LMAX does not have a true DOM / UK ECN brokers

Interestingly Bondboy is registered here from 2004 and just today he did his first post :)
 
tar said:
BTW IGmarkets has a service called L2 dealer for bigger clients , if you have 50K + they will switch their inst. FX level 2 service on for you , their FX dom is derived from tier 1 banks .
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I already have it, the L2 software is not quite as good as the DOM provided by some other companies that's all. However, ECN in UK vs US is another argument as well :)
 
Sidekicker said:
I already have it, the L2 software is not quite as good as the DOM provided by some other companies that's all. However, ECN in UK vs US is another argument as well :)
Click to expand...

If you do have IG l2dealer then you can ask them to turn futures-dma on for you so you can view futures DOM ...

L2 Dealer - Futures
 
For forex these things are not really like an exchange, and are missing one of the biggest benefits, aren't they? I use an ECN but the orders are not visible to the market (is this the case on LMAX and L2 Dealer?) as a whole. They are only visible to the other clients. This has the major drawback, that you very rarely get filled on the bid (say), and usually have to wait for the ask to come right through the bid to get a fill, unless some other client decides to take your order
 
Shakone said:
For forex these things are not really like an exchange, and are missing one of the biggest benefits, aren't they? I use an ECN but the orders are not visible to the market (is this the case on LMAX and L2 Dealer?) as a whole. They are only visible to the other clients. This has the major drawback, that you very rarely get filled on the bid (say), and usually have to wait for the ask to come right through the bid to get a fill, unless some other client decides to take your order
Click to expand...
with Lmax other traders can see and take your orders
 
Still can't see the point in LMAX, you may as well choose an ECN broker. I suppose they fill the gap in that there aren't many UK ECN brokers but still.
IG Markets I can see the point in as it allows you to get level 2 on individual stocks but trade CFDs.
 
Shakone said:
For forex these things are not really like an exchange, and are missing one of the biggest benefits, aren't they? I use an ECN but the orders are not visible to the market (is this the case on LMAX and L2 Dealer?) as a whole. They are only visible to the other clients. This has the major drawback, that you very rarely get filled on the bid (say), and usually have to wait for the ask to come right through the bid to get a fill, unless some other client decides to take your order
Click to expand...

When you place an order, it sits in the order book doesn't it or gets presented in the time and sales?
 
The order sits there, sure. But my point was - who is it visible to, and who might hit that order? If it's just other clients, then depending on the number of clients, you may have a very small chance of being filled on the bid or ask compared to the chance you have trading on an exchange which everyone uses. How often do LMAX or L2 Dealer fill your limit order without having to move entirely through that price?
 
Sidekicker said:
Still can't see the point in LMAX, you may as well choose an ECN broker. I suppose they fill the gap in that there aren't many UK ECN brokers but still.
IG Markets I can see the point in as it allows you to get level 2 on individual stocks but trade CFDs.
Click to expand...

You can trade mini cfd/fx contracts in an exchange environment instead of trading with a market maker .

And you can trade cash indices and spot metals contracts which is unavailable at Eurex or the CME .
 
Shakone said:
The order sits there, sure. But my point was - who is it visible to, and who might hit that order? If it's just other clients, then depending on the number of clients, you may have a very small chance of being filled on the bid or ask compared to the chance you have trading on an exchange which everyone uses. How often do LMAX or L2 Dealer fill your limit order without having to move entirely through that price?
Click to expand...

Oh I see what you're getting at.
There's 3 parts to this:
1/ Trading within the spread and who gets filled + when
2/ proper DOM statistics and accurate figures - ECN only
3/ contract availability, size and commissions.

#2 is what I was most concerned about originally.
 
Hello Sidekicker,

LMAx is very small company. I know owner. After doing much research I have chosen capmarfx. So far they are very good and say they are true ecn with no third party warehousing (I think it meaning not dealing with another broker, if someone can clarify please). Strickly direct orders to bank. Is good but they said only professional traders and institutional. Lucky I am pro but my other friends do not qualify.
 
Shakone said:
The order sits there, sure. But my point was - who is it visible to, and who might hit that order? If it's just other clients, then depending on the number of clients, you may have a very small chance of being filled on the bid or ask compared to the chance you have trading on an exchange which everyone uses. How often do LMAX or L2 Dealer fill your limit order without having to move entirely through that price?
Click to expand...

I have data on that, and I would say as a rule of thumb that resting limit orders on a "liquid" FX pair like EUR/USD or USD/JPY during reasonable trading hours will fill a resting limit order with full "make the spread" advantage 90%+ of the time.

Liquidity, however, is a highly volatile concept. I am a "micro scalper" and I always Buy into a falling price, so that for that moment in time, there are higher probabilities of "chasing" Sellers who are the Counterparties who can take my Bid. So it's easy to take the liquidity from "under the noses" of the Liquidity Providers, and everyone is on a "level playing field", as advertiz(s)ed.

I have actual data on this, but gaining "price advantage" in micro scalping is not always best done by "resting limit orders". You can spend a lot of time placing and moving resting limit orders. Alternatively, you can do what I do, where the Order Entry system is able to "strike" on pullbacks, thus giving a "fast retail" entry with guaranteed price improvement which does not rely upon "liquidity inside the spread".

Naive traders who hear that LMAX offers "wholesale" pricing, nearly wet their pants over the concept. But actually, although it's a cumulative advantage, and does actually happen; there's a "mix" of "reactive retail strikes" versus "proactive resting limit order" order types which will yield the overall Price Improvement.

Not to mention also that, say, compared to Dukascopy, LMAX spreads are maybe 50% - 70% narrower, and so straight "retail strikes" are already advantageous merely due to the "noisier" DOM and therefore the "momentarily narrower" spreads which are seen on LMAX.

So there are 2 or 3 cumulative advantages which retail micro scalpers can get on LMAX, and it is indeed the best thing available for retail scalpers at least in Forex which is my experience.

I've also done Market Bias analysis on the LMAX DOM elsewhere on this forum and we're discussing the degree of Market Maker "collusion" which can be discovered, even though LMAX does not show the entire Forex market, as has been noted. In short, we can discover with reasonable reliability where the Forex market is moving, before it moves, even with the limited data available on the LMAX streaming DOM.

This thread link is here, for those who are interested:
http://www.trade2win.com/boards/forex/196698-retail-day-traders-micro-scalping.html

HyperScalper
 
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you clowns get screwed trading with these companies

Go find regulated shops that are real exchanges like TD Ameritrade and Interactive Brokers
 
LMAX highly regulated and a real exchange

LMAX-Incremental-Scalping.PNG
jkane said:
you clowns get screwed trading with these companies

Go find regulated shops that are real exchanges like TD Ameritrade and Interactive Brokers
Click to expand...

Not sure to which post you are replying...

Could you explain how those you mention are "real exchanges"? I guess you don't understand LMAX and their tight regulatory structure. Unless you have direct experience, it's not a good idea to speculate like that, ya know? :)

Attached is an example of "real experience" with LMAX...

HyperScalper
 
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lmax does not have true spreads traded with usa brokers PERIOD

You guys are clowns
 
jkane said:
lmax does not have true spreads traded with usa brokers PERIOD

You guys are clowns
Click to expand...

We are professional Forex traders who "make a living" doing this; how about you?
I can only speak for LMAX Forex, which has the best pricing in the world available
to the smaller trader.

HyperScalper
 
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