Will LMAX be the end of the forex bucketshops ?

Will LMAX be the end of the forex bucketshops ?

  • YES

    Votes: 12 37.5%

  • NO

    Votes: 20 62.5%
  • Total voters
    32
Quote from Pippi436:

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.
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Oanda doesn't cut that bill and they are the biggest...
 
Quote from Tsing Tao:

agreed. not open to us customers makes it irrelevant.
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Doesn't mean it's irrelevant since most of the currency trading is Europe based, just think it is a useless discussion for a board that is dominated by US (and in the P/R section... Canadian!) members.

Q: What does Dodd/Frank allow for US residents in re: to opening brokerage/bank accounts overseas?
 
Quote from Marsupilami:

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.
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http://www.elitetrader.com/vb/showthread.php?threadid=118174

Well, if this isn't enough proof of dealer manipulation nothing is. Then again, even proof won't stop the forex penny traders and degenerate gamblers from continuing to flog themselves.
 
Quote from Pippi436:

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.
More...

Well it has an API and a simple one and simple means fast. That's the most important thing IMO. So traders can develop their own software (autotrader/charts/GUI whatever). Don't care about pennytraders. The problem with them is that under 10k contracts can only be executed by broker only and not between banks or other trading institutions. And that's where people get screwed (re-guotes, waiting for the lot to fill up etc).

Until now the only place that looked promising was Dukascopy but the API on LMAX is a lot better/easier/faster.
 
I like the philosophy behind LMAX and want it to do well. I've been a member of Betfair (the company behind it) since they started and was their first software solution provider.

My coder and I are currently working on a one-click interface which will make trading on LMAX a much better experience, so watch this space sometime in February 2011 which is when we expect the software to become available.
 
What are the chances of LMAX being opened up to traders residing in the USA?

ES

Quote from Dr Who:

I like the philosophy behind LMAX and want it to do well. I've been a member of Betfair (the company behind it) since they started and was their first software solution provider.

My coder and I are currently working on a one-click interface which will make trading on LMAX a much better experience, so watch this space sometime in February 2011 which is when we expect the software to become available.
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Quote from ElectricSavant:

What are the chances of LMAX being opened up to traders residing in the USA?

ES
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Well, its obviously their longterm plan as Betfair have already bought a US company to try to push things along. I dont know exactly where they stand at the moment but I'm sure they're greasing every palm they can to get legislation moving along in what is a very slow process.

The obvious way round is to set up a UK bank account and trade using a remote server. That's not a difficult process.
 
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