# DMA CFD providers



## Diggs1 (10 October 2011)

Starting to look into CFD's and was wondering which reputable brokers have DMA.

Have looked at CMC, IG Markets and MF Global but haven't been able to find it stated anywhere. Also tried a few searches here but nothing has come up. 

Anyone have a recommendation? Want to trade with a demo account first!!


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## skc (10 October 2011)

Diggs1 said:


> Starting to look into CFD's and was wondering which reputable brokers have DMA.
> 
> Have looked at CMC, IG Markets and MF Global but haven't been able to find it stated anywhere. Also tried a few searches here but nothing has come up.
> 
> Anyone have a recommendation? Want to trade with a demo account first!!




All three names are reputable enough.

You won't find DMA demo for obvious reason!


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## Diggs1 (10 October 2011)

skc said:


> All three names are reputable enough.
> 
> You won't find DMA demo for obvious reason!





Oh yeah wasn't looking for DMA demo but after more looking found that IG Markets have DMA. Did notice that IG Markets has options as well which pretty much signs the deal for me. I've been trying to find a broker that does options as well as CFD's and was starting to think there wasn't one


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## AlterEgo (10 October 2011)

Diggs1 said:


> Starting to look into CFD's and was wondering which reputable brokers have DMA.
> 
> Have looked at CMC, IG Markets and MF Global but haven't been able to find it stated anywhere. Also tried a few searches here but nothing has come up.
> 
> Anyone have a recommendation? Want to trade with a demo account first!!




CMC is *not *DMA. I think both the others have DMA though. FP Markets have DMA as well.


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## skc (10 October 2011)

AlterEgo said:


> CMC is *not *DMA. I think both the others have DMA though. FP Markets have DMA as well.




CMC has DMA buried somewhere the last time I checked. They did launch a new platform recently so things may have changed since. 



Diggs1 said:


> Oh yeah wasn't looking for DMA demo but after more looking found that IG Markets have DMA. Did notice that IG Markets has options as well which pretty much signs the deal for me. I've been trying to find a broker that does options as well as CFD's and was starting to think there wasn't one




Those options are not DMA. They are CFDs as well and the spreads are pretty bad (or just as bad as the real options).


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## LostMyShirt (10 October 2011)

Hello Digs,

I placed a call into CMC a couple of days ago because I am also wanting to trade CFD's but refuse to do so under a market maker mode. I was assured quite adamently that CMC does NOT offer DMA CFD's. I was glad to hear that IG Markets does have DMA CFD's with a fair comission. Their Demo account does not allow DMA CFD trading, ofcourse.


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## MITCH027 (10 October 2011)

i am using fpmarkets which ive been happy with

0.08% flat rate (no min brokerage charge) + no monthly fee for platform if you have >$50k


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## RazzaDazzla (10 October 2011)

I personally used MFG over 12 months ago. Whilst I was happy with their pricing, and service; their platform was light years behind IG (I'd used a demo IG account).

I primarily use IB for my stock trading; so I was very disappointed by the MFG platform.

I'd be happy as a pig in mud if IB did DMA CFDs for ASX.


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## LostMyShirt (10 October 2011)

RazzaDazzla said:


> I personally used MFG over 12 months ago. Whilst I was happy with their pricing, and service; their platform was light years behind IG (I'd used a demo IG account).
> 
> I primarily use IB for my stock trading; so I was very disappointed by the MFG platform.
> 
> I'd be happy as a pig in mud if IB did DMA CFDs for ASX.




Great thing about IB is that you can also take out futures contracts such as the SPI et al. whereas IG don't offer that outside of a market maker platform.


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## skc (10 October 2011)

RazzaDazzla said:


> I personally used MFG over 12 months ago. Whilst I was happy with their pricing, and service; their platform was light years behind IG (I'd used a demo IG account).
> 
> I primarily use IB for my stock trading; so I was very disappointed by the MFG platform.
> 
> I'd be happy as a pig in mud if IB did DMA CFDs for ASX.




MFG uses WebIress which imo is way better than IG's Puredeal. Full market depth for starts plus correct volume on charts, company announcements, and drag-and-drop etc...

Or do you have a different platform with MFG and/or IG? I remember reading IG used to have a L2 dealer but they said they were phasing that out...


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## LostMyShirt (10 October 2011)

skc said:


> MFG uses WebIress which imo is way better than IG's Puredeal. Full market depth for starts plus correct volume on charts, company announcements, and drag-and-drop etc...
> 
> Or do you have a different platform with MFG and/or IG? I remember reading IG used to have a L2 dealer but they said they were phasing that out...




Apparently they still do have some sort of L2 system they boast. I also must agree on the WebIress platform as opposed to IG's "PureDeal". They also use a seperate platform for DMA-CFD's called "PureDMA" which I have not seen as of yet. WebIress is fantastic and I had the chance to use it for a month with BellDirect. I enjoyed it very much but my trading style has no need for such a program and expense at this time.


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## skc (10 October 2011)

LostMyShirt said:


> Apparently they still do have some sort of L2 system they boast. I also must agree on the WebIress platform as opposed to IG's "PureDeal". They also use a seperate platform for DMA-CFD's called "PureDMA" which I have not seen as of yet. WebIress is fantastic and I had the chance to use it for a month with BellDirect. I enjoyed it very much but my trading style has no need for such a program and expense at this time.




PureDMA is the same as basically the same as PureDMA. The order ticket has a small box to toggle btw OTC and DMA. When DMA is selected it shows 5 levels of market depth and volume.

The 5 level is completely inadequate for many stocks >$2. And you can't breakdown and see the level2 depth. You also can't see the auction match price unless you open up a ticket, which you can only have 5 maximum open at any one time.


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## AlterEgo (11 October 2011)

MITCH027 said:


> i am using fpmarkets which ive been happy with
> 
> 0.08% flat rate (no min brokerage charge) + no monthly fee for platform if you have >$50k




How'd you manage to get rate with them? I've been with them for a couple of years but I'm not on that low rate! Are you turning over really huge sums of money through them or something? When I joined it seemed they weren't interested in negotiating rates unless you were turning over a couple of Million dollars or more per month!


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## LostMyShirt (11 October 2011)

skc said:


> PureDMA is the same as basically the same as PureDMA. The order ticket has a small box to toggle btw OTC and DMA. When DMA is selected it shows 5 levels of market depth and volume.
> 
> The 5 level is completely inadequate for many stocks >$2. And you can't breakdown and see the level2 depth. You also can't see the auction match price unless you open up a ticket, which you can only have 5 maximum open at any one time.




Why is PureDMA inadequite for that price range? It is a shame to hear you can't break down the depth levels too :/ WebIress is excellent for that...

Do you think it may be viable to have a window open from another broker account to view depth? I wish Belldirect would offer some CFD trading...


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## skc (11 October 2011)

AlterEgo said:


> How'd you manage to get rate with them? I've been with them for a couple of years but I'm not on that low rate! Are you turning over really huge sums of money through them or something? When I joined it seemed they weren't interested in negotiating rates unless you were turning over a couple of Million dollars or more per month!




Like he said, over $50k.

http://www.fpmarkets.com.au/cfds/account-types



MITCH027 said:


> i am using fpmarkets which ive been happy with
> 
> 0.08% flat rate (no min brokerage charge) + no monthly fee for platform if you have >$50k




They mention premier webIress on that above link... how's that different to the normal webIress?


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## MITCH027 (11 October 2011)

skc said:


> Like he said, over $50k.
> 
> http://www.fpmarkets.com.au/cfds/account-types
> 
> ...





tbh I never used the normal webiress so I can't comment

one of the things fpmarkets hides though is *(I think)* that they charge $25 to withdraw  (I haven't withdrawn any money yet) 

Worthwhile reading the finer print on admin fees

they also send you daily statements on your position and a consolidated statement at the each of each month for you to track your trades day-to-day and month-to-month (plus for me)


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## AlterEgo (11 October 2011)

skc said:


> Like he said, over $50k.




But I *do *have well over $50k in my account though!

Hmmm, that fee structure on that link is different to when I originally joined. I'll have to make some enquiries with them.

I'm also interested in knowing what's different with *Premier *webIRESS?


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## skc (11 October 2011)

AlterEgo said:


> But I *do *have well over $50k in my account though!
> 
> Hmmm, that fee structure on that link is different to when I originally joined. I'll have to make some enquiries with them.
> 
> I'm also interested in knowing what's different with *Premier *webIRESS?




Lol you've been short changed! Ask them to rebate all the commission or take your business elsewhere..


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## AlterEgo (12 October 2011)

skc said:


> Lol you've been short changed! Ask them to rebate all the commission or take your business elsewhere..




Well I contacted someone from FP today, and he agreed that I should be on the lower rate, so he's going to sort it out. It seems that I was overlooked when this latest fee structure came out.



skc said:


> They mention premier webIress on that above link... how's that different to the normal webIress?




He told me that also has access to futures & FX.


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## skc (12 October 2011)

AlterEgo said:


> He told me that also has access to futures & FX.




I think they are OTCs but I could be wrong.


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## Diggs1 (12 October 2011)

So would I be right in assuming that options through Commsec are DMA? I've been trading them through Commsec.

There must be lots of people that trade that don't get DMA. How detrimental is this to them.

What's the reason for non DMA brokers? How much can they manipulate prices to benefit themselves. There must be laws that keep them inline?


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## takestock (15 October 2011)

Diggs1 said:


> .............................................................................
> Have looked at CMC, IG Markets and MF Global but haven't been able to find it stated anywhere. ......
> Anyone have a recommendation? Want to trade with a demo account first!!




I have very recently(Thurs 13th) joined IG and they do have DMA,but *you* have to activated on your account and there must be a minimum starting balance of $2,000.
Since this is my first foray in derivatives I have decided to start extremely small with only a few thousand dollars.
My very limited experience has been very enlightening to me.I have had 5 trades.Three of the trades I went short(first time in my trading history) and the remaining 2 I went long.Four of the five were successful.
Although I started with a small amount of cash I now have $900 dollars extra I didn't have when I first joined IG.
With demo accounts,people have to take into consideration that the money is NOT real and therefore people's approach to trading(demos )can be differ from real world trading.
Capital CFDs offer a demo account with $10,000 and are offering prizes each week to the trader with the greatest percentage of increase in their account,cumulating with a final prize of $5,000 to the top trader.One trader has attained a approx; $46,000 increase in two weeks of trading! Not wishing to take away from the person's trading skills,but would the same trading style and risks that prevailed with the demo account be identical to that of a live account with $10,000 ?


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## cogs (15 October 2011)

Interesting question 'takestock'. 
I don't think the same person who has made that money would make the same in reality for several reasons that first spring to mind:
1. People generally take higher risk with money that is not theirs.
2. There is additional incentive to take higher risk with some prize at the end.
3. Live accounts can be fed different data streams manipluated in many ways, not in favour of traders.
4. Why would a successful trader bother with a competition, and one that only has $500 prize money?

I signed up for that comp but when I looked at the winning board first thing Monday morning after it started, the winner was already at just over $50k. So this told me it is just another marketing excercise with figures that can easily be fudged anyway.

Diggs1


> What's the reason for non DMA brokers? How much can they manipulate prices to benefit themselves. There must be laws that keep them inline?



As this market, particularly FX is largely unregulated there is good money to be made by drawing in amateur punters. Most of these non DMA brokers (market makers) have PDS statements to mostly cover their method of business operation, and they rely on at worst, resolving their practices via phone discussions with their retail traders.

Having said the above sometimes you find little difference between DMA and MM broking once you get into longer time frames.

I remember about 2 years ago getting wild orders filled through spiking action on an MT4 platform with a MM, later they said they have fixed the data and removed the spike. Hey I had my orders filled and made over $400 in about 0.5 of a second. I did not update my data and found this spike created a gap which was now getting filled.

In the end DMA is the best way to go, but I always have 2 platforms open at any one stage to correlate data. I would suggest this for anyone. Even SFE who effectively are providing DMA, do manipulate the prices. I use Commsec for my SMSF and gold contracts get very low on liquidity so SFE put up contracts to trade, which is what a MM is. They put up a standard 970 contracts from memory at a set price, if you try and buy any of these they remove them and my them further up, if you are trying to go long, which in my case I was. They get you to chase the price.

A little off topic but here is a great example of spiked MM chart for silver which shows gap filling:
On my other platforms and even a later opened account with the same broker does not show this spike. The good thing about this spike is gap filling is rarely done in one move so I am betting that silver will revisit the bottom of this spike.

Hope you find this interesting food for thought.


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## Diggs1 (15 October 2011)

Awesome, thank you. Great info and food for thought!!


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## yrebrac (16 October 2011)

RazzaDazzla said:


> I'd be happy as a pig in mud if IB did DMA CFDs for ASX.




Hi Folks,

New here and fishing for info on CFDs which I have not yet traded. I have a margin account with IB and I wonder how they are rated by forum members for trading CFDs? The above comment is confusing since it looks to me as though IB definitely do CFDs! I can't tell if they are doing ASX-listed or some other kind like DMA but I plan to find out tomorrow.

Tons of info here in old threads but hard to find accurate up to date info. Can anyone give me a few pros and cons of using IB for CFDs? Really hoping to keep my trading activity with one broker for now.

regards,

Ben


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## LostMyShirt (16 October 2011)

yrebrac said:


> Hi Folks,
> 
> New here and fishing for info on CFDs which I have not yet traded. I have a margin account with IB and I wonder how they are rated by forum members for trading CFDs? The above comment is confusing since it looks to me as though IB definitely do CFDs! I can't tell if they are doing ASX-listed or some other kind like DMA but I plan to find out tomorrow.
> 
> ...




I don't know about CFD's with IB - I'm not a member as of yet; there is one trader on this forum however who swears by IB for Futures Contracts.


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## sammy84 (16 October 2011)

yrebrac said:


> Hi Folks,
> 
> New here and fishing for info on CFDs which I have not yet traded. I have a margin account with IB and I wonder how they are rated by forum members for trading CFDs? The above comment is confusing since it looks to me as though IB definitely do CFDs! I can't tell if they are doing ASX-listed or some other kind like DMA but I plan to find out tomorrow.
> 
> ...




IB do ASX listed CFDs from memory. 

I prefer to just use the IB margin and trade aus stocks. IB doesn't have CHESS but you can take part in most corporate actions. You can't beat $6 brokerage.


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## yrebrac (17 October 2011)

sammy84 said:


> IB do ASX listed CFDs from memory.
> 
> I prefer to just use the IB margin and trade aus stocks. IB doesn't have CHESS but you can take part in most corporate actions. You can't beat $6 brokerage.




Thanks Sammy, why do you prefer not to use IB for CFDs? Is that because you don't want to trade ASX-listed CFDs or some other reason?

cheers,


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## sammy84 (17 October 2011)

yrebrac said:


> Thanks Sammy, why do you prefer not to use IB for CFDs? Is that because you don't want to trade ASX-listed CFDs or some other reason?
> 
> cheers,




No real reason, more laziness. There aren't enough listed CFDs available, and it is an effort to always have to check if there is the equivalent listed CFD of a stock I want to trade. Easier just to trade the actual thing.


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## yrebrac (17 October 2011)

Thanks for that. By the way eventually a found a link that explains the pros and cons well: https://www.aussiestockforums.com/forums/showthread.php?t=19579&page=1
cheers,
Ben


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## dove1 (7 August 2013)

DMA CFD Providers in Australia have to set up their own BUY ON STOP orders because the ASX exchange is too basic to accommodate these types of orders, so providers need to create their own algo for buying on stop, so as an example IG Markets DMA simply use their MM to buy on stop, which in reality is far from being a DMA. And you certainly would not want to trade with CMC Markets, just read their PDS carefully.
When I run short term trading systems, we actually get better results with a MM as FPM will not fill you on a GAP on the open and I would rather be filled on the Gap, at least the market is heading in the right direction.


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## JLM Financial (13 August 2013)

Our firm uses IG Markets because they are hands-down the best CFD providers in Australia. You can trade DMA or OTC depending on your preferences but you have to close any OTC trades you made when you want to switch to DMA.


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## JLM Financial (13 August 2013)

Also with DMA, you are able to participate in pre-market and after hours stock auctions in the U.S. which is great for earnings season.


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## leyy (18 September 2016)

Bump,

Any current updates to DMA CFD providers?

Which DMA CFD provider are you using right now? are you happy with them?  and who would you recommend?

I am leaning towards FP Markets or IG Markets.

Any feedback is appreciated.


cheers
leyy


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## Gringotts Bank (18 September 2016)

leyy said:


> Bump,
> 
> Any current updates to DMA CFD providers?
> 
> ...




IG much bigger and better than FP.


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## VSntchr (18 September 2016)

Gringotts Bank said:


> IG much bigger and better than FP.




IG is also more expensive and offers the L2 dealer platform which is just not up to par if your used to webIress.


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## Gringotts Bank (18 September 2016)

VSntchr said:


> IG is also more expensive and offers the L2 dealer platform which is just not up to par if your used to webIress.




L2 was ok for me.  My main thing is safety of client funds when it comes to CFDs.  And a knowledgeable help desk.


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## AlterEgo (18 September 2016)

leyy said:


> Bump,
> 
> Any current updates to DMA CFD providers?
> 
> ...





I'm happy with FP


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## mjim (18 September 2016)

Gringotts Bank said:


> L2 was ok for me.  My main thing is safety of client funds when it comes to CFDs.  And a knowledgeable help desk.




If that is your main concern then in Australia as of today any OTC product provider's client becomes "unsecured creditor" if brokers goes out of business.  read the fine print One broker might be bigger than other or backed by a larger group such as COMSEC but even then....
Only UK FCA it seems have a insurance (FSCS) scheme that covers clients money


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## Gringotts Bank (18 September 2016)

mjim said:


> If that is your main concern then in Australia as of today any OTC product provider's client becomes "unsecured creditor" if brokers goes out of business.  read the fine print One broker might be bigger than other or backed by a larger group such as COMSEC but even then....
> Only UK FCA it seems have a insurance (FSCS) scheme that covers clients money




Yeh but with IG you can watch the share price, since they are listed on the LSE.  Any issues are likely to be signalled well in advance there.  Can't do that with FP.


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## mjim (19 September 2016)

Gringotts Bank said:


> Yeh but with IG you can watch the share price, since they are listed on the LSE.  Any issues are likely to be signalled well in advance there.  Can't do that with FP.




Do you mean you can watch the share price of the "Company IG" on LSE and if there are issues with the company itself then withdraw your money! .. h..m yes one way to get out and not become "unsecured creditor"
SO in that sense they might be better than other's but at the end of day NO protection as such as compared to brokers who are are in a jurisdiction which provides some concrete guarantee like in UK or SIPC in USA 

Some brokers like IB bundle everything in one SIPC protected account and and they swipe the money in to this SIPC protection so even your cash seating to play CFD/ futures etc  ?( IB offers US Share CFD not AUS) is protected as if your were only trading shares!
Any way it is up to you, bigger might be better! but this entire claim of DMA/ STP/ ECN is questionable
OTC products .. be careful counter party is the broker many times if they can't hedge in the underlying market or if there is no direct underlying market !  read the fine print


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## VSntchr (20 September 2016)

Gringotts Bank said:


> L2 was ok for me..



Fair enough, whatever platform works for you I guess.



> My main thing is safety of client funds when it comes to CFDs.  And a knowledgeable help desk



Agree this is very important. If you don't like FP's policies then perhaps Invast would be better. Publicly traded also, client funds not used for hedging and are segregated. 

However when it comes down to it, those funds are still all lumped together in one 'bucket', not individually retained by the client. So ultimate safety is only found in vanilla brokers.


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## Faybo88888 (21 September 2016)

VSntchr said:


> Fair enough, whatever platform works for you I guess.
> 
> 
> Agree this is very important. If you don't like FP's policies then perhaps Invast would be better. Publicly traded also, client funds not used for hedging and are segregated.
> ...




Invast charge, 6 basis points straight off the bat for their ASX DMA CFD offerings. They then give volume based rebates on top of that. Definately worth a look. cheers


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