DMA BROKERS

DMA brokers are relatively new, but in order to fully understand what they are, let’s first break down the acronym DMA: Direct Market Access.

Direct market access allows traders to place Buy or Sell orders directly with the exchange order book. Traditionally, direct trading with the help of the order book was available only for broker-dealers and market-makers, yet the DMA allows private organizations and investors to deal with it. This service is also available for some retail online brokers. Such services are called DMA brokers because they give you the opportunity to benefit from market book.

The classic method of transactions involves brokers obtaining quotes from market makers, after which the broker offers the best quotes, meaning one value prices at any given time. Next, the trader decides to accept the quotation or not.

As for DMA brokers, they allow traders to see different prices of different market orders, and based on this, place their own orders without involving intermediaries. This method of trading has many advantages.