IC Markets
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7 Best DMA Forex Brokers for 2023
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XTB
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IG Markets
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Forex.com
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Admirals
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FP Markets
Visit FP Markets74-89% of retail CFD accounts lose money -
Saxo Bank
Visit Saxo Bank72% of retail investor accounts lose money
A DMA forex broker refers to a forex (Foreign Exchange) brokerage firm with Direct Market Access (DMA) capabilities.
Direct Market Access (DMA) refers to a trading method that provides traders with direct access to the interbank market where the actual currency trading takes place. Unlike traditional brokers that act as market makers, DMA forex brokers allow investors to interact directly with the liquidity providers, including banks and financial institutions that offer currency trading.
In this article we have chosen some of the best DMA forex brokers taking into consideration different factors, which are listed below:
- DMA features overall
- Minimum deposit requested by the broker
- Assets of the broker
- Spreads charged by the broker
- Platforms offered by the broker
Table of Content
What are the best DMA forex brokers?
Below is our specially curated lineup of the best Direct Market Access brokers for forex and other assets, emphasizing their prime features and advantages.
IC Markets : best DMA execution overall
- IC Markets provides an excellent ECN/DMA service thanks to its intricate web of market participants that includes high-level banks and dark pools.
- No minimum deposit required to open an IC account.
- IC provides a huge range of markets including CFDs on indices, commodities, stocks, futures, bonds, and crypto which are all available.
- IC Markets spreads start from 0 pips with very fast execution speeds.
- The platforms available for IC clients are MT4, MT5, and cTrader.
XTB : best proprietary platform offer
- XTB offers traders some of the best execution speeds available today thanks to the xStation5.
- With XTB, it is possible to trade DMA Stock as CFDs.
- XTB imposes no minimum deposit for clients to start using.
- XTB offers an extensive range of assets, 5,200 in total, including 48 forex pairs.
- The spreads charged by XTB are very competitive, starting as low as 0.1 pips on forex.
IG Markets : best for number of assets
- Over the years IG Markets has developed a good range of tools for DMA usage.
- IG also offers the L2 Dealer platform, a downloadable DMA platform specifically for forex and shares trading, which also offers the ability to automate trades.
- The IG minimum deposit requested is $300.
- There are more than 17,000 IG assets to choose from, including vanilla options, barriers and 80 forex pairs.
- The IG spread remains at excellent value starting from 0.6 pips.
Forex.com : best forex liquidity
- Forex.com gives a great market access provided by a range of top tier global banks and other liquidity providers to give traders the most accurate prices.
- You need just a $100 minimum deposit to open a Forex.com account.
- With Forex.com, traders can sign up for a DMA Account which can be used on all three of their available platforms, advanced trading, web platform, and mobile.
- Forex.com spreads start from 0.2 pips on forex, and fixed spread only trading is available on commodities.
Admirals : best MetaTrader broker
- Admirals work extensively with a variety of top liquidity providers to ensure the best possible DMA trading environment for traders.
- Admirals minimum deposit is a very competitive $100.
- Admirals provides a great range of assets, with more than 4,000 assets available that includes bonds, ETFs, and cryptocurrencies.
- Competitive trading costs that start from 0 pips on forex with both MT4 and MT5.
FP Markets : best trading costs
- FP Markets provides excellent access to the best value pricing through DMA and connection with a number of top liquidity providers.
- The speed of execution with FP Markets is some of the fastest, most efficient of the market.
- Several assets are provided to FP Markets clients, including 10,000+ stocks which can be traded with DMA execution via the IRESS platform.
- FP Markets requests a minimum deposit of $100 in order to start trading.
- FP offers very low trading costs and spreads starting from 0 pips.
Saxo Bank : best for professional clients
- Saxo Bank uses its deep DMA liquidity to service institutional clients.
- Saxo Banks provides a wide range of assets for trading that includes bonds, and mutual funds, as well as a massive total of 182 forex pairs.
- The Saxo minimum deposit on these ranges from $2,000, $200,000, and $1,000,000 respectively.
- Saxo costs are competitive with spreads starting at 0.4 pips.
What are the characteristics of DMA brokers?
DMA offers a high level of price transparency, allowing traders to view actual market prices and available liquidity at different price levels.
Unlike market makers, DMA forex brokers don’t act as the counterpart to a trader’s position, and the concept is similar to what ECN brokers do. They provide direct access to the interbank market, implying they don’t create a market for clients but facilitate direct order execution.
The pricing model for these brokers grants traders access to genuine market prices, and they encounter variable spreads that mirror real-time market conditions. Instead of profiting from the bid-ask spread, DMA brokers generally charge a service commission.
A notable benefit of DMA is its ability to offer faster trade execution since transactions are directed straight to the market, bypassing any dealing desk. This speed is particularly advantageous for strategies that hinge on swift execution.
One of the hallmarks of the DMA environment is its egalitarian nature; all participants, be they retail or institutional, enjoy equal access to market prices and liquidity.
The DMA structure also presents an opportunity for traders to achieve better prices. They can place orders within or between the prevailing bid and ask prices, which can lead to price improvements during favorable market shifts.
However, it’s essential to recognize that DMA trading leans toward the intricate side. It usually mandates the use of advanced trading platforms and technology, catering primarily to seasoned and professional traders.
How does DMA trading work?
DMA forex brokers allow the trader to access the forex market and quotes from the liquidity providers without a dealing desk intervention from the broker itself.
The broker collects and provides the best quotes from their liquidity providers that they have access to.
The best from these quotes is then passed on to the trader who in turn connects directly with these bid/ask quotes on the open market.
Pros and Cons of DMA brokers
Like every form of trading, there are some pros and cons associated with choosing DMA
Pros
- The fact that there is no dealing desk when you use DMA means you have better flexibility and access to the very best price quotes.
- The prices that you receive through DMA are not subject to any further mark-up.
- Slippage is not a factor when you are receiving quotes through DMA.
- Ultimately, the spread through DMA is typically much lower. This makes it good for many traders, scalpers in particular.
Cons
- Due to the fact there are no mark-ups with DMA quotes, it is not uncommon for forex brokers to add or charge a commission on DMA trades.
- Because of the better prices offered, minimum deposits can sometimes be higher when opening a DMA account.
- If an asset is offered through DMA execution, it will always come with a variable spread. Fixed spread on DMA assets is unavailable.
About The Author
Filippo Ucchino
Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.
7 Best DMA Forex Brokers for 2023
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