What is direct market access?

Posted By Robert On Sunday, January 19th, 2014 With 0 Comments

Some brokers offer DMA or Direct Market Access for CFDs. When using such providers you have the opportunity to interact directly with the market. Since CFD prices are struck using the underlying reference share price, this means that you only ever pay true market prices and can even ‘deal within the spread’. By dealing at the best market price rather than with brokers that make you deal at their own prices, it is possible to use your funds more efficiently. There are no requotes or ‘dealer refer’ delays when trading (as opposed to when your broker is the counterparty), leaving you in control of your point of market entry and exit.

On what markets can I trade CFDs?

Trading CFDs gives you access to global markets, including Euronext, OMX Stockholm, London International and ASX.

How long can I hold a CFD?

There are no expiry dates on CFDs.

Do I have to pay capital gains tax?

Yes, but you can also offset any losses you may incur. Please note that tax laws are subject to change and depend on individual circumstances.