DMA CFDs - can i set my own prices within the spread? help much appreciated!

[Fiddlers Retreat]

50BPS is daylight robbery, 10-15 is bad.
6bps (0.06%) should be pretty attainable with most going down to 4bps for big volume. Try IG Markets, or Global Trader, GNI aren't very good at negotiating.

Thanks for the reply.

i have not opened that account with Blue index, too expensive, among other things.

iv decided, im basically looking for a CFD account, that has the lowest possible commissions. and although i would like DMA, i cant get it because of the minimum requirements.

so its gonna have to be a "consumer" deposit account with someone - CMC maybe?

Cheers
Matt

 

[Captain Haddock]

Thanks for the reply.

i have not opened that account with Blue index, too expensive, among other things.

iv decided, im basically looking for a CFD account, that has the lowest possible commissions. and although i would like DMA, i cant get it because of the minimum requirements.

so its gonna have to be a "consumer" deposit account with someone - CMC maybe?

Cheers
Matt

FR,

What minimum requirements? Minimum account balance?
Don't waste your time with CMC, they are charging you commission AND making their own prices. A double whammy. Stick with DMA firms.
Or if you want to go the non DMA route to get your feet wet, open a flat fee CFD account with ETrade. It's a tenner per ticket, any size. But it's quote driven, so only hitting bids/offers no direct access. You can start that rolling with 5 grand.

If you want DMA swing me over a PM, I'll get you set up with a decent rate. I'm fed up of brokers trying to screw newer traders.
Trading's hard enough as it is when you're starting without paying obscene charges.

 

[gedward3]

Captain when you say quote driven what do you mean by that. Im about to open an account with GNI and they say you can compete in the market auctions and that they are direct market access so they wont skew the market like the spread betters.

On their website they say £10k to open an account but Pritesh im dealing with at GNI says theyr'e willing to let me open an account with £5k.

Looked around the charting and it looks good combined with free EOD charting from Prorealtime to just to find the major support and resistance zones.

They charge £25.00 per round turn. £12.5 each side.

What do you think of GNI

FR,

What minimum requirements? Minimum account balance?
Don't waste your time with CMC, they are charging you commission AND making their own prices. A double whammy. Stick with DMA firms.
Or if you want to go the non DMA route to get your feet wet, open a flat fee CFD account with ETrade. It's a tenner per ticket, any size. But it's quote driven, so only hitting bids/offers no direct access. You can start that rolling with 5 grand.

If you want DMA swing me over a PM, I'll get you set up with a decent rate. I'm fed up of brokers trying to screw newer traders.
Trading's hard enough as it is when you're starting without paying obscene charges.

 

[Captain Haddock]

Captain when you say quote driven what do you mean by that. Im about to open an account with GNI and they say you can compete in the market auctions and that they are direct market access so they wont skew the market like the spread betters.

On their website they say £10k to open an account but Pritesh im dealing with at GNI says theyr'e willing to let me open an account with £5k.

Looked around the charting and it looks good combined with free EOD charting from Prorealtime to just to find the major support and resistance zones.

They charge £25.00 per round turn. £12.5 each side.

What do you think of GNI

Hi Gedward,
GNI were the first to offer direct access to retail clients, and they still play on it at the moment. They are generally the most expensive.

The important figure for your commision rate is the % per trade. The £12.50 per trade you quote with GNI will be a minimum ticket fee.

By quote driven I mean companies that display there own prices. By far the best value for this sort of trading is E-trade, £9.95 flat rate per trade, any size as long as it's available on the order book. Ideal for small/medium size traders. You can't work your order in the book, but if you're trading the FT30 and just hitting bids with momentum then they are very useful.
I think they have a demo account you can try out to get a feel for what I'm talking about.

If you are trading the less liquid stuff then DMA is essential, you need that ability to work an order. Try IG Markets as well for DMA. Play GNI and IG off against each other. Shoot for 6bps. (0.06%)

High commisions are like Carbon Monoxide........a silent killer. Keep them low and you're in with a chance

As for charting, it's well worth paying for a decent chart package if you're doing this seriously from esignal or sharescope. Alternatives are web based charting services like advfn and moneyam.

 

[gedward3]

Cheers for the infi captain

 

[Fiddlers Retreat]

Hi Gedward,
High commisions are like Carbon Monoxide........a silent killer. Keep them low and you're in with a chance

thats what iv recently come to realise -- hence why im after a better service with lower costs.

Matt

 

[davidnmfarrell]

If you are trading the less liquid stuff then DMA is essential, you need that ability to work an order. Try IG Markets as well for DMA. Play GNI and IG off against each other. Shoot for 6bps. (0.06%)

Hey Captain,

Thanks for the insight; I currently Spreadbet FT100 intraday and was looking at DMA CFDs but was put off by the commission rates. These rates look low, are the DMA spreads significantly tighter than with Spreadbet/CFD quote driven?

The spreads i bet on tend to be about .4%. Looking at those commission rates, it might
cheaper to DMA CFD (.12% + spread).

Cheers,

David

 

[mosquitoc]

Dealing DMA is essential, you can place your limit orders anywhere even within the spread and beacuse you are trading direct to the market your trades can be matched by anyone else dealing on the same exchange, If you are quicker you get the price, It's far better than dealing OTC with a provider who only lets you trade on the bid offer spread. Trade fills are also instant so there is no frustrating pause while you wait for a trade to be confirmed only to be requoted or have to re submit the order again.

As far as costs go anything around 0.1%-0.2% is acceptable for an execution only account, the minimum ticket cost per trade is £10. The best DMA providers i have experience with are IG markets and GNI, however i get the feeling GNI have lost their way a bit.

The only way to trade indices DMA is to deal in exchange traded futures, however the costs mean trading OTC indices are nearly as good unless you deal frequently.

Hope this helps.

 

[bobmiller]

I thought I should mention that GNI have actually brought their commissions right down, identical to IG's. Yous should be able to get rates of 10bps for DMA CFD trading. Plus you can also trade the indices. (CFD trading from GNI touch)
My cousin has an account with them and says the overall service, platform, charting and rates are very good