DMA CFD providers

[Diggs1]

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?

 

[takestock]

.............................................................................
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 ?

 

[cogs]

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.

 

[Diggs1]

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

 

[yrebrac]

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

 

[LostMyShirt]

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

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.

 

[sammy84]

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

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.

 

[yrebrac]

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,

 

[sammy84]

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.

 

[yrebrac]

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

 

[dove1]

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.

 

[JLM Financial]

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.

 

[JLM Financial]

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.

 

[leyy]

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

 

[Gringotts Bank]

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

IG much bigger and better than FP.

 

[VSntchr]

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.

 

[Gringotts Bank]

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.

 

[AlterEgo]

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

I'm happy with FP

 

[mjim]

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

 

[Gringotts Bank]

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.