Direct access technology is a desktop software or web-based trading application. When linked — ideally by a high-speed connection — to the Internet, that platform becomes your own personal trading floor. Live market data from market makers, securities exchanges and ECNs update in real time. Traders or investors can spot price differentials, trade volume, liquidity, and other market intelligence, and act on it directly.

This is an enormous change from pre-direct access, when information was masked by the middleman — full-service brokerages — and all trades had to be funneled through a number of steps – any of which could slow or alter the original trade.



The ability to see market opportunity in real-time and act on it immediately means you have a better chance of capturing the buy/sell price you've targeted. Through a traditional brokerage, the lack of control after you've placed your order can significantly impact your profits and/or losses.
In fast moving markets, order execution speed can be the difference between a gain or a loss, between taking advantage of an opportunity and missing it entirely. Direct access almost eliminates the time gap between execution and trade confirmation as well.
Slippage, the gap between the estimated cost of the transaction and its real cost, is an important factor when executing a trade. This is particularly relevant in a fast-moving market. There are other hidden costs at non direct access brokers as well that affect the prices that consumers receive. Direct access is the most transparent method of accessing the markets.
Remember: Account access, trade executions, and system response may be adversely affected by market conditions, quote delays, system performance, and other factors.




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