Complete transparency: pre and post trade transparent, no ‘last look’ rejections
Open Access: one public Rulebook applied consistently across all members
Level Playing field: price/time priority matching, regardless of status, size or activity levels
Account type: Forex, CFD’s
Markets: Forex, Digital (Crypto CFD’s), Equity exchanges, precious metals, commodities.
Account contact: Darren Spicer
Category : Exchange Broker
Founded: 2010
Status : Profession / Experienced traders Worldwide
Regulation: UK FCA
Smallest position on Forex: 0.01 of a standard contract.
About the broker
LMAX is an exchange broker that effectively has created its own exchange using strong principles from the CEO. What we like about it is, that they are not just using the buzz words like transparency, speed and fairness but they work fully by them.
They are one of very few exchange brokers that create an environment that allows banks, fund managers, market makers, retail brokers, corporate and active traders to deal on their high speed low latency platform.
They operate on a no ‘last look’ basis for their quotes, thus you are filled at the rate you see for the amount of volume quoted and do not get the re-quotes and delays causing next best or as we see it slipped trades. To clarify Last look is a trading practice where the liquidity provider (LP) provides a quote rather than a firm price onto their platform. When a request to trade against the quoted price is received the LP may hold the request for some period of time, execute the trade (‘fill’) at the price quoted, offer an alternative price (‘requote’) or decline to trade (‘reject’).
A fair level playing field is all we ask. With LMAX it is what you get.
In terms of spreads and trading costs, they are very competitive. Whilst some ECN/STP and market maker brokers may be similar on the top 3 currency pairs, the benefit for traders of the crosses are quite significant as they are tight across the board. As for trading costs they are based on a commission of $27 per million, which equates to $2.7 per standard contract, rounded up to $0.03 on a minimum trade size. Thus even with the commission cost added to the spread they are often 2 pips less on the major crosses.
This is certainly Kym’s top choice for trading forex.
The platform
They offer their professional / retail traders two main options unless you are very technical. These are their web based platform and MT4. The former looks good and gives you access to charting software provided by IT Finance. For those that choose a broker based on the charting package, this is a very capable package.
The web based platform is really easy to use. For retail traders you get to see the top of the order book allowing bigger traders to opt for filled positions over fractional price differences. The one flaw of the platform is that you cannot hedge positions on it. Thus if you hold swing positions and want to trade opposite positions on a intraday basis you should consider have two accounts of to use the MT4 option.
The MT4 option is a standard MT4! You can still trade their full offering of forex, crypto, oil, Stock indices (both mini and full size) and precious metals.
The charts
The charting package offered with the LMAX platform is actually provided by IT-Finance. This is a pretty comprehensive charting package which can be personalized and saved. LMAX do not offer an option to trade off these charts, most likely as they are focused on low latency which 3rd party software would effect. The package is as good as you are going to get for free!
Some of our community have previously stuck with a rather mediocre broker just to have access to these charts, this says a lot for user satisfaction with them. They are fully programmable if you are that way inclined or willing to learn, so you could add your own studies or alerts. You can open multiple charts on multiple screens with multiple time frames all linked or not as required.
Key data
Spreads*:
- EUR/USD 0.34
- GBP/USD 0.91
- USD/JPY 0.35
- AUD/USD 0.49
- USD/CAD 0.77
- AUD/CAD 0.86
- GBP/JPY 1.11
*Average daily spreads information provided by LMAX
Swaps (overnight charges) Spot FX
Spot trades settle on a T=2 basis for all but USD/CAD, USD /TRY. Eur/RUB which settle at T+1.
Example of financing on an FX contract
You are short 10 contracts of EUR/USD overnight. The swap point charge on the GUI shows -0.19, the tick value
of EUR/USD is $0.10 and the position is rolled for 1 day .
The cost of holding the position overnight is:
-0.19 *10 * 0.10 * 10 * 1 = -$1.9
This means that a debit of $1.90 will be applied to your account at market close
Opening an account
Opening an account with LMAX is simple with the usual proof of address and copies of passport needed. If you need any help you can always contact Darren Spicer (darren.spicer@lmax.com) Click here or on the banner below to open an account.
Risk warning
FX and CFDs are leveraged products that can result in losses exceeding your deposit. They are not suitable for everyone so please ensure you fully understand the risks involved.