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.