What's happened to LMax's spreads?

[jkane]

LMAX is overrated..go use the demo and fin out for yourself

Its not a DMA PERIOD

Its an exchange only like Betfair in Sports

One of the few DMA providers for non usa residents is Propsreads, its real time futures prices from the exchanges like CME or CBOT

Is LMAX a tight spread facility??? Its better than many but not a massive difference with some of the big time spread betting and cfd shops.

Most shops now whether spread betting or cfd trade very close to the underlying prices

 

[tar]

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.

It doesn't matter what it is called FX or CFD same concept , at the end its not a DMA , you cant offer 1 mini lot fx trading if you are a DMA , thats a joke , and the topper is now they offer MT4 bridge for some affiliated brokers with the ability to trade micro lots !
There are many FX operations out there with the "ECN" label but they are not DMA . Anyway its better than trading with a retail broker like Fxcm for example no arguments there .

"Please note we are unable to accept applications from US residents." :whistling

http://www.lmax.com/apply-for-an-account

 

[tar]

Its an exchange only like Betfair in Sports

And Lmax belongs to the betting exchange Betfair ...

 

[gle101]

LMAX is overrated..go use the demo and fin out for yourself

Its not a DMA PERIOD

Its an exchange only like Betfair in Sports

One of the few DMA providers for non usa residents is Propsreads, its real time futures prices from the exchanges like CME or CBOT

Is LMAX a tight spread facility??? Its better than many but not a massive difference with some of the big time spread betting and cfd shops.

Most shops now whether spread betting or cfd trade very close to the underlying prices

I don't know about FX at Prospreads, at least the mini lots they offer on the indices is not real DMA, I have had this confirmed by them. I agree with tar regarding this matter.

 

[gle101]

It doesn't matter what it is called FX or CFD same concept , at the end its not a DMA , you cant offer 1 mini lot fx trading if you are a DMA , thats a joke , and the topper is now they offer MT4 bridge for some affiliated brokers with the ability to trade micro lots !
There are many FX operations out there with the "ECN" label but they are not DMA . Anyway its better than trading with a retail broker like Fxcm for example no arguments there .

"Please note we are unable to accept applications from US residents." :whistling

http://www.lmax.com/apply-for-an-account

Yes correctly, my viewpoint as well.

 

[gle101]

And Lmax belongs to the betting exchange Betfair ...

Could still be a good platform to trade.

 

[Pippi56]

Agree, the level ov incompetence is staggering. This is not even a matter of opinion.

 

[maik79]

This reminds of the Betfair issue. Many punters would still bet at normal brokers and don't care if Betfair is closing in their country, but together with SBO and Pinnacle it's probably the only option to be successful in betting and the first two you can't take the other side of a trade.

But i have a question regarding LMAX. How can i translate their commission into spread.
Their commission is:

Forex trading: $0.25 per $10,000 contract 0.01 lot ($0.025)

Their average spread on EURUSD is 0.32 pips.

Would that translate to an average spread of 0.82 per round trip?

 

[tar]

Aside from the ability to trade in fractions of the original contract ( minis ) , Lmax cfds like the Indices are cash not futures , so how they are DMA ?!

 

[jkane]

This reminds of the Betfair issue. Many punters would still bet at normal brokers and don't care if Betfair is closing in their country, but together with SBO and Pinnacle it's probably the only option to be successful in betting and the first two you can't take the other side of a trade.

But i have a question regarding LMAX. How can i translate their commission into spread.
Their commission is:

Forex trading: $0.25 per $10,000 contract 0.01 lot ($0.025)

Their average spread on EURUSD is 0.32 pips.

Would that translate to an average spread of 0.82 per round trip?

.82 per round seems very high??

LMAX mini sp is 1/2 of the contract which means each point worth $25 not $50

 

[ZEN archer]

Aside from the ability to trade in fractions of the original contract ( minis ) , Lmax cfds like the Indices are cash not futures , so how they are DMA ?!

They are not - cfds are quoted by the broker. They are priced off the futures and have higher spread. They are not routed to the exchange like futures - so the broker can always ‘play’ with your orders if they feel like it.

 

[tar]

They are not - cfds are quoted by the broker. They are priced off the futures and have higher spread. They are not routed to the exchange like futures - so the broker can always ‘play’ with your orders if they feel like it.

Yes i know thats my point , however Lmax is not a market maker/broker , its a cfds' exchange ...

 

[ZEN archer]

Yes i know thats my point , however Lmax is not a market maker/broker , its a cfds' exchange ...

I can't see why should one use them instead of sb companies - both of them don't route orders to the exchange, but at least sbs have better spreads and are tax free

 

[tar]

This reminds of the Betfair issue. Many punters would still bet at normal brokers and don't care if Betfair is closing in their country, but together with SBO and Pinnacle it's probably the only option to be successful in betting and the first two you can't take the other side of a trade.

But i have a question regarding LMAX. How can i translate their commission into spread.
Their commission is:

Forex trading: $0.25 per $10,000 contract 0.01 lot ($0.025)

Their average spread on EURUSD is 0.32 pips.

Would that translate to an average spread of 0.82 per round trip?

No , i just had a look at their demo , it seems they will charge you 25 cents per 10K traded , so for 1 mini Euro that should be 25 euro cents not US = 50 Euro cents RT = 68 US cents + spread .

 

[jkane]

spread betting firms not that different than LMAX


PLus LMAX you need lots more cash to hold postions

 

[gle101]

spread betting firms not that different than LMAX


PLus LMAX you need lots more cash to hold postions

Yes that is right. But the difference might be in faster execution time, no dealer intervention, no re-quotes and no bias against the trader.

 

[jkane]

GLE excellent point