ADVERTORIAL ISE also pulls in price feeds from across a number of exchanges and so offers traders a larger liquidity pool and better price execution as well as offering arbitrage opportunities across exchanges. In simple terms, this means that an investor may spot that one exchange is offering a different/better price than another, allowing them to buy at the better price on one exchange and sell at a higher price on the other, particularly given the very low spread commissions charged.
This is particularly useful when an RNS comes out and the stock moves immediately into auction - savings can be considerable if you are able to trade in these as opposed to waiting for the auction to end.
“levelling the playing field for professional spread betters”
The other very real benefit of DMA access is that you only ever trade if the actual market price trades there and you are NEVER re-quoted. How many times I’ve seen on bulletin boards the retort about “so and so firm being robbing what-not’s” as they are taken out of a position, usually out of market hours, on the basis that “our (the spread bet firms) price traded their sir”. This was a particularly acute issue for many spread betters around the time of the “flash crash” in May. With DMA this can never happen as you can only be filled if the actual market price trades at your stop or limit. If the market trades at your price then, subject to your order size and the depth being filled, you trade.
Here’s the 3 key benefits of DMA spread betting with ISE Spreads -
1. Inclusive Level 2 prices A good DMA spread bet provider will supply you full access to what is called the “ladder” - this is the depth of the market instrument that you are interested in and it allows you to see each individual bid price and offer price. It is also called Level 2 access and many stock market data providers charge separately up to £100 per month for this. Do not underestimate how useful Level 2 access can be relative to seeing simply a “spread” price, as when you can see the true depth of the market you can gage accurately where there is real support for a stock price (or resistance) and also if the share price is being propped up on thin volume for example.
2. Ability to trade in “auction” periods Many traders are aware that there is an opening and closing “auction” in stock prices during which all the bids and offers placed by participants are collated by the LSE and an opening and closing price that fills the optimum amount to satisfy the supply and demand is struck but hitherto which they have been unable to participate in. With DMA trading you can actually participate in this auction process whereas with standard spread betting you cannot. Sometimes, when a stock moves a predetermined amount too (generally 10%), many of you will have noticed that you cannot trade in the stock while it’s in an interim “auction” - a period of around 5 minutes when the LSE carries out the same process as with the opening and closing auctions. How many times have you seen this and then the shares open out of the auction and move dramatically? With standard spread betting you cannot trade usually during the auction period but, with DMA trading, then you can actually participate in that auction and so trade at the “uncrossing” price.
3. Never hear the words - “Sorry our spread was there sir” again. Trade only where the actual market trades
ISE Spreads also go one stage further and package the LS Trader complete financial spread betting system (worth £1,747 per annum, and which has generated over 70% this year) with their full DMA service. Live news feeds and a comprehensive charting package are as standard too. For clients who deposit a minimum of £10,000 into their ISE Spreads trading account and make at least 6 trades per month (with a minimum bet value of £10), ISE Spreads will supply access to LS Trader’s complete financial spread betting service. LS Trader is a professional trend following system that trades commodities, stock indices, currencies and equities. This is a real world value of £147 per month. One of the very few criticisms with DMA trading is that the onus is on you to input your orders correctly. ISE Spreads recognise this and so offer an initial 1 on 1 demo and/or Trainer account to allow you to familiarise yourself with the platform but also have a dedicated telephone service to receive orders too should you not be able to access a computer/tablet quickly. In short, it is a full service DMA spread betting package that brings all the tools the professionals use within the grasp of the retail trader “a true playing field leveller”.
To find out more about how DMA spread betting with ISE Spreads, visit our site at www.ise-spreads.com *LS Trader is a 3rd party supplier of financial research services and ISE Spreads accepts no responsibility for any information provided. Spread betting carries a high risk to your capital, can be very volatile and prices may move rapidly against you. Only speculate with money you can afford to lose as you may lose more than your original deposit and be required to make further payments. Spread betting may not be suitable for all customers, so ensure you fully understand the risks involved and see independent advice if necessary.
November 2012
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