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Algorithmic trading

Our algorithmic trading strategies allow you to execute orders using automated pre-programmed trading instructions, which account for various criteria including price, time, volume and quantity. We offer a range of advanced algorithmic order types, including TWAP and VWAP, on both our standard and pro platforms.


Why use algorithmic orders with CMC Markets?

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One account, multiple platforms

Trade using algorithmic strategies on both our standard and pro platforms, and trade orders in real-time. Our integrated solution was designed with the active trader in mind. 

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Institutional tools for the retail investor

The concept of algorithmic trading is relatively new in the Australian retail space, and we're pleased to make these advanced strategies available to our clients.

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Low algorithmic order fee of 0.03%

Using algorithmic orders can help reduce your costs by executing multiple orders at one brokerage charge. And with a low algorithmic order fee of just 0.03% of the trade value, it's a cost-efficient way to generally achieving better execution outcomes.

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Easy set up

Algorithmic orders can be enabled directly from the order ticket, so you can quickly gain access to these powerful execution strategies. 

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Use algo strategies on Australia’s top stocks

The algorithmic strategies can be used on all of the top 200 ASX stocks, giving you a wide range of popular stocks to choose from.

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Education resources

Quick guides and our range of FAQs can help you understand the pros and cons of algorithmic trading. Access these resources from our trading platforms.

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Why trade with algorithmic orders?

Trading with algorithmic orders offers a number of benefits: 

  • As algorithmic orders are automated, they generally lead to better trade execution outcomes by reducing the market impact of larger orders
  • Transaction costs can be lower compared with executing multiple orders individually
  • Save time having to monitor large or multiple orders continuously during the trading day
  • Reduced likelihood of making decisions based on emotion rather than logic

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Which algorithmic orders are available with us?

VWAP

Volume-weighted average price (VWAP) is a popular algorithmic trading strategy, which has traditionally been used for the execution of larger orders. Using projected volume curves, the order is executed proportionally throughout a specified time period – this will reduce the impact on the market price and generally result in a better execution outcome.

 

TWAP

Time-weighted average price (TWAP) is another popular algorithmic strategy that is used by traders to reduce the impact of larger trades. This strategy will execute trades evenly over a specified time period. It breaks up a large order and releases it to the market in smaller pieces, using evenly divided time slots across a given period of time.

 

Target Open 

This algorithmic order targets participation in the ASX Opening Price Auction up to a defined limit price. If there is unexecuted volume after the ASX Opening Price Auction, the strategy will attempt to execute the balance of the order up to the limit price of the order whilst minimising market impact.

 

Target Close 

This algorithmic order targets participation in the ASX Closing Price Auction up to a defined limit price. This strategy may also execute part of its volume prior to the ASX Closing Price Auction if it is determined that this is required to minimise market impact for the ASX Closing Price Auction.

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FAQs

How do I place an order using algorithmic trading?

We’ve integrated algorithmic trading into our existing order tickets for a seamless experience. You will have the option of making any order an algorithmic order, by selecting an algorithmic strategy under ‘Instruction’ on the order ticket. This means you’re in control of using algorithmic trading for any of your orders. View our handy step-by-step instructions on how to place an order on our platforms using the available algorithmic trading strategies. 

Volume-weighted average price (VWAP)
Time-weight average price (TWAP)
Open
Close

Which platforms can I use algorithmic trading on?

You can enable and place algorithmic orders on both our standard and Pro platforms. 

How does my algorithmic buy order impact my available funds?

Each algorithmic order has a price limit that must be set at the time of order placement. While the order is open, your available funds will be reduced by the maximum possible trade consideration based on this trade limit. Once the algorithmic order is complete, a trade confirmation is issued for the exact consideration, which is then taken into account as a normal unsettled trade.

Can I amend an active algorithmic order?

You cannot amend an active algorithmic order. In order to make any changes to the algorithmic parameters, you will need to cancel the order and create a new order with the updated parameters. If the order is to increase volume, then you can add the incremental portion as a new algorithmic order.


For more questions, visit our dedicated stockbroking algorithm trading FAQs page

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