In any discussion of the financial trading market, online trading, and choosing brokerage firms, the topic of direct access trading, or DAT, is bound to come up. Direct access trading is just what it sounds like: the trader makes his trades directly, without a broker or other “middleman.”

Some immediate advantages to direct access trading are clearly apparent: there are no fees or commissions to pay, and the trader clears a larger profit on his transactions. Also, the trader can make his transaction as his own convenience; there is no need to wait for the broker’s office hours, or to place an order. When the conditions are right, the trader can trade.

There are tools that the trader will need for successful direct access trading. To start with, such activity will be conducted online; the trader will need good trading software in order to track market activity, plot sales trends, formulate a trade strategy, and conduct trades.

Secondly, the direct access trader will need to do his homework. Without an analyst or a broker to track the market, the trader will have to do that himself, and that can be a challenge for a newcomer. Also, the trader will have to learn the ins and outs of the transaction process; something that brokers take courses to learn, and are licensed to do.

All in all, direct access trading is a good option for a more experienced trader, who wants to rid himself of fees and commissions, and is willing to put in the extra work.