DMA Forex brokers | DMA (Direct Market Access)

DMA Brokers. What is DMA?

DMA – Direct Market Access – is a type of FX execution where traders are offered direct access to the physical market, enabling them to place trading orders with liquidity providers (leading foreign exchange banks, other brokers, market makers etc).

Sounds similar to STP and ECN dealing? It’s close, but there is a difference.

DMA (Direct Market Access) is offered by ECN brokers and by some STP brokers.
In fact, ECN brokers always offer DMA, but not all STP brokers offer DMA. Let’s take a look at the differences.

True DMA Attributes

  • only Market execution
  • only variable spreads
  • only 5 digit pricing
  • optional feature: DOM access (depth of the market book access)

 

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 66-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Broker Type Regulation Minimum deposit Maximum leverage Minimal lot size Spreads EUR/USD
24option ECN/STP, DMA/STP, STP CYSEC, IFSC $1 1000 : 1 - Mini account
300 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
1.2 pips - Mini account
0.8 pips - Standard account
AAAFx DMA/STP HCMC in Greece $300 500 : 1 - Mini account
500 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.2 pips - Mini account
0.2 pips - Standard account
Abshire-Smith DMA/STP, Market Maker FCA $1 400 : 1 - Mini account
400 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1.2 pips - Mini account
1.2 pips - Standard account
Advanced Markets ECN/STP, DMA/STP ASIC $500000 100 : 1 - Mini account
100 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
Amenda ECN/STP, DMA/STP FCMC $500 100 : 1 - Mini account
100 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
AssetsFX ECN/STP, DMA/STP $200 200 : 1 - Mini account
200 : 1 - Standard account
200 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
ATIORA ECN/STP, DMA/STP, STP $50 100 : 1 - Mini account
100 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1.2 pips - Mini account
1.2 pips - Standard account
0.15 pips - ECN account
Atom8 ECN/STP, DMA/STP, STP FCA 200 : 1 - Mini account
200 : 1 - Standard account
200 : 1 - ECN account
0.1 - Mini account
0.1 - Standard account
0.1 - ECN account
0.6 pips - Mini account
0.6 pips - Standard account
Axiory DMA/STP FSC $500 500 : 1 - Mini account
500 : 1 - Standard account
1 - Mini account
1 - Standard account
0.3 pips - Mini account
0.3 pips - Standard account
Axiory Europe ECN/STP, DMA/STP CYSEC $1000 200 : 1 - Mini account
200 : 1 - Standard account
200 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
0.9 pips - Mini account
0.9 pips - Standard account
0.1 pips - ECN account
AxiTrader ECN/STP, DMA/STP ASIC, FCA $1 400 : 1 - Mini account
400 : 1 - Standard account
400 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
0.6 pips - Mini account
0.1 pips - Standard account
0.1 pips - ECN account
Blitzbrokers ECN/STP, DMA/STP FCA $100 400 : 1 - Mini account
400 : 1 - Standard account
400 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1 pips - Mini account
1 pips - Standard account
Core Liquidity Markets ECN/STP, DMA/STP ASIC $250 500 : 1 - Mini account
500 : 1 - Standard account
400 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.1 - ECN account
0.3 pips - Mini account
0.3 pips - Standard account
Currency House DMA/STP $1000 200 : 1 - Mini account
200 : 1 - Standard account
0.01 - Mini account
0.1 - Standard account
1.6 pips - Mini account
1.6 pips - Standard account
Darwinex DMA/STP FCA $500 200 : 1 - Mini account
200 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.25 pips - Mini account
0.25 pips - Standard account
Divisa Capital ECN/STP, DMA/STP FSPR, FSC, FCA, Central Bank of Armenia $5000 100 : 1 - Mini account
100 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
0.2 pips - Mini account
0.2 pips - Standard account
0.2 pips - ECN account
Euro Pacific Bank DMA/STP, Market Maker FSA $1000 100 : 1 - Mini account
50 : 1 - Standard account
0.5 - Mini account
0.5 - Standard account
1.8 pips - Mini account
1.8 pips - Standard account
FCI Markets ECN/STP, DMA/STP, STP FCA $250 400 : 1 - Mini account
100 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
0.8 pips - Mini account
0.2 pips - Standard account
0.2 pips - ECN account
FIBO Group DMA/STP, Market Maker FSC $300 200 : 1 - Mini account
200 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
2 pips - Mini account
0.8 pips - Standard account
Fidelis (Belize) ECN/STP, DMA/STP FSC $5 400 : 1 - Mini account
200 : 1 - Standard account
200 : 1 - ECN account
0.01 - Mini account
0.1 - Standard account
0.01 - ECN account
0.8 pips - Mini account
0.8 pips - Standard account
Forest Park FX DMA/STP, STP NFA, CFTC $1 50 : 1 - Mini account
50 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.2 pips - Mini account
0.2 pips - Standard account
Forex FS DMA/STP ASIC $100 500 : 1 - Mini account
500 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1.9 pips - Mini account
1.9 pips - Standard account
Forex4you DMA/STP, STP, Market Maker FSC $1 1000 : 1 - Mini account
1000 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.31 pips - Mini account
0.31 pips - Standard account
FW Markets ECN/STP, DMA/STP $100 500 : 1 - Mini account
300 : 1 - Standard account
200 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.1 - ECN account
2.5 pips - Mini account
1.5 pips - Standard account
0.3 pips - ECN account
FX Trading Pro DMA/STP NFA, CFTC $50 50 : 1 - Mini account
50 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.7 pips - Mini account
0.7 pips - Standard account
FXFair ECN/STP, DMA/STP $25 500 : 1 - Mini account
500 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
2 pips - Mini account
2 pips - Standard account
Gallant Capital Markets (GCMFX) DMA/STP FSC $250 400 : 1 - Mini account
400 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
2 pips - Mini account
1.5 pips - Standard account
GBE brokers DMA/STP, STP CYSEC 200 : 1 - Mini account
200 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
Grinta Invest DMA/STP $100 500 : 1 - Mini account
500 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1.7 pips - Mini account
1.7 pips - Standard account
Indigo DMA ECN/STP, DMA/STP $10 100 : 1 - Mini account
100 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
Invast Global DMA/STP ASIC, FSA $18000 100 : 1 - Mini account
100 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
Investorseurope ECN/STP, DMA/STP FSC $250 400 : 1 - Mini account
400 : 1 - Standard account
400 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1 pips - Mini account
1 pips - Standard account
1 pips - ECN account
ITI FX ECN/STP, DMA/STP $50 300 : 1 - Mini account
300 : 1 - Standard account
300 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1.2 pips - Mini account
0.2 pips - Standard account
0.2 pips - ECN account
KAWASE DMA/STP CYSEC $100 500 : 1 - Mini account
500 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.1 pips - Mini account
0.1 pips - Standard account
LiteForex DMA/STP, STP $10 1000 : 1 - Mini account
500 : 1 - Standard account
0.001 - Mini account
0.01 - Standard account
3 pips - Mini account
1.8 pips - Standard account
LMAX DMA/STP FCA $10000 100 : 1 - Mini account
100 : 1 - Standard account
0.01 - Mini account
0.1 - Standard account
0.36 pips - Mini account
0.36 pips - Standard account
Market Investment DMA/STP $100 500 : 1 - Mini account
400 : 1 - Standard account
0.01 - Mini account
1 - Standard account
1.5 pips - Mini account
1.3 pips - Standard account
Markets.com ECN/STP, DMA/STP, STP CySEC, FSCA, FSB $100 300 : 1 - Mini account
300 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
2 pips - Mini account
2 pips - Standard account
Marshal FX DMA/STP $500 100 : 1 - Mini account
100 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1.5 pips - Mini account
1.5 pips - Standard account
Milton Markets DMA/STP FSC, FSPR, FSC $250 800 : 1 - Mini account
800 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1.5 pips - Mini account
0.1 pips - Standard account
NAS Broker DMA/STP, ECN/STP $300 100 : 1 - Mini account
100 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
0.7 pips - Mini account
0.7 pips - Standard account
OctaFX DMA/STP FCA $5 500 : 1 - Mini account
200 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.2 pips - Mini account
0.2 pips - Standard account
Pepperstone ECN/STP, DMA/STP FCA, ASIC $200 500 : 1 - Mini account
500 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1 pips - Mini account
1 pips - Standard account
Profx Market ECN/STP, DMA/STP $10 500 : 1 - Mini account
400 : 1 - Standard account
200 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1 pips - Mini account
1 pips - Standard account
0.5 pips - ECN account
Sterling Gent Trading (SGT) ECN/STP, DMA/STP FSC $50 400 : 1 - Mini account
400 : 1 - Standard account
400 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1.6 pips - Mini account
0.9 pips - Standard account
STO - SuperTradingOnline ECN/STP, DMA/STP, Market Maker CYSEC, FCA, CONSOB $20 500 : 1 - Mini account
500 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1.8 pips - Mini account
1.8 pips - Standard account
0.3 pips - ECN account
Sun Hung Kai Forex DMA/STP SFC of Hong Kong $5000 20 : 1 - Mini account
20 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1.6 pips - Mini account
1.6 pips - Standard account
Sunbird ECN/STP, DMA/STP $1000 300 : 1 - Mini account
300 : 1 - Standard account
300 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1.2 pips - Mini account
1.2 pips - Standard account
0.7 pips - ECN account
Thinkmarkets ECN/STP, DMA/STP FCA, ASIC $250 400 : 1 - Mini account
400 : 1 - Standard account
400 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
0.8 pips - Mini account
0.8 pips - Standard account
TIX FX DMA/STP $500 300 : 1 - Mini account
300 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1.5 pips - Mini account
1.5 pips - Standard account
TRADE.com ECN/STP, DMA/STP, STP CYSEC $250 400 : 1 - Mini account
200 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
2.2 pips - Mini account
2.2 pips - Standard account
Traders Way ECN/STP, DMA/STP, Market Maker $1 1000 : 1 - Mini account
1000 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
2 pips - Mini account
0.7 pips - Standard account
TradeStation Securities DMA/STP NFA, CFTC, FINRA, FCA $2000 100 : 1 - Mini account
100 : 1 - Standard account
0.1 - Mini account
0.1 - Standard account
1.6 pips - Mini account
1.6 pips - Standard account
Tradeview Forex ECN/STP, DMA/STP CIMA $100 400 : 1 - Mini account
400 : 1 - Standard account
100 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.1 - ECN account
0.7 pips - Mini account
0.7 pips - Standard account
0.1 pips - ECN account
Unum Capital DMA/STP, STP $500 100 : 1 - Mini account
100 : 1 - Standard account
0.1 - Mini account
1 - Standard account
3 pips - Mini account
3 pips - Standard account
Valbury Capital DMA/STP FCA $10000 100 : 1 - Mini account
100 : 1 - Standard account
0.1 - Mini account
0.1 - Standard account
1.5 pips - Standard account
VARIANSE ECN/STP, DMA/STP FCA $500 200 : 1 - Mini account
200 : 1 - Standard account
200 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.1 - ECN account
1 pips - Mini account
1 pips - Standard account
vPE Bank DMA/STP BaFin, FSSA, FINRA, U.S. SEC, is a licensed bank $5000 100 : 1 - Mini account
100 : 1 - Standard account
0.4 - Mini account
0.4 - Standard account
0.8 pips - Mini account
0.8 pips - Standard account
WH SelfInvest DMA/STP CSSF, Ministry of Finance of Luxembourg 50 : 1 - Mini account
50 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
0.8 pips - Mini account
0.8 pips - Standard account
XGLOBAL Markets DMA/STP, STP CYSEC $500 200 : 1 - Mini account
200 : 1 - Standard account
0.01 - Mini account
0.01 - Standard account
1 pips - Mini account
1 pips - Standard account
Yadix ECN/STP, DMA/STP FSC $100 500 : 1 - Mini account
500 : 1 - Standard account
500 : 1 - ECN account
0.01 - Mini account
0.01 - Standard account
0.01 - ECN account
1.5 pips - Mini account
1.5 pips - Standard account

Do you know another DMA Forex broker?
Please suggest by adding a comment below. Thank you!

DMA/STP vs STP

dma forex brokers platform

With regular STP (Straight Through Processing) – a broker will fill clients’ orders (though Instant execution) on his own side. Then a broker will go to hedge these orders with own liquidity providers.
Since a broker seeks profits in this hedging operation, traders can experience re-quotes if there is no profitable hedging opportunities for a broker at the very moment your trading request was submitted.
The price you get from an STP broker will be higher than the best price a broker can receive from the liquidity provider.

With DMA/STP (Direct Market Access STP) – a broker will pass clients’ orders directly to the liquidity providers, where it’ll be filled at the best available price with one of the liquidity providers (+ a small fixed mark-up from the broker).
This is done using Market execution, which ensures that all orders will be filled at the best offered rate (which, however, might not be the exact rate you clicked on (your connection speed combined with short-lived price bids from liquidity providers), but since DMA technology always has only real tradable prices, there will be no re-quotes, your trade will always be opened and closed on your click.

DMA/STP brokers

DMA/STP brokers provide transparent direct access to the best bid/ask prices offered by liquidity providers.
Unlike regular STP brokers:
1) DMA broker has a greater number of liquidity providers;
2) DMA broker never offers fixed spreads, only variable, because bid/ask prices constantly change as they come from liquidity providers;
3) DMA order execution is always Market execution;
4) There is no re-quotes.
5) DMA can also offer Depth of the Market book (similar to ECN), where traders are able to see all bid/ask quotes from different liquidity providers;
6) DMA trading model welcomes traders of all types and styles: scalpers, news traders, swing traders, position traders or other regular traders.

DMA vs ECN

Spread competition
Each DMA broker has his own contract with each liquidity provider (LP), and even with the same LPs these contract conditions may vary from broker to broker.
Even then, DMA spreads are quite competitive comparing to ECN. This is explained by 2 factors:

  • ECN brokers are connected to anonymous ECN pools (where there are no direct contracts with each LP). Inside these ECN pools brokers may not receive the best possible rates from all liquidity providers (for example, banks are known to hold back their best prices inside ECN pools).
  • ECN technology solutions (facilitation, processing, execution) come at a cost, which has to be paid for.

DMA/STP broker doesn’t have fewer technology expenses and no ECN-associated expenses. The spreads from DMA/STP brokers remain low because these brokers enjoy the best direct price quotes from the banks and/or other liquidity providers. To make profits, DMA/STP brokers add small mark-ups to all spreads they pass from liquidity providers.

Execution

  • DMA price rates are streamed directly from liquidity providers, which are committed to their bid/ask offers. This ensures that there will be no re-quotes, rate rejections or partial fills.
  • While due to the nature of ECN liquidity pools (where anonymous participants can place “illusive” orders and then reject them) traders might see more re-quotes, slippage and partial fills.

Fee Structure

  • ECN brokers are compensated though commission.
  • DMA brokers add a small fixed mark-up on the spreads, but there is no commission.

Some DMA brokers can also charge monthly volume fees (including inactivity fees) based on investor’s trading volume. Thus if you don’t plan to trade frequently and with high volume, you may end up paying higher fees for the privilege to trade on best price quotes and low spreads with such DMA brokers.

Other

  • DMA and ECN brokers offer only variable spreads;
  • both have fractional pricing;
  • both have DOM (Depth of the Market) orders book, although you won’t always see it with DMA/STP brokers.

As DMA becomes more popular, it rises the standards of execution technology and overall trading quality.

Copyright ©100Forexbrokers.com | All Rights Reserved

Relevant topics:

ECN vs DMA vs STP vs Market Maker
ECN Forex brokers
STP Forex brokers
Market execution vs Instant execution

Broker discussion area

Add Comment

177 Comments

is forexgrand.com a DMA broker?

No, XM is a dealing desk (market maker).

is XM.com a direct market access broker?

Prior fx, highly recommended .

FX united is real forex broker? Why they are not listed? Please reply. Tq.

Please to add Fxunited in DMA list. You had better to check it out, but not only see company website.

Fxunited is not Malaysia, it is from Newzealand.

Fxunited is not up yet. Please update asap 100fxbrokers

Fxunited Malaysi is real forex broker or scam ? Pls explain

FxUnited should change their wording about the spreads, currently on a Premium account “Fixed from 0.0 pips”.
They cannot be fixed with Market execution.
We don’t have FxUnited in our global broker list (which we have to fix), so once it’s been listed, you’ll see it being added to all applicable categories on the site.

What about FxUnited? What are they?

FxUnited (Market Execution) 1:200 MAX Leverage
CGAT Account, Premium Accounts:- Variable Spread
WINST, Standard Account:- Fixed Spread

DMA/STP & Market Maker (Hybrid Model)
http://fxunited.com/about/business-model.php

LPs on the front page (right at the bottom)
http://fxunited.com/index.php

You’ve missed our FxUnited in your new list. Variable spread on CGAT accounts and dealing with Liquidity Providers as on their site. Can verify with me for proof [email protected]

Cheers.

Thank you! Will be checked.

An other DMA/STP broker
http://www.phillipcapitaluk.com

octafx claim they are true ecn broker.i think with only 5$ minimum account opening they are not ecn.

For DMA broker, Yadix is the best for me for execution and conditions

Possible reason: a broker could not deliver promised trading volume to the LP.

Gd day. Could you help me on this. What could be the reasons behind if a LP withdraw from an earlier agreement with a Broker?

According to data they’ve submitted – CM Trading is STP + Market maker

Hi What do we consider CMTRADING? DMA?

new DMA broker
http://www.rubixfx.com

Thank you!

http://www.xm.com/faq
Hi XM is not a DMA nor ECN nor STP search for the word STP in the link above they admit being Market Makers

Thank you!
will be added.

New DMA/STP broker,
http://www.onetrade.com

Hello!
What about FXTM(forextime.com) is a DMA/STP broker?

Thanks

Hi there,

I am King from Kuala Lumpur. Need advise on the authentication of FX United brokerage company. Is this company originated from Britain?. The FX United’s CGAT plan, is it a successful plan?. What is the success rating in investing into this CGAT plan. Has there been any complaint from traders in pertaining to suucessful return rates of 12% monthly?. Has there been any withdrawal problems from FX United?. Where is FX United main office and office address?. Can you please answer the above questions?. Appreciate your advise provided.

yes,
1. How long they’ve been in business
2. Regulation
3. Check their support by calling (preferred) or emailing. Ask anything and see
how well they respond.
4. Some brokers may offer several accounts on their site: DMA and STP and Dealing
desk, so make sure the account you’ve selected is DMA.
5. Spreads
6. Minimal trading lot (you want to be flexible and trade as low as
0.01 lot)
7. Read reviews. Make sure you see no reviews about cancelled profits
or denied withdrawals.

I’m sure you also saw our article about choosing a broker:
http://www.100forexbrokers.com/how-to-choose-forex-broker

This should give you a good idea about the right brokers for your needs.

Sir i want to get some guidline that select and eliminate DMA brokers that what are the main points to choose true DMA brokers like 1. how old are they? 2. how many instrument they have like currency,gold,feature,cfds and others etc 3. minimum spread and 4. with strong regulation plz give me also more suggestion and also email me.
Thanks

GoMarkets Australia is a DMA/STP Broker ?

Sir i suggest that you should be updating the profile or information about this fx brokers, like their newest address, place of operation and so fort. e.g forextime ( fxtm) has changed their address of location from cyprus to belize.

MAECHILIN

Oanda is a Market Maker, Alpari.com has several account types:STP, ECN and dealing desk accounts.

sir oanda and alpari is DMA broker?

Sir i want to know how old are all brokers so plz give me link in which i could see each and every brokers year founded and also plz email me… thanks

@ trader: We’ve created a separate page about Forex brokers in India. Hope it’ll be of some help.

@trader: Thank you! Smartest Finance company doesn’t seem to have an English version of the site (besides Google translate). We gladly list International brokers only if they have an English website.

LMAX Introducing Broker
Smartest Finance – LMAX Trading for Forex Professionals
http://www.smartestfinance.com/heavy-fx-trading-institutional-trader/lmax-exchange-london/broker/lmax-konditionen/

I am new to Forex, Please suggest me some ECN/STP brokers in India.

What about ATON? I think they are DMA. Here is their website: http://www.atonbroker.com/en/products/dma/brokerage_solutions/

BrokerGuru:

Thank you! ATON serves businesses only: institutional trading & asset management. We list services offered to individuals.

Hi, Brokerguru,

Thanks for your excellent information on brokers.

I have a question: On this page Axitrader is a DMA broker, but Axitrader is also listed as an ECN broker. How come?

Thanks.

Kahfie

BrokerGuru:

Hi Kahfie, that means that Axitrader has 2 different accounts: DMA (from $200) and ECN (from $1000 minimum deposit).

@ trader: FxUnited.org says “Full STP, ECN, NDD and Liquidity Banks”. Offering an IB partnership program doesn’t mean being a Dealing desk. IB partnership can be established between all types of brokers: ECNs, STPs and/or Market makers.

@ trader: If a broker openly lies on their site that they are not market makers. Then what other questions do you want to ask such brokers? Will you still consider trading there? That’s the point.
If a broker states that they offer DMA we believe them, but yes, we do make sure that they at least have Market execution exclusively, variable spreads and 5 digit quotes. Other than that further checking could be only done through opening a live account. We don’t have the capacity to do such verification for each broker yet.

Hi Brokerguru,

FXunited they have IB (Introduce Broker) program, are they DD broker?

Hi, how do you know that broker A is true DMA? By its website? We know that many brokers state that they are not market maker, bla, bla. But in fact, they are.

I think that Atom8 can’t be DMA/STP when its written on their page thats they hedge possitions… maybe ECN, instant execution, not market.

SaxoBank is a bank. All banks are market makers.
Saxo can give you DMA conditions, but market making is also a part of their business. How they choose to do it, you should ask them.

Anyone knows for certain if Saxo Bank a DMA/STP broker or not?
On their website they say they provide DMA but on their Disclaimer it says

“Saxo Bank may act as market maker in all products not traded on an exchange
(i.e. OTC products such as foreign exchange and CFDs)
and may therefore be on the other side of any trades conducted by clients in these products.”

Yes, thank you!
Found MT4.VAR accounts, which fall under DMA/STP category.

@trader: Pepperstone micro accounts are fine for DMA, and so is connection to 22 banks and ECNs.

@trader: 0 spread + $commission, yes, such conditions are offered by:
4XP
Fortune4x
InstaForex (Account type: Eurica)
IronFX
Pacific Financial Derivatives (PFD-NZ)

Trader’s Way ist a DMA broker.

are there brokers that offer no spread account with commission?

Sorry, but pepperstone has two type accounts, one razor that is ECN, and one standard that is STP but not DMA (It say “STP processing and liquidity from 22 banks and ECN’s” and allow micro lots). If DMA should not allow micro lots and should be not connected to ECN’s.

Admiral Markets offers ECN accounts (Admiral Pro accounts) and Dealing desk (Admiral Standard) accounts.
The broker doesn’t offer DMA accounts.

Admiral Markets is DMA or not?

Hi do you have direct contact with http://www.liquidex.eu/? ive been contacting them for 2 weeks already but still no reply

True, thank you!
Will be corrected.

trader
henryluk,hk
Oct 15,2013

why there is no Sun Hung Kai Financial Ltd on your list? it is a DMA forex broker in Hk.

Thank you!

AssetsFX and ETF are still online. Yes, traders should read reviews on multiple sites before choosing a broker. FPA is one of the
most informative sites when it comes to broker reviews.
Andromex – a broker has just been listed last month, and already gone.. Thank you, we’ll give their site another few weeks (just in case) and then delete the listing.

@trader: all brokers on the list are true DMA (otherwise we wouldn’t list them here).
We can’t recommend brokers as per our site policy. (We must remain 100% unbiased and not favor any broker here).

Great job on keeping us informed, much appreciated. I would like to ask you if Octa Fx
is a true DMA broker.

Thanks again.

Konstantinos

what brokers would you recommend that is a true DMA broker? i dont want to ask this broker 1 by 1 just to know if they are DMA or not.. thank you.

Sorry, unfortunately we can’t be bias or recommend any broker due to our web policy, which requires us to keep neutral position towards all brokers.

Hi

i have a Arbitrage EA and we’ve been scavenging brokers that allow this kind of trading. so far we’ve been succesful to some of it.

my question is can u recommend a broker that can cater this kind of trading?

low spreads , lightning execution , and allows arbitrage EA

DMA is more complex to set up. You actually have to work on building a solid “portfolio” of LPs. And the more LPs you have the better (lower) will be spreads for your clients. Those LPs that can really deliver low competitive market quotes, they won’t sign a contract with you if you can’t show them that you’re capable of delivering a good trading volume with your clients. DMA beats STPs with lower spreads and faster execution.

STP is way more simpler. You take a quote and pass it to your clients – no complex relationships with LPs, you can generate any trading volume, and you can survive even with one LP, and still call yourself “STP”. You also have an option to work with “Instant execution” and fixed spreads. (DMAs can’t have either).

Hi BrokerGuru, as I understand from your article, a DMA/STP simply pass through the LP quote with a mark up, while a regular STP has more leeway in modifying the LP quote to suit their business strategy.

My question is, why a STP broker want to be non-DMA, when DMA can provide a constant and risk free way of revenue by simply marking up the LP quote? My guess is that, firstly, when a broker has few LPs, it allows their to smooth out the price and spread to be more in line with the interbank market. Secondly, to offer a fixed spread that some customers may prefer. Thirdly, some brokers may deviate the quote a bit away from the interbank market to increase their revenue without their customers noticing. Am I correct?

Why would a retail trader choose non-DMA over DMA?

A person I know of is trading with ILQ (ilq.com), minimum deposit is $1.000.000. What kind of broker is ILQ? Thanks.

ILQ is ECN.

no, but thank you for the feedback.
We’ll keep an eye on it.

I just had a chat with IBFX and they would only confirm that they are an STP broker (+ Market Maker for tiny lots only). Have any of you heard any new info from IBFX regarding DMA?

FXPrimus has ECN Premier accounts – those are ECN.
While the rest of account options have fixed spreads, thus can’t be DMA, sorry.

Fxprimus also is a DMA. Thanks

With DOM, yo won’t see who are the liquidity providers exactly, but you’ll see a list of all Buy and Sell orders for the currency (or other trading instrument) you need.

You’ll also see how large those orders are and what are their price ranges. DOM will help you to determine how good is the liquidity for a particular currency/market at the moment based on the number and size of orders being displayed in your DOM information sheet.

I have a question related to below info about DOM:

DMA brokers offer:
– only Market execution
– only variable spreads
– only 5 digit pricing
– optional feature: DOM access (depth of the market book access)

Regular STP brokers offer:
– Instant or Market execution
– fixed or variable spreads
– 4 or 5 digit pricing
– no DOM access

What type of info I can get into DOM in case if broker has sev LP?
I would see limit orders into DOM from one or from all LP?

Thank you!

Another DMA Broker:

Divisa Capital (http://www.divisafx.com)
Direct Currenex partner
Liquidity from 12 top tier banks
True DMA environment
MT4, Currenex or cTrader platforms

FxPro is ECN (cTrader accounts) and Market maker (other accounts).

Is Fxpro a DMA/STP broker?

Hello Eddy,

we don’t and can’t recommend brokers. Our policy is to stay 100% unbiased while providing plenty of comparison tools for traders, so that they can make own broker choice.

I am holding account with Zoya Forex (NZ) for last 6 month of time but i much comfortable with broker as Order Execution,serivce,response its all very good with that broker.

Hi,
I’m Eddy, from Indonesia.
I”m a beginner trader, but i want trading forex seriously.
my question :
is FXDD & IBFX a good broker forex? where is “the best” beetwen them ?

thank”s

Eddy

Thank you!

Directa doesn’t have an English version of the website, and Terms + Customer agreement in English that we can read in order to list it.

Hey, why did’t you listed Directa (http://www.directa.it/pub/de/conto/100/9.html)? They are offering forex-trading via LMAX also?

Best regards, trader

http://www.directa.it/pub/de/conto/100/9.html

Directa is the biggest Italian online broker, famous for cheap commis regarding stock trading. The broker with the LMAX-DMA-hub is offering a state of the art platform called Darwin.

Best regards, Slavisa Dosenovic

thank you for your feedback.

At FxPro only cTrader platform accounts are ECN/STP (minimum deposit $1000). Link: http://www.fxpro.com/trading/cfd/ecn

The rest are dealing desk, including MT4 platform accounts.

If it’s the initial deposit, then $25000 is a very high investment for the retail account.
Ideally you would want to test-trade with a broker for a few months with a minimum deposit. This will allow you to evaluate real trading conditions, spreads, commissions and also, what’s most important – you need to request a withdrawal at least once and receive it without any issues. Once you see the results and build confidence in your broker, you can make a larger deposit.

In case you still wish to deposit the whole amount at once, try to contact their customer support first and see if you’ll be able to negotiate better trading conditions for your account, such as lower spreads and lower commissions. I would expect any broker to ideally treat you as a VIP client at that point.

hi brokerguru,

first, thanks for your fantastic site

1-FxPro says it has STP ECN. Is its MT4 Platform a regular STP or a DMA STP ?

2-I want to fund 25000 $ is this amount high for retail account in FX business?

THXXXXXXXXXXX

belarta.com – STP Forex broker

Thank you!

http://www.jfdbrokers.com

Cysec – FSA – MIFID – BAFIN – I.C.F

I have your demo platform with log in 9001578 since 21 August 2012.

Do you have offices outside the Euro zone and if so where.

Do you provide Technical Analysis. If so please send me an example thereof.

In addition to the spread costs, do you charge any commission and if so what is it.

Are clients funds segregated and if so which is your bank which holds the segregated funds.

Please send me an application form and let me know the minimum and currency you would accept.

Vasileios Vlachos

Thanks Mike!

hi,

i got an answer from the FXCM support, and they say that the orders are executed at market.
they also say that for their CFD’s (index trading) they are market maker, but they still guarantee no re-quotes with CFD’s.

mike

Hi Mike,

the $2000 standard account with FXCM is DMA/STP.
To double confirm it, simply ask FXCM support about the execution type on this account. If you hear that it’s only Market execution – you’ve got DMA/STP; but if it also has Instant execution besides Market execution, then it’s only STP.

hi brokerguru,

first, thanks for your great homepage!

you have FXCM listed as DMA/STP…i am thinking about opening a standard account (min. EUR 2000,-) with the FXCM-affiliate in germany, and as some brokers have different conditions for their different accounts, i would like to know if the FXCM standard-account (EUR 2000,-) is a DMA/STP account, or only STP or what is it?

thanks in advance!

mike

MasterForex has ECN accounts for Currenex trading platform (these are no dealing desk starting from $500 minimum deposit). While the rest of accounts are dealing desk (from $1 minimum deposit).

How about MasterForex, are they dealing desk or no dealing desk? If they are no dealing desk broker, what kind? ECN, STP, DMA, or Hybrid???

This details are very useful for beginners, thanks a lot..!!!

Yes, FinFX offers DMA/STP accounts.
FXPrimus has STP accounts, which are not DMA, just STP. They also have ECN accounts (ECN Premier accounts).

Please i wolike to know if finfx, direct currency markets, and fxprimus are true dma brokers thanks in anticipation of your response

Correct. HotForex offers no dealing desk on all accounts, it’s STP: either ECN/STP or DMA/STP

I had a talk with the representatives of HOTFOREX and they said that there all accounts are STP and they do not have dealing desk for any of there account, is that true?

AccentForex is STP + MM, but not DMA/STP.

Hy, Please tell me Accent forex is DMA/STP or not

Dear Ramzi Samuel,

At 100forexbrokers we can’t show any biases towards any brokers, thus we can’t suggest any particular broker. We must remain 100% neutral all the time.
Our goal is to provide you with maximum information about each broker, so that you can easily compare them and make own choice. Thank you for your understanding!

i am very new in the matket opend around 19 demo for diff company but ineed to open live account but with big amount not less than 50000$ could u tell me whith broker i can go a head
Ramzi samuel
UAE

After reading carefully for a few times, at least 2 discrepancies there:
– a dealing desk they mentioned is for phone orders. This is no a Dealing desk (Market maker) its a physical desk for taking orders.
These two terms are confusing, and I met this many times.

– Trading Point offers only Market execution of orders. While Market makers work with Instant execution.

I’d suggest revising the chat.

Hi.. quick update on the previous post (may 28,2012).
live chat with the Trading Point rep.

_____ | 12:43

Hi there. can you elaborate what this paragraph essentialy means? I’m confused about the execution policy definition of your company:
“…the Company acts as principal and not as agent on the Client’s behalf; therefore the Company is the sole Execution Venue for the execution of the Client’s orders”.
are you a DMA/STP or any other kind of broker?

Jeet Singh | 12:46

Strictly speaking we are a market maker as we do have a Dealing Desk primarily responsible for phone orders; however, please note that we operate with an STP model of execution – Almost all (>99.85%) of our client’s orders are executed in under 1 second and we pride ourselves on our no re-quotes and no rejection policies.

Please note that all of our client’s positions are covered and as such it is in our benefit for our clients to be making money as the more they make the more they trade, and the more they trade the more money we make by covering them at a slightly better price. By covering our client’s positions we eliminate any risk and also do not benefit from our client’s loses. Furthermore we are continuously trying to help our clients through their trades by releasing numerous fundamental (and soon to come technical) analysis reports throughout the day.

Axel | 12:49
so what you are saying is that you are a Market Maker and you take the counterpart of all the clients positions and them through a STP you hedge them in the external market right?
do you guarantee market execution or instant exe?

Jeet Singh | 12:50

Yes.

After all, I like to thank Broker Guru for making me save some money and spare myself some headaches.

We need to further clarify it with the broker. I’ll post additional updates here.

This is a particularly interesting definition: “The Company does not transmit the Client order in the external market if the order is for the financial instrument provided by the Company”.

Update: I found these quotes initially at 3TG FX broker website, and here is their official reply:

“thank you for your inquiry! As to your question, 3TG FX is an NDD/ECN broker. The quotation above refers to the company being able to fill your order should it choose to do so. The company does not act as a market maker, it offers ECN accounts to each of its clients connecting them to over 70 liquidity providers and allowing them to freely profit from their trades. Feel free to test the trading environment by opening a demo account with us!”

Hi. I am checking the order execution policy of a broker who pretends to be a DMA/STP ( the same shown on your list too).
“…Execution Venues are the entities with which the orders are placed or to which the Company transmits orders for execution. For the purposes of orders for the Financial Instrument provided by the Company, the Company acts as principal and not as agent on the Client’s behalf; therefore the Company is the sole Execution Venue for the execution of the Client’s orders. The Company does not transmit the Client order in the external market if the order is for the financial instrument provided by the Company”.
Does this mean that the company acts as the counterpart of the clients’ trade and then goes to the external (interbank market) to hedge this position? (…and we know how this goes on…).
If this is true then this broker doesn’t seem to be a real DMA/STP but just a STP, right?…am I making sense?

Brokers will protect themselves with Client Agreements. Of course, if there is even a signle transaction where a broker is acting as a counterparty, they must mention it, and, despite loudly promoting themselves as STP (beacuse they are STP most of the time), there is a second side to the story.

If you choose to go with Currenex platform, you can easily find Currenex brokers using our search:
Forex brokers comparison
where select option: Trading platform “Currenex”
(Be sure to verify on broker’s sites which account gives you access to Currenex platform).

Interesting write up on types of brokers. last week I started looking for a new broker to run managed accounts thru. Obviously, to raise capital is tedious, but it does help when you can include words like “bank” or ” currenex ” in your pitch to possible clients.
I have narrowed my search for a forex provider the following:
divisa capital, fxdd malta, MIG capital ( subsidiary of MIG bank ) , all using currenex viking platform, which supposedly takes me straight to major liquidity providers ( DB, HSBC, Goldman, barclays, etc). However, when i read the client and disclosure agreements I run into clause like:
FXDD- all contracts made and entered into between customer and fxdd hereunder will be entered into by fxdd as principal.
MIG- when MIG executes a transaction for you, we are entering into a trade as principal and will be your counterparty..
divisa capital- DC may deal in contracys as ” principal” on its own account…
DC may take opposite position in a contract
As you can see , even though the sales guy preaches STP, the contract leads one to believe that they are likely to act as market maker.
So, my question will be, since I can’t get with FX-ALL or currenex directly, which of the brokers listed flow orfers thru fxall or currenex and put it in writing?

“DMA/STP+Market maker” usually means that for some accounts (usually with higher deposit) you’ll have DMA/STP conditions, while for other account – dealing desk. IBFX is rather an exception: all their accounts start from $1 and there is no difference between mini and standard account. All accounts are DMA/STP, however, on IBFX’s request, we’ve added the “+Market maker” words. As IBFX explained, they want to follow NFA rules fully and completely, which means that if there is even a single transaction, which doesn’t make it to the liquidity providers (under DMA execution) and has to be facilitated by the broker himself (dealing desk), they want to make sure that traders known about it.

So there you have: IBFX is a DMA/STP broker, and they want to be 100% transparent with traders, while also abiding NFA rules to the full extent in order to avoid penalties. On their request we’re listing them as “DMA/STP + Market maker”.

Hi BrokerGuru,

May I know is IBFX a DMA/STP broker or a market maker? It shows IBFX is DMA/STP+Market maker in your website. What does it means? Can you explain it briefly?

Thanks a lot 🙂

One financial markets also has DMA mt4 plotform

TradeBankFx – need to verify. Thank you!
One Financial Markets offer ECN accounts called “ONE | XTS | DMA FX” and dealing desk accounts.

sorry wrong web, dma broker with min $10 deposit http://www.tradebankfx.com

tradebank.com doesn’t offer Forex trading.

others DMA with minimum deposit $10 http://www.tradebank.com

Universal FX is ECN.

HI Universal is Dma?

fxdme. com opens accounts via GAIN Capital (Forex.com)
Gain Capital offers ECN only on accounts from $100,000. The rest is a dealing desk. As far as I know Gain Capital doesn’t have DMA accounts.

ECN brokers charge commission for trading, and offer Depth of the market (DOM) in their platforms.
FBS doesn’t charge commission, only spreads. It fits into the DMA category for standard accounts with variable spreads and market execution of orders.

Hello BrokerGuru,

this site is the best forex site I have ever seen.

I have a question.
FBS broker is listed in the DMA/STP list, but on their website I only can see ECN/STP.

why?

Thank you

I doubt FBS is a real DMA or ECN broker

hi.
fxdme (fxdirectmarkets) is dma also

Mig Bank – yes.

Migbank is DMA?

TradeNovaFX is DMA/STP
(http://www.tradenovafx.com/)

Yes, absolutely.
You can run several MT4 platforms from different brokers on the same computer.

@ trader: more details about ecn+ndd+stp brokers here: http://www.www.100forexbrokers.com/stp-ecn-brokers

Hello Broker Guru
I am new to FX, I want to ask one question
is it ok to download and use MT4 from 2 different brokers at same time on same computer?
Thanks

I thought my choice was made and that i would go for an ECN broker, but i just foudn out that apart from few advantages it has,
The DOWNFALL to ECN trading is that unless there is an exact match, the forex sale cannot be executed.
Does it mean the price has to stall for a while at a certain level ex: 1.2790(5) and then can close the trade? What about during fast moves or spikes ? will the order be filled or not with ECN technology? Will the stop be honored ?

I read so much about ECN vs DMA STP vs DD/MM, that now i really start to think the best of the best is DMA/STP, with the condition to trade only with :
(1)Brokers that have more LP
(2)Standard lots and not 0.1 or below.
(3)and stay away from the news release.

Whereas if you are using a Market maker, can make pips during news release, or during one or two of those big spikes that the Eur-Usd displays some times. Close and re-open the trade after 12/15 pips, placing stops not in cluster zones, and moving the entry stop-sell or buy stop… limit every 3/4 mins.
MM hates not stable people.It confuses them.That is at least what i have found out in my three months trading.

sir i want a detaill for ecn+ndd+stp brokers name please

All I can say is that Currenex is the true ECN platform. While MT4 can’t offer ECN without special bridges.
Knowing how to make EAs is a tremendous advantage for any trader. I’m not familiar with programming for Currenex though, sorry.

hello Brokers Guru ,
I had a issue regarding strategy tester in MT4 , which i used to back test some EA’s . to my surprise the tester was putting some orders which were not calculated in EA . HOWEVER , i do no mind this using MT4 ,as this is parcel and pack with MT4 . ALSO , MT4 was not primarily built to trade on ECN or STP execution . Currently most of the brokers are using Currenex to bridge between MT4 and ECN/STP executions . No wonder , i wish learn Programing for executing trades on Currenex Platform , which i had barely handled . could you provide some details about this platform ?

1. Yes, it’s a dealing desk (Market making) for small orders. A broker will trade against you.
2. It’s STP (or possibly DMA/STP) – a broker will send orders (large orders, I’d suppose) to their liquidity providers – banks. Banks are always market makers. But your relationship with a broker is Straight-Through Processing (STP), which means no conflict of interests.

Dear Members,
I have read the following two statements on the webiste of broker “Forex4U”. Can anybody tell me if i am right about my interpretation:

1. “Low-volume orders are executed using internal liquidity according to the Market Maker model.”
Meaning: Is the broker operating as Market Maker for smaller orders?

2. “Direct interaction with Market Maker banks (exclusive price request with numerous types of orders)”
Meaning: Is the broker a DMA/ STP?

Pls. help me..

Firstly, the term “DMA” is not your standard term in Forex trading. All we knew before was: “Market maker”, “STP” and “ECN”. While DMA should rather be approached as a more or less new term, which helps us separate:
– STP brokers from DMA/STP brokers
– and ECN/STP brokers from DMA/STP brokers

Yes, most of the time you won’t find any relative information about DMA/STP/ECN etc on brokers’ sites, but that’s their fault that they don’t offer enough eduction & transparency, or, quite possibly, they don’t belong to the category of brokers they pretend to be (if so, it would be against the law to post any misleading information for traders, thus there is none at all).

How can you be sure that a broker is ECN?
To start with, every ECN broker should have:
1. Only market execution of orders
2. Only variable spreads
3. Only 5 digit pricing
4. There is always commission besides spreads
5. No one should care if you scalp or trade news etc. etc.
6. Trading platforms often allow to see the depth of the market (DOM)
Then you read the Trading Terms & Client Agreements. Later – consider talking to a broker representative as well.
Finally, get a demo account and test it. That’s how you make decisions instead of relying on promises etc.
You also ask your broker about liquidity – only they can shed some light on that.

Forex has no central exchange. Prices are determined by supply and demand: Buy/Sell quotes come from all market participants, including leading banks and large financial institutions who actively compete & speculate on the currency exchange. The best rates win, while supply and demand shift those rates all the time. The level of supply and demand depends on many global economical factors/events around the world.
And some more reading: http://en.wikipedia.org/wiki/Exchange_rate

So what now?

STP vs ECN vs DMA?

To be honest I kind of doubt in DMA since I can’t find any relevant information on broker’s websites about the type of brokerage they are.

How can you be sure that the broker claiming to be ECN is really ECN? Is there a way to verify that? How can you find out who provides liquidity to ECNs and how many of them do they have?

And one off-topic question, if Forex doesn’t have a central stock exchange, who sets the price?

Thank you for your honest posts and answers, this blog is very useful.

Very funny comments and knoweledge about DMA.. only Exachanges have this as CME. The orderbooks from “ECNs” can’t change price what is provide from MasterMarket with true orderbook.. DMA DMA DMA… this is only ads.. be aware gays.. in all “ECNs” as offer mt4,intergral,currenex price is provided from one cleared price and modified by dealers/manager or fees and agremenst.. no DMA for small retails .. simple BBO must change price if on your ECN you see DOM and under cur price are good offer when ypu put Limit price sholud change.. I gues it’s not posible on “ECNs” coz matching not working as on True ECN witch OB-fifo.

No, unfortunately, I don’t have enough data on the lot limits yet. We have a list of brokers who offer no order limits here: http://www.www.100forexbrokers.com/mini-micro-accounts-comparison

but there is still some work needed, not to mention that it’s not about ECN brokers only, but rather about all brokers. Sorry.

Hi there broker guru. Do you know any dma/ecn broker which allows unlimited trading per lot on mt4. For example i wanna execute 2000 lots on a single click. A broker with a great liquidity.

Hi GoG,
MB Trading is ECN.
MB trading UK is registered with FSA UK (#528328).

hi bg how about mb trading uk…they offer 2 different account pay for limit and free exn. is mbt uk regulated by fsa uk? thanks
regard
GoG

I disagree. Regular STP Forex brokers and those that provide DMA/STP trading conditions are different.

We need this classification to distinguish between those 2 broker categories; call it “DMA” or any other way.

DMA brokers offer:
– only Market execution
– only variable spreads
– only 5 digit pricing
– optional feature: DOM access (depth of the market book access)

Regular STP brokers offer:
– Instant or Market execution
– fixed or variable spreads
– 4 or 5 digit pricing
– no DOM access.

There’s no such thing as DMA in forex unless it’s currency futures, so the above list is all wrong.

Hi Pipkid,

we list PFGBEST as ECN/STP broker, although aware that their customer support sometimes says that its DMA model and other times ECN.

Here are some quotes from the representatives:
1. “While the platform is ECN, the trades are matched against prime banks like Goldman Sachs, ABN Amro, and JP Morgan Chase.”

2. “The feed is directly to the interbank market where it is offset by prime banks like Goldman Sachs and JP Morgan.”

All ECN brokers feed “directly” to the Interbank, but here we separate DMA category for brokers who feed directly to certain number of selected banks and liquidity providers which they work directly with; opposed to ECN brokers who place orders on the Interbank to be filled by any bank/liquidity provider.

I was told by my customer service rep that PFGBest is a DMA/STP broker. Can you verify this?

Pipkid

It’s up to a broker to choose margin levels.
If they think it’s better to match other MT4 brokers conditions, that’s ok. Just make sure you’re comfortable with it.

Hello.
How do you think about Divisafx (divisa capital)?

I sent email to divisafx.

helllo.
I installed both the Currenex Viking and the MT4 Quant platforms and running on demo accounts for a while. One strange thing I realized is that the margin calculations are different when comparing the platforms.
both demo accounts are in USD.
The margin used in Currenex Viking is 100 000 x 0,01 x actual quote for currency pair.
But The margin used in MT4 Quant platform is simply 1000.(standard lot size)
All pairs are symply 1000.
What is the reason for this difference?
bye.

—–>reply.
You are correct in your observations. While Currenex margin is set to account to account for the currency rate, we set the MT4 margin calculations to align with the majority of brokers who offer MT4 and charge initial margin of $1000 per $100,000 traded. Please let us know if you have any additional questions.

Regards,
Divisa Capital

DMA brokers won’t be interested in slowing execution speed I think, the reason for that is because the best quotes which they receive from liquidity providers are very quick to expire, if a broker doesn’t use this opportunity to offer clients better prices, then it’s no better than a regular STP/MM broker with average spreads.

Hi BG,

I was wondering that a mt4 DMA/STP broker can make a client’s execution speed slower?

FXCM ActiveTrader is ECN/STP, which is positioned by the company as even superior as other regular accounts (which are DMA).
As far as I know, there are no segregated accounts at FXCM, unless you want to open an account with their UK branch (http://www.fxcm.co.uk/)
FXCM is a veteran broker, so based on the statistics, yes.
If something happens to FXCM your account won’t be protected though, unless they offer some special conditions/protection to VIP clients, which should be asked in person.

Hi, BG
I am thinking about depositing 200000 USD to open an active account in FXCM. Is FXCM’s active account truly an DMA account?

I read this from FXCM website:
FXCM’s Active Trader is an agency/external execution platform, with commissions determined by trading volume.
Does FXCM offer segregatted account? Is it safe to trade in FXCM for the sake of the money? If the same thing on MF Global happened to FXCM, will the money be safe?

ps: I like your website very much.

Much apprecaited.

Hi,

There are more than 10.
Check out the Search: Forex brokers comparison
with parameters:
– Brokers type: “DMA/STP”
– API solutions: “yes”

Hey BrokerGuru,
I was wondering if you could give me about 10 or so more DMA companies who offer their clients (me) to use and API?

Yes, all 3 brokers are true DMA/STP, regulated and well known companies, absolutely no scam there.

HI brokerguru
what about broker go markets, vantagefx uk, and ibfx ..
are they true DMA / STP Broker? and not SCAM ?

Hi,
At 100Forexbrokers we don’t recommend/suggest any particular broker.
We keep a 100% neutral unbiased position. It’s our website policy.
Our goal is to offer you facts & figures, so that you can make an educated choice.

Thank you!

Hi BrokerGuru,

Can you please recommend me a real and good DMA broker that provide Manager Account facility.

Thank you in adv. 🙂

Hi Daffi,

yes, the Standard account at ThinkForex is DMA/STP.

Hi,
ThinkForex Standard account is an DMA/STP account?

Thank You,
Daffi

It looks like TradeStation has removed all references about Gain Capital from their website.
I’ll post updates once we find out more information.

Should Tradestation be in this list? Tradestation Securities transferred all forex accounts to the dealing desk of Gain Capital on April 9, 2011.
A Tradestation Forex Risk Statement ends with: “If you open a Forex account with TradeStation, this means that your FX deals will be with Gain Capital Group, Inc., the dealer firm to which TradeStation refers your FX trading business through an interface between TradeStation and the online dealbook system Gain Capital Group, Inc. provides. Gain Capital Group, Inc. will provide the liquidity that will be made available for your FX trading, and will act as dealer and counterparty for your FX transactions.”

Yes, it’s possible to trade with 0.01 lots on ECN and/or DMA account, but you should know that your broker will try to accumulated several small orders from traders into at least 0.1 lot order, which a broker then can send to liquidity providers. If a broker can’t do that fast enough, he would have no option but to facilitate your order quickly on his own side until he has enough orders to finally hedge them with liquidity providers.
It certainly creates more work for brokers, but with tough competition in Forex business nowadays, they don’t have much choice.

Hello and thanks for all the posts – this has been a great help.

So, to trade on an ECN or DMA/STP account that means the minimum lot size has to be 0.1?
Is it possible to get an ECN or DMA/STP account under that minimum lot size?

One site posted a minimum “lot step” at 0.01 aside the 0.1 for it’s ECN, but since my understanding is now that LPs won’t clear anything below 0.1, so a broker who says they are ECN or DMA/STP and allow 0.01 or 0.05 lot spots must be lying and pooling/counter trading at the DD.

I’m planning on trading 1:1 leverage at 0.01 lot positions (go ahead and laugh!! :P), and I’m afraid I’ll just have to trade on DD accounts. This will probably be okay for some trading strategies I guess except for trading high volatile news when re-quotes can become a common occurrence. I’d just like the opportunity to trade the news too without having to worry about execution!

Thank you for the feedback and useful reference!

Thanks BG for the great write up on DMA .. Being waiting for months for good information between the difference of DMA, STP and ECN Dealing.

The only information I had to go on was thru APBG forum post about – DMA vs STP – Below is part of the post .

“DMA goes beyond the STP model in that all rates are directly from banks with fully transparent market and revenue models. In practical terms this means trades are done on excellent prices for the full ticket amount because banks are refreshing their prices several times per second.
Partial fills almost never occur and platform rejection rates are significantly less than one percent
Who uses DMA?
Main users of DMA range from hedge funds to experienced individuals who want to trade on tight, neutral prices that are not spread or skewed in any way. There is a strong demand from large banks and brokers. These institutions are seeking the best possible FOREX model to offer their clients in terms of transparency, pricing, liquidity, low latency trading capabilities
Raising standards
As DMA grows in popularity, it will place pressure on the various FX execution venues to improve their technology standards and execution quality.
DMA is an enabling market structure in terms of efficient liquidity access and market transparency, raising standards in execution quality.”

As far as we know, LCG offers ECN trading, but it shouldn’t be a problem to ask broker where they send the orders to:
– if they work with only certain banks/liquidity providers according to their contracts – e.g. with own liquidity pool – that’s DMA dealing.
– if they send orders to the ECN pools – where there is an unlimited number of participants, no individual contracts signed – that’s ECN dealing.

DMA price quotes are considered to be more reliable = read “executable”, since they come from known liquidity providers, who commit to their prices with little to no rejection.
Let me further confirm this by quoting one of the brokers who explains this DMA vs ECN difference:
“With ECN’s, it’s an open portal essentially allowing anyone to become a market maker to your trades.
Whether it’s client matching, stp, or filled as house risk to counterparty. Inside an ECN, most banks don’t price very well which means most of the tight pricing is coming from other clients, hedge funds, or the broker hosting the pool themselves. If that is the case, then you really aren’t avoiding any of the issues why people are leaving the dealing desk model. With open forums allowing anyone to price, this can cause re-quotes, major slippage, partial fills, phantom liquidity, etc.
With a true DMA model, since the only liquidity providers are banks, the pricing coming in and the depth of book, is executable not phantom or other market makers looking to gauge the market then rejecting orders. Since all orders are instantaneously passed through to the pricing banks on a best bid/ask basis, they have committed to be here for the clients providing tight streaming rates with no re-quoting, no partial fills, and a low rejection rate (less than half of 1 percent).”

Hi , i noticed that LCG is listed under ECN group on your site and after reading their site it looks like they are STP/DMA type , which is better in your opinion ECN or STP/DMA ? thanks

That’s right, Gábor

At Pepperstone you have:
– Razor accounts ($200), which are ECN.
– Standard accounts ($200), which are DMA/STP.

Hi,

Pepperstone is listed both as an ECN/STP and a DMA/STP brokerage. Am I right to think that it is because of the two different accounts they offer? I’m a bit at a loss.

Gábor

Hi PetroB,

DMA/STP brokers can choose to charge commission, it’s fine. There are a few brokers who do that.

Broker Guru,
I checked on the Harbour FX site, and they charge commissions. This would mean, I believe, that they are not a true DMA/STP.
PetroB

Hi Luis,

Thank you for the feedback.
I’m a little bit behind the schedule with emails, sorry about that.

1 – updated.
2 – updated. Thank you!

Regarding your questions:

1 – yes, after doing one more check and talking to support I finally realized that I was wrong. HotForex doesn’t work with ECN liquidity, but rather with several own liquidity providers. The commission was added to compensate for the low spreads (basically you can treat it a mark-up). So, in the end, we have HotForex “Currenex” account, which is STP, it’s in fact DMA/STP.

2 – despite all beliefs it’s tricky to trade during the news. I would say that the best execution should be from DMA brokers (no requested while on market execution, but you could get slipped if price moves fast, still you get filled), then second place goes to ECN (though DMA and ECN are pretty equal, DMA is a bit more straight-forward in terms of guaranteed executable quotes that ECN). Regular STP brokers won’t be suitable for news trading.

8 lots is not a large order for any broker, you should have no problems with that.

[email protected] is the direct mail, it’s my email, where I answer to all inquiries. I don’t have a facebook page, somehow never tried to create one..

Hi Broker Guru:

First of all i would like to tell that in my opinion this Site (100ForexBrokers.com ) is the best forex Site in the world to take doubts, congratulations for that.

Now let me correct 3 things because i want contribute to the sucess of ur Site:

1- I am sure that Hotforex have 6 liq providers, and not 5, u can confirm with support

2- I am sure hotforex in currenex account takes 10$ per round lot trade and not 5$, they wrote 5$ in the site but its not per round lot Trade, its 5$ per per 100,000 USD Traded

Now the last thing and more important, i talked with support in order to know if they are DMA or if they are STP or ECN, and i told i had Currenex account, and they guaranteed me that even in currenex account they are STP and not ECN, i talked with 4 different support members, and all told me that my account (currenex) was STP, actually they dont use never ECN

So i would like to ask u 2 things:

1- Is possible that u are wrong about currenex being ECN ?

2- I want to start trading based on the news (in my case 5 seconds after the new released i will open position manually, not with buy or sell stops or limits), never did it in my life but will start soon, so what i want is a broker that allow me to open positions when the prices are moving ultra fast without requotes , and more important, in the price of the moment i clicked in.

For this kind of strategy what kind of Broker u reccomend me ? ECN STP or DMA ?

Another thing, i will buy always 8 lots, that big number of lots can make me loose the price or so ?

One more thing: can i get your direct mail or facebook ?

Luis

Hi Luis,
Currenex account at HotForex is an ECN account with $5.00 commission per 100k round turn lot.

At our site we cannot provide opinions/suggestions/recommendations about any Forex brokers. Our goal is to collect data and facts and offer this information to traders. Thank you for your understanding.

Hello. i am professional, and i choosed HotForex to trade 2 weeks ago. Was a risky move because the site is not knows yet because have less than 3 years. However i am ultra hapy, never got a requeote, spreads are great, and in news time it dontchanges almost nothing. So i love it.
My account is Currenex account, and i would like to ask u if thi s account is ECN or STP/DMA.
Oh, and if u can, pelase give meur opinion about this broker

Luis

Yes, liquidity providers will be counterparties to your trades with DMA.

There always has to be one, no matter if it’s:
a) a deliang desk – the broker himself is your counterparty
b) a no-deliang desk STP or DMA – one of the liquidity providers will be your counterparty
c) a no-deliang desk ECN – again one of the liquidity providers will be your counterparty.

With the DMA model stop hunting is not possible, because your order is sent to the liquidity providers anonymously, so that they don’t know where your stops and profit targets are.

HI BG

I would like to know more about DMA, is that the liquidity providers will be client’s counter party? Is there any stop hunting will happen?

Thank You!