With Direct Market Access (DMA), CFD prices and liquidity are identical to the underlying market, which means that traders enter positions at the identical market price.

The other model of CFDs is the market maker model, which quotes two-way prices. These prices are generally based around the underlying market price (with some CFD providers guaranteeing the market price) but for others there is no obligation to match the exchange bid and offer. In this instance the CFD supplier controls the trader's point of entry and exit.

The DMA model means that every CFD order is placed as a share trade through the Australian Securities Exchange – with the order actually appearing in the bid and ask queue on the ASX.

The biggest plus of the DMA model is that - since you can actually see your trade sitting in the queue and watch it being executed - you’re guaranteed of being “filled” at the identical exchange price. What's more, market liquidity offered is the true liquidity pool of the ASX.

Clearly, other advantages stem from the DMA model. For instance, since your order appears in the market you have the ability to move the market; you can receive partial fills, and you can participate in the pre-opening (7am to 10am) and pre-closing (4pm to 4.15pm) price auction of the ASX, where you can place, amend and cancel orders without being immediately executed. Approximately 10 to 15 per cent of all market volume is transacted in the opening price match and a further 5 to 15 per cent in the closing price match.