Direct Access Training

Direct access trading (DAT) means trading with a system that allows the order to buy or sell to be sent directly to the market.

The term "direct access trading" is usually used when referring to a NASDAQ Level II trading system like RealTick. With a direct access stock trading system, a trader needs to select where to route his order. This can be to an exchange, a computerized system known as an ECN (electronic communications network), a market maker, etc.

The stock trader can achieve direct order execution through a direct access broker. Direct access brokers can execute orders much faster than online brokers and that is why they are essential for stock traders with active day trading or short-term trading styles.

Even though advancements in technology in the late nineties have brought down the commissions of direct access brokers to a level that is comparable to that of online brokers, quality stock direct access systems can cost between $300 to $600 a month. There are forex trading platforms that are typically free to use and have execution speeds comparable to direct access stock trading systems.

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