LMAX - Going from strength to strength

[DowJones]

I'm posting this because a few people have PM'd me with interest in LMAX.

Anyway, was reading a report from last month about LMAX's revenue & volumes being up 260%, client base doubling & client funds up 240%. Seems they are going from strength to strength. Good to see someone doing things right.

So why should we as traders care? Basically because there is a large negative edge with most retail brokers. I've used a variety of brokers in my time and the cost-savings from an institutional quality broker for an active trader are huge. In that respect, places like LMAX have saved me a small fortune.

I'm willing to bet that some people who are struggling to be profitable traders could be if they only used a decent broker. Anyway, your choice...

Disclosure: I use LMAX Exchange. This is not an advert for them - although if LMAX is reading, please feel free to reduce my commish further . My point is that I would strongly recommend an institutional quality broker even to retail clients.

PS I would also strongly caution readers to ignore most of the posts written in this broker forum... there is a huge amount of incorrect and misleading information.

 

[mike.]

What's the disadvantages trading through a IB like "HFT Group " on lmax exchange DJ ? I see there offering a 12% comm discount and a lower min deposit ( $1000 )

 

[DowJones]

What's the disadvantages trading through a IB like "HFT Group " on lmax exchange DJ ? I see there offering a 12% comm discount and a lower min deposit ( $1000 )

Hi, good question. To be frank, I can't say, as I haven't used the IB route (I have a direct account with LMAX).
From LMAX's perspective the IB route may make sense for smaller clients as it free's up more of their time & resources to focus on institutional clients.

 

[mike.]

Is this your main account you use for scalping the indices DJ ? and what commission do they charge round trip ? ( dont mean to be to intrusive)

 

[DowJones]

Is this your main account you use for scalping the indices DJ ? and what commission do they charge round trip ? ( dont mean to be to intrusive)

Hi Mike,
Sry for the slow reply. Have just been enjoying a few cold ones in the sun
Your question isn't intrusive. Currently this isn't my main account for index trading as I wanted to use another STP CFD broker for idx trades, who amongst other things offered smaller posn sizes. LMAX are ok for non-FX, but I think it's fair to say that's not their speciality. Commish varies tbh - depends on your volume.

Edit: For Dax (assuming EUR 25/pt, you'd pay std commish of EUR 6 RT).

 

[Pippi56]

Im using them too, they are rock solid. Only thing i would like to see is more liqudity/tighter spreads in USD/CNH. Its one of the few things that still move in FX, and interactive brokers beats them in this pair rather convincingly. Also more then 1 lp in index products would be good.

I'm still wondering if they will stop dealing with retail clients. There have been reports that they will, but apparently not so far.

 

[DowJones]

Im using them too, they are rock solid. Only thing i would like to see is more liqudity/tighter spreads in USD/CNH. Its one of the few things that still move in FX, and interactive brokers beats them in this pair rather convincingly. Also more then 1 lp in index products would be good.

I'm still wondering if they will stop dealing with retail clients. There have been reports that they will, but apparently not so far.

Agree. IB's commish is nice (LMAX could be a tad lower imho). Also agree with you re: CFDs. LMAX are v good for FX, but their generic CFD provision could be improved. Valid point.

Yes, they denied that report, but the rumour is still out there. I think the problem is that dealing with retail is hard work for little money. Look at all the stupid comments on the brokers threads here and imagine having to deal with that all day! Hopefully they'll keep the deposit level high-ish to discourage most people, and those of us who do use it will have more edge over the rest of the retail marketplace.