Are you looking for the best forex brokers that are also DMA brokers because you want to trade with deep liquidity and avoid market makers?
Do you want to know what are the best DMA brokers specifically in the UK or Australia?
We can help you.
DMA trading can be provided in several different ways with brokers usually striking deals with various banks and other liquidity providers to get hold of the best market access possible.
But not all brokers can provide retail forex traders with the DMA trading experience they really want.
On top of that, they may lack the tools needed to really take advantage of that liquidity. Whatever broker you decide to use, make sure they can accommodate your trading style.
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Top 10 Best Dma Forex Brokers Of 2020
Here are some of the best DMA brokers we have found:
What is DMA?
DMA stands for Direct Market Access and is an excellent way for traders to gain access to the best possible rates when trading. This is made possible due to the fact that DMA brokers typically have access to a wider range of global banks, and other types of liquidity providers that they can quote from directly to DMA account holders.
It is somewhat similar to STP processing, but again provides access to more extensive sources of liquidity to provide the best quotes. DMA brokers do not control these quotes that they receive in any way.
How does it work?
The process of DMA is quite simple, and literally allows the trader to access the market and quotes from the liquidity providers in a more direct manner.
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
Like every form of trading, there are some pros and cons associated with choosing DMA
- 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.
- Due to the fact there are no mark-ups with DMA quotes, it is not uncommon for 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.
Top 5 Best DMA Forex Brokers UK for 2020
While UK DMA forex brokers happen to be some of the best, there are, unfortunately, plenty of brokers that falsely claim to offer DMA execution.
To make things worse, there are also a number of poorly-informed websites that claim a broker is DMA, but they are just feeding you wrong information. In reality, there are only a handful of true UK DMA forex brokers, and they are hard to come by.
Why look for a UK DMA broker?
Well, not only do they offer some of the best services, they are also regulated by the FCA, one of the most reputable regulators in the world.
Here’s our detailed list of the best UK DMA forex brokers (regulated or authorized by FCA) according to our research:
Top 6 Best DMA Forex Brokers Australia for 2020
If you’re looking for an Australian DMA (Direct Market Access) forex broker, then you already know that DMA CFD brokers in Australia are some of the best.
Not only do they benefit from ASIC regulation, but they also provide some of the best services. Unfortunately, the internet is littered with websites stating which Australian brokers are DMA and which aren’t.
The fact is true DMA forex brokers in Australia are actually hard to come by and you shouldn’t trust the first source you come across. Always do plenty of research when looking into Australian DMA forex brokers!
Here’s our detailed list of the best Australian DMA forex brokers (regulated or authorized by ASIC) according to our research: