Advice on DMA

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ashg85

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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
 
ashg85 said:
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
Click to expand...

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.
 
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.
 
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.
 
ashg85 said:
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.
Click to expand...

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.
 
ashg85 said:
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.
Click to expand...

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.
 
ashg85 said:
Hmmmm, No real pro's to changing then.
Thanks for your advice
Click to expand...

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.
 
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.
 
rawrschach said:
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.
Click to expand...

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.
 
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?
 
Trader1UK said:
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?
Click to expand...

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...
 
Liquid validity said:
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...
Click to expand...

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)?
 
ashg85 said:
I trade mainly indices. Ftse - Dax and Dow but now and then Brent crude oil.
Anywhere from a few hours to a few days.
Click to expand...

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.
 
Trader1UK said:
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)?
Click to expand...

Still no to Cyprus, CySEC are a joke:
CySEC tells investors to prove they were cheated - Cyprus Guide

Decent DMA with low deposit...
IB want initial $10K, same with LMAX (FX only though).
MB have lower initial deposit requirements, but you need separate
accounts for FX, stocks etc.

Unless your average hold time is less than an hour, with more than
1 trade per day, DMA is not essential.
Thats just a rough generalisation though.
 
Liquid validity said:
Still no to Cyprus, CySEC are a joke:
CySEC tells investors to prove they were cheated - Cyprus Guide

Decent DMA with low deposit...
IB want initial $10K, same with LMAX (FX only though).
MB have lower initial deposit requirements, but you need separate
accounts for FX, stocks etc.

Unless your average hold time is less than an hour, with more than
1 trade per day, DMA is not essential.
Thats just a rough generalisation though.
Click to expand...

Thanks Liquid Validity, appreciated.

Any UK DMA brokers recommended, and/or any other US DMA brokers recommended besides I.B.?

Thanks
 
Trader1UK said:
What time frame would you recommend if youre going DMA?
Click to expand...

It's not really a matter of recommendation. All I mean is that the shorter your average trade lasts and the more trades you make per day, the more futures rather than SB makes sense.
 
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