DMA – Direct Market Access Transactions
What is a Direct Market Access Transaction?
Direct Market Access Transactions Allowing Private Investors to Trade Shares Without Brokers
Private investors usually buy and sell stocks from brokers acting as intermediaries with market makers And equities and other financial instruments. The use of DMA private investors has greater control over their transactions, although intermediaries have not yet been completely eliminated because traders still need to use proxy services, despite offering DMA services
Advantages of DMA Transactions are Investments Can be traded within the spread. Typically, brokers quote prices such as 320-325, which means you buy at 325, but you sell 5 spreads at 320, known as the "spread." Obviously, if you can trade in spreads, this is an advantage because it means that the price of a financial instrument does not need to be moved to make sure you make a profit
DAM Advantages for Private Investors are:
You can see the whole market. This allows all participants "full contribution to central market liquidity"
Visibility of Order Book Depth
This visibility ensures that traders know how many buyers and sellers they are willing to You can set your own price
Limit orders can be set at the price selected by the trader, these prices available to the entire market
The difference is smaller
The limit order is displayed publicly, thus ensuring a tight spread. This facilitates placing orders for traders, who have greater chances of getting the specified price.
Private trader can participate in the auction before and after the market, it is there
DMA trading has obvious advantages, I doubt over time it Will become more available.