Day Trading Contracts for Difference can be a great opportunity to make money in the markets but only if you are able to align yourself with the right CFD trading platform and the right CFD broker. Today we’re going to take a look at whether you should be using a Market Maker CFD broker or to use Direct Market Access CFDs.

Access to the world’s markets through the one platform

One of the advantages of using a Market Maker CFD broker is that you have the opportunity to trade pretty much any product you want to from anywhere in the world. A Market Maker can make prices on anything they like which gives you flexibility from the one trading platform. It means you don’t need to open multiple accounts in order to access all of the world’s major opportunities.

Transparency and speed of transaction

Using a Direct Market Access CFD broker means you can view exactly what is available in the market and you won’t be experiencing any of those annoying requotes. The transparency of a DMA CFD broker is a great advantage of if you are day trading then you’ll need to be able to view exactly what is available in the markets. This also doubles up and offers you a fast platform that can execute your CFD trades straight into the market.

Increasing the spread on certain CFDs

One of the biggest downfalls of a Market Maker model is the fact that they can quote you any prices they like which means certain products may have a larger than normal spread. You might be looking to trade Crude Oil or Gold bullion or even Soy Beans and if they product itself isn’t that liquid then the Market Maker won’t put themselves at risk and so will increase the spread. Whilst they will give you free brokerage you will notice the hidden cost is the spread, which is the difference between the buy and sell prices.

So which CFD broker is best?

Deciding on the Market Maker or Direct Market Access CFD brokers only takes a little bit of due diligence and usually revolves around which products you are looking to trade and your ideal trading timeframe. Usually the shorter your time frame for trading the more you’ll need to rely on a DMA CFD broker. If you have a more relaxed trading time frame and want access to the world’s markets from the one account then a Market Maker might suit your purposes. If you are like most professional traders you’ll realize the power of having both available at your finger tips.

Action: Discover the 7 most Critical CFD Trading Tips and 2 of the most common CFD Trading Strategies. Learn more about the Contracts for Difference (CFD) revolution by going to http://www.learncfds.com/