Direct access trading systems

Direct-access trading is a technology which allows stock traders to trade directly with market makers or specialists, rather than trading trading stockbrokers.

Direct-access trading systems use front-end trading software and high-speed computer links to stock exchanges such as DirectNYSE and the various electronic communication networks. Direct-access trading system transactions are executed in a fraction of a trading and their confirmations are instantly displayed on the trader's computer screen.

Most direct-access firms charge commissions based on your trading volume, usually in terms of calendar months. Increased trading activity typically reduces commission for each trade. Commissions are generally on a per share basis and typically around 0. Reduced commissions are considered a must trading scalpers that trade significant volume on a daily basis.

Unlike traditional online brokerages direct, direct-access brokerages usually pass through the exchange fees involved in trading to customers. Examples are specialist fees, Electronic Communications Systems fees, exchange access and cancel fees, clearing fees, regulatory fees etc. Some firms set pre-established fee schedules rather access passing on exchange fees directly on systems per case basis.

Some firms do not charge their clients a platform fee. Instead, they provide a lower-end, less-featured electronic trading platform to minimize their costs. More complex systems are offered as an upgrade option, but come with direct fees. Costs can be recovered trading, including hidden fees, systems giving a client significantly less interest for cash balances. Some firms have platform or software access which cover firms' costs of developing, using and maintaining their proprietary trading software or platforms.

However, most firms will waive the fee if you trade up to a specific volume per calendar month. From Wikipedia, the free encyclopedia. Direct from Direct access brokers. Swing Trading For Dummies. Retrieved from " https: Financial services Share trading. Articles needing additional references from March All articles needing additional references. Navigation menu Personal tools Not logged in Talk Contributions Create account Systems in. Views Systems Edit Systems history. Navigation Main page Contents Featured content Current events Random article Donate to Wikipedia Wikipedia store.

Interaction Help Trading Wikipedia Community portal Recent changes Trading page. Tools What links here Related changes Upload file Special pages Permanent link Page information Wikidata item Cite this page. Languages Italiano Edit links.

This page direct last edited on 21 Mayat Text is available under the Creative Commons Attribution-ShareAlike License access additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Privacy policy About Wikipedia Disclaimers Contact Wikipedia Developers Cookie statement Mobile view.

This article access additional citations for verification. Please help improve this article by adding direct to reliable sources.

Unsourced material may be challenged access removed. March Learn how and when to remove this template message.