Direct Market Access (DMA) Definition
Direct Market Access or DMA is an attribute that a broker would use to describe their service and execution model. Similar to other acronyms such as STP, ECN and NDD, it implies that the broker is sending your order to the market and only acting as an intermediatory. In this model, brokers simply act as a service provider who provides you with direct access to a certain market via their platform and relationship with exchanges. When you trade with a DMA broker they will also need to go to the market to fulfil your request since they are not trading themselves or working with inventory they already have. For this, DMA brokers will charge a commission for this service. This concept makes traders feel more comfortable. This is because their broker is not taking on any market risk nor do they gain when their clients lose.