Direct Market Access Brokers (DMA) differ from types of brokerages like ECN and no dealing desk (NDD) as you can execute orders directly through electronic order books at the exchange. Below, we review the best DMA brokers for forex and shares.
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Our best DMA broker 2023 list is:
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
7.28 |
FCA, CySEC, CIMA NFA/CFTC, CIRO, JFSA |
1.2 | 1.6 | 1.4 | - | - | - | $6.00 |
|
|
|
30 ms (May 2023) | $100 | 80+ | 8+ | 30:1 | 400:1 |
|
|
6.67 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
|
|
|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
|
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8.17 | ASIC, CySEC | 1.1 | 1.3 | 1.3 | 0.10 | 0.20 | 0.20 | $3.00 |
|
|
|
225ms | $100 | 63+ | 4+ | 30:1 | 500:1 |
|
|
9.33 |
SCG, ASIC FCA, CySEC |
1.12 | 1.69 | 1.22 | 0.1 | 0.6 | 0.3 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
|
8.50 |
ASIC, FSA CySEC |
0.62 | 0.83 | 0.77 | 0.02 | 0.23 | 0.17 | $3.50 |
|
|
|
134ms | $0 | 61+ | 18+ | 30:1 | 500:1 |
|
|
FCA, FSCA, CYSEC DFSA,CMA,FSA |
1.2 | 1.9 | 1.8 | 0.1 | 0.3 | 0.7 | $3.00 |
|
|
|
$0 | 38+ | 19+ |
|
Direct Market Access (DMA) offers traders direct access to the order books of central market exchanges. Forex brokers with DMA have greater market depth (liquidity) and superior spreads, with the top brokers offering this feature listed below.
Forex Panel Score
Average Spread
EUR/USD = 1.2
GBP/USD = 1.6
AUD/USD = 1.4
Trading Platforms
MT4, MT5,
FOREX.com Trading Platform
Minimum Deposit
$100
Why We Recommend FOREX.com
We liked that FOREX.com sources its spreads directly from some of the most reputable liquidity providers. In our experience, this platform offers an edge in the possibility of enjoying lower costs and better trade execution. Many people often question, “Is DMA only for big-time traders?” While preferred by institutional investors, it’s open to everyone.
Pros & Cons
Broker Details
After evaluating FOREX.com and its Direct Market Access (DMA) service, we found several noteworthy points. They derive their spreads directly from top-tier liquidity providers. Though available for all, the DMA trading account caters primarily to institutional investors. The requirement to trade in increments of 100k as the minimum trade size underscores this. The minimum deposit is $100, but considering the nature of DMA trading, FOREX.com suggests a deposit of $25,000 for a more comprehensive experience.
The DMA account offers access to 88 currency pairs for those focusing exclusively on forex. The commission structure is based on a rolling system — essentially, the more you trade, the less you might pay in commissions. For context, if your trading volume surpasses $2B, you could experience a commission reduction of up to 67%.
When signing up, it’s crucial to request a DMA account. Existing FOREX.com users have the option to switch to DMA. For those in the US, the equivalent is the STP Pro account. One limitation we observed is that this DMA service is strictly available on FOREX.com’s proprietary platforms. Those using the mobile app will find themselves limited to top-of-book pricing. Moreover, those accustomed to MetaTrader 4 and 5 will find DMA trading unavailable on these platforms.
The DMA account does offer additional features:
Note: Traders with a DMA account will not be eligible for Active traders accounts.
Advanced Trading Platform
This is a FOREX.com proprietary trading platform that comes with a range of powerful trading features. Here are our observations:
Forex Panel Score
Average Spread
EUR/USD = 1.13
GBP/USD = 1.66
AUD/USD = 1.01
Trading Platforms
MT4, L2 Dealer,
IG Trading Platform,
ProRealTime
Minimum Deposit
$250-450
Why We Recommend IG
We liked that IG Markets caters to the specific needs of its clients. While they predominantly use a Market Maker model, making most of their products spread-only, they also acknowledge the need for precise market price and liquidity assessment. This dual approach ensures that traders get the best of both worlds.
Pros & Cons
Broker Details
Being among the global leaders in stockbroking, IG Markets predominantly employs a Market Maker model, which generally translates to most of their products being spread-only. Nonetheless, they’ve acknowledged that a segment of their clientele desires a deeper insight into market pricing and liquidity. Addressing this, IG Markets has introduced L2 DMA-enabled trading platforms, namely:
The main thing to be aware of is that you must set your chosen platform to DMA. This means activating either of the following accounts:
L2 Dealer – Trading Platform
The L2 Dealer platform is tailored for DMA trading, spanning Forex, CFD Shares, and Shares outright. ‘L2’ or ‘Level 2’ is essentially synonymous with DMA trading.
To clarify, while Level 1 trading sources prices directly from an exchange, Level 2 allows traders to engage with the exchange’s order book.
While l2 Dealer offers all the benefits of DMA trading, there are a few factors to keep in mind. These are:
IG Trading Platform And iOS App
In addition to l2 Dealer, DMA trading is also available on IG’s primary trading platform, IG Trading Platform. The thing to know about this platform is that you will not be using DMA by default. Traders using this platform will have market-maker execution, which means spreads don’t have commissions. You will need to activate DMA mode in order to take advantage of this feature.
The major difference between L2 dealer and IG Trading Platform is the following:
IG Spreads
IG extends DMA pricing for forex and shares CFD markets, allowing traders to navigate the forex landscape transparently, sourcing prices from an extensive array of liquidity providers. A commendable trait of IG Markets is their transparent display of average DMA forex spreads on their site, though it’s worth noting that the displayed spreads date back to February 2023 and may now be outdated.
DMA Share CFD Commission Costs
When trading share CFDs, the commission costs are slightly different. Instead of having a variable commission, they just charge a standard commission of $3.50USD per side.
Forex Commission Costs
Depending on the size of the trade placed in the forex market, there are commission charges accordingly, as shown below. Forex trades involve varying commissions contingent on the trading volume of the preceding month. For instance, if your trade volume was $300 million USD in the past month, a commission of $30 will apply for every $1 million USD you trade subsequently.
Forex Panel Score
Average Spread
EUR/USD = 1.2
GBP/USD = 1.9
AUD/USD = 1.8
Trading Platforms
MT4, MT5
Minimum Deposit
$0
Why We Recommend HF Markets
We liked that HF Markets provides DMA pricing for equities from global exchanges. This is bolstered by their integration with the highly regarded MT 5 trading platform. In our experience, the combination ensures smooth and effective share trading. HF Markets is a clear front-runner for those seeking MetaTrader 5 for DMA share trading.
Pros & Cons
Broker Details
HF Markets (formerly HotForex) extends DMA pricing to its clients, allowing them to trade stocks from various global exchanges. As we discovered, you can effortlessly trade stocks via the highly acclaimed MetaTrader 5 trading platform.
Some 950 different stocks are available across major exchanges in the following countries:
Trading DMA shares through HF Markets, the leverage is capped at 1:14.
HF Markets Costs For Stocks
When we ventured into buying stocks using a Shares DMA account, the incurred cost stood at 0.01 USD/0.02 EUR per deal. Quite distinct from their Shares CFD, which comes with a 0.1% fee. And if you’re curious, we also explored ETF trading via DMA.
We noticed there’s no set minimum deposit. However, be prepared to meet the margin requirement, which was a 20% margin (equivalent to 1:5 leverage).
HF Markets Platforms
For DMA stock trading, we primarily used the MetaTrader 5 trading platform. In contrast to MetaTrader 4, which we found lacks the Depth of Market capability, MetaTrader 5 is tailored for centralised and decentralised exchanges – aligning it well with DMA trading.
MetaTrader 5 offers the following features that make it stand out as a trading platform:
Why DMA Trading Execution Is Overrated
For many, DMA trading execution appears as an attractive proposition. However, from our hands-on experience, retail traders might not always find the most value. DMA has certain theoretical perks, but its real-world advantages seem tailored for institutional players. Unless you are an institutional trader, you are likely better off using more common order execution models such as Electronic Communication Networks (ECN), Straight Through Processing (STP), and even Market Maker models (in some cases).
Reasons retail traders should consider other execution models over DMA include:
While the above 5 reasons highlight why making an effort to find a DMA broker, the most compelling reasons are they don’t really save you, and they cost you time.
While DMA presents opportunities like viewing order books, it might not always guarantee cost savings or efficient trading for retail traders. Comparatively, STP, ECN, or even Dealing Desk might be more viable choices. As a retail trader, we found more advantages in opting for a broker offering executions other than DMA.
Forex Panel Score
Average Spread
EUR/USD = 1.1
GBP/USD = 1.3
AUD/USD = 0.2
Trading Platforms
MT4, MT5
Minimum Deposit
$100
Why We Recommend FP Markets
We liked how FP Markets consistently delivers some of the best spreads we’ve seen, thanks to their STP trading. With their Raw account operating on a no-dealing desk model, they offer true ECN pricing. These spreads, provided directly by liquidity providers, are kept “raw”, ensuring that traders get the most competitive rates. We’ve noted spreads dipping to as low as 0.0 pips, especially for the EUR/USD pair.
Pros & Cons
Broker Details
FP Markets is a prominent MetaTrader 4 and MetaTrader 5 forex broker, offering STP trading with truly competitive spreads. Their Raw account, which we tried out, operates in a no-dealing desk style, providing ECN pricing. What this means for you: the spread quotes come directly from liquidity providers, effectively keeping the spreads ‘raw’. This setup allows FP Markets to maintain ultra-tight spreads, which we observed dropping to as low as 0.0 pips, especially on pairs like EUR/USD.
Apart from STP, we noted FP Markets also offers DMA trading for stocks on their IRESS trading platform. Interestingly, while forex is available on this platform, it uses ECN pricing instead of DMA. For those keen on DMA share trading, our review also touches upon IRESS.
FP Market Raw Account
FP Markets offers two primary trading accounts – the Standard account and the Raw account. We chose not to delve into the Standard account for this review mainly because we believe other brokers, like Pepperstone, provide better spreads for no-commission accounts. Our focus, therefore, was on the Raw account, which boasts the best spreads FP Markets has to offer and stands tall among its competitors.
In our experience, the Raw account’s ECN-pricing mechanism keeps spread costs impressively low. Below, we’ve provided a comparison of average spreads between FP Markets and other brokers based on our monthly checks:
|
ECN Broker Spreads
|
|||||
|---|---|---|---|---|---|
|
0.20 | 0.30 | 0.10 | 0.30 | 0.20 |
|
0.47 | 0.50 | 0.12 | 0.40 | 0.22 |
|
0.20 | 0.30 | 0.20 | 0.40 | 0.20 |
|
0.50 | 0.60 | 0.30 | 0.50 | 0.50 |
|
0.30 | N/A | 0.30 | 0.50 | 0.40 |
|
0.20 | 0.83 | 0.44 | 0.40 | 0.42 |
|
0.24 | N/A | 0.17 | 0.54 | 0.30 |
|
0.30 | 0.70 | 0.20 | 0.50 | 0.40 |
|
0.30 | 1.10 | 0.10 | 0.60 | 0.50 |
|
n/a | 0.30 | n/a | 0.60 | 0.50 |
|
0.77 | 1.41 | 0.44 | 1.13 | 1.23 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Commissions costs are AUD$3.50 / USD$3.00 for each lot (100,000) to open your position and AUD$7.00 / USD $6.00 round-turn.
FP Markets CFD Trading Products
Our team had the opportunity to trade numerous products at FP Markets. These include over 60 currency pairs and more than 19 major indices such as AUS200, US30, and the USD dollar index. You can also Trade Cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
,If share trading is on your radar, the MetaTrader 5 platform offers a vast range of over 700 shares across major international exchanges including Paris, London, New York, NASDAQ, Frankfurt, Hong Kong, and Amsterdam. However, if you’re using the MetaTrader 4 platform, the share options are limited to stocks like Adidas, Volkswagen, Shell, Vodafone, Amazon, Apple, Google, and Facebook.
If you really want to get the best share trading conditions and range of products, then you should consider using the IRESS trading platform.
IRESS Trading Platform
If you want access to the full range of shares FP Markets offers, which is over 10,000, then you need to be using the IRESS trading platform. This platform is exclusive for use by Australian traders as it is only offered by First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354), which is the Australian arm of the company.
Here are our reasons for recommending the IRESS trading platform:
During our interactions with FP Markets, they shared that the spread differences for shares trading between IRESS and MetaTrader 5 are minimal, even with IRESS using DMA and MT5 using STP. Their advice? Focus on your trading preferences. If shares or indices are your mainstay, IRESS might be your best bet.
Note: If you are outside Australia and wish to use IRESS, then consider TMGM.
FP Markets IRESS Trading Accounts And Commission
Intending to venture with the IRESS trading platform? FP Markets offers three distinct account types. A point to remember: there’s a high minimum balance requirement. The Standard account, for instance, demands a minimum balance of $1,000.
FP Markets IRESS Platform
With DMA pricing in mind, our team got hands-on with FP Markets’ innovative IRESS platform. They offer multiple versions of IRESS, from their premium IRESS Viewpoint to their mobile application. Here’s what we observed:
IRESS Viewpoint
IRESS Viewpoint is an advanced comprehensive trading platform that gives you access to the global markets with confidence.
IRESS Trader
IRESS Trader is the partner to Viewpoint and is the only platform that you can perform DMA execution. This platform will stream market data across a range of markets right to your device.
IRESS Viewpoint Essential
IRESS Viewpoint Essential combines the previous two platforms into an all-in-one CFD trader. We should note that this platform does not allow for DMA pricing or trading.
Regulation
FP Markets is regulated in Australia by the Australian Securities Exchange Commission(ASIC) in Australia and the Financial Conduct Authority (FCA) in the UK.
Forex Panel Score
Average Spread
EUR/USD = 1.12
GBP/USD = 1.69
AUD/USD = 1.22
Trading Platforms
MT4, MT5, cTrader,
TradingView, Capitalise.ai
Minimum Deposit
$0
Why We Recommend Pepperstone
Pepperstone consistently delivers among the industry’s lowest spreads for their basic and razor account types, thanks to their advanced pricing improvement technologies. Knowing that multiple global regulatory bodies oversee this broker is also reassuring. In our experience, if you’re looking for a top-tier broker with no commissions, Pepperstone is the clear choice. We’ve tested it and can vouch for its credibility.
Pros & Cons
Broker Details
We’ve found Pepperstone to be one of the premier brokers operating under a no-dealing desk or ECN/STP execution model. Through our experience, they consistently offer some of the tightest spreads in the market, be it for their standard or razor account types, and this is primarily attributed to their price improvement technology. We’re particularly impressed by how Pepperstone operates under many regulatory bodies globally, including ASIC, CySEC, BaFin, DFSA, FCA, CMA and SCB.
Pepperstone Accounts
When trading with Pepperstone, we had two account types to choose from, each boasting very competitive spreads. From forex to commodities and from cryptocurrencies to shares, the range of CFD markets available through Pepperstone is extensive. For your reference, we’ve even compared Pepperstone’s market order execution speeds with other brokers. If you live in the UK, then there is another option of having a spread betting account.
Pepperstone Standard Account
We noted a change in Pepperstone’s standard account spreads early in 2021. Now, they rank among the lowest. A defining feature of this account type is the absence of commissions on trades, as these are already integrated into the spreads. If you’re a novice trader, we believe this account will be apt for you because it consolidates the trading costs into just the spreads. We’ve compared some spreads from other brokers to offer you a clearer picture.
Spreads With The Standard Account
The below tables compare average spreads for brokers that have a no commissions type account. Commonly known as standard or classic accounts, these account types usually feature slightly broader spreads instead of added commissions. You’ll find that Pepperstone’s spreads remain highly competitive, especially when stacked against Market Maker and No Dealing Desk type brokers for most of the currency pairs.
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|
|||||
|---|---|---|---|---|---|
|
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1.12 | 1.22 | 1.40 | 2.10 | 1.50 |
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0.70 | 2.20 | 1.10 | 1.60 | 1.60 |
|
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1.90 | 2.00 | 2.40 | 2.30 | 2.50 |
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1.40 | 2.50 | 2.50 | 2.60 | 2.60 |
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1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
|
1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
|
1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 01/09/2023
Pepperstone Razor Account
We’ve identified that Pepperstone’s Razor account provides some of the industry’s best spreads. Impressively, for the widely-traded EUR/USD pair, they go as low as 0.09 pips. While the spreads are undeniably attractive, there is a commission charge per standard lot (100,000 units) traded at $3.50 AUD/USD per side.
Pepperstone Price Improvement Technology
One standout feature we’ve appreciated in our trading journey with Pepperstone is their price improvement technology. In volatile markets, price swings can sometimes disadvantage traders. With this technology, after you’ve placed a trade, Pepperstone endeavours to secure that more favourable rate for you if there’s a beneficial price movement.
Pepperstone Support
Throughout our trading experience with Pepperstone, we’ve enjoyed access to some of the best support mechanisms in the industry offered through varied channels. And here’s a tip: even if you aren’t trading with Pepperstone, their comprehensive education centre, brimming with articles and webinars, can still be a goldmine for your trading journey. Some of the support avenues we’ve personally benefitted from include:
Forex Panel Score
Average Spread
EUR/USD = 0.62
GBP/USD = 0.83
AUD/USD = 0.77
Trading Platforms
MT4, MT5, cTrader
Minimum Deposit
$0
Why We Recommend IC Markets
We liked that IC Markets offers traders the flexibility of trading platforms. Their commitment to low fees is evident, and it’s hard to overlook the exceptional spreads of their Raw account. In our experience, these factors set them apart as an outstanding broker choice. IC Markets is our top recommendation for those prioritising no commissions and competitive spreads.
Pros & Cons
Broker Details
We’ve had a hands-on experience with IC Markets and can confirm it’s a solid choice for traders keen on utilising any of the three Trading Platforms: MT4, MT5, or cTrader. We found that keeping trading costs low gives an edge, which is precisely where IC Markets shines with its commendable spreads on the Raw account.
IC Markets Account Types
IC Markets offers clients the option of three different accounts to choose from, including a standard account or two raw spread accounts with cTrader and MT4. All three accounts have access to high leverage levels of up to 30:1 (on major forex pairs) under ASIC regulation and fast execution speeds. There is also an option for a swap-free Islamic Account for clients who can’t earn or pay interest.
Standard Account
We felt the standard account was well-tailored for those entering the trading world, streamlining the experience. IC Markets doesn’t charge commissions here because they’ve integrated them into their spreads, which, to our pleasant surprise, remained highly competitive.
Raw Spread Account MT4 & cTrader
On the MT4 platform, IC Markets’ Raw spread account impressed us, boasting among the market’s finest spreads. For the frequently traded EUR/USD forex pair, the average spread sat at 0.1 pips per lot ($100,000) traded. Do note there’s a commission of $3.50 per side. Seasoned day traders and scalpers would appreciate the narrow spreads here.
And for those partial to the cTrader platform, the Raw spread account is also available. It comes with a slightly lesser commission cost at $3.00 per side, keeping the spreads consistent.
IC Markets Costs To Trade
Below, we’ve amalgamated the costs and average spreads (based on what’s advertised on their site) to give you a realistic view of the trading costs you’d incur with IC Markets.
Calculate Your Trading Costs Below
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IC Markets Platforms
We got our hands dirty with all three trading platforms IC Markets offers, recognising their global reputation as premier forex platforms. Firstly, the MetaTrader platforms, MT4 & MT5, deserve their accolades as top-tier forex trading platforms. Then there’s cTrader, providing a refined, institutional-calibre trading experience for both forex and equities. Let’s break down some of the features of both platforms:
MT4 & MT5
cTrader 
Direct market access (DMA) is an execution model that provides direct access to order books via electronic facilities at financial trading exchanges. This means DMA allows you to see all live market prices and the instrument’s full ‘depth of market’ before you complete your order.
DMA differs from other types of trading execution (such as ECN, STP, and Dealing desk) as the brokerage never sees your orders, only providing the means to connect with the exchange servers. Doing this allows you to access the buy and sell orders listed at the exchange for financial instruments such as forex and stocks without the broker acting as the intermediary for the trade.
Benefits of DMA trading include:
DMA Limitations
Disclaimer: Direct market access trading capital markets is very risky, and it is very possible for you to lose money, especially in the long term. There are many other players in the stock market, including hedge funds and other experienced market participants on trading desks.
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