Is the DMA pattern the best mode for forex trading?

What is DMA mode?

In the DMA model, all customer orders are also directly tossed to liquidity providers. This automated service uses trades from professional market makers, banks or other major liquidity providers** to match customer orders.

DMA mode is sometimes difficult to distinguish from ECN and STP. However, DMA has better execution transparency and sends customer orders directly to the market. The true DMA model is a non-dealing desk execution model that provides market prices, which is more transparent from the trader's point of view.

In contrast, other brokers offer fast execution services that process client orders on their own and then decide whether to offset their risk with other liquidity providers. And traders may run into re-**.

ECN forex brokers also offer DMA services to their clients. There are also some STP brokers that claim to have DMA services, but in fact this is not the case. This needs to be carefully discerned.

What are the advantages of DMA STP?

First of all, the DMA platform is a true reflection of the global foreign exchange market. What the trader gets is very competitive and doesn't run into re-entry. This means that after the trader clicks the mouse, the trade is considered closed.

Moreover, the DMA model allows for any type of trading, including hedging, scalping, news trading, and many more.

In addition, DMA brokers do not offer fixed spreads, and their spreads are floating because the bids and offers in the real market are always changing.

The STP through train mode is the best deal.

Generally, MM and ECN are the majority, and there are also STPs. You said very little about this.

About DMA mode:

DMA - the full name is Direct Market Access, and the understanding of DMA (Direct Entrance to the Foreign Exchange Market) should be: an electronic device that matches the foreign exchange orders of individual investors with the ** of the market maker who buys the company's bank. Deliver ** and feasible quantity information directly between the bank and the buyer.

Whether it is the banking market where the institution is located or the retail foreign exchange transaction of individuals, it will be traded in a transparent and low-latency environment.

DMA advocates a philosophy. In this philosophy, trading is "equal for all", and ordinary traders can also enjoy the "VIP" and spreads of those institutions, ** traders. Traders are no longer needed in DMA, no further quotes are asked.

Institutions and traders around the world have entered the DMA platform** and traded. Once logged in, traders will be able to trade based on current global** or knowledge that is not limited to the broker, the client's trading methods, strategies, and natural movements affected by the trend.

Specifically, it is to introduce investors directly to the interbank market and trade with many of the world's leading banks. The platform using DMA technology provides ** that is not subject to manipulation and interference by the broker's back office. In such a platform, investors can conduct foreign exchange transactions in the most optimized environment, because the DMA platform data flow is directly from the world's first-class clearing houses.

Therefore, no matter how large the investor's trading volume is and what the state of the financial market is, the investor's order will be immediately matched.

About Forex Brokers:

Based on domestic politics·· For some reason, there are no foreign exchange dealers in China; The existing dealers are all foreign dealers who do the market in China.

Maintaining the DMA requirements of the bank channel requires high channel costs, but retail traders do not have enough spread profits, so generally such dealers are large customers, institutional customers, etc., or retail has different requirements for account amount, trading volume, additional transaction fees, etc.;

For general investors, you can consider the existing models close to the DMA concept, which are divided into: STP model and ECN model;

The representative brokers of the above two modes are FXDD and FXCM;