Forex DirectMarch 24, 2022 2023-01-14 12:09
You can trade on the physical market without the use of a middleman with forex direct market access (DMA). Get a leg up on the competition with Forex Direct, our DMA service that gives you better pricing, more liquidity, faster execution, and more control over your trades. Learn more about Forex Direct with IG, including the advantages of forex DMA and the associated fees.
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What is direct market access and how does it work?
Direct market access (DMA) is a kind of FX execution that gives traders direct access to the real market. FX trading is traditionally done through a forex broker, who will obtain quotes from exchanges and market makers and then present their client with the best price. However, DMA is an electronic trading system that allows you to see the various orders and prices for yourself before placing your trade.
It's vital to remember that while you're trading based on underlying market prices and depth, you're actually getting a CFD from us when you place a transaction. This is how the Forex DMA works:
- DMA shows the best bid and offer prices for a certain market, as well as additional prices on either side of the order book.
- When you place an order, your margin is immediately verified to make sure you have enough money to cover the margin on your planned trade.
- Your order is then placed in the market and a parallel CFD is built between you and the broker if the margin check is successful.
Forex Direct platforms
L2 – our free DMA platform
Terminals and APIs
Advantages of direct market access in forex
Direct market access has a number of advantages, including the ability to set your own pricing and interact directly with other market participants. DMA also has the following advantages:
Drawbacks of direct market access in forex
Because of the complex trading environment of forex DMA, there is the potential for greater risk and a few major drawbacks that you should be aware of before you begin trading: