What's happened to LMax's spreads?

[bootsyjam]

This is where I embarrass mysef. LMAX is $25 per whatever the hell the nominal amount is (is it per $10 mill notional). I get mine for $22, Capmar has offered me $20-I'm no big trader either (about $10 per point on eurusd etc) to give you an idea

I should add I'm not getting a demo (at least I think so). Haven't had a chance yet but they're getting me to download something that allows me to see their prices. Sounds like a demo now that I think about it...

 

[random12345]

This is where I embarrass mysef. LMAX is $25 per whatever the hell the nominal amount is (is it per $10 mill notional). I get mine for $22, Capmar has offered me $20-I'm no big trader either (about $10 per point on eurusd etc) to give you an idea

Interesting. Very. Very. Interesting. That's a good rate for that vol.

Strange that Capmar are willing to entertain these sorts of levels (no offence intended at all, you know what I mean) yet don't advertise that fact at all as far as I could see.

 

[TraderHoo]

This is where I embarrass mysef. LMAX is $25 per whatever the hell the nominal amount is (is it per $10 mill notional). I get mine for $22, Capmar has offered me $20-I'm no big trader either (about $10 per point on eurusd etc) to give you an idea

I should add I'm not getting a demo (at least I think so). Haven't had a chance yet but they're getting me to download something that allows me to see their prices. Sounds like a demo now that I think about it...

What's the minimum account opening size?

 

[random12345]

What's the minimum account opening size?

Looks like Capmar are going to get a lot more retail callers than usual in the next few weeks. "Hi, urm, I don't know if I'm calling the right line here, I'm not an institution and errr..."

AA implied it was 20k USD earlier in the thread.

 

[TraderHoo]

Looks like Capmar are going to get a lot more retail callers than usual in the next few weeks. "Hi, urm, I don't know if I'm calling the right line here, I'm not an institution and errr..."

AA implied it was 20k USD earlier in the thread.

Definitely on the lookout for a top quality brokerage now that LMAX has become useless.

 

[bootsyjam]

Looks like Capmar are going to get a lot more retail callers than usual in the next few weeks. "Hi, urm, I don't know if I'm calling the right line here, I'm not an institution and errr..."

AA implied it was 20k USD earlier in the thread.

Yup 20k USD minimum. It doesn't cost them anything (at least I don't think so) to add on extra traders so why the hell not Besides, always the chance that if people are going to go in with that amount then they either blow it and make commission or go onto even bigger things which=more commission.

 

[cablemonster]

Looks like Capmar are going to get a lot more retail callers than usual in the next few weeks. "Hi, urm, I don't know if I'm calling the right line here, I'm not an institution and errr..."

AA implied it was 20k USD earlier in the thread.

yup. I have already emailed them asking for a demo

 

[random12345]

Yup 20k USD minimum. It doesn't cost them anything (at least I don't think so) to add on extra traders so why the hell not Besides, always the chance that if people are going to go in with that amount then they either blow it and make commission or go onto even bigger things which=more commission.

I remember that CapMar purposefully withdrew from the fx retail market though years back, much preferring white labels or providing smaller institutions with bank aggregates. I guess there is a breed of retail trader that can be catered for with min effort and a small profit to them... relatively decent frequency, 50-100 mill vol minimum, know what they're doing, and slightly better capitalised than their compatriots.

I assume CapMar can provide 100:1 then with their fx solution based in London?

 

[bootsyjam]

yup. I have already emailed them asking for a demo

Hey now hold up now I'm thinking I shouldn't have said anything. Haven't received emails as yet to give me a demo, can people just hold off please.

 

[random12345]

Hey now hold up now I'm thinking I shouldn't have said anything. Haven't received emails as yet to give me a demo, can people just hold off please.

I wouldn't worry - you're literally talking about a handful of interested parties at most.

 

[bootsyjam]

Yeah I know but i post here and boom about 20 mins later someone else is requesting the same thing. If it]'s true that they withdrew from retail/aren't interested which is fair enough then it doesn't look good if they're suddenly inundated.

 

[random12345]

Yeah I know but i post here and boom about 20 mins later someone else is requesting the same thing. If it]'s true that they withdrew from retail/aren't interested which is fair enough then it doesn't look good if they're suddenly inundated.

I hear you, but Shakone and I had no immediate interest, I think only CM and Traderhoo contacted them... CapMar won't care and/or notice. If they didn't want your business they would have referred you to their forex.com skin (http://www.cmsfx.com/) immediately.

Plus you might be surprised how few people have 20k to start with!

 

[The Pear]

I have an account with LMAX....ever since they started. Yes they dont want retail retail anymore but service is still good and spreads are as 'real' as we are going to get....more of the banks are sniffing around them...chances are that if you use a spread bet company they may well be feeding in LMAX prices....makes a nice circle doesnt it!

 

[bootsyjam]

Update-had Capmar prices up today. GBPUSD is a lot better than LMAX-from about 0.5-0.8 off top of my head while Lmax was consistently printing 1.2 and above. Is about the same between the two for all other majors-LMAX may have just about shaded it on USDCAD

 

[TraderHoo]

Had an email from the account manager at LMAX saying they bought on four liquidity providers last week and the spreads should start getting better.

Gbpusd definitely seems better but everyone please keep an eye on the spreads and let's see if this is a genuine effort or bull****.

 

[bootsyjam]

definitely not noticed any difference yet. In this IT world if there were any changes then they'd be instantaneous surely. The fact is other providers have lower spreads-has nothing to do with the liquidity providers, it is LMAX making money so don't hold your breath.

 

[AARasheed]

I've noticed the spread will tighten back to what it used to be (very very thin volumes) for a short period and then widen substantially. I have it running on the same screen as my bank feeds, they are stable.

Still not convinced.

 

[bootsyjam]

I've noticed the spread will tighten back to what it used to be (very very thin volumes) for a short period and then widen substantially. I have it running on the same screen as my bank feeds, they are stable.

Still not convinced.

Yeah they seem to narrow but then shot back to 1.2 to 1.7 where they remain the majority of the time. If I was suspicious then I would say the quick tightening is to make the general average spread look good....

 

[TraderHoo]

The fact is other providers have lower spreads-has nothing to do with the liquidity providers, it is LMAX making money so don't hold your breath.

LMAX is a pure exchange not a blended feed of the best bid/ask, how can they be making money of the spread? Only market participants would be making/loosing money.

 

[cablemonster]

LMAX is a pure exchange not a blended feed of the best bid/ask, how can they be making money of the spread? Only market participants would be making/loosing money.

oh that's quite a straight forward one to answer you need to think outside the box. I am NOT saying LMAX are doing this but one way would to contact a handful of your key LP's. You explain to them that the best inside bid/offer is currently very tight and you want to wet your beak a little. So you have an agreement with each LP to slightly widen and/or thin up your inside liquidity in return for a kick back which is shared between LP and the ECN. It's all very simply and it's shades of grey in the unregulated world of forex. I know of another high profile ECN who shall remain nameless who said to me if I dont want to pay $10 pmillion commission they will happily build it into the spread. You have to remember that each LP has many many different feeds they can provide depending on what flow they want.

Remember there are many games that are played across all the instruments. For the retail trader I have found futures to be the 'cleanest' instrument however even then you have to be wise to the games that are played.

Goldman's profits just doubled.

Good Luck.