Want to trade on a level with the institutions? Now the London Stock Exchange (LSE) is giving you the chance to see how with its new Direct Market Access Simulator.

Most private investors pass trading instructions to a broker (over the phone or via the internet) who then goes to the LSE's SETS order book to execute on their behalf. It is the broker who has direct access to the market.

But some brokers now provide the technology allowing private investors to go straight to SETS via their PCs and place orders on to the book themselves.

Institutional investors already have direct connection to SETS. Private investors have long had a window on SETS (via Level 2 screens) and the LSE hopes its simulator will give them confidence to start participating.

The simulator uses historical Level 2 market data to recreate the order book in six FTSE 100 stocks. Buy and sell orders interact with the historical data so you get a real feel of how it works without risking any capital.

At present, iDealing and Interactive Brokers are the only two brokers offering retail investors direct access to SETS and the SETSmm order books, where all the main market and large Aim shares are traded.

The LSE's promotion of direct market access comes as competition hots up for retail investors from rival exchange PLUS Markets.

PLUS is an alternative venue for brokers to execute clients’ orders. Unlike the LSE it can't offer direct access because its 'quote-driven' system depends on market makers to act as middle men for any trade.

The LSE claims its order-driven system is more efficient than the quote-driven system of PLUS. PLUS in turn argues market makers are essential for ensuring liquid trading conditions and tight spreads, particularly for smaller companies.

Direct access to the order book will help you test the rival claims for yourself. To download the simulator visit www.londonstockexchange.com/dma