The Cost of Getting Direct Market Access | Forex Factory

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The Cost of Getting Direct Market Access

  • #1
  • First Post: Apr 2, 2019 9:58am Apr 2, 2019 9:58am
I have been studying how to go institutional. I would like to know if there are any institutional traders here.

I would also love to know apart from IG and DMALINK are there any other companies that offer direct market access(DMA) and over the counter prices(OTC)?

If possible suggestions on direct providers that support a trader creating his own platform and they just supply price feeds.

In summary how do I get zero spreads, instant market execution even during news releases and most importantly direct interbank rates at a decent cost.
Read in between the price!!!
  • #2
  • Apr 2, 2019 3:59pm Apr 2, 2019 3:59pm
you will need to have at least 1 million to play with........
  • #3
  • Apr 4, 2019 2:57am Apr 4, 2019 2:57am
Quoting yonnie
you will need to have at least 1 million to play with........
Hey Yonnie I'm aware of the Money side. Just looking for suggestions and ideas on how to get my money's worth.

Creating own trading platform is no joke so I need to get the right price feeds and not disguised retail prices.
Read in between the price!!!
  • #4
  • Apr 4, 2019 3:06am Apr 4, 2019 3:06am
most reputable retail brokers have their own prime divisions which are DMA they themselves use to forward retail clients trades.. the main reason why they package it into mt4 is simply because mt4 shows best bid/ask of group. if you are a one man show and want to go zero spread at marginal cost, go ecn. as stated. mt4 is optimized to show best bid ask of group. pre high volatility news spread increase is caused by the difference between these best bid/ask. not the broker increasing it on their end.

on building ur own platform. brokers are willing to give u api access. as long as u meet their funding requirements/trading volumes.
  • #5
  • Apr 4, 2019 3:10am Apr 4, 2019 3:10am
Quoting Bicarus
most reputable retail brokers have their own prime divisions which are DMA they themselves use to forward retail clients trades.. the main reason why they package it into mt4 is simply because mt4 shows best bid/ask of group. if you are a one man show and want to go zero spread at marginal cost, go ecn. as stated. mt4 is optimized to show best bid ask of group. pre high volatility news spread increase is caused by the difference between these best bid/ask. not the broker increasing it on their end. on building ur own platform. brokers are willing...
Okay thanks Bicarus, if I deduce correctly I can go ECN without having to code up a new platform I could still maintain my mt4? Plus I always thought DMA was better than ECN.
Any further explanations why ECN? Or is it because of it's marginal cost as you say?
Cheers
Read in between the price!!!
  • #6
  • Edited 4:01am Apr 4, 2019 3:41am | Edited 4:01am
Quoting calebfx
{quote} Okay thanks Bicarus, if I deduce correctly I can go ECN without having to code up a new platform I could still maintain my mt4? Plus I always thought DMA was better than ECN. Any further explanations why ECN? Or is it because of it's marginal cost as you say? Cheers
first off u need to get the terminologies correct. brokers enjoy throwing out DMA/ECN/STPS etc to promote themselves, but they mean almost nothing.
https://twoblokestrading.com/blog/br...p-dma-ecn-wtf/
a broker that claims to be a DMA might only have relations to have 1 or 2 LPs.

brokers that use ECNs do not have direct relationships with liquidity providers.
instead, brokers usually have a relationship with the server/exchange (Onezero/Equinex)

because these servers are used by many LPs they form their own ecosystem, ur bid/ask will be better (bigger pool of LPs = better best shown bid/ask)
thus the bigger the ecosystem the better the bid/ask

MT4 takes all these bid ask and shows u the best.

eg of a ecn platform without mt4 filtering out the data.
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im not sure of the cost to build a platform from scratch. but ECNs charge commission per trade. the worst one i've seen is a 1 pip commission
(eg: 10 usd commission for a 1 lot trade). many brokers are at 0.5/0.6.

paying a 0.5/0.6 pip commission to open and close positions at near interbank rate. to me, it is worth it.
  • #7
  • Apr 4, 2019 4:53am Apr 4, 2019 4:53am
Quoting Bicarus
{quote} first off u need to get the terminologies correct. brokers enjoy throwing out DMA/ECN/STPS etc to promote themselves, but they mean almost nothing. https://twoblokestrading.com/blog/br...p-dma-ecn-wtf/ a broker that claims to be a DMA might only have relations to have 1 or 2 LPs. brokers that use ECNs do not have direct relationships with liquidity providers. instead, brokers usually have a relationship with the server/exchange (Onezero/Equinex) because these servers are used by many LPs they form...
Once again thanks Bicarus. I love how MT4 filters data, but can I achieve low latency with mt4 vs own platform? I am with Pepperstone at the moment. They're good but I need to be independent.

I want to go full algo trading so I need as little interference as possible and with lightening fast trade execution but most importantly trading away from the prying eyes of the brokers.
If I read properly, from what you're saying a broker still has to place my trades with LPs, this means they could still study my algo but can't I get direct price feeds from LPs to either my mt4 or own platform at a cost?
Read in between the price!!!
  • #8
  • Apr 4, 2019 5:37am Apr 4, 2019 5:37am
once you go institutional be sure to home back to your original nesting here and give report back on the inside scoop of the big boys club.

many a mystery surrounds the workings of the stop-hunt-retail-rape and maybe you can nurse some fragile minds with some "woman's day" inside goss.

what would be really helpful would be some flashy snaps of some secret screens so we can deduce the workings of the institutional traders arsenal of trend lines and pivot points to help us on our quest to win (that just) 1 cent more than we lose.

PS I am actually now offically a losing retail trader, in the start I won my entire year of equivilent 1st world wages in an astonishing 3 weeks without knowing how to straighten my trend line or refresh my MT4 but now I know how price moves I'm destined to the gallows of negative balance.
life is a reflection of what we allow ourselves to see
  • #9
  • Apr 4, 2019 5:55am Apr 4, 2019 5:55am
Quoting mikeeating
once you go institutional be sure to home back to your original nesting here and give report back on the inside scoop of the big boys club. many a mystery surrounds the workings of the stop-hunt-retail-rape and maybe you can nurse some fragile minds with some "woman's day" inside goss. what would be really helpful would be some flashy snaps of some secret screens so we can deduce the workings of the institutional traders arsenal of trend lines and pivot points to help us on our quest to win (that just) 1 cent more than we lose. PS I am actually...
I'll tell you a secret which is a fact for free right now. Most Institutional traders are losing traders they only cover losses with news trading. If you look at their balance sheets you would be embarrassed.
As for the stop hunt, well big banks not intitutional traders use the stops of losing Institutional traders and the 95% losing retail traders for liquidity in pushing price where they want it to go.

Most news releases are bullshit, well except you have a bottomless trading account and have inside scoop before it's release otherwise you can't trade them.
Forget about fundamental trading, it is a losing strategy because as a retail trader it should only guide you on when to stay off the markets and observe, it should never be the reason for entrying a trade, you are more likely to be profitable trading forex off technicals because most news releases bounce off technical turning points. I DARE ANY FUNDAMENTAL TRADER TO SHOW ME TRACK RECORD OF SUCCESS.

Lastly, delete all indicators from your chart. Price is your indicator. Observe price and paper trade it for 6 months. Trendlines, fibo and pivots are quite useless too.
Bless.
Read in between the price!!!
  • #10
  • Edited 6:14am Apr 4, 2019 6:02am | Edited 6:14am
The cheaper way is be whitelabel. But anyway costs are high if your volume is low and you are only user ( if you dont want abandon MT4 platform )
Try don't lose pants never...
  • #11
  • Apr 4, 2019 6:28am Apr 4, 2019 6:28am
Quoting braintheboss
The cheaper way is be whitelabel. But anyway costs are high if your volume is low and you are only user ( if you dont want abandon MT4 platform )
Aha this is what a Mate was saying earlier today. I need to find one with zero spreads whatsoever because I want to include bitcoin to the list of instruments and pairs I trade. It is a mover but the spreads on regular broker accounts can kill. I don't mind paying high commissions just to dodge spreads. I also need lightining speed.

So Brain in your experience any decent financial firm you know of offering whitelabels? I'm doing my own research of course.
Cheers.
Read in between the price!!!
  • #12
  • Apr 4, 2019 6:51am Apr 4, 2019 6:51am
Quoting calebfx
{quote} Aha this is what a Mate was saying earlier today. I need to find one with zero spreads whatsoever because I want to include bitcoin to the list of instruments and pairs I trade. It is a mover but the spreads on regular broker accounts can kill. I don't mind paying high commissions just to dodge spreads. I also need lightining speed. So Brain in your experience any decent financial firm you know of offering whitelabels? I'm doing my own research of course. Cheers.
Many brokers and some independent business ( not idea why they had access ). I was interested in their manager API but pay $6000 + maintenance for can connect to MT4 servers like FF do is outside my needs. I only want manage a small numbers of accounts
Try don't lose pants never...
  • #13
  • Last Post: Apr 4, 2019 7:04am Apr 4, 2019 7:04am
Quoting braintheboss
{quote} Many brokers and some independent business ( not idea why they had access ). I was interested in their manager API but pay $6000 + maintenance for can connect to MT4 servers like FF do is outside my needs. I only want manage a small numbers of accounts
This answers my needs to be honest. I love mt4. Costing a lot already with just the blueprint of a private platform. I would go for a non brokerage firm as I really want nothing to do with brokers.

If I can get all I need which is zero spreads, low latency and direct market quotes then I'm willing to pay the commissions or meet the trading volume.
Some offer $50 per one million traded. This is great to be honest. Bitcoin volatility is amazing just the spreads are a b*tch.
Read in between the price!!!
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