing issues.

EDUCATION

GMG Markets offers decent educational resources, which include e-books, online tutorials and webinars, all of which cover the most relevant forex topics, including trading styles, managing risk, and margin trading.

RESEARCH

GMG Markets does not provide any independent research tools through its website, however both the MT4 and MT5 platforms are equipped with a suite of charting and analysis tools which cater to a range of trading strategies.

AWARDS

Often, the level and number of awards which a broker has received is a strong indication of their standing within the industry, though some brokers do not participate in awards schemes.

While GMG Markets enjoys numerous positive customer reviews, the broker has not listed any awards on its website to date.

CONCLUSION

GMG Markets is an excellent choice for traders of various styles and levels, offering advanced trading platforms and multiple tradable assets in a highly regulated trading environment.

The broker’s STP model is a further bonus, as it removes the potential for conflict of interest.

DISCLAIMER

Risk Warning: The Company also offers CFD products which are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with GCI Trading.

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Cryptocurrencies are complex, high-risk, and volatile and may result in the loss of all invested capital over a short period of time; they are not appropriate for all investors.

Investors must understand and acknowledge these specific characteristics and risks and be warned that there is no EU regulatory framework governing trading in cryptocurrency products.

CFDs and Forex are not only complex instruments, but they also have a high level of risk which may result in loss of funds that exceed the trader’s initial deposit.

Traders need to evaluate their objective, level of risk exposure and willingness to be exposed to risks, according to research done in South Africa.

FAQs

TRADING ENVIRONMENT

How many instruments can I trade with GMG Markets?

GMG markets offer wide trading instruments range including FX, Indices, Gold, Silver, Energies, and Treasuries, which can all be accessed via one platform available on multiple devices

Which platforms are supported by GMG Markets?

• MetaTrader 4
• MetaTrader 5

Does GMG Markets offer leverage?

Yes, GMG Markets offers a maximum leverage of 1: 30 on its Standard Account, and 1:400 on its Pro Account

What spreads can I expect with GMG Markets?

GMG Markets’ spreads start as low as 0.1 pips

Does GMG Markets charge commission?

Yes, GMG Markets charges $10 commission per lot on its Pro Account

Is GMG Markets regulated?

Yes, GMG Markets is regulated by the FCA

Is GMG Markets a recommended forex trading broker for experts and beginners?

Yes, GMG Markets offers a decent trading environment for both beginner and advanced traders.

What is the overall rating out of 10 for GMG Markets?

9/10

ACCOUNTS

What is the difference between a demo and live trading account?

A demo account is offered by broker companies and funded with virtual money that enables a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account funded with the customers actual money.

Does GMG Markets offer a demo account?

Yes

How long is the demo account valid?

The demo account is valid for 90 days

Which live trading accounts does GMG Markets offer?

• Standard Account
• Pro Account

What are the available deposit currencies for a live trading account?

USD, EUR, GBP

DEPOSITS AND WITHDRAWALS

What is the minimum deposit for GMG Markets?

$ 200

How do you make a deposit and withdrawal with GMG Markets?

• Bank wire
• Credit/Debit Card

Does GMG Markets charge withdrawal fees?

No

How long does it take to make a withdrawal?

Withdrawals can take up to 5 business days depending on your banking institution