Articles of Interest

Most people don’t know the difference between OTC or over-the-counter CFDs and DMA or direct market access CFDs (DMA CFDs), before I start out it is important to ensure that the differences between both types of CFDs are clearly explained as there are important advantages and disadvantages of each type that all traders should be aware of.

Understanding the difference between the two types of CFDs is relatively easily explained. In essence DMA CFD providers allow all of their clients CFD trades to flow into the underlying order book of the stock over which the CFD is based, this allows DMA CFD traders to participate in the market depth a have their orders partially filled in addition to allowing the trader to be a price maker rather than a price taker, OTC CFD providers on the other hand often match orders against another clients order or their own internal liquidity rather than placing the order in the underlying market. OTC CFD providers have the advantage of being able to offer CFDs over indices and forex and are more suited to traders looking to access multiple asset classes, whereas DMA CFD providers are only able to offer CFDs over shares and are better suited to those looking to trade shares on leverage or CFDs on small cap stocks.

Now that you know the difference between the two types of CFDs on offer it is important to understand the trading platforms available. As CFDs are traded online it is important to ensure that you choose the right trading platform that suits your trading style, the most popular DMA CFD trading platform is webiress plus.

Webiress plus is the fastest and most reliable DMA CFD trading platform on the market today. Webiress plus started out its life as a share trading platform and soon after was adapted for CFDs. The platform in web based and uses java, like all java applications it is important to ensure that you have the latest java version installed on your computer in order to experience the rich functionality of the software.

Webiress plus can be quite daunting for beginner first starting out however once you understand the power of the software it is unlikely that you will use anything else. Configuring your initial layout is often the most difficult part however this is relatively simple if you stick to the basics. Some of the essential features of webiress that you should setup to display permanently on your platform workspace are a watch list, your portfolio, an order pad, a market depth window and of course the market map. Having these features open on your workspace are essential when you first start out and will prevent you from making some common and easily avoidable mistakes like not knowing whether an order has been cancelled or not.

Let’s now take a look at the importance of each of these key webiress plus features.

Watch List
Having a watchlist window open is essential when you are trading as is allows you to monitor the CFD positions that you have open in your portfolio and any others that you may be interested in trading. The watchlist list will enable you to monitor prices without the need to have multiple price windows open.

Portfolio
The portfolio window is arguably the most important feature in webiress plus as this allows you to monitor the essentials including your free equity, margin requirements, portfolio value as well as both your realised and unrealised profit and loss. From the portfolio window you will also be able to monitor your open positions and see you average price, market to market value and unrealised profit or loss on each individual position.

Order Pad
Using the order pad window is critical if you are managing multiple orders, the order pad window allows you to track the status of your orders in the market. After placing an order using webiress plus it is essential to check whether the order has successful reached the market, this can be done using the order pad, it is from here that you will also be able to check for partial fills and confirm the status of order cancelations. 

Market Depth
Having access to market depth is essential when trading DMA CFDs as this will allow you to see your orders in the underlying order book of the share over which the CFD is based, not only will you be able to see your orders in the depth but you will also be able to determine where support and resistance levels are by simply looking to see the number of buyers or sellers in the market at each price point.  

Market Map
The market map is one of the unique features of webiress plus, it provides traders with a visual overview of the entire market at a glance. It is common for traders to use the market map feature to help them identify share CFDs who’s prices have either risen or fallen dramatically across the entire market. The market map is also able to display the market capitalisation of stocks meaning traders can quickly filter out stocks in a particular sector which may not meet their trading criteria.

Now that you are familiar with the differences between DMA and OTC CFDs and understand some of the key features of the webiress plus trading platform you are well on your way to trading. Before you start trading DMA CFDs on webiress plus it is important that you practice using the platform, place some orders and set up a trading workspace that suits your trading style. You can get a free webiress plus demo here.

WebIRESS is one of the most popular trading platforms for DMA CFDs in Australia and is offered by most of the major on-line brokers. WebIRESS is popular in the share trading community as well as with DMA CFD traders. Traders using WebIRESS are able to trade both shares and DMA CFDs using the same WebIRESS login.

Most CFD and on-line share brokers in Australia are able to offer a WebIRESS demo for prospective traders to download any try prior to opening a real trading account. It is important to note that WebIRESS demo accounts do not allow you to place orders or view your portfolio, the reason for this is that WebIRESS must be connected to an IRESS Order System (IOS) in order to function and place orders, demo accounts are usually not connected to an IOS.

As WebIRESS is a web-based trading platform demo accounts are accessed on-line utilising your web browser, however it is important to note that WebIRESS requires Java to be installed on your PC in order to operate correctly. When first installing WebIRESS you will be prompted to install the most recent version of Java. It is critical that the most recent version be installed as your webIRESS may not function correctly on older versions of Java.

Upon first glance your WebIRESS demo will appear quite basic with the workspace layout being divided into four frames, however when switching to the multiple document interface (MDI) mode you will quickly realise the power of the WebIRESS desktop interface. In the MDI mode you are able to freely move windows across multiple monitors and easily create customisable workspace tabs.

When fist logging into your WebIRESS demo you will find that it will most likely have delayed market prices and only one level of depth, this is normal. After opening a real trading account you will be given the option to subscribe to live data at a cost of around $38.50 for ASX data, upon subscription you will have full access to live market data, course of sales and full market depth.

One of the great features of webIRESS is the market map. The market map is essentially a heat map of the market providing a visual representation of the market movement of stocks in each of the sectors in real-time. The size of the squares in the map represent the market capitalisation of each of the stocks and the shades of red or green provide an illustration of how much the stock has moved up or down. The market map is great for traders looking for a quick snapshot of the movement of stocks in relation to their sector and the overall market.

After you have spent some time navigating the menu items, creating watch lists and customising a layout it is advisable to explore the charting functionality of your WebIRESS demo and become familiar with the chart indicators and layouts and how you can adapt them to suit your trading strategies.

Once you decide whether WebIRESS is the right trading platform it is important to factor its cost into your trading budget, most brokers and CFD providers offer the WebIRESS platform at a cost of somewhere between $55 to $88. When combined with ASX data fees your total monthly cost will come to around $95 to $125. If you are a frequent trader you will likely find that your broker or CFD provider will cover the WebIRESS cost on your behalf, however if you are not a frequent trader it is important for you to determine whether the added features available on the WebIRESS platform are worth paying for as there are many free CFD platforms available that offer similar features.

It is advisable that you download a WebIRESS demo in order to become familiar with its many features and to determine whether trading CFDs on the WebIRESS platform suits your trading strategy. 

If you would like to learn more about DMA CFDs you can download our free CFD Guide.  

The webIRESS plus trading platform is the newest product to be released by Australian financial markets software giant, IRESS market technology. WebIRESS plus allows retail online traders the ability to take full advantage of the flexibility and speed offered by IOS plus from the comfort of their home or office.

Unlike the traditional IOS classic powering conventional webIRESS, IOS plus provides users with the flexibility of being able to utilize advanced web services technology in their automated trading strategies. webIRESS plus users are now able to build trading algorithms without having to install and run the IRESS desktop application saving time and money. Being server based the web services technology also provides significant redundancy advantages.

IOS plus has significant speed advantages over predecessor with order transmission speeds being improved by a whopping 150%, this means webIRESS plus users will be able to transmit orders to the market at speeds not previously available to retail clients in Australia. Faster execution translates into more trading opportunities. 

The old webIRESS has also had a makeover with webIRESS plus utilising the lasted in Java technology giving the front end interface a smooth visual appearance reminiscent of windows 7. Combined with an improved visual appearance webIRESS plus offers users advanced order types including being able to create multi legged contingent orders. 

Currently webIRESS plus is only being used for CFD trading, this is primarily because of the low latency order transmission times demanded by CFD traders. It is expected that webIRESS will shortly be adapted for online share and options trading also.

At present webIRESS plus is only being offered by CFD provider International Capital Markets (IC Markets), this is primarily due to customer demand for low latency CFD trading and the company’s drive to stay at the forefront of trading technology. It is expected that other CFD providers currently offering webIRESS will soon recognise the significant benefits of webIRESS plus add this revolutionary trading platform to their arsenal.

When choosing a CFD provider you should consider the platform being offered whether it will give you an edge in your trading. If you are a day trader or scalper you should definitely consider the webIRESS plus as it will give you a significant speed advantage over all other platforms in the market allowing you to take advantage of fast moving markets and rapid match price changes in the opening and closing market phases. IRESS has once again set a new benchmark for high speed low latency trading in Australia.

To find out more about CFD trading on the webIRESS plus platform you can download our free CFD Guide.

webIRESS is a financial information and trading platfrom that provides users with dynamic, real-time market data and trading functionality for CFDs, forex and equities. webIRESS combines the advanced features of its big brother the IRESS information solution with the added benefit of trading, advanced order types and multi product portfolio management.

Who uses webIRESS?
webIRESS is very popular amongst professional traders and investors and small broking firms who:
•   want a reliable low maintenance trading platform
•   want accurate and timely market data and news
•   want real time high speed execution
•   want advanced charting and order types

What features does webIRESS offer?
webIRESS is based on the same technological backbone as the IRESS platform the only difference being rather than being a downloadable application webIRESS is java based and can be accessed using an Internet browser. webIRESS can be accessed through the login portal on your brokers website. Most brokers also offer a webIRESS demo for prospective clients, this allows them to trial the platform and test it’s functionality.

The main features of the webIRESS platform are:
•   Browser based CFD and equity information
•   Direct market access (DMA) and complete order management capabilities
•   Advanced order types including stop loss and trailing stop orders
•   Comprehensive news and market data, including detailed security information
•   Sophisticated market monitoring tools including a market map
•   Comprehensive market analysis and charting
•   News and trade sensitive alerts 
•   Excel plug-in for data extraction

The quote and watchlist functionality within webIRESS displays real-time dynamic quotes for CFDs, stocks and indices. Users can create and maintain their own custom watchlists or use existing watchlists built into the webIRESS trading platform. Real time market prices can be monitored using the quote ticker, which displays live trade prices for securities in a watchlist or for all the securities on an exchange.

What exchanges can I trade Direct Market Access (DMA) CFDs on?
webIRESS allows you to trade Direct Market Access (DMA) CFDs on 17 different equity exchanges. You can trade on real time data using the advanced order types available in webIRESS in addition to the orders types supported by the 17 exchanges on which direct market access (DMA) CFDs are offered.

The exchanges which you can trade Direct Market Access (DMA) CFDs on are:
•   ASX: Australian Stock Exchange
•   NZSX: New Zealand Stock Exchange
•   LSE: London Stock Exchange
•   SES: Singapore Stock Exchange
•   KLSE: Malaysian Stock Exchange
•   TSE: Tokyo Stock Exchange
•   HKSE: Hong Kong Stock Exchange
•   TWSE: Taiwan Stock Exchange
•   KSE: Korean Stock Exchange
•   OSE: Osaka Stock Exchange
•   OJ: Osaka Hercules
•   NYSE: New York Stock Exchange
•   NASDAQ: Nasdaq
•   DAX: Deutshe Borse
•   SIX: Swiss Exchange
•   Borsa Italiana
•   Euronext Paris

webIRESS provides you with market depth, a list of all current bids and offers and the last 20 trades for the current day for all of the exchanges listed above. Course of sales data is available for the last 60 days and the current day.

What market news is available on the webIRESS trading platform?
News is offered from a wide range of news vendors who provide detailed company information in addition to global market wraps and economic announcements.

News from the following vendors is available to you directly within the webIRESS trading platform:
•   ASX Signal G Company News: company announcements made to the ASX transcribed into text format
•   Reuters News
•   AAP News: domestic financial, economic and other news
•   Dow Jones Australia/New Zealand news
•   Dow Jones International news
•   Ralph Wragg

What Security and Market Information can webIRESS provide?
Security details such as company financial data, dividend and capital adjustment histories and business profiles are provided on the webIRESS platform to ensure all webIRESS users have the most recent and up to date information to aid in their decision making.

The Market Activity and Market Map functions within webIRESS provide users with a the ability to obtain a quick market and sector overview with the touch of a button. The Market Activity lists all of the top movers in the total market and the major market segments. The Market Map is a visual representation of the market performance of the securities in an industry group, for the current day.

Indices and economic indicators available within the webIRESS trading platform include:
•   major international interest rates
•   major international indices
•   foreign exchange rates
•   commodities prices

Using webIRESS to trade CFDs
CFD trading on webIRESS can be easily enabled by your broker if they have an IRESS order routing system (IOS) that that is configured to allow direct market access (DMA) CFD trading.

Charts on webIRESS
webIRESS includes a range of chart indicators and trend lines for simple analysis of price charts. webIRESS can provide access to over 20 years of historical pricing data allowing users to perform detailed back testing.

Can I customize my webIRESS layout?
Traders can configure the webIRESS workspace layout to suit their own preferences. They can also create custom keys for frequently repeated tasks and save all personal settings for future use.

WebIRESS Excel Interface
The webIRESS excel interface enables the creation of live price links between webIRESS and Excel, or the direct extraction of historical data into an Excel spreadsheet.
 
How do I get started trading CFDs on webIRESS?
There are many brokers that offer the webIRESS trading platform however before getting started on the webIRESS platform you should download a webIRESS Demo and read our free CFD Guide.