My DMA CFD Trading Edge Revealed

Day traders and scalpers are always looking to obtain an edge in the market that will offer them a real trading advantage, however most traders often go looking for faster PC's, internet connections or a better charting package, most overlook the fundamental basics like the trading platform that they're using or the broker that they are trading with.



The most critical element in any CFD traders arsenal is their trading platform as this is their link to the market. Many DMA CFD day traders and scalpers assume that their CFD provider has the fastest market connectivity and trading engine behind their platform, however unfortunately in reality there are several CFD brokers that don’t have the proper infrastructure to enable sub-second order execution into international exchanges.



Being a CFD day trader or scalper it is critical to make sure that your DMA CFD broker has the best market connectivity possible. In many cases DMA CFD brokers outsource their execution services to their prime broker, although this permits the DMA CFD provider to achieve cost efficiencies it does not always help you as a day trader. In-fact outsourcing CFD execution to a global investment bank may mean that your trades are sent through one of the central regional hubs being London, New York or Hong Kong before they reach the market and appear as a filled order on your trading platform. Some international investment banks do however own local infrastructure meaning that your orders are not sent around the globe before they arrive at the exchange. When picking a DMA CFD broker it’s imperative that you ask them whether or not your trades will be routed locally or through their prime brokers global infrastructure as this will have a major effect on your order execution speed.



Aside from good market connectivity the other core element is the trading platform that you choose to use. There are many platforms available to retail DMA CFD day traders and scalpers, however by far the most popular is the webIRESS platform. Many CFD providers are able to give you the webIRESS trading platform however there are few providers that are able to offer webIRESS plus. WebIRESS plus is faster than normal webIRESS and offers split second order execution, webIRESS plus is presently only being offered by Australia's most well regarded DMA CFD broker, IC Markets.



It is essential for all CFD traders to select a CFD provider that can offer split second order execution allowing you to achieve a CFD trading edge. Naturally before you start trading it is best to consider the pro's and con's of every CFD broker and download several platforms to make sure that the CFD broker you decide on does in fact give you an edge in the market.