Modern traders are difficult to please. They know the ropes of trading. They are spoiled by technologies and make high demands to the trading conditions. They want impeccable execution, high availability, attractive spreads and transparent pricing.
That’s why it is so vital for a forex broker to build a proper business model to take care of clients’ orders and find reliable liquidity providers. And that’s where DMA-liquidity comes into play to provide the broker with a true competitive advantage and a way to differentiate themselves from most of the rivals.
What is DMA-liquidity
The direct market access is the main feature of DMA technology. It means that all orders are passed directly to the liquidity provider. Thus It enables traders to trade in a transparent, low latency environment and have their orders filled based on best available quotes. Each order goes directly to the depth of the market book of the liquidity provider and eventually influences the market movements.
Brokers with DMA-liquidity are popular among traders due to:
– Ultimate transparency and market execution guarantee
– Best quotes from several liquidity providers
– Direct deals without broker’s interference
– No re-quotes
– Narrow spreads
– No limitations in terms of trading style (scalping, news trading, swing trading, position trading etc.)
Brokers are in love with DMA-liquidity because of:
– High availability secured by aggregated liquidity from several providers
– Competitive due to high speed of market execution and reduced trading costs
– Single marginal account – no need to open accounts with each liquidity provider
– Predictable and stable cash flows – broker earns money regardless of traders wins and losses
– Minimized risks
– No conflict of interests, as a result, lots of loyal traders
Where it comes from?
Brokers usually deploy DMA technology via FIX API protocol or use cloud systems to connect to liquidity providers, such as Cloud2Bridge of B2Broker. Besides, B2Broker offers DMA-liquidity as a part of its comprehensive White Label MT 4/5 solutions.