DMA pricing offers greater transparency and flexibility, ideal for advanced traders, and FP Markets is one of the few brokers to offer this service。

When trading with a stock or forex broker, you don't actually have direct access to the market。Instead, your order is first sent to the broker's trading desk and then forwarded to the market maker, who then looks for a matching counterparty on the exchange。It's a fairly lengthy process, but most traders don't mind using this system。However, advanced traders need to execute trades quickly and accurately, which is exactly what DMA pricing offers。

What is DMA CFD Trading?？

Direct market access (DMA) is an online trade execution mode that enables traders to trade directly on the order book of an exchange or liquidity provider。The order book contains a list of orders placed by buyers and sellers on the exchange.。These orders remain in the books until both the buyer and seller fulfill the order at a matching price。The ability to place and place orders directly on the order book provides traders with greater transparency and flexibility to choose their own prices without the need for a broker to mark up。

At the same time, a contract for difference (CFD) is a derivative product that allows traders to speculate on the price of an instrument without owning an asset, and the price is based on the actual price of the underlying instrument in the direct market.。

When a trader places an order using the DMA CFD trading system, the corresponding order will be sent to the direct market。The order placed on the exchange reflects the price, volume and order of the CFD.。And when the order is traded in the actual market, the trader's platform is updated accordingly。

How to do DMA trading in FP Markets？

FP Markets is one of the brokers offering DMA trading with over a decade of experience offering a wide range of trading services under the supervision of a number of financial institutions including ASIC Australia, CySEC Cyprus and FSA Saint Vincent and the Grenadines.。The broker is very popular among traders in different countries, with different levels of expertise and trading styles。FP Markets "DMA pricing is considered one of the best in the industry。

Maintaining an overnight position will not result in overnight / rollover fees reducing your income, so you don't have to worry about。FP Markets offers the most competitive swap rates in the industry by introducing swap points in the form of real-time swap rate listings on the MT4 and MT5 platforms。For example:

• ACWI: long position is -5.00, the short position is -2.50。
  ADAUSD: long position at -20.00, with a short position of -20.00。
  AGG: long position is -5.00, the short position is -2.50。

A supported trading platform is first required before you can start trading。In FP Markets, you can use the IRESS trading platform to do this。The IRESS Trader interface is a popular choice for DMA trading and is known for its fast execution, advanced order management, and various convenient functions (such as internal charting packages, access to secondary data, real-time news, alert functions, etc.)。

Now, in order to trade with DMA pricing, you need to first discover the trade。Browse the depth of the market to find the best bid and quote for you, which is risky and requires advanced market analysis, so experienced traders and large investors are more recommended。

Once you find the transaction you want to execute, place the DMA transaction on the platform。Make sure you have enough funds in your trading account and the broker will immediately pass the order to the liquidity provider and execute it without additional markup。In other words, the order will be deposited into your account at exactly the same execution price as required。

Advantages of DMA Pricing

• Different levels of liquidity bring greater transparency, allowing traders to trade based on the best bid and ask prices directly from liquidity providers。
  Trading is completely managed by the trader rather than the broker, so the former will have more control and flexibility over the transaction。
  Access to full market depth enables traders to become price setters, not just price takers。Traders can directly influence the demand and supply of the products they trade, and can also increase liquidity as sellers and obtain liquidity as buyers.。
  Find the widest range of assets on available exchanges for almost all trading styles。
  Executing trades is faster than ever, as DMA completely eliminates any dry trade between the trader and the market, which also results in no price re-quotes。
  Provides the opportunity to trade during the opening and closing bidding phases。
  Access to high-frequency trading, an algorithmic trading method that uses high-frequency data and trading tools to generate high turnover rates。

Disadvantages of DMA Pricing

• Successful trading requires a good understanding of markets and risk management systems。
  Traders must use a reliable trading platform with advanced technical infrastructure to get the benefits of DMA trading, and not many brokers can provide this quality standard because the maintenance costs are quite high.。
  DMA trading is heavily regulated and works well to ensure the safety of traders, but is less flexible than over-the-counter (OTC) trading。
  Only a few brokers offer DMA for retail traders unless you are an expert。
  Inactivity fees can be quite expensive if the trader is inactive for a long time。
  Many brokers today are using pricing techniques designed to find the best available price in the OTC and DMA markets, and DMA prices are not always better than OTC。

Conclusion

In summary, direct market access (DMA) systems allow traders to trade directly in financial markets without any intermediaries, giving traders greater control over their trading and wider access to the entire deep market.。DMA pricing is best for advanced traders or traders looking to make large orders。However, while DMA pricing has many advantages, there are still risks。Moreover, not many brokers offer this service to retail traders。FP Markets is obviously one of the few exceptions, so if you are interested in DMA CFD trading, please register with this broker。

FP Markets is a trusted global broker offering over 10,000 CFDs products covering Forex, Stocks, Indices, Commodities and Cryptocurrencies。The broker offers low commissions and as low as 0% through partnerships with leading banks and non-bank financial institutions..Original spread of 0 points。