One of the biggest challenges that new traders can face is lack of access to the same information and resources as professionals. If you have the right tools and information then it is easier to see the bigger picture in your analysis, and to develop your edge in the market. If I told you that it was possible for you to see exactly how many other traders are willing to buy or sell at each price level, would you think that might be useful information to you when entering and exiting positions?
Welcome to Level 2
Well this type of information – known as Level 2 Data - is available to you with the right choice of broker. Your broker has access to this information otherwise they couldn’t match your orders, but most brokers choose not to share Level 2 Data with their clients. Level 2 data feeds come directly from a stock exchange, and are commonly referred to as ‘direct market access’ (DMA). Colmex Pro is one of the most established and trusted brokers among those who can provide Level 2 data for your trading.
Introducing Colmex Pro...
Colmex Pro is a veteran brokerage firm, established in 2004 and headquartered in Cyprus. It has grown to become a leading provider of Contracts for Difference (CFDs) with DMA, serving hundreds of thousands of active traders in countries worldwide. There are only a handful of firms licensed by the New York Stock Exchange to supply Level 2 data on US stocks, and the majority of them are private financial institutions; Colmex Pro is just one of three established firms where you can open an account and begin trading with access to this information, and as a online broker it has a number of distinct advantages that the others don’t.
Range of Markets
Colmex Pro facilitates trading in a wide array of instruments and markets worldwide, including stocks, forex, and commodities, but where it really stands in a league of its own is in its offering of CFD products for US stocks... A CFD allows you to participate in a market without taking ownership of any underlying stock or security. It’s simply a contract between you and a CFD provider such as Colmex Pro to trade on the price changes in a market. This means that you can bypass all the red tape that makes day trading in stocks difficult. For example, some of the advantages include: No Minimum Account Rule - Unlike with stocks, there is no “pattern day trader” rule for CFDs, so you do not have to have the usual minimum of $25k in your account in order to open and close a stock trade within a single day. Easy to Short - You’ll also be able to sell the market short just as easily as you can buy it, without any of the complications and costs of borrowing stock that traditional trading in equities involves. Enhanced Leverage - You can also trade with much more leverage than traditional stockbrokers permit (up to 20:1 rather than 2:1), allowing you to enhance your profits and grow your account more quickly. Tradeable Instruments - Colmex Pro offers CFD trading in a far wider range of instruments than its competitors, effectively giving you access to the full span of liquid US stocks. With this broker you will be able to trade CFDs on over 3,000 stocks with direct market access to Level 2 data, more than ten times the number available with other major firms.
Low Fixed Costs
Most CFD traders make their money by adding a mark-up to the spread that you pay when you enter a trade, which means you are not charged a commission. While this sounds attractive, in actual fact these providers control the spread via the prices that they quote, and so they have the option to widen them in their own favour. With direct market access, Colmex Pro follows an entirely different model. The spreads you will get are exactly the same spread that is available on the underlying stock exchange. The bid and ask price quoted to you by Colmex Pro comes directly from the NYSE Level 2 data feed, and is identical to the true market price. Just like a traditional broker, Colmex Pro earns its fee through a commission, though typically lower than most brokerages charge. This removes conflicts of interest, ensures that you know your costs upfront, and allows you to complete a round trip in many equity CFDs for a fraction of the cost of buying and selling shares. As a frequent trader, keeping execution costs to a minimum is essential if you want to avoid giving all your hard-earned profits to a broker, and a CFD account with Colmex Pro can enable you to do this.
Fast Execution
Because Colmex Pro does not operate with a dealing-desk model, there are no cumbersome dealer interventions in your trades, and no potential for conflicts of interest between you and the broker. This means that Colmex Pro is able to fill your orders instantly and with less opportunity for slippage. Price providers are not able to see your stops or order levels, reducing the potential for them to manipulate prices against you.
Regulation & Security of Funds
Because it is registered with Cyprus’s financial regulatory body, CySEC, Colmex Pro has been “passported” into the rest of Europe under the MiFID directive, allowing it conduct business in other European countries. However, unlike most brokers, Colmex Pro has taken the additional step of registering individually with each country’s regulator (FCA in the UK, CNMV in Spain, BaFIN in Germany and ACPR in France). This represents a level of openness and diligence that is rare in any brokerage firm, and demonstrates Colmex Pro’s exceptional commitment to operating in a fair and transparent fashion. All client funds deposited with Colmex Pro are held in segregated accounts with accredited banking institutions, ensuring that they remain separate from the firm’s own operating capital.
Conclusion
With its reputation for regulatory compliance and great customer service, Colmex Pro is a solid choice for any trader. But if you’re actively engaged in US equity markets and trade stocks on a frequent, daily basis, then this firm is undoubtedly one you should consider opening an account with. Colmex Pro’s CFD service offers unparalleled direct market access coupled with great execution and low costs – exactly what you need to succeed!
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