DMA/STP Forex Brokers
The Direct Market Access (DMA) enables clients to trade directly with leading Forex Banks or Market Makers and thus it offers the option of receiving the best possible price available in the market at the requested time. Forex Brokers that offer DMA/STP use only the Market execution option and not the Instant execution. This is due to the fact that the order will be executed by the current available market price/rate of the given currency pair. It is very similar to the ECN/STP Brokers but some STP Brokers support the option to trade on Instant execution. This means that you may receive requotes on your trade requests but you will only trade at the requested price you asked. When you use a DMA/STP you will not receive any requotes. It goes without saying that through the Market Execution you will receive positive as well as negative slippage. Unfortunately, the negative slippage can sometimes affect your trading decisions and your overall performance as a Forex trader. In addition, DMA/STP Brokers do not offer fixed spreads and this restricts traders who use an algorithmic program for their trading decisions. There are many EAs that perform better when they trade on fixed spreads rather than the variable spreads.
