Foreign exchange direct market access

Foreign exchange direct market access explained by professional forex trading experts, All you need to know about what is Forex direct market access.

What is Foreign exchange direct market access

Foreign exchange direct market access (FX DMA) refers to electronic facilities that match foreign exchange orders from individual investors and buy-side firms with bank market maker prices. FX DMA infrastructures, provided by independent FX agency desks such as DMALINK, consist of a front-end, API or FIX trading interfaces that disseminate price and available quantity data from multiple bank contributors and enables buy-side traders, both institutions in the interbank market and individuals trading retail forex in a low latency environment.

Other defining criteria of FX DMA:

  • Trades are matched solely on a price/time protocol. There are no re-quotes.
  • Platforms display the full range (0-9) of one-tenth pip or percentage in point consistent with professional FX market quotation protocols not half-pip pricing (0 or 5).
  • Anonymous platforms ensure neutral prices reflecting global FX market conditions, not a dealer’s knowledge or familiarity with a client’s trading methods, strategies, tactics or current position(s).
  • Enhanced control of trade execution by providing live, executable price and quantity data enabling a trader to see exactly at what price they can trade for the full amount of a transaction.
  • Orders are facilitated by agency brokers. The broker is not a market maker or liquidity destination on the DMA platform it provides to clients.
  • Market structures show variable spreads related to interbank market conditions, including volatility, pending or recently released news, as well as market maker trading flows. By definition, FX DMA market structures cannot show fixed spreads, which are indicative of dealer platforms.
  • Fees are either a fixed markup into the client’s dealing price and/or a commission.

Foreign exchange direct market accessConclusion

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