Novice traders would usually hire online brokers to execute day trading for them Online brokers, after all, are accessible and less expensive. All you need is a credit card and an internet connection to hire online brokers The only problem with online brokers is the inherent fact that order execution can become relatively slow through them. Speed is important in trading. To ensure success, traders should utilize a system that orders and places trades on time. A professional trader would immediately recognize the importance of speed which makes them prefer direct access trading to online brokers. Direct access trading can make things a lot easier when you are getting into the stock market for beginners.

Immediate execution of orders is the key factor for day trading success. Direct access trading eliminates the need for a middleman, which in this case is the online broker. Once the middleman is out of the picture, traders can save up to several minutes of their precious time. Direct access trading allows traders to execute orders directly with the market makers working on the floor. This allows immediate execution since orders need not pass through online brokers.   One you’ve mastered the stock market basics things get easier quickly, then you can move onto things like beginners forex trading.

Another reason why you should opt for direct access trading system is the fact that online brokers may also be clients of market makers. This means that online brokers do not choose their market makers in terms of the price that they offer when executing orders. They would rather route the trades to their clients to earn rebates. This is a practice termed as “payment for order flow” wherein online brokers earn rebates from routing trades to a certain market maker. With direct access trading, the trader can choose the market maker that provides the best price.

Another reason why direct access trading seems to be costlier is the fact that online brokers receive commission from payment for order flow. Consequently, they can afford to offer rock-bottom rates to traders. Commissions obtain from direct access trading are based on the number of traders executed by a trader within a certain period. The fees for every trade may range from $15 to $35. In addition, most direct access trading system providers would charge for the use of their software. This additional payment falls within $250 to $300 per month. Some firms waive the software fees if the trader makes a certain number of trades, most of the time falling within 50 to 300 per month.

There are several direct access trading systems available in the internet today. All of them differ in terms of speed and accuracy of order execution as well as the commission price that they charge for every trade. Professional traders have to be vigilant in choosing the perfect trading system based on these key factors.