Comment on Direct Market Access (DMA) for retail investors?

Giridhar commented on 29 Jul 2020, 06:48 PM

It should be permitted for cash and delivery transaction. The risk you wrote about wrt slippage in the pricing is already covered as the shares can be sold to recover. RMs is primarily for intraday transactions where there is a margin interplay.
Just like direct plans, direct PM’s the process of disintermediation should apply to trades also especially delivery based. That is the mantra of discount brokers and it is important that the brokers make efforts to take responsibility of their advice instead of only pricing the IT infrastructure and ui. But no one wants to move ahead and take the risk of owing advice. If you look at Schwab they have moved ahead with advice ( fiduciary standards) instead of just milking distribution and ui ux investment s.

View the full comment thread »