The LMAX MTF exchange: review

LMAX (London Multiple Asset Exchange) Exchange is more than just a broker, it's a genuine MTF (Multilateral Trading Facility) exchange, regulated in Great Britain by the FSA.

This centralised marketplace enables both buyers and sellers to come together. LMAX Exchange provides price transparency and market depth thanks to its order book, as is the case with a traditional stock exchange. In this type of MTF market, there is no longer an intermediary broker. Trades that are submitted always find a counterpart.

LMAX Exchange provides forex and CFD traders with the following benefits:

• No dealing desk, no slippage and no re-quotes,
• Segregated accounts,
• Spreads from 0 pips, low commissions (2.50€ per lot and 2.80€ with MT4),
• Complete anonymity in the order book,
• Level 2 (DMA) forex and CFD trading,
• Fast and reliable STP execution, 90% of all orders are executed in under 7 ms,
• Straight through processing (STP),
• Place orders within the spread,
• Access to the best bid and ask prices is set by the market (and not by LMAX),
• Automatic trading via APIs, Multicharts and MT4.

Probably the best broker listed on this website. I have been using them for several weeks and their spreads are extremely low. Execution is lightning fast (absolutely zero requotes!), a truly no-nonsense broker, and customer service is top notch!

One last thing, although their site makes no mention of the MT4 platform, they DO offer this platform! Just shoot them an email once you've opened your account and they will send you the link to download and use the MT4 platform to trade your funds, simple as that.

LMAX bonus in partnership with forex-central.net

Advantages for traders who open an LMAX account via forex-central.net:

- Lower minimum deposit:

Classic Account: 1,000€ instead of 10,000€
Premium Account: 25,000€ instead of 50,000€
Professional Account: 100,000€ instead of 250,000€

- Free API access & support

- Free MultiCharts access

- Free MetaTrader 4 access

- Micro lots available

- Free withdrawals

The difference between an ECN broker and the LMAX Exchange

No Dealing Desk ECN brokers are networks that bring together the various forex players. Some ECN brokers display their order book, providing a look at the liquidity that's available. However, this liquidity is not centralized by the broker, it is therefore not guaranteed. When a trader places an order, the ECN broker selects the bank that offers the best price to decide which one to pass the order to. The bank can then confirm the order or not, we call this the "last look". The bank can therefore refuse the order, in which case the execution will be delayed, because the broker must then offer another price (slippage) or find another liquidity supplier.

An MTF (Multilateral Trading Facility) marketplace operates just like a traditional stock exchange, orders are transmitted according to priorities of time and price. The order execution rules are identical as with an ECN broker, but without the "last look" deal, which is responsible for slippage. The MTF order book is centralized, it precisely depicts the liquidity that's available, just like with the futures or stock markets. Conflicts of interest between the broker and the trader are nonexistent, as prices are driven solely by supply and demand.

The LMAX Exchange is an independent and transparent trading exchange where execution is fast and without slippage. The only drawback is that an order will not be executed if there is no counterpart, which is not the case with a Market Maker broker, which will offset its clients' orders. The development of this LMAX exchange should solve this problem because the liquidity will increase in proportion to the number of traders that it attracts.