Invast Australia Launches Direct Market Access CFDs on IRESSTrader

When it comes to contracts for difference (CFD) offerings there are few retail brokers who provide real Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term for trading them. Most Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term brokerages act as market makers and provide their customers with a solution which does not affect the market price directly.

Direct market access CFDs have been created to prevent clients from being concerned about trading against their own broker and delivering the exact same price to the client as the one on the stock exchange. Brokerages providing DMA CFDs guarantee their customers that the deals which they conduct through trading CFDs will be transferred to the open market in a physical trade.

The Australian arm of Japanese listed brokerage, Invast Securities, has announced that it will start offering DMA CFDs to Australian investors. The firm has chosen IRESSTrader as a platform solution, delivering a list of relatively sophisticated tools to retail traders.

The platform includes in-depth market monitoring with the ability to see market depth, various analysis tools and a Microsoft Excel interface which will allow the more 'sophisticated' bunch to create live price links between Excel and IRESSTrader.

This is the first attempt by a Japanese broker to enter the DMA CFD market. The offering does not not use the traditional liquidity provider model as is the case with OTC forex. The liquidity that the clients view and execute on the platform comes directly from the exchanges.

Invast Australia’s CEO, Brendan Gunn, explained to Forex Magnates reporters, “If Level 2 data is available from the exchange, then the client will be able to view price depth. Being DMA it also means that when a client places an order that the trade will appear in the market depth.”

Asked how the trading process is being conducted behind the scenes, Mr Gunn explained, “For the product construction Invast uses a prime broker to execute an equity swap. Invast then turns the equity swap into a DMA CFD for the client.”

By definition, DMA CFD providers guarantee that there will be a physical trade executed on the corresponding market place, matching the CFD trades. The DMA delivery and execution model is much more similar to that of a traditional broker which is normally used by professional and institutional investors, since the potential for conflicts of interest is eliminated from the trade.