Recommendation for CFD trading

J

johndoe2

Junior Member
Joined
Feb 26, 2009
Messages
97
Reaction score
0
Hi could advise on which provider provides best services and lowest commission for CFD trading of SG stocks?

Thanks.
 
felixleong

felixleong

Banned
Joined
Aug 7, 2008
Messages
5,046
Reaction score
0
I like CMC markets the most, their platform is amazing
u can try their demo account first, free of charge
 
J

johndoe2

Junior Member
Joined
Feb 26, 2009
Messages
97
Reaction score
0
care to explain the differences or pro/cons of Direct Market Access (DMA)?
Something new to me.
 
K

killer

Master Member
Joined
Sep 3, 2000
Messages
3,852
Reaction score
0
If you are trading indices, Comodities or currencies, you need at least 15 - 20k to open a futures account to reach almost dma ( can do smaller but not adviseable) . Less than that you need to use cfd. For local stock, dma can use philips or Kim eng I think ( not very sure since I don't trade stocks).

Yes, cfd is controlled by the house, but quite frankly, if you are doing cfd because you are small, it doesn't matter too much whether you have dma or not. You are just too small fry for them to stop hunt you often
 
Asphodeli

Asphodeli

Arch-Supremacy Member
Joined
Jul 8, 2001
Messages
22,711
Reaction score
3,901
killer said:
If you are trading indices, Comodities or currencies, you need at least 15 - 20k to open a futures account to reach almost dma ( can do smaller but not adviseable) . Less than that you need to use cfd. For local stock, dma can use philips or Kim eng I think ( not very sure since I don't trade stocks).

Yes, cfd is controlled by the house, but quite frankly, if you are doing cfd because you are small, it doesn't matter too much whether you have dma or not. You are just too small fry for them to stop hunt you often
Click to expand...

Simi si stop hunt?
 
K

killer

Master Member
Joined
Sep 3, 2000
Messages
3,852
Reaction score
0
felixleong said:
what is DMA? why best?
Click to expand...

DMA will have smaller spreads as you're seeing the actual exchange price. ie if you're trading a stock cfd you get the same price as someone trading the underlying stock on the exchange. Market maker pricing will make a price around the exchange price and can be skewed against you, especially if the broker is prone to re-quotes. dma cfds you will pay a commission in line with underlying stock commissions. Generally dma is the way to go as its more transparent and more liquid.

The above is a reply I found on babypip forum


My own :

DMA advantage : more transparent
DMA disadvantage : slight higher cost becos of commission

Synthetic advantage : no commission, usually higher leverage available
Synthetic disadvantage : almost no transparency


lower cost in DMA i'm not so sure. it really have to depend on the market your trading. Singapore market in general has pretty low liquidity, even more so for stocks since most retailers trade the shares directly since they are cheap, and even more so becos of the board lot decrease.


Transparency even with dma is just an illusion
 
Last edited:
Sinkie

Sinkie

Greater Supremacy Member
Joined
Jan 20, 2009
Messages
86,040
Reaction score
20
killer said:
DMA will have smaller spreads as you're seeing the actual exchange price. ie if you're trading a stock cfd you get the same price as someone trading the underlying stock on the exchange. Market maker pricing will make a price around the exchange price and can be skewed against you, especially if the broker is prone to re-quotes. dma cfds you will pay a commission in line with underlying stock commissions. Generally dma is the way to go as its more transparent and more liquid.

The above is a reply I found on babypip forum


My own :

DMA advantage : more transparent
DMA disadvantage : slight higher cost becos of commission

Synthetic advantage : no commission, usually higher leverage available
Synthetic disadvantage : almost no transparency

lower cost in DMA i'm not so sure. it really have to depend on the market your trading. Singapore market in general has pretty low liquidity, even more so for stocks since most retailers trade the shares directly since they are cheap, and even more so becos of the board lot decrease.

Transparency even with dma is just an illusion
Click to expand...

Market maker model cfd got no commission?? Can sic which one?

For cfd stock, there's dma mode and mm mode.

1) DMA = direct market access (lowest I know is 0.12%/min $12)
2) MM = market maker (lowest I know is $10/min $10)

Market maker mode has actually a lower commission due to them taking a spread from you whenever you buy and sell

For example if Singtel is Trading at $3.15/$3.16

For dma, you can issue a buy order at $3.15 and get executed at $3.15

For Mm, you can issue and only get executed a buy order at $3.15 provided the bid/ask is $3.14/$3.15

If dma has no transparency, then normal stock trading has no transparency le lah
 
wahkao3

wahkao3

High Supremacy Member
Joined
Mar 6, 2005
Messages
26,803
Reaction score
24
You must log in or register to reply here.
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top