Direct Market Access (DMA) Trading with FOREX.com
As the #1 forex broker in the US by client assets, our goal is to cater a variety of trading styles by offering multiple trading and charting platforms, educational resources, and markets. That’s why in response to popular demand, we are excited to introduce our new Direct Market Access (DMA) account.
1) What is Direct Market Access?
It means you’re trading on pricing sourced directly from our liquidity providers*. Ability to see the full market depth gives you greater insight and control to trade on the best bids and offers especially for large order sizes.
* While our clients trade on transparent DMA pricing provided directly from top-tier global banks and liquidity providers, FOREX.com remains as the principal and counterparty to the trade. We execute client trade requests in FOREX.com’s name with the liquidity providers and pass the fill price back to the customer with no added mark-up.
2) What are the advantages and disadvantages of DMA model?
Advantages:
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Trade on prices sourced from global banks and top tier liquidity providers – with no additional mark up
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You pay no FOREX.com spread, raw spreads can be as low as 0.0 – no mark up
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You can trade on discounted commissions as low as $20 per million. Standard commission start at $60 per million with the opportunity to earn deep discounts that carry over month to month. Commissions are based on the value of the contract in USD.
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Real time full multiple levels of full market depth of our order book
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Split the spread, place orders within the top of book spreads
Commission example:
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If you trade $350M volume in Month 1, your commission for trades in Month 2 will be $35 per million traded.
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If you trade $550M volume in Month 2, your commission for trades in Month 3 will still be $35 per million traded, since it is based on your 3-month rolling average of volume traded.
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If you trade $600M volume in Month 3, your commission for trades in Month 4 will be $30 per million traded (based on 3-month rolling average of volume traded).
Disadvantages:
- When you are trading a DMA account, you are trading on raw pricing and liquidity and as a result, there may be periods of less liquidity such as during news announcements - spreads can widen further in a DMA model when compared with our standard spreads. Trade requests may be partially filled or not filled at all due to lack of available liquidity.
When you trade on a FOREX.com Standard or Commission account, FOREX.com acts as the market maker and is directly accountable for pricing and execution quality. Your orders are filled directly by FOREX.com.
With DMA, FOREX.com is placing an order on behalf of the client and passing along the fill received directly to the client, so there is the possibility of order rejections and partial fills.
3) Are there any account or trade restrictions with a DMA account?
The DMA account is available to everyone however, it is designed with high volume traders in mind. There is no minimum account balance or minimum trading volume required per month, but the minimum order size is 100K (or 100,000 units of base currency AKA one standard lot), and trades must be placed in increments of 100K.*
A tiered commission structure means your commission per USD million traded is based on your monthly trading volume.
* Traders who wish to place orders smaller than 100K, or who trade less than 100M per month have the option of trading our Standard or Commission account where they can place orders as small as 1K (or 1,000 units of base currency AKA one micro lot).
4) Are there other benefits of having a DMA account?
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Earn interest: 1.5% APY interest on your average daily available margin** balance up to $50K, 0.5% APY on $50K-$100K
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Get professional guidance: Enjoy dedicated one-on-one support from a highly trained Market Strategist that can help you with your trading plan
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Waived bank fees: We will reimburse bank fees on all wire transfers
Visit our website for more information on our DMA account, or you can contact us at 646-512-5438 or [email protected]