Day traders and scalpers are continually looking to get an edge in the market that will offer 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’re utilizing or the broker that they’re trading with.
The most important element in any DMA 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 sadly in reality there are some CFD providers that do not have the correct infrastructure to enable sub-second order execution into global exchanges.
Being a CFD day trader or scalper it’s essential to ensure that your DMA CFD broker has the best market connectivity possible. In lots of cases DMA CFD providers outsource their execution services to their prime broker, although this enables the DMA CFD provider to attain cost efficiencies it does not always assist you to as a day trader. In-fact outsourcing CFD execution to a global investment bank may mean that your trades are routed 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 your orders are not sent around the world before they arrive at the exchange. When picking a DMA CFD broker it’s essential 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 big effect on your order execution speed.
In addition to superior market connectivity the other core element is the trading platform that you choose to use. There are lots of 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 there are few providers that are able to offer webIRESS plus. WebIRESS plus is quicker than conventional 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 crucial for all CFD traders to decide on a CFD provider that can provide split second order execution allowing you to achieve a CFD trading edge. Naturally before you start trading be certain to consider the pro’s and con’s of each CFD provider and download a couple of platforms to make sure that the CFD provider you choose does actually provide you with an edge in the market.