LMAX Exchange

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Deposit: $ 1,000.00|Visit Website

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Ratings

Trading Conditions Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5
Trading Software Rating: 5.0Rating: 5.0Rating: 5.0Rating: 5.0Rating: 5.0
General Impression Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5
Reliability Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5
Support Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5
Overall Rating: Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5Rating: 4.5

LMAX Exchange

LMAX Exchange is quite a different animal in comparison to the other ECN Brokers on this website. They have been around since 2007 and is not really a ECN Broker but rather an exchange,  much like NASDAQ or LIFFE. This has some distinct advantages as there is no meddling with the price data or spreads. It’s like you are a member of the exchange where you trade directly with the LMAX Exchange (totally anonymously of course) and that makes this a very attractive broker for obvious reasons. No other Forex Broker can offer what LMAX Exchange offers – pure, untouched Forex trading. The vast majority of brokers will in one way or another try to ‘improve’ the price data, which of course is detrimental to your trading. Another great advantage is the the low minimum deposit of $1000 (if you use our sign-up link, else it’s $10 000), which makes it easy even for beginners to start trading Forex and CFDs with LMAX Exchange. The list of advantages just goes on and on  - low commissions of $5 round turn, super low spreads and slippage, FSA regulated etc etc. You just cannot beat this broker when it comes to positives. This broker do not accept US traders – if you are a US resident please choose Trader’s Way instead. Read the rest of the LMAX Exchange review to get more info on the best set up with this Forex broker.

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Trading Conditions

Trading with LMAX Exchange will set you up properly so that the trading condition are there to help you make a profit, not the other way around as with many other brokers. The round turn commission is fairly low at $5.00 (Forex) and it gets lower the more you trade since LMAX Exchange has volume discounts. It will be very difficult to find a broker with lower commissions, if not impossible. If you are a Scalper or High Frequency Trader the commission must be in this territory else you will give away too much money, perhaps even ending up with a loss. This becomes even more important if you use a Trading Strategy you haven’t developed yourself since you have to rely on the performance of something unknown. The spreads are also very attractive. For example the average EUR/USD spread is about 0.4 pips, which is excellent. The slippage, as far as we have been able to check it, has also been promising – significantly below 1 pip. You can expect an average slippage of 0.8 pips, which is fantastic and definitely necessary for active traders. The less money we can leave on the table, the better it is.

Trading Software

With LMAX Exchange you have three choices, either Web, MT4 or MultiCharts. Any professional trader knows that MT4 is a slow platform adding unnecessary latency. The MQL is known to be the slowest of all strategy languages out there. MT5 is much improved but still not fast – besides it’s not available with LMAX Exchange anyway. The best choice without a doubt is MultiCharts. Yes, it has a monthly subscription fee (if you don’t want to buy a lifetime licence) but it is so small in comparison to the trading capital you need anyway. The advantages are also so many that the small monthly cost is really worth it. In any case LMAX will refund $100 if you have $5000+ in your account and make at least 500 trades per month. An amazing deal in our opinion. The strategy language (based on TradeStation’s EasyLanguage) is very easy to learn and is fully featured. It’s much faster as well and suitable for Scalpers and other such traders. If you are a Position Trader Web charts (preferred) or MT4 is fine. The web trading interface and charts look like this:

LMAX Web Interface

LMAX Web Interface

LMAX Web Charts

LMAX Web Charts

General Impression

LMAX Exchange is not the most well know company in the Forex world even though it has been around for years. Doing an extensive search reveals that most of the clients seem to be very satisfied, emphasizing low latency, low spreads and slippage. Another reason the comments are favorable is that LMAX as an exchange do not interfere in the orders of their clients. They are not Market Makers and thus can focus solely on helping they customers trade better since that’s their only way of making money. The better traders their clients are, the more money LMAX Exchange makes.

Reliability

LMAX Exchange is not a new player, but has offered their services for many years. Since they are an Exchange, reliability is top notch. You also get direct access to their quote and trade servers, so the latency is normally less than 9 ms with an average of just above 3 ms, which is fantastic. No Forex broker can match that. As an Exchange, LMAX must also be more vigilant when it comes to load balancing and other server related performance issues. This makes LMAX Exchange a better choice than a common ECN broker.

Support

Support is more geared towards professional traders. Email and phone support is readily available, but for example Live Chat is not offered. In general a broker like LMAX Exchange doesn’t cater to newbies who cannot distinguish between Bid and Ask, but to traders with experience and in need for the best out there. If you are looking for the best of the best, LMAX is the right choice.

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General Information

  • Headquarters: London, UK
  • Founded: 2007
  • Domicile: London, UK
  • Minimum Deposit: $1000 (via our link else $10 000)
  • Minimum Lot Size: 1k or 0.01 lot
  • Maximum Leverage: 1:150
  • Markets: Currencies, Indices, Stocks and Commodities
  • Currency Pairs: 70+ (including CFDs)
  • Price Quote: 5 decimals
  • Margin Call Level: 100%
  • Stop Out Level: 150%
  • Commission (round turn): $5.00
  • Spread Type: Variable
  • Typical EUR/USD Spread: 0.4 pips
  • Minimum EUR/USD Spread: 0.0 pips
  • Typical GBP/USD Spread: 1.2 pips
  • Minimum GBP/USD Spread: 0.0 pips
  • Typical USD/JPY Spread: 0.4 pips
  • Minimum USD/JPY Spread: 0.0 pips
  • Typical Slippage: 0.8 pips
  • Trading Platform: Web, MetaTrader 4, MultiCharts (preferred)
  • Support Language: English only
  • Support Methods: Phone, Email
  • Expert Advisors: Available
  • Scalping: Available
  • Hedging: Available
  • VPS Trade Server: Not Available
  • Deposit Currency: US Dollar, Euro, Aus Dollar
  • Account Funding: Bank Wire, Credit card
  • Segregated Accounts: Available, FSA requirement
  • Accepts Clients From: All nationalities, except US
  • Demo Account: Available, 90 days
  • Deposit Bonus: Available, up to 50%
  • Regulated: Available, FSA (UK)

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On the map: Yellow Building, 1A Nicholas Road, London, W11 4AN

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