What is a direct-access broker?

Direct-access brokers provide traders with a direct route to the markets. They are often used by day traders because these brokers give them access to the markets and liquidity quickly and efficiently. These brokers also offer their clients other services, including streaming quotes and interactive charts among other things.

What is direct access trading?

Direct access brokers facilitate trading in a variety of financial instruments like shares, ETFs, equity, mutual funds, bonds, and even OTC (over-the-counter) or pink-sheet stocks. These elements offer a range of opportunities for clients. How Does Routing Work in Direct Access Trading? In direct access trading, the routing system is critical.

Do online brokers offer direct access trading systems?

Many online brokers offer traders access to direct access trading systems. Investors should do their own research to make sure the system they choose meets their individual needs. Here is a list of some DATs available to traders: There are many DATS and ECNs out there.