Benefits of direct market access in forex
There are a variety of advantages of direct market access, such as setting your own price and dealing directly with other market participants. Other benefits of DMA include:
- Faster execution
- Full forex market transparency
- Extended data on currency pairs
- Prices from a wide selection of global banks and liquidity providers
Drawbacks of direct market access in forex
Because of the complex trading environment of forex DMA, there can be increased risk and a few potential downsides that you should be aware of before you start trading:
- Prices are not necessarily better than OTC, but our pricing technology is engineered to find the best available prices on both OTC (over-the-counter) and DMA
- As we take a parallel position in the underlying market, once an order has been executed we are unable to change or reverse the position
- While you are trading at market prices, you do not gain any ownership rights over the currencies which form the subject of your CFD
Forex DMA costs
Commission
Unlike OTC trading, there is no IG spread to pay. Instead we charge a variable commission – as low as USD10 per USD million worth of the currency traded. This charge is based on the volume you traded in the preceding month.
If your account is not denominated in USD, the commission will be converted into your base currency (at current exchange rates) before being deducted.
