Best DMA Brokers 2024
We review and list the best DMA brokers in 2024, and explain what a DMA broker is and what the pros and cons are of this order execution type.
Top 5 DMA Brokers
We have reviewed almost 500 brokers and found that these are the 5 best DMA brokers:
#1 - AvaTrade
Why We Chose AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail) 1:400 (Pro)
Pros
- Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
- WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
- The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
Cons
- Traders from the US are not accepted
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
- There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
#2 - Pepperstone
Why We Chose Pepperstone
Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team
- Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:500 (Pro)
Pros
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
Cons
- Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
- There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
- Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
#3 - IC Markets
Why We Chose IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
- Regulator: ASIC, CySEC, FSA
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
- Minimum Deposit: $200
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
Pros
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
- IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
Cons
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
- The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
- While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
#4 - LiteForex Europe
Why We Chose LiteForex Europe
LiteForex Europe is a CFD broker established in 2008 and authorized by the CySEC. The brokerage offers forex, commodities and indices via the MT4 and MT5 platforms. Spreads are ultra tight on ECN accounts and leverage is available up to 1:30 in line with EU regulations. LiteForex also offers a rich education centre for new day traders and social trading capabilities.
"LiteForex is a good option for active day traders with variable spreads from 0.0 pips, daily analysis and high-quality training guides. The forex copy system also lets you duplicate the positions of experienced traders."
- DayTrading Review Team
- Instruments: CFDs, Forex, Indices, Commodities
- Regulator: CySEC
- Platforms: MT4, MT5
- Minimum Deposit: $50
- Minimum Trade: 0.01 Lots
- Leverage: 1:30
Pros
- LiteForex offers a client-oriented approach, with personal manager assigned to each trader and 24/5 multilingual customer support
- Fast ECN execution model with low spreads from 0.0 pips
- A proprietary copy trading system is available which allows you to copy other trading patterns
Cons
- There is no swap-free trading account for Muslim day traders
- There are limited funding methods compared to other brands
- The range of day trading markets is limited compared to alternatives, with no share CFDs offered
#5 - CityIndex
Why We Chose CityIndex
City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.
"City Index is best for new and intermediate traders looking for a wide selection of assets on user-friendly platforms."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Cryptos, Options, Commodities, Bonds
- Regulator: ASIC, FCA, MAS
- Platforms: MT4, TradingView, TradingCentral
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.
Pros
- Industry-leading platforms including MT4, plus access to cutting-edge third-party tools like TradingView
- Excellent reputation with over 1 million account holders and tier-one regulatory oversight
- Extended hours trading on 70+ popular shares including Amazon and Tesla
Cons
- US traders not accepted
- No Islamic account for Muslim traders
- Cryptocurrency trading not available in all locations
What Are DMA Brokers?
DMA (direct market access) is a non-dealing desk (NDD) execution model that refers to providers who allow you to place buy and sell orders directly onto order books. As such, traders enjoy greater visibility of the market whilst interacting with financial market exchanges directly.
This differs from over-the-counter (OTC) dealing whereby prices are quoted through a network of intermediaries (market makers). DMA doesn’t rely on the aggregation of orders over-the-counter and therefore investors can choose their prices.
Direct market access is not to be confused with two other NDD business models: straight-through processing (STP) and electronic communication network (ECN). Let’s explore the key differences of these types of brokers below:
STP
In this model, orders are routed to the broker’s liquidity providers (hedge funds, banks and big investors) which act as the counterparty to your trades. These providers will compete for the best bid/ask spreads, on which the broker then charges a markup.
In some cases, DMA can be provided as a separate benefit of an STP model, where orders are passed directly to the liquidity pool at the best possible price. Note that the execution speed with DMA brokers is usually faster than with STP models.
ECN
Electronic communication network (ECN) technology acts as more of a hub for liquidity sources. Whilst STP can select which liquidity providers they can deal with from their liquidity pool, ECN brokers are connected to a range of anonymous networks where there are no direct contracts.
ECN brokers make money from commissions, rather than bid/ask spreads or markups, meaning traders get ultra-tight floating spreads. Note that ECN trading is usually capped at a 0.1 minimum lot size, as there are few liquidity providers who allow less. This explains why ECN trading is less accessible for inexperienced traders.
Now that we know a little more about non-dealing desk models and the main features of DMA brokers, let’s take a look at some key pros and cons.
Pros Of DMA Brokers
- Comparatively low trading costs – Compared to OTC models, the costs of trading with DMA is usually lower because there is no manual intervention; the broker merely acts as an agent.
- Market transparency – There is an equal playing field between participants and greater anonymity with DMA. This means you can essentially see other traders’ movements in the market, from which you can gauge market sentiment.
- Competitive pricing – Prices are derived from numerous banks, exchanges and liquidity providers, making them more competitive than OTC.
- Market visibility – Orders are fully visible within the whole market, meaning participants can also gauge liquidity.
Cons Of DMA Brokers
- Not suitable for small traders – DMA is only recommended for active traders who deal in large volumes because of the complexity and risks involved.
- Strict rules – Since DMA is heavily regulated, trading becomes less flexible than OTC trades. Repeat dealing is restricted with DMA and deals can be rejected if you are trading outside the usual market size. In addition, once an order has been executed, you cannot reverse or change it.
- Complex – There is possibly an increased risk as DMA investors are empowered to become market makers when they deal directly into the order books of liquidity providers.
Choosing DMA Brokers
There are plenty of DMA brokers that you can choose from, though there are a few factors to consider before determining which is the best one for you. If you’re an experienced trader, follow our guide below for some top tips on what to look for in good DMA brokers.
Robust Technology
Since DMA works by connecting you directly to top liquidity providers, it’s important that your broker offers technology that can facilitate fast order routing.
For example, IG Group uses its L2 Dealing platform for DMA trading of forex and shares. Saxo Group also uses NY4, LD4 and TY3 data centres and more than 25 tier 1 liquidity providers to ensure you get the best possible DMA prices within the interbank market. Interactive Brokers also offers SmartRouting technology for all orders, whether they are marketable or not.
Market Access
Not all DMA brokers will offer every market, so check this before you sign up. IG allows CFD shares and share dealing with over 12,000 instruments, plus forex CFDs with over 80 pairs. Top DMA broker, Admiral Markets, also offers a huge range of over 4,000 assets, including stocks, bonds, ETFs and cryptocurrencies.
Costs
As DMA accounts are usually designed for large or institutional traders, it should be fairly easy to negotiate commission rates with your broker. This, of course, depends on the relationship you have with them, or your expected trading volume. Many brokers also offer reasonable discounts for certain trading volumes.
Make sure to take note of any minimum account opening requirements too. IG, for example, requires a £1,000 minimum funding for the L2 Dealer account.
Regulation
Traders should be aware of any forex scams or non-reputable brokers who claim to offer DMA pricing. Brokers with licenses will offer you peace of mind as well as the best possible support and protection for your trades.
Top forex and CFD brokers, IC Markets and FP Markets are both regulated in multiple jurisdictions, including Australia and Cyprus. Admiral Markets is also one of the top-regulated DMA brokers in the UK.
Final Word On DMA Brokers
In this article, we’ve detailed the key features of top DMA forex and CFD brokers, including Interactive Brokers, IG and IC Markets. Whilst the DMA business model does offer greater transparency, visibility and competitive pricing, the strict rules of DMA trading means greater complexity and risk.
If you’re a large investor, the criteria provided above should be a good starting point, though it might be worth getting in touch with your chosen broker directly to discuss your options.
FAQ
What Is a DMA Broker And What Does It Mean When Trading?
DMA (direct market access) is the process of being connected directly to top liquidity providers within the broker’s selected pool. When you trade with DMA pricing, you can place buy and sell orders straight into the order books of these providers, meaning you by-pass the price aggregation stage over-the-counter.
What Is The Difference Between STP And DMA?
STP (straight-through processing) is somewhat similar to DMA, as both are non-dealing desk models that connect you straight to the interbank market. The main difference is that STP brokers select the most competitive prices offered by their liquidity providers, whereas DMA pricing is pre-determined by the trader and passed directly on to the provider.
What Is The Difference Between ECN And DMA?
Again, ECN brokers are non-dealing desk, but instead of individual contracts being passed on with DMA, ECN brokers act as a hub of providers, where there is no direct contract involved. ECN brokers are usually characterised by ultra-slim spreads and commission charges.
What Is The Best DMA Broker?
It depends on your location and preferences. Use our list of DMA Brokers to find the best one for you, wherever you’re located.
Some of the top DMA brokers in the world include IC Markets, IG Group and Admiral Markets, though the rankings vary depending on your jurisdiction. In South Africa, for example, one of the top choices for DMA trading is AvaTrade.
How Do I Sign Up With A DMA Broker?
To start trading with DMA pricing today, you will need to complete an online registration process with your chosen broker. Note that institutional investors or large traders may need to contact the broker directly to discuss specific account requirements.
Can I Trade With DMA Pricing In Argentina?
It is possible to trade with DMA pricing anywhere in the world, as long as it is offered by your broker. Always ensure you choose a regulated and reputable broker to invest your capital.