⭐ DMA vs STP Forex Brokers

DMA vs STP Forex brokers: what is the difference?
Both are sending orders to the Liquidity providers, while the Aggregation of orders and Access to Liquidity will differ:

NDD + STP + DMA + ECN-style pricing NDD + STP
DMA (Direct Market Access)
NDD - No Dealing Desk
STP - Straight Through Processing
DMA - Direct Market Access to the Top-tier liquidity
ECN-style pricing - competitive bid/ask quotes
resembling ECN pricing
NDD - No Dealing Desk
STP - Straight Through Processing
Multiple liquidity providers Single liquidity provider
Access to multiple liquidity providers at any time
Access to a single liquidity provider, which sometimes can be it's own sister company
Access to the Best price Access to a Single price
Price aggregation from several liquidity providers allows for selection of the Best price
A quote received from a single liquidity provider has no alternatives
Guaranteed anonymity Possible identification of individual traders
Liquidity providers cannot identify individual traders and their profitability levels, no price worsening can take place
Individual traders in some cases can be identified (in case with a sister company), thus price worsening/manipulation cannot be excluded
Low quality execution excluded Low quality execution possible
Large slippage and delays minimized due to a choice of alternative faster quotes coming from other liquidity providers
Orders can be executed with a large slippage or delay due to being fully dependent of a single liquidity provider
Protection against non-market quotes No protection against non-market quotes
Liquidity providers who quote non-market quotes won't trigger Clients' stop orders
With a non-market quote Clients' Stop orders will be triggered
Shielding from force majeure Vulnerability to force majeure
In the event of a force majeure (such as no quotes, loss of communication with a liquidity provider, etc), Clients' orders will be executed by another liquidity provider
During a force majeure event, no back-up solutions available

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