What is direct access to the market?

Direct access to the market or DMA in the world of financial marketing applies to various types of electronic business tools that enable investors to quickly and safely place exchange orders. This type of business tool can be used with shares, mutual funds and many other types of investment. While the ability to trade on the ordering book is usually limited to brokers and sellers, the use of direct access to the market by private traders or investment companies allows you to bypass brokers and carry out trade directly with the stock exchange. This can be particularly important when the order quickly set it is essential for generating the best possible return from the transaction.

Access to direct access to the direct market is now commonly used by investment companies known as buy side firms . Businesses of this type often work with a business model that allows them to buy and sell them for individual clients or accumulate orders on digits at the same time. Depending on mList of business laws that may apply, companies of this type sometimes charge lower fees, which means that clients create smaller expenditures and at the same time retain the ability to quickly and easily make orders.

Individual investors also use direct access to the market. The investor must usually meet the criteria established for the stock exchange to place orders directly. Once the investor is entitled to do so, it is possible to use this method to place orders at any time during the trading day, without almost any delay. The advantage of this approach is that the investor can quickly buy securities because they increase the value and sell these securities as quickly as they start to match, but before the price drop becomes materialized. While brokerage also moves quickly with customers' orders, for the next few seconds or the minute use of direct access to the marketthat change a little more return or maybe prevent loss.

Another advantage of direct access to the market is that the investor does not have to share information with anyone other than the stock exchange when placing an order. This means there is no opportunity to escape to other sources at no time during the transaction. Some interfaces for direct access to the market even protect the identity of the end user using a certain type of code or username that is recognized by exchange, but has no real meaning for any third party, including shopping tables with other stock exchanges. This feature is often ideal for investors who prefer to invest without attracting much attention.