"Direct access" is a term commonly used to describe an increasingly popular trading method for individuals. Direct access trading generally refers to the ability of individual traders to select which specific marketplace they route their orders to i.e., ECN, SuperSoes, Market Maker or Stock Exchange. Today's market structure is fragmented, meaning that a given stock can be quoted multiple places... a direct access brokerage firm enables you to decide which of these venues your order goes to.
What is Direct Access Trading?
Direct access trading maximizes your execution options by providing high-speed access to several major financial marketplaces from one single point. New sources of liquidity are constantly emerging to create alternate destinations for routing orders. It can be difficult to find the best possible execution when a stock is quoted on so many different markets.
When you place trades through a typical online brokerage, they generally route your order to a specific Market Maker or ECN. Typically, in return for the order flow, the Market Maker will offer the online brokerage a commission known as 'Payment for Order Flow'.
Day Trading Disclosure
After hours trading begins at 8:00 am to 6:30 pm EST on applicable ECN's. Technical issues during after hour trading sessions may not be correctable until the following business day. After hours trading has special concerns you should be aware of. For example: The possibility of lower liquidity, higher volatility, changing prices, unlinked markets, or exaggerated effect from news announcements, and wider spreads.
Why Is It Important?
When trading, you want the best price available at the time of your order. In today's fragmented markets, it is important for traders to have efficient access to all sources of liquidity because the best price could be found on any of the available venues. Direct access trading makes it possible to access this liquidity.
Unbiased Routing:
Solaris Securities believes that we should always put the interest of our clients first. Using Direct Access, all order routing decisions are made by you on an order-by-order basis. Solaris Securities receives no payment for order flow from any Market Makers and has no vested interest in any ECNs.
