Buy/sell spreads seem to be getting ever wider, making many shares unacceptably expensive, e.g. Severfield seemed "of the moment" I thought, and looked a reasonable holding until I saw the approx 5% spread. Too much for a c.£200 million company surely?
Any experience/knowledge/thoughts re. DMA brokers please?
Thanks, Bill Anderson.
I think you can get dma through IG Index looks cracking platform but my limited experience with them is that customer service is pretty poor.
I Dealing do DMA. You will need a subscription to a level 2 supplier to go with this. However the cost per fill is £2.10. When you buy say 100 shares, this could be netted off against 100 off 1 share buys at £2.10 each so it can work out very expensive. You just don't know what the cost will be
I use DMA on my IG ISA share dealing account. Great to buy shares in the auctions. Works fine although not every UK small-cap seems to have DMA access here.
I have no experience of DMA but do know that the quoted prices are those currently on the market order book and that if you go for an ordinary trade via a broker you can often get within the official spread. I suggest that you have a look at trades - this is Severfield: https://www.sharesmagazine.co.uk/shares/share/SFR/trades
You will see that the order book this morning is 58.2/62.8 but that O trades have gone through at 61 and 61.3279. If you went via DMA you would have to accept the quoted price.
