Direct Market Access (DMA) Broker

DMA brokers are best suited for advanced traders who want to have direct access to the market.

Keynote:
Direct market access is the direct link to financial market exchanges that allows a financial market transaction to be completed. Exchanges are organized markets where stocks, commodities, derivatives, and other financial instruments are traded.

As a trader, choosing the right broker can be a challenging decision, especially if you don’t know the difference between the four types of brokers.

We’ll be covering the characteristics of a Direct Market Access (DMA) Broker and the Advantages of Trading with a Direct Market Access (DMA) Account.

How this benefits you as a Trader?

The DMA model gives you access to real-time prices, the full depth of the market, and the order book of the exchange. DMA CFDs are also a powerful tool for trading because you can use leverage, pay low commissions, and sell short.

What Is Direct Market Access (DMA)?

Direct Market Access(DMA) is an electronic trading method in which investors can make trades by communicating directly with an electronic order book. The orders that buyers and sellers make on the stock exchange are written down in an order book, which is a list of orders.

The orders stay in the book until they are filled by matching the price a buyer is willing to pay for a security with the price a seller is willing to sell it for.

Understanding How a Direct Market Access (DMA) Works

Traders can place Buy or Sell orders directly with the exchange order book when they have direct market access. Before the DMA, only broker-dealers and market-makers could do direct trading with the help of the order book.

Now, private organizations and investors can do it, too. Some retail online brokers are also able to offer this service. These kinds of services are called DMA brokers because they let you use the market book.

In the financial markets, the term “Direct Market Access” (DMA) refers to electronic trading systems that let traders interact directly with the order book of a stock market.

What Is A Direct Market Access (DMA) Broker?

A direct market access (DMA) broker is a type of broker that provides direct access to the markets. DMA brokers typically charge a commission on each trade but offer tight spreads and fast execution.

DMA brokers give traders direct market access to exchange order books. For better pricing and execution of futures, options, and CFDs. They let traders see the prices of different market orders and place their own orders based on what they see, without using middlemen. This way of trading has a lot of pros.

Direct Market Access is also called Level 2 or L2 trading because it gives access to detailed information about the depth of the market from different exchanges.

Using Level 2 data, you can figure out how the market feels and how much money is in it. When you trade DMA CFDs, you can place orders at any level and possibly even within the spread. You can also act as a “price maker.”

Recommended Brokers

Are you looking for a professional, regulated broker? Broker offers access to a wide range of markets and assets, including forex, commodities, indices, and more.
With a regulated ECN Broker, you can trade with confidence, knowing that you’re getting competitive prices and expert support.
Visit a Broker today to open an account and start trading.

Broker

Regulators

Leverage

Spreads

Trading Acc.

Instruments

Connect

FCA, CySEC, FSA, CBCS, FSC, FSCA

Up to 1:3000

From 1 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

ASIC, VFSC

 Up to 1:500 

From 0.0 pips

Broker Type:
STP | ECN
 2 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

AFSL, ASIC, CySEC, FSA

Up to 1:500

From 0 pips

Broker Type:
ECN
6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

ASIC,FCA, DFSA, FSC

Up to 1:500

From 0 - 0.4 pips

Broker Type:
STP | ECN
 3 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

CySEC, FSC BVI, FSC

Up to 1:1000

From 0 - 7 pips

Broker Type:
MM | Binary
 6 Accounts

Forex, Indices,
Commodities,
Metals, Energies, Shares, Crypto

CySEC, FSC, FSCA, ASIC

Up to 1:3000 

From 1 pip

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, Crypto

ASIC, FCA

Up to 1:500*

Floating spread from 0 pips

Broker Type:
STP | ECN
 6 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

CIMA, ASIC, FCA

Up to 1:500*

From 0.4 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 

Metals, Energies,

Shares, Crypto

VFSC

Up to 1:1000

Floating spread from 0.9 pips

Broker Type:
STP | ECN
4 Accounts

Forex, Indices,
Commodities, 
Shares, Crypto

IFSC

Up to 1:2000

From 0.0 pips

Broker Type:
MM | STP | ECN
5 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
ETFs, Shares, Crypto

ASIC, CySEC

Up to 1:500*

From 0.0 pips

Broker Type:
STP | ECN | DMA 2 Accounts

Forex, Indices,
Commodities, 
Metals, Energies,
Shares, ETFs Crypto, Bonds

Direct Market Access (DMA) Trading Accounts

How Does An DMA Trading Account Work?

In contrast to standard brokers, the lack of middlemen makes it possible for traders to complete transactions quickly and at lower cost.

DMA gives traders more control over their operations because they don’t have to get quotes from standard brokers. Instead, they can submit their own offers and handle the transaction on their own, which gets rid of the market spread. Maker’s
There is no set commission when you work with DMA brokers.

There are more liquidity providers for DMA brokers.

Traders have more chances of success on the international financial markets when they use specific trading strategies with DMA.

Traders of all kinds are welcome, including scalpers, news traders, swing traders, position traders, and so on.
When there are no middlemen, it is easier to stay anonymous.

Usually, only institutional traders could get DMA accounts, which showed different levels of liquidity in real-time.
You can now trade on prices from global banks and top-tier liquidity providers without having to pay an extra markup.

Direct Market Access (DMA) is a way to put trades directly on the order books of exchanges. So, DMA gives traders flexibility and openness when they trade. But because it is risky and hard to understand, it is usually only recommended for experienced traders.

How Does Direct Market Access (DMA) Differ From Other Broker Types?

In contrast to standard brokers, the lack of middlemen makes it possible for traders to complete transactions quickly and at lower cost.

DMA gives traders more control over their operations because they don’t have to get quotes from standard brokers. Instead, they can submit their own offers and handle the transaction on their own, which gets rid of the market spread. maker’s
There is no set commission when you work with DMA brokers.

There are more liquidity providers for DMA brokers.

Traders have more chances of success on the international financial markets when they use specific trading strategies with DMA.

Traders of all kinds are welcome, including scalpers, news traders, swing traders, position traders, and so on.
When there are no middlemen, it is easier to stay anonymous.

Check out our other resources on ECN Vs STP Vs Market Makers Vs DMA Brokers to get a clear understanding on how each of them works, and which is better for your trading strategy

Characteristics of a Direct Market Access (DMA) Broker

A Direct Market Access (DMA) broker provides traders with access to the underlying market, without the use of a dealing desk. This means that trades are executed directly between two parties, without intervention from the broker.

DMA brokers typically offer lower spreads than other types of brokers, as they are not making a profit from the spread. Instead, they charge a commission for each trade. DMA brokers are also able to offer greater price transparency, as they are not acting as the market maker.

DMA brokers are typically used by more experienced traders, who have a good understanding of the markets and how to place orders.

Advantages of Trading with a Direct Market Access (DMA) Account

If you are looking for an ECN or STP broker, it is likely that you will be offered a Direct Market Access (DMA) account. DMA accounts provide traders with a number of advantages, including access to the best possible prices, faster execution speeds and greater transparency.

When you trade with a DMA account, you are directly connected to the order book of the exchange. This means that you can see the true market depth and get the best possible prices for your trades. In addition, DMA accounts allow you to trade on leverage, which can give you a significant advantage in terms of your trading costs.

Another advantage of DMA accounts is that they generally offer faster execution speeds than other types of accounts. This is because your orders are sent directly to the market, without having to go through a dealing desk. This can be extremely important in fast-moving markets, where every second counts.

Key Benefits of Trading with a DMA Broker

Transparency: Traders can see how many people are interested in buying or selling each stock and at what prices.
Become a price maker by sending all DMA orders to the live market. By doing this, you can affect supply and demand by pushing prices up when you buy and down when you sell.

Better liquidity: With a DMA model, you can use the same pool of liquidity as the underlying market. You can also trade at the beginning and end of the day, when a big chunk of the daily volume is traded.

Speed of execution: A DMA model lets you and the underlying market interact less, so prices aren’t re-quoted. Giving transparency and speed of execution high priority helps the trader in the long run.

Trades within the spread: When available, traders can place orders between the best bid and best ask limits.
New features have been added to orders. Traders can now use “Fill or Kill” and “Execute and Eliminate” instructions with limit orders and market orders.

Core Differences Brokers Have With Each Trading Account

Broker Types are ECN: Electronic Communication Network | STP: Straight Through Processing | DMA: Direct Market Access & MM: Market Makers.

Are you interested in trading with a direct market access broker?
Direct market access brokers offer many advantages for traders, including the ability to trade directly with market makers and access to hidden liquidity.
With a direct market access broker, you can trade with confidence, knowing that you have the best possible price.
Learn more about trading with a direct market access broker.

Direct Market Access: Recommended Brokers

Exness

Since 2008

Offices:

UK, Cyprus, Seychelles

Exness

Minimum Deposit: Standard; Cent; Plus: $1 | Raw Spread, Zero, Pro:$200
Account currency: USD
Leverage: From 1:100 up to 1:2000
Accounts: Standard, Standard Cent, Standard Plus, Raw Spread, Zero, Pro
Instruments Offered: Forex, Indices, Metals, Energies, Shares, Cryptocurrencies
Trading Platform: MT4, MT5, WebTrader, Mobile, Free VPS hosting
Regulation: FCA, CySEC, FSA, CBCS, FSC,  FSCA
Spreads: Standard; Cent: from 0.3 pips,
Standard Plus: from 1 pip
Pro: from 0.1 pips,
Raw spread; Zero: from 0 pips,
Visit Broker Broker Review

AXI

Since: 2007

Offices:

UK, Australia, UAE, Saint Vincent & the Grenadines

AXI

Minimum Deposit: $1
Account currency: AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, USD
Leverage: Up to 1:500
Accounts: Standard, Pro, Elite
Instruments Offered: Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform:  MT4, PsyQuation with Axi,  WebTrader, VPS hosting
Regulation: ASIC,FCA, DFSA, FSC
Spreads Standard: from 0.4 pip, Pro: from 0 pip
Visit Broker Broker Review

InstaForex

Since: 2007

Offices:

Cyprus, St.Vincent & the Grenadines, British Virgin Isles

InstaForex

Minimum Deposit: From $1
Account currency: EUR, USD
Leverage: From 1:1 up to 1:1000
Accounts: Demo, Insta.Standard, Insta.Eurica, Cent.Standard, Cent.Eurica, PAMM
Instruments Offered:
Forex, Indices, Futures, Options, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform: МТ4, МТ5, InstaTrader, WebTrader, Multiterminal, Mobile Trading, VPS hosting
Regulation: CySEC, FSC BVI, FSC
Spreads: 0 pips: Insta.Eurica and Cent.Eurica;
3–7 pips: Insta.Standard and Cent.Standard
Visit Broker Broker Review

EightCap

Since: 2009

Offices:

Australia, Vanuatu

EIGHTCAP

Minimum Deposit: $100
Account currency: AUD, USD, GBP, NZD, SGD, EUR
Leverage: 1:30 for Australian clients
1:500 for Non-AU clients
Accounts: Standard Account, Raw Account
Instruments Offered:
Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform: MT4, MT5, Mobile, VPS hosting
Regulation: ASIC, VFSC
Spreads: From 0.0 pips
Visit Broker Broker Review

IC Markets

Since: 2007

Offices:

Australia, Cyprus, Seychelles

IC MARKETS

Minimum Deposit: 200 US dollars
Account currency: USD, AUD, GBP, CHF, JPY, NZD, SGD, CAD, HKD, BTC
Leverage: From 1:1 to 1:500
Accounts: Demo, Raw Spread, cTrader, Standard, Islamic, PAMM
Instruments Offered: Forex, Indices, Commodities, Metals, Energies, Shares, Bonds Cryptocurrencies
Trading Platform: cTrader, MT4, MT5, WebTrader, VPS hosting
Regulation: AFSL, ASIC, CySEC, FSA
Spreads From 0
Visit Broker Broker Review

FBS

Since: 2009

Offices:

Cyprus, Belize

Minimum Deposit: $1 , €10
Account currency: Euro
Leverage: 1:3000 
Accounts: Standard Account, Cent Account, Demo Standard Account, Demo Cent
Instruments Offered: Forex, Indices, Commodities, Metals, Energies, Shares, Cryptocurrencies
Trading Platform: MT4, MT5, Multiterminal, WebTrader, FBS Trader, VPS hosting
Regulation: CySEC, FSC, FSCA, ASIC
Spreads: From 1 pip
Visit Broker Broker Review

Conclusion

To Conclude DMA is short for Direct Market Access. As the name suggests, this type of trading gives traders direct access to the market, without going through a third party.

This type of trading is beneficial for experienced traders who want to trade large volumes and have the ability to execute complex orders.

In addition, DMA trading can be used to trade a variety of markets including forex, stocks, commodities, and more. One of the key advantages of DMA trading is that it can help traders avoid dealing with requotes and slippage.