Advice on DMA

ashg85

Junior member
15 2
Hi just after some advice/info really.
I'm currently spreadbetting using intertrader and cmc and have been for 6-7 months now. I'm looking at going over to DMA. Ive come across ise spreads and prospreads? Has anyone got any experience with these or know of any others?
Thanks
 
L

Liquid validity

0 0
Hi just after some advice/info really.
I'm currently spreadbetting using intertrader and cmc and have been for 6-7 months now. I'm looking at going over to DMA. Ive come across ise spreads and prospreads? Has anyone got any experience with these or know of any others?
Thanks

Depends on why you want to go DMA?
If you swing trade, or at least hold intraday trades for average time of hours,
I doubt you'll see much difference.

Anyway, without knowing anymore than you have said here,
its difficult to suggest anything.

1. What do you trade - stocks, FX, indices?
2. Average holding time?

Probably the best DMA for stocks, FX, indices etc would
be Interactive Brokers

If however, you want DMA simply due to losing money with spread betting,
its unlikely that DMA will prove to be a magic solution, although it may help,
depending on how you trade.
 

ashg85

Junior member
15 2
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.
 

ashg85

Junior member
15 2
Im not ready to quit the day job just yet lol but its a good 2nd income aslong greed don't kick in.
Just fed up with the rejected trades. Platform going to phone only trades.
 
L

Liquid validity

0 0
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.

Judging by your hold time, I don't see any massive benefit in DMA.
It certainly wouldn't hurt, although at the stage you are, the added
complexity may or may not be beneficial.

What is the reason for wanting DMA, massive slippage on stops with current
spread bet company or something else?
You have to bear in mind that slippage is present with DMA as well.

If you are profitable, you may get a cost reduction with DMA.
If you are losing money, I would stop altogether and re-evaluate your approach.

*************
EDIT just seen post above this one.
Yes re-quotes and phone only, DMA will help there.
Don't expect it to be a massive improvement though,
you may well find slippage increases with DMA market orders instead of SB order rejection.
 
L

Liquid validity

0 0
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.

There are drawbacks you should consider with DMA, indices
basically means futures contracts.
Position sizing depending on bank roll will not be as flexible,
unless you trade a bankroll of £50-80k+
Just my view, others will disagree.

Personally, for what you are doing, SB may actually be more flexible
for swing trading, despite the problems.
Only you can decide that.
 
L

Liquid validity

0 0
Hmmmm, No real pro's to changing then.
Thanks for your advice

Look into it yourself is the best bet.
Only you can truly make the decision.
Don't be guided by me or anyone else.
There may be benefits to you that I have overlooked.
 

rawrschach

Experienced member
1,223 277
Commisions will be tiny trading DMA.

Prospreads is not DMA and the spreads are too big. If you want to do it then do it properly and go with a broker where you'be paying a couple pounds /round turn instead of 10.

If you want to cut costs further go with a broker that offers free software - velocity will give you TT for 'free' (higher comms on free version so if you do higher vols you cancel the difference), amplify has market delta which is great and also free.

Stick to liquid products and slippage won't be unless it's over news.
 
L

Liquid validity

0 0
Commisions will be tiny trading DMA.

Prospreads is not DMA and the spreads are too big. If you want to do it then do it properly and go with a broker where you'be paying a couple pounds /round turn instead of 10.

If you want to cut costs further go with a broker that offers free software - velocity will give you TT for 'free' (higher comms on free version so if you do higher vols you cancel the difference), amplify has market delta which is great and also free.

Stick to liquid products and slippage won't be unless it's over news.

Completely agree on it being a good package, aren't the fees changing though?
Trading Platforms | Velocity Futures
Starting tomorrow in fact?

Anyway, X-trader is a bit overkill for swing trading.
Plus the position sizing issue with a smaller bankroll / futures contracts / wider swing stops.
Personally I think he is better off sticking with SB for now.
 

Trader1UK

Established member
648 14
Any recommended DMA brokers to trade all markets in i.e stocks. futures. FX. commodities? ?Interactive Brokers?

Would you trade with a broker registered in Cyprus?
 
L

Liquid validity

0 0
Any recommended DMA brokers to trade all markets in i.e stocks. futures. FX. commodities? ?Interactive Brokers?

Would you trade with a broker registered in Cyprus?

Yeah Interactive best one stop shop.
Cyprus - no way, no need.
No broker in cyprus will beat costs or regulation of UK or USA brokers,
so why take the risk...
 

Trader1UK

Established member
648 14
Yeah Interactive best one stop shop.
Cyprus - no way, no need.
No broker in cyprus will beat costs or regulation of UK or USA brokers,
so why take the risk...

Thanks, Yes im wanting to move away from spread betting and go DMA in the near future. Would prefer a legit UK preferably or a US DMA broker. Most likely a legit DMA broker with low deposit requirements to test out with?

no Cyprus broker even though they are licensed by the Cyprus Securities and Exchange Commission (CySEC)?
 

Vasco da Banana

Established member
699 121
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.

IMO, trading with that timescale, DMA will be worse than SB is many ways (particularly DAX), and if you do make a profit you'll have to pay tax.
 
 
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