GMO Trading Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker is in this GMO Trading Review.
GMO Trading Review
When you hear the name GMO Trading, you may think this company competing with Monsanto, but in reality this is a forex broke. We didn’t manage to find the meaning of the abbreviation, but on the other hand found out this is a CySEC regulated broker. While this is a strong feature, there are some others which we don’t appreciate as much,
GMO Trading Advantages
GMO Trading is owned by Royal Forex Ltd., which is registered with the Cyprus Securities and Exchange Commission (CySEC). The legal environment in which a broker operates should be your biggest concern, when comparing them and the Cypriot regulatory agency is one of the most respected ones.
Up to 1:200 in leverage
Trading on margin is risky, but the only way to effectively access the forex market. That being said, the options provided by GMO Trading are rather nice. With “gearing” going as high as 1:200 no one will be left behind.
MetaTrader4 trading platform
GMO Trading provides access to the global financial markets via an industry leading platform. Developed by MetaQuotes, this piece of software offers a standalone desktop application, a mobile app and a web version. This may be impressive, but is nothing when compared to the amazing functionality. With excellent charting, support for automated trading systems and multiple ways to copy trade, it is second to none. Here is a prebiew of the platform provided by GMO Trading.
Educational material on the website
There is a lot of educational content provided by this broker. It is provided in both video and e-book form. While this isn’t that impressive for experienced traders, it shows the company’s dedication to helping newbies.
GMO Trading Disadvantages
Demo not easy to run
When setting up an account with GMO Trading we realized the demo account is hard to run on the desktop version of the platform, as the server is not added to it by default. We didn’t wanted to bother looking up the settings (which the customer support team should be able to provide), so we registered a real account. This leads us to the next two points.
Questions upon registration
When setting up the account we had to fill in information about our trading experience. This isn’t a negative by itself, as it protects a newcomer to the global markets. What frustrates us, is the fact this process takes place during the account creation, instead of later on. We realize this is required by the regulators, but maybe putting it before making your first deposit will be better.
Accounts only in EUR and GBP
The second key thing we noted when creating our account is the fact USD was not option for our base currency. While this may sound ok to those of you who are based in Europe, it may not be to the rest of the world. Additionally a lot of currency pairs are quoted in USD and your trading results are actually measured in the currency. Doing the conversion on every trade can be annoying.
Some details not mentioned
GMO Trading’s overall presentation is rather nice. That being the case, several key points are not mentioned on the company’s website. They include: a full instrument list, the minimum deposit requirement and the target spreads. The last point is quite unusual for a regulated broker.
Rather high spreads
The fact spreads are not disclosed at GMO Trading did not stop us from revealing them, when testing the MT4 platform. During the middle of the European session, when liquidity is expected to be quite high, the EUR/USD one was fluctuating around 2.2 – 2.6 pips. This is simply unacceptable in the current day and age. While the spread shouldn’t be your main concern, other companies offer much better trading conditions. Be sure to visit our dedicated spread comparison platform for the full picture.
Deposits only done via Credit Card
We are not certain if this is also true for withdrawing funds. While credit cards offer an instant payment, some of you may prefer bank transfers ore even e-wallets, such as Neteller. The lack of support for either is rather annoying. .
GMO Trading is a CySEC-regulated forex broker. The company supports the well-known MT4 platform, but sadly the spreads provided are not that impressive. We have a few other issues with the company, but at the end of the day, the costs of trading are the biggest one.
That being said, GMO Trading still has a major advantage over a lot of other brokerages – the Cyprus regulation. While financial markets may not be your first association with the island, this sector of their economy is very healthy. The Cyprus Securities and Exchange Commission (CySEC) is among the most reputable watchdogs and we will like to briefly introduce you to the most important rules, when it comes to the security of your trading capital.
All brokers registered with this particular agency have to keep client funds in the so called segregated accounts (i.e. special bank accounts which they can’t access at will). Additionally, they offer a compensation schemed. This is a system, which protects client investments, up to €20.000, in case their broker goes bankrupt.
Instead of the cryptocurrency broker you can use Plus500, XM, eToro, Fxpro or AvaTrade crypto currency brokers.
GMO Trading Review Conclusion
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