What's happened to LMax's spreads?

[evertontrader]

The spreads have been terrible over the last few months, I have a dukascopy account also and the spreads always seem to be tighter with them (used to be the opposite) even though I still trade with LMAX out of loyalty to them based on how good they once were... if it doesn't improve I may me moving on

Possibly lost some big LP's ?

 

[random12345]

The spreads have been terrible over the last few months, I have a dukascopy account also and the spreads always seem to be tighter with them (used to be the opposite) even though I still trade with LMAX out of loyalty to them based on how good they once were... if it doesn't improve I may me moving on

Possibly lost some big LP's ?

Are you talking about exotics or low liquidity G-7 here? E/U spread seems the same as ever to me. Some Japanese pairs have increased in spread, but then with volume way down on the JPY that's to be expected really.

My main concerns with LMAX are whether they have any long term interest in retail trading. I think there was some truth to the rumour of their withdrawal from the retail arena even though they denied it at the time. The fact they never developed anything beyond MC and the cheapest package IT-Finance offer would give weight to this. They are all too happy to consider algo/industry adaptations however and have done so for me in the past. Think they will go the way of Capmar and provide white labels or inst volume only. Wouldn't effect me directly I hope, but was one of the best the UK will ever see for cheap access to inter bank OTC.

 

[Pippi56]

My main concerns with LMAX are whether they have any long term interest in retail trading. I think there was some truth to the rumour of their withdrawal from the retail arena even though they denied it at the time. The fact they never developed anything beyond MC and the cheapest package IT-Finance offer would give weight to this. They are all too happy to consider algo/industry adaptations however and have done so for me in the past. Think they will go the way of Capmar and provide white labels or inst volume only. Wouldn't effect me directly I hope, but was one of the best the UK will ever see for cheap access to inter bank OTC.

Yes, i would assume that they will stop taking retail clients too sooner or later. In the latest interview the CEO said that "they still have some legacy retail business". So its certainly not a big part of their plans moving forward.

Maybe they will grandfarther the existing accounts in, at least i hope so. Or they find a firm that provides DMA access to lmax and takes their retail clients. LCG or something like that.

 

[jkane]

LMAX horrible leverage and terrible overrated

much better places to get tighter spreads

 

[jkane]

usd/jpy way to wide as are all curencies
sp500 4 points....industry standard spread betting and cfds
crude, dow..same thing

not direct market prices

LMAX glorified DMA

 

[gle101]

jkane - retail chump who wouldn't know his ass from his elbow...

So, now that we've got the stupid, childish statements out of the way, can you enlighten us as to what's so 'horrible' about LMAX's leverage, why they are 'overrated', and where you can get 'tighter spreads'?
I won't hold my breath...

Yes you might be right about a few things, but your language is terrible. I like jakane's contribution, you act like you own the forum, which you don't.

Have a look at xcfd.com spreads on the major Forex, better than LMAX and no commission, how they can manage I frankly don't know.

 

[gle101]

I've never denied my language is terrible. However, if someone comes on here and posts outright lies, then frankly they deserve to get put in their place.

You are also incorrect. I've just compared LMAX's and xcfd's spreads on several majors - they are the same - that is to say they are both showing the underlying market spread. Finally, if you can't see that the flaw with zero cost brokers, then you shouldn't be trading.

Bad language will not get you very far in my opinion.

Do you pay a commission trading FX majors at LMAX? If the answer is yes you are wrong. If the answer is no you might be right, it would surprise me though. Trading with a "zero" broker is another issue altogether, you said bring me a broker with better spread than LMAX, I did.

 

[gle101]

Look if you want to be a trader, you're going to have to get used to harsher things than me being a bit unpleasant in my wording. Anyway, let's move on...

You will pay a commission at any reputable broker or institution yes. LMAX is no exception. I don't remember saying "bring me a market maker with better spread than LMAX". Also LMAX is not a market maker. Do you know the difference? Probably not...

Well I got the impression that LMAX according to you is the best, and no one else gives you a better deal. I am quite sure that many DMA forex brokers might be giving just as a good deal if not better. But as you are such a big shot (come across many in my years of trading) you know best and all others are wrong.

 

[gle101]

I though you didn't agree with writing rude posts to people? Or is it ok when you do it?

No, but the end of your post were insulting, and you had it coming.

 

[MajorMagnuM]

Yes you might be right about a few things, but your language is terrible. I like jakane's contribution, you act like you own the forum, which you don't.

Have a look at xcfd.com spreads on the major Forex, better than LMAX and no commission, how they can manage I frankly don't know.

could you provide an example of a trade taken that would have been better on xcfd ?
interesting to know there are better deals than lmax, which is the best i have found so far

 

[gle101]

could you provide an example of a trade taken that would have been better on xcfd ?
interesting to know there are better deals than lmax, which is the best i have found so far

I do not trade forex very often. So I signed up with xcfd.com just to try out the Exante platform they are using and get some experience trading FX. A fast platform although some important features are missing. Still the spreads on FX are the best I have ever seen a market maker offer. The platform is fast and in line with that of the Exante institutional platform when it comes to performance. How they can manage to give this kind of narrow spread I honestly don't know, slippage maybe, not a big problem with the few trades I have done with them. Is it too good to be true, probably is, but I didn't deposit that much to bother if something goes wrong. The leverage on the CFDs indices could be better, but nothing wrong with the spread (FTSE 0.7). The spread display on their homepage is what you are actually paying, and no commission. Yes a market maker and all that, I know, but check it out, sorry to say they have no demo account but you can trade almost any low unit numbers on the FX instruments.

 

[Pippi56]

For FX and metals Lmax is one of the best in my opinion, for index cfds not so much - they only have a single marketmaker for these. They would need a few more in these products.

 

[MajorMagnuM]

I do not trade forex very often. So I signed up with xcfd.com just to try out the Exante platform they are using and get some experience trading FX. A fast platform although some important features are missing. Still the spreads on FX are the best I have ever seen a market maker offer. The platform is fast and in line with that of the Exante institutional platform when it comes to performance. How they can manage to give this kind of narrow spread I honestly don't know, slippage maybe, not a big problem with the few trades I have done with them. Is it too good to be true, probably is, but I didn't deposit that much to bother if something goes wrong. The leverage on the CFDs indices could be better, but nothing wrong with the spread (FTSE 0.7). The spread display on their homepage is what you are actually paying, and no commission. Yes a market maker and all that, I know, but check it out, sorry to say they have no demo account but you can trade almost any low unit numbers on the FX instruments.

thats interesting. Did you have a specific example from each to compare?

 

[gle101]

thats interesting. Did you have a specific example from each to compare?

Sorry, I will not post my trades with them, but I am amazed how well they perform considering the narrow spread, I have even seen zero spread on the EUR/USD. Maybe they give this narrow spread just to build up the client base, although it has stayed this way for several month now. Dow Jones do have a point, how can they deliver this kind of spread without some kind of foul play? In the long run they will probably increase the spread, that is my guess. I would be more careful if they use MT4 platform, but they license the Exante platform with their reputation on the line.

 

[gle101]

MM,
Institutions pay spread/commission in the underlying market. If a bucket-shop is offering zero spreads/commission they are a scam. Period.
If you do some research, or ask around, you can easily find out how these brokers can appear to offer " a too good to be true" deal, when in reality they just screw their clients.
I've come across more than a few horror-stories, even with supposedly 'regulated' firms (also remember some regulation isn't worth the paper its written on).
DJ

I think you are shouting SCAM too fast, I agree it seems too good to be true. But I will wait and see how it develops, not much money on the line anyway.

 

[jkane]

Trade ECN only if you are a forex tradernot LMAX

I have a major clue...spreads to wide

Leverage horrific also compared to others

 

[gle101]

Trade ECN only if you are a forex tradernot LMAX

I have a major clue...spreads to wide

Leverage horrific also compared to others

Please give numbers, you are too general in your description of spread and leverage.

 

[tar]

Its wrong to assume that Lmax is a DMA , it is not . Lmax is just a cfds exchange , which means that they have a couple of market makers make prices for their clients , plus traders there can trade with each other .
If they are offering FX with a minimum size of 1 mini lot then rest assured they are not a DMA , they are just an ECN for their own clients and a couple of market makers ( liquidity providers ) .

 

[gle101]

tar - you should stick to posting what you know about - what you've written is totally incorrect.

Here are the facts (which you can verify directly with LMAX). LMAX Exchange is not an fx 'cfds exchange' or ECN it's an FX MTF. It does not have "market-makers making prices for clients" - that doesn't fit the definition of an MTF. It is FX DMA. If you research how their MTF works you will see how they offer their various contract sizes. For some non-FX products they do also offer CFDs (as previously mentioned this is not their core business).

NB: To anyone reading, please note that I personally couldn't care less whether anyone uses LMAX - it doesn't affect me. However everyone in the industry accepts that it is one of the few institutional-quality fx trading options available to retail in the UK. If people here do get serious about trading, or want to go pro, they will realise how important this is.

Do LMAX accept FX clients from the US? If not the traded FX instruments could be ragarded as CFDs, even though different liquidity providers guarantee liquidity when there is no match from the clients liquidity base.

 

[gle101]

@gle101 - He (jkane) can't give numbers, because he is lying. He is just spamming the thread, probably in an attempt to mislead new traders.

He is entitled to have a different opinion, I wouldn't call it spamming.