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DMA CFD providers

Discussion in 'Derivatives' started by Diggs1, Oct 10, 2011.

  1. mjim


    Likes Received:
    Jun 6, 2016
    Do you mean you can watch the share price of the "Company IG" on LSE and if there are issues with the company itself then withdraw your money! .. h..m yes one way to get out and not become "unsecured creditor"
    SO in that sense they might be better than other's but at the end of day NO protection as such as compared to brokers who are are in a jurisdiction which provides some concrete guarantee like in UK or SIPC in USA

    Some brokers like IB bundle everything in one SIPC protected account and and they swipe the money in to this SIPC protection so even your cash seating to play CFD/ futures etc ?( IB offers US Share CFD not AUS) is protected as if your were only trading shares!
    Any way it is up to you, bigger might be better! but this entire claim of DMA/ STP/ ECN is questionable
    OTC products .. be careful counter party is the broker many times if they can't hedge in the underlying market or if there is no direct underlying market ! read the fine print
  2. VSntchr


    Likes Received:
    Dec 27, 2010
    Fair enough, whatever platform works for you I guess.

    Agree this is very important. If you don't like FP's policies then perhaps Invast would be better. Publicly traded also, client funds not used for hedging and are segregated.

    However when it comes down to it, those funds are still all lumped together in one 'bucket', not individually retained by the client. So ultimate safety is only found in vanilla brokers.
  3. Faybo88888


    Likes Received:
    Sep 21, 2016
    Invast charge, 6 basis points straight off the bat for their ASX DMA CFD offerings. They then give volume based rebates on top of that. Definately worth a look. cheers

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