GMT Markets is the registered business name of GMTK Global Pty. Ltd. – a company that provides forex and CFD trading services in Australia. It was founded in 2011 and is regulated by the Australian Securities and Investment Commission (ASIC) under reference number 400364.
Clients cam enjoy a professional financing trading environment of the MetaTrader 4 platform, version 4 (MT4). The web-based trader terminal allows customers freely access via the web browser, without the need of downloading and installing any software. The MT4 mobile version gives customers the freedom to trade anywhere they go.
The company offers Currency pairs, Indices, Commodities and Cryptocurrency products for online trading. There are still no restrictions on ASIC-regulated brokers and GMT Markets provides a maximum leverage of 1:200 for major forex instruments. We just would like to remind you that the European Securities and Markets Authority (ESMA) requires the maximum leverage for majors of 1:30.
Clients can open a GMT Market account with as little as ADU500. GMT Markets accepts debit, credit card or bank transfer. There are two types of trading accounts. There are over 30 forex instruments and the typical spread of EUR/USD pair for the Standard account is 2 pips while it is 1 pip for the VIP account. The most traded cryptocurrency – Bitcoin has a typical spread of USD20 and a leverage of 1:5.
Let us browse through the legal documents. The document called ‘Product Disclosure Statement’ informs that the stop loss orders are not guaranteed, and they can be filled at the first available price. That means slippage will apply if the market is volatile. However, the company claims it offers guaranteed stop loss orders on CFDs over Gold and Silver only. The good thing here is that GMT Markets guarantees that you will not lose more than your Account balance. This is referred to as ‘Negative Balance Protection‘.
Another thing to notice is that the GMT Markets operates as a market maker, and accordingly will act as a principal, not as an agent, in respect of all client transactions. As we always say, this is not necessarily a bad thing. On the contrary, market makers generally offer better trading conditions, but there is a conflict of interest when the company also benefits from the loss of its customers.
There is a Client Resources section on the company’s website. The basic things like what is forex and how to trade it are explained there. The answers of all kinds frequently asked questions are also there. Customers can learn about the latest economic news and the upcoming events from the economic calendar. However, we can say it is not so accurate (there are wrong timed events) and not all data is up to date.In conclusion, GMT Markets is an ASIC-regulated brokerage firm whose clients can still trade major currency pairs with 1:200 leverage through one of the most popular trading terminals – MT4. In addition, traders cannot lose more money than they have invested due to the built-in negative balance protection. However, spreads are relatively wide, and it is unclear how much they need to invest to get a VIP account.