What is direct market access trading?

In the financial markets, sell-side firms offer their direct market access trading platforms and technology to buy-side firms who wish to control the direct market access trading activities for their investment portfolios.

What should day traders know about direct access routing?

Day traders using direct access routing should be aware of the existence of high-frequency traders, and be able to recognize when one or more is highly active in the security they are trading in.

What are direct access brokers?

Direct access brokers are specialized brokerage firms that allow traders to directly route their orders to specific exchanges, electronic communication networks (ECNs), and market makers. These brokers provide advanced trading tools that are optimized for execution and speed.

Do individual investors have direct market access?

Individual investors typically do not have direct market access but usually rely on an intermediary brokerage firm for trade execution. Investment banks and other sell-side firms use sophisticated electronic trading technology that allows them direct market access to the exchanges.