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Direct market access

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Direct market access

3-minute read

DMA (direct market access) trading

Finally, let’s examine an advanced method of finding and executing trades: direct market access (DMA).

What is DMA?

Direct market access (DMA) is a form of FX execution that offers traders access to deep liquidity sourced from global banks and top-tier liquidity providers, all with no additional mark-up. Instead of paying a spread, traders get charged a commission for each trade

Direct market access brings several benefits for experienced traders, giving you greater transparency and control.

With DMA, you can see the order book for your chosen market, including orders and quotes. This is called total depth of market and offers deeper market insight – as well as the ability to trade at the best buy and sell prices provided directly by the top-tier liquidity sources.

With FOREX.com, DMA traders also benefit from reduced commissions based on the volume they trade. Volume discounts are calculated based on a three-month rolling average, allowing you to benefit from deep discounts month-over-month.

How does DMA work?

DMA works by giving you access to multiple levels of liquidity, displayed in real time. You can view pricing available on either side of our order book and have the ability to execute orders from the top spreads.

This allows you to gain exposure to deeper pools of liquidity with straightforward, transparent pricing from market-leading providers.

FOREX.com DMA

To trade on DMA with FOREX.com, you’ll need to open a DMA account. Once it’s live, you’ll be able to access DMA from our full suite of trading apps and platforms, including web trading, advanced and mobile. However, we would recommend using our web trading platform for the optimum DMA trading experience.

The FOREX.com Direct Market Access deal ticket is designed to provide traders with greater visibility into the FX market.

Bear in mind, this doesn't necessarily mean that the top-of-book prices will always be better than our standard pricing. Factors such as size of trade and time of day can impact the tightness of the bid/ask spread.

We charge you a standard commission and you’ll earn discounted commissions based on your trading volume. The more you trade, the deeper the discount the following month.

What types of traders use DMA?

DMA is typically used by expert traders who buy and sell in large volumes and are looking to minimise costs. If you only take a couple of trades each month, the product might not be for you due to the volume requirements.

DMA is more suitable for professional or institutional level traders, and there are specific regulatory requirements traders must meet in some jurisdictions.

DMA account holders need to hold more capital in their accounts, and can forgo some of the protections offered to retail traders.

Benefits of direct market access

There are various advantages with direct market access, such as setting prices you want to deal at and dealing directly with other market participants. Other benefits include:

  • Faster execution
  • Forex market transparency
  • Increased data on currency pairs
  • Prices from a wide selection of global banks and liquidity providers
  • Commissions instead of spread charges

Drawbacks of DMA

While DMA can be powerful, it isn’t for everyone. If you aren’t an expert trader who deals in large volumes, you might want to stick to a standard account. You should also be aware that:

  • You won’t necessarily find a better price with DMA
  • DMA accounts can’t access the Active Trader program
  • The minimum trade size for DMA is 100k

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