Best DMA Forex Brokers - List

In forex trading, investors usually access the market through brokers because they do not have access to liquidity providers on their own. These liquidity providers have access to the much deeper interbank market where the real prices of currencies are set. However, some serious traders seek a more direct connection to the market. This is where Direct Market Access (DMA) forex brokers come in. They link their clients to the liquidity providers in the interbank market giving them direct access to the market. This review highlights a list of some of the best DMA forex brokers available to traders. 

Understanding DMA Forex Brokers

Before delving into the specifics of the best DMA Forex brokers, it is essential to understand what DMA Forex brokers are. Traditional retail brokers act as intermediaries between traders and the interbank market where financial institutions like banks trade currencies. The interbank market is where prices of currencies are set. DMA Forex brokers provide direct access to the interbank market meaning that investors gain access to real market prices provided by liquidity providers. There are various key advantages that traders gain by using DMA forex brokers. Here are a few.

Key Advantages of DMA Brokers

  • Transparency - DMA brokers route orders directly to the liquidity providers, offering complete transparency into bid and ask prices.
  • Faster Execution - Orders are fulfilled using sophisticated systems, minimising delays and ensuring near-instantaneous execution.
  • Greater Control - Traders have more control over order types and execution parameters, allowing for more sophisticated trading strategies.
  • Potentially tighter spreads - With direct access to liquidity pools, DMA brokers can offer tighter spreads compared to traditional brokers who mark up prices.

Potential Drawbacks of DMA Brokers

  • Higher Costs - Commissions are typically charged on each trade to compensate for the broker's role in order routing.
  • Increased Responsibility - DMA requires a deeper understanding of market dynamics and risk management strategies.

With that out of the way, let’s now shift our focus to some of the best DMA forex brokers in the world.

Best DMA Forex Brokers - List

Pepperstone

Pepperstone is a globally recognised broker celebrated for its exceptional trading conditions and comprehensive suite of offerings. Notably, Pepperstone stands out in the trading world for its Direct Market Access feature, which allows traders to directly market prices from the underlying market. This direct connection enables faster execution speeds, reduced spillage, and more competitive pricing. Above all, traders benefit from real-time market access, which is particularly advantageous for high-frequency and scalping strategies.

Pepperstone has competitive trading conditions. Traders can choose between two main account types: standard and raw. The standard account offers attractive spreads, starting from just 1.0 pip for major currency pairs, with no additional commissions. In contrast, the raw account delivers spreads starting from 0.0 pips. However, the raw account comes with commission fees that depend on the trading platform a trader uses. MetaTrader platforms (MT4 & MT5), TradingView, and Pepperstone's own platform all charge a commission of $3.5, per side per lot. If you opt for cTrader, you'll benefit from a slightly lower commission fee of $3 per side, per lot.

Finally, Peppestone’s operations are overseen by several regulatory bodies in the financial world. These include the ASIC, the FCA in the UK, and the CySEC in Cyprus, among others.

75.9% of retail CFD accounts lose money

FP Markets

FP Markets is a reputable forex and CFDs broker offering a wide range of trading instruments. It distinguishes itself from the rest with robust features and accessibility. On this broker site, traders can get both ECN pricing and DMA pricing. Under DMA pricing, receive live market prices from the underlying market, full market depth, and direct access to the exchange order book. 

Notably, FP Markets supports a wide range of asset classes, including forex and CFDs on indices, metals, stocks, commodities, ETFs, and bonds. In total, traders gain access to over 10,000 market products. To place orders in these markets, traders have access to five different trading platforms. These include MetaTrader 4, MetaTrader 5, cTrader, TradingView, and Iress.

Regarding spreads involved, there are two main trading accounts to choose from. The Standard account boasts spreads starting from as low as 1.0 pips for major currency pairs and no commission is required. In contrast, the Raw account features spreads from 0.0 pips for major currency pairs and charges a commission of $3 per side per lot.

Traders should only ever invest with brokers that have reliable regulations. Luckily, FP Markets has regulations from a variety of organizations. These include the ASIC in Australia, the CySEC in Cyprus, and the FSCA in South Africa, among others. This strong regulatory oversight is one of the reasons why FP Markets. 

72.92% of retail CFD accounts lose money

XTB

XTB was established in 2002 and is now one of the largest brokers in the market. This broker offers its traders DMA execution, especially for share trading. This model ensures that orders reach the order book on the exchange without needing a dealing desk. Moreover, smart order routing ensures that orders are routed to the venue offering the best execution price. As such, this DMA feature caters to traders who seek deeper liquidity, affordability, and more transparent pricing.

On another note. XTB operates under the watchful eyes of top-tier regulators. Accordingly, the multi-jurisdictional oversight ensures a high level of security for client funds and strict operational standards. The organisations that regulate XTB include the CySEC in Cyprus, the FCA in the UK, the KNF in Poland, and the FSCA in South Africa.

Concerning market products, this broker allows investors to access over 1,000 different market instruments. This includes CFDs on forex currencies, commodities, cryptocurrencies, stock indexes, individual stocks, and ETFs. With such a broad range of choices, you can tailor your investment strategy to fit your preferences. XTB offers its own trading platforms, xStation 5 for desktop users and its mobile app for Android and iOS devices.

On spreads, the broker offers spreads as low as 0.5 pips for major currency pairs with no commission fees on its standard account. However, the swap-free account has slightly higher spreads starting at 0.7 pips, but they also come without commissions. 

69-74% of retail investor accounts lose money when trading CFDs with this provider.

Forex.com

Forex.com offers DMA execution to its traders, allowing them to access market prices from its liquidity providers. Upon receipt of an order from you as the customer, Forex.com will attempt to place a financially equivalent order with its DMA Services liquidity providers. Upon receipt of confirmation of the fill price from the liquidity provider, Forex.com will fill your order request, in part or in full, at the exact same price acting as a counterparty to your trade. 

Forex.com offers a wide range of tradable instruments, but availability differs depending on your location. Global clients (excluding the US) can trade CFDs on forex, Indices, stocks, commodities, and cryptocurrencies. In contrast, US clients can trade actual forex pairs, real stocks, futures and futures options. The spreads on this broker site are within industry standard starting from 1.0 pips on the standard and the MT4 accounts with no commission charged.

Forex.com prioritizes regulatory oversight with licenses from a variety of financial institutions. These include the CySEC (Cyprus), the ASIC (Australia), the IIROC (Canada), and the FCA (UK), among others.

75-76% of retail investor accounts lose money when trading CFDs with this provider.

IG

IG’s DMA trading feature gives traders direct access to deep liquidity pools, allowing them to capitalize on better transparency. However, this DMA feature is for forex and shares group of assets. Interestingly, DMA prices are not necessarily better than OTC on this broker site. This is because its pricing technology is engineered to find the best available prices for both. The company’s own L2Dealer is the platform that traders use to access DMA services on the broker site This platform has an intuitive interface and offers Depth-of-Market capabilities to traders.

Other than shares and forex, this broker also allows its traders to access over 17,000 other market products. These include assets from global markets such as indices, commodities, cryptocurrencies, and ETFs. In terms of trading costs, IG offers competitive spreads. The average spreads can fall as low as 0.6 pips for major currency pairs. The company supports trading on MT4 and provides access to the AutoChartist analytical software.

To ensure trust and security, this broker is licensed by top financial regulators like the FCA, ASIC, FSCA, and FINMA (Switzerland), among others. This assures traders of their legitimacy.

70-74% of retail investor accounts lose money when trading CFDs with this provider.

Admiral Markets

Admirals Admiral Markets is the last broker we will feature on this DMA forex broker list. This DMA broker passes its clients’ orders straight to its liquidity pool with a small markup spread by the broker. Traders can easily place orders and execute trades in real-time with transparency on price and volume. There is no market making involved, eliminating any conflict of interest from the broker’s end.

Positively, traders can access a wide range of global markets including forex, commodities, indices, stocks, ETFs, and bonds. These markets are accessible through user-friendly platforms such as MetaTrader 4, MetaTrader 5, WebTrader, and the Admirals Mobile App. The spreads are within market standards and depend on the account that a trader uses.

Specifically, the Trade.MT5 account offers spreads starting from as low as 0.5 pips on major currency pairs, and no commission on most instruments. In contrast, the other account options offer even tighter spreads, starting from 0 pips. However, these accounts come with commission fees ranging from $1.8 to $3 per lot depending on the specific account you choose.

Finally, Admiral Markets has regulations and licenses from reputable organizations. This broker operates under the regulation of the CySEC in Cyprus, the FCA in the UK, the FSCA in South Africa, and the CMA in Kenya.

Closing Remarks

DMA Forex brokers provide many advantages, such as transparency, direct market access, and the absence of conflict of interest. These are the reasons why these brokers are widely popular among traders worldwide. This review has highlighted some of the best DMA Forex brokers available to traders. Each broker offers unique features and benefits, catering to different types of traders. As such, it's important to carefully consider your trading needs and preferences before choosing a DMA forex broker. Moreover, this list is not meant to be exhaustive. There are other DMA brokers that we did not feature here that may better suit you.

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