Will LMAX be the end of the forex bucketshops ?

"Why LMAX ?

LMAX is not just another new trading service, it’s an entirely new way for retail investors to trade CFDs and FX. LMAX isn’t a traditional broker, it is a trading venue, an MTF to be precise, which is like an exchange. LMAX is more transparent than a traditional broker. Customers can see their orders – it is an open order book. LMAX is a neutral service – an open platform with no dealer acceptance, no hedging of client positions and no re-quotes. We do not trade against our clients. Instead, LMAX brings buyers and sellers together without brokers and other middle men taking their cut.

LMAX has been designed with the retail trader in mind. Every aspect of the service is about giving institutional trading advantages to retail clients. We ensure that all clients have the best chance possible when executing their trading strategy.

Retail CFD and FX traders can access wholesale liquidity at wholesale prices but with all the protections that you would expect. So, trade direct into the market and be a market maker not just a trader.
0.64 pts EUR/USD average spread. 1.11 pts GBP/USD average spread. Apply for an account.
"

http://www.lmaxtrader.co.uk/why-lmax



Will you open an account right now ?

 

Please vote

 

when you vote, please let us know why "yes" or "no"

 

I voted no unless you tell me they actually show volume like you can with currency futures.

 

Dumb poll. Even if this is a good service, it will obviously not end fx dealers like fxcm or gain and so on.

Oracle: what would you do with volume-information from a platform like this. It would be about equally useful like the vomule info from fx e-micro contracts on cme, i.e. not at all.

 

I doubt I would use this service, but if it showed real volume, it would suggest that they are not faking their data like some bucket shops.

 

Volume is important if you use it. I do. I'd like to know what the liquidity is like.

 

If you read their docs it sounds like this is for real. Regulatory status as MTF and central counterparty is LCH.Clearnet - i doubt this is 'fakeable', afterall LCH, Goldman and JPM put their name on it and those firms are absolutely anal about compliance.

I dont think this will be a huge success anyways. If you look at the biggest fx retail firms, it appears the things that work in that space are the following:

* being able to transact minisucle trading amounts (even less than their 10K contracts), but very high ticket count - means a very high degree of automation of all processes
*charts, the more colorful and the more obscure drawingtools, the better
*some sort of autotrade facility, where you can buy the latest fxEXXtremeGiga EA and get rich in no time (or not)
*very agressive marketing, a lot of it

LMax doesn't do any of that. The only thing they got going for them are supposedly good execution and low spreads, i doubt that alone will cut it.

 

Let's see how spreads, liquidity, platform and execution will be...

All this talk about fx shops stealing your money is exaggerated anyway...most people blow up their accounts because they have zero edge, not because of their allegedly evil broker.

 

they don't accept US customers.