What's happened to LMax's spreads?

maik79

Junior member
10 0
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

Legendary member
10,443 1,313
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

Active member
128 2
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

Experienced member
1,528 241
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

Legendary member
10,443 1,313
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

Experienced member
1,528 241
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

Legendary member
10,443 1,313
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 .
 
Last edited:

jkane

Active member
128 2
spread betting firms not that different than LMAX


PLus LMAX you need lots more cash to hold postions
 

gle101

Veteren member
3,717 84
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.
 
 
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