DMA CFDs and How I Got an Edge

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Day traders and scalpers are continuously trying to obtain an edge in the market that could give them a real trading benefit, however most traders often go searching for faster PC's, internet connections or a better charting package, most overlook the fundamental basics like the trading platform that they are using or the broker that they are dealing 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 broker has the fastest market connectivity and trading engine behind their platform, however sadly in reality there are some CFD brokers that do not have the proper infrastructure to facilitate sub-second order execution into global exchanges.

As a CFD day trader or scalper itís essential to make sure that your DMA CFD provider has the fastest market connectivity possible. In many cases DMA CFD providers outsource their execution services to their prime broker, although this permits the DMA CFD provider to achieve cost efficiencies it doesnít always assist you to 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 main regional hubs being London, New York or Hong Kong before they reach the market and appear as a filled order in your trading platform. Some global investment banks do however own local infrastructure meaning that your orders aren't sent all over the world before they arrive at the exchange. When choosing a DMA CFD provider itís important that you ask them whether your orders will be routed locally or through their prime brokers global infrastructure as this will have a significant effect on your order execution speed.

Aside from good market connectivity another core element is the platform that you use. There are many trading platforms available to retail DMA CFD day traders and scalpers, however by far the preferred is the webIRESS platform. Many CFD brokers can give you the webIRESS trading platform however you'll find very few providers that can offer webIRESS plus. WebIRESS plus is quicker than conventional webIRESS and offers split second order execution, webIRESS plus is currently only being offered by Australia's most well regarded DMA CFD provider, IC Markets.

It is important for all CFD traders to select a CFD broker that can offer split second order execution allowing you to achieve a CFD trading edge. Of course before you start trading you should evaluate the pro's and con's of every CFD broker and download several trading platforms to ensure that the CFD broker you choose does actually provide you with an edge in the market.

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