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DMA/STP Brokers

With DMA (Direct Market Execution) execution forex traders are able to place orders directly with liquidity providers such as banks, other brokers, etc.
DMA brokers are the ones who can be called NDD (no-dealing desk) forex brokers.
ECN brokers are the ones who always provide Direct Market Access. But with an STP broker it does not mean you get DMA.

With DMA you get variable spreads and market execution when you get the best quote from one of the liquidity provider through the connection provided by your broker.

Best Canadian Forex Broker List

easyMarkets logo

easyMarkets

4.5
Demo account Yes
Minimum deposit $100
Minimum Deposit: $100
Between 74-89% of retail investor accounts lose money when trading CFDs with this broker.
Blackbull Markets Logo

Blackbull Markets

4.5
Demo account Yes
Minimum deposit $250
Minimum deposit: $250
Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
Eightcap Logo

Eightcap

4.6
Demo account Yes
Minimum deposit $150
Minimum deposit: $150
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider
ForTrade

ForTrade

4.2
Demo account Yes
Minimum deposit $200
Minimum Deposit: $200
67% of retail investor accounts lose money when trading CFDs with this provider.
avatrade logo

Avatrade

4.5
Demo account Yes
Minimum deposit $100
Minimum Deposit: $100
Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
LegacyFX logo

LegacyFX

4.5
Demo account Yes
Minimum deposit $ 250
Minimum Deposit: $ 250
Between 74-89% of retail investor accounts lose money when trading CFDs with this broker.
FXCC logo

FXCC

4.5
Demo account Yes
Minimum deposit $100
Minimum Deposit: $100
Between 74-89% of retail investor accounts lose money when trading CFDs with this broker.
fpmarkets logo

FPmarkets

4.5
Demo account Yes
Minimum deposit $ 100
Minimum Deposit: $100
Between 74-89% of retail investor accounts lose money when trading CFDs with this broker.
FX-Choice

FX Choice

5
Demo account Yes
Minimum deposit $ 100
Minimum deposit: $ 100
73.9% of retail investor accounts lose money when trading CFDs with this provider.

 

With DMA broker you always get STP (Straight Through Processing) that’s why they are referred to as DMA/STP brokers.

The difference between an STP and a DMA/STP broker:

  • STP brokers have Instant Execution and will fill your orders on their side and only then will STP brokers pass your orders to their liquidity providers for hedging. That’s why you can often see re-quotes during the times the broker cannot find a profitable trading opportunity when you send your trading request.
  • DMA/STP brokers using Market Execution will route your orders to their liquidity providers directly and will them at the best rate offered by these liquidity providers. That’s why there are no re-quotes with DMA/STP brokers.

Take a note, that ECN/STP brokers are always Direct Market Access (DMA) as well.

Comparing DMA/STP and ECN/STP brokers one can say that both types have variable spreads. ECN/STP brokers get their compensation in the form of a commission. DMA/STP brokers are compensated with some fixed mark-up they have a contract for with each liquidity provider that is added to the bid/ask price.