LMAX Exchange Review – LMAX CFD – Forex Trading

LMAX Exchange boasts of a proprietary forex trading model that many, if not most forex brokers would simply dream of. Operating as an exchange model, LMAX offers STP, DMA trading with a system known as ‘Multilateral Trading Facility‘. The MTF is a system that is operated by a market operator that brings various third-party buy/sell transactions in the forex markets. LMAX’s MTF is recognized by the MiFID directive in accordance with the provisions of Title II.

The MTF is a unique type of trading that is recognized by the MiFID which creates an exchange to connect buyers and sellers in a non-discretionary manner. MTF trading is usually preferred by High Frequency Traders and usually offers reduced cost of transactions for traders.

The LMAX Exchange offers an entirely new way of trading FX instruments. Investors trading on LMAX Exchange, will immediately benefit from:

  • Price transparency and market depth (up to 20 levels)
  • Ultra fast execution
  • Superior quality of execution

The award-winning LMAX Exchange trading technology enables reliable, low latency trade execution (with speeds of less than 5ms for over 95% of trades).

LMAX Exchange business model operates in a way that it provides an exchange platform to retail traders supporting over 70 instruments including currencies, equity indices, commodities and interest rates. Think of it as trading with a broker that operates their own exchanges where the broker (LMAX) clients place buy/sell orders. In terms of spreads, the EURUSD spread on LMAX is usually 0.1 pip but can spread only as far as 0.5 Pips during our test review of LMAX Exchange. Due to the nature of execution, traders can experience no last look or requotes when trading with LMAX.

LMAX Exchange – Account Types

ACCOUNT FEATURES CLASSIC
Min. deposit $10,000*
PREMIUM
Min. deposit $50,000
PROFESSIONAL
Min. deposit $250,000
Direct Market Access Yes Yes Yes
Tight Spreads Yes Yes Yes
Web/Mobile Platforms Yes Yes Yes
FX and CFD markets Yes Yes Yes
Market data frequency update 100 milliseconds 50 milliseconds Unlimited
Depth of Market 5 levels 10 levels 20 levels
Access to LMAX historic market data 1 month 6 months Unlimited
Free API access and support 1st month free Unlimited Unlimited
Free access to MultiCharts Limited Limited Unlimited
Interest payable on funds Yes
No charge for bank withdrawals Yes
Physical FX delivery Yes

*For Classic Accounts, traders can click here to open a new account with minimum funding requirements of only $1000.

LMAX charges a commission of $25 per million.

LMAX Exchange Review – About the Company

LMAX Exchange

LMAX Exchange

Based in London, United Kingdom, LMAX Ltd. was established in 2009 by majority stakeholder, online betting giant and publicly listed company Betfair.

Betfair is the largest betting exchange in the world with over 3 million customers (2011) and processes more than 7 million transactions a day (more than all European Stock Exchanges together). LMAX Exchange, based upon the same Betfair proven technology, secured FSA regulatory approval and launched in October 2010, becoming the first company in Europe to launch FX and CFD trading on a Multilateral Trading Facility.

LMAX’s innovative trading exchange won an FS Tech award in 2011 for technology innovation. The LMAX exchange system is built to process client orders with less than 1 milli second latency. Due to the exchange platform, LMAX operates a no dealing desk with no re-quotes.

LMAX Exchange Trading Instruments

The table below outlines in details the various trading instruments available from LMAX Exchange.

Assets Instruments
Equity Indices CFD’s Euro Stoxx 50 CAC 40
DAX 30 Dutch AEX 25
FTSE 100 S&P500
NASDAQ 100 Dow 30
Commodity Futures Brent Crude Gasoil
US Crude Oil
Spot Metals Gold Silver
Forex 62 Currency Pairs including Majors and Exotics (HUF/MXN/CZK/NOK/PLN, etc)

LMAX Exchange – Trading Platforms

LMAX Exchange offers Web, Mobile Trading besides MultiCharts. Professional traders can make use of LMAX’s API Trading to automate Spot FX and CFD trading on the LMAX exchange.

The Web trading platform makes it convenient to trade with LMAX Exchange directly via the web browser, eliminating the need for downloads or installation compatibility issues. The Mobile trading platform from LMAX Exchange is compatible with various mobile OS including Blackberry, Apple.

Besides MultiCharts, LMAX Exchange also offer MT4 and web trader platform. Below is a screenshot on the LMAX Web Trader platform.

LMAX Exchange - Web Trader Platform

LMAX Exchange – Web Trader (Web Based Interface)

LMAX Exchange won ‘Best Trading Platform 2011’ at the prestigious Financial Sector Technology awards, beating industry heavyweights such as Chi-X and Credit Suisse. LMAX Exchange is also an Oracle/Duke’s Choice Award winner (Java based Technologies) for its ‘Disruptor’ technology: a multi-threaded, open source, concurrent programming framework designed for high performance, low-latency transaction processing.

LMAX Exchange – Platform Comparison

Functionality Web Trading Mobile Trading LMAX MultiCharts
Platform Web based Download (iPhone/Blackberry) Download (Windows)
Access to LMAX markets FX, Indices & Commodities FX, Indices & Commodities FX, Indices & Commodities
Charting Intermediate No Advanced
Flexible Workplace Yes No Yes
Technical Analysis Tool Intermediate No Advanced
Automated Strategy Execution Basic (Stops) No Advanced & Programmable
Backtesting Tools No No Yes

LMAX Exchange – Conculsion

Trading with LMAX Exchange offers a unique trading experience unlike trading with a regular ECN broker. Due to the fact that LMAX operates as an exchange, traders can see a high level of transparency in the pricing as well as in the spreads. Liquidity is provided by LMAX institutional partners that also includes other ECN’s that wish to connect to the LMAX exchange. Besides forex & CFD trading LMAX also pays interest on available funds in your balance (available with Professional Accounts only).

The LMAX exchange is definitely worth trying out as it gives retail traders a different trading experience due to the Multilateral Trading Facility. LMAX Exchange is definitely worth trying as it enables traders to trade directly on live streaming institutional prices, on a price/time matching priority, delivering the pricing transparency, speed, market depth, neutrality and control that has until recently only been available to institutions in the wholesale FX market.

Open a Classic LMAX Exchange Account by clicking the button above to start trading with only $1000.

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One Response
  1. Rosy

    Oct 05. 2012

    If you are in the forex market, now you can easily be on top of the market while away from your computer, all thanks to a Forex mobile platform.