However, I'm unsure about its actual benefits and whether it's necessary. Does using a VPN provide additional security and privacy? Are there any drawbacks or potential issues when trading with a VPN? I'd appreciate hearing from traders who have experience using VPNs for their trading activities. Thank you
The OP already gave a hint on what it can do. If you still can't get it then I will make it straight to the point. VPN allows you to fake your location by changing your IP address and you can now access those blocked websites. It is necessary if you badly want to use those websites. It does provide a security and privacy.
There is only a drawback and that is if you got caught, you will face serious consequences. First, you can get fined or jailed by your locality then second is your online accounts will be closed down. I never tried using a VPN though wherever I trade because fortunately trading in my country is still allowed but I am confident that what I'm saying earlier was accurate.