Direct-Access Broker


DEFINITION of 'Direct-Access Broker'

A stockbroker that concentrates on speed and order execution - unlike a full-service broker that focuses on research and advice. Direct-access brokers usually use complicated computer software that allows clients to trade directly with an exchange or with other individuals via electronic communication networks (ECN).

BREAKING DOWN 'Direct-Access Broker'

Direct-access brokers have become very popular among active traders because of their speedy transaction times, but other services such as streaming quotes, interactive charts, Level II Nasdaq quotes and other real-time features have also contributed to this success. These brokers have cut down their costs and increased efficiency by eliminating the role of the third party, which in turn allows them to charge a lower commission than traditional brokers.

  1. Electronic Communication Network ...

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  2. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  3. Commission

    A service charge assessed by a broker or investment advisor in ...
  4. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  5. Day Trader

    A investor who attempts to profit by making rapid trades intraday. ...
  6. Active Investing

    An investment strategy involving ongoing buying and selling actions ...
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