Direct Market Access (DMA) is a service offered by some stockbrokers that enables sophisticated private investors to place buy and sell orders directly on the London Stock Exchange order books. With DMA private investors can level the playing field and trade like market professionals.
WHAT IS DMA?
The key benefits of DMA include:
To start trading via DMA you will need to set up an account with one of the available DMA provider.
Click here to access the list of DMA providers.
Background to trading
Gain a better understanding of the differences between non-order book trading and order book trading.
Non-order book trading
Private investors trade shares through stockbrokers. Brokers typically request prices from a number of market makers called RSPs who offer prices in “retail” (relatively small) sized volumes.
The price supplied to you by a broker is the best price they have been quoted by the RSPs they deal with. These, in turn, are based on the price available on the London Stock Exchange’s order books. Traditionally, you can only trade via your broker at the price supplied by an RSP and unexecuted limit orders are warehoused by the broker and not displayed to the entire market.
Order book trading
While stockbrokers typically execute trades through the RSP network, the majority of institutional trading takes place on the Exchange’s order books. Larger securities trade on order books which electronically match buyers and sellers.
An increasing number of brokers now offer DMA, which enables you to enter your own orders directly onto the order book without the need for an RSP intermediary. This provides the opportunity to:
Level 2 market data
Level 2 market data provides the most comprehensive and in depth set of data available on trading activity. Learn about level 2 market data in order to trade more effectively via DMA.
DMA INTERACTIVE GUIDE
To see the real benefits of DMA, why not try it out for yourself? The DMA Interactive Guide provides you with an opportunity to understand the order book. The DMA Interactive Guide is based on historical level 2 market data, providing you with an accurate representation of a DMA service in a risk-free environment.
Launch DMA Interactive Guide
Please note: For real DMA use, you will need to contact a broker who provides a DMA Service
Please ensure that you are fully aware of associated rules and procedures before trading on the London Stock Exchange:
Here you find a list of frequently asked question on Direct market Access.
Level 2 market data provides the most comprehensive and in depth set of data available on trading activity. This means more informed trading and investing, through high visibility of the factors and trends underlying price movements, all updated in real time, all the time.
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