LMAX
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I trade CFD's on the advice of a personnel broker, who whilst has been successful I do find the charges on the high side compared to profits . His firm use IG Index market leaders in the field I know but would LMAX reduce my charges and commission . Only trade in UK equities and normally average 2/3 trades a week , average £40 - £50 thousand a trade . I am not an expert in this field and basically just want to know if the LMAX charges would represent significant savings . If you need any additional information on my trading activity to give a more informed answer please let me know
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APPROACH LMAX WITH CAUTION
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Whys that ?
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Daymor bear in mind that IG Index is essentially a bookie. LMAX is not taking the other side of your trades, it'a a legit exchange.
You'll be able to see the actual orders in the market and there will be no funny business. Lmax is the future. |
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Sorry - its IG Markets we use and not IG Index - commission is charged at 0.25% per trade ( 0.15% broker - 0.1% IG ). Funding rates = LIBOR +2.5%. Thus each £50,000 trade costs £250 in commission.
Joined broker in July and after 31 trades net profit = £5425 , but commission £6269 and funding £735 ( total charges 7004 ) does appear expensive . Yes I appreciate that you have to pay for expertise , broker did say that he had been a touch cautious at times as I was a new customer but I have assured him that I want him to trade only when price is right and if anything I was happy for more risk . Have read the LMAX charges I dont really understand them , cant compare them to present charges . Just want to know if using LMAX would I be able to reduce costs . Many thanks for any advice |
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what are you trading...shares, Oil. Fx , or share indiexs?
right now i believe Lmax doesn't trade shares, this will start next year Lmax should be cheaper...this the point of Lmax Lmax charges £0.25 per index contract on the buy and again £0.25 per index contract ...and chargers 1 month Libor + 1.5% if you buy 10 contracts of FTSE 100..about £55,000.00...you will pay 10 x £0.25= £2.50 on the buys and 10 x £0.25= £2.50 again when you sell (or close) plus you will pay Funding rates = LIBOR +1.5% it sounds a much better deal for you then IG Markets |
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IG Group must get hit hard by Lmax if Lmax is charging £5 to trade 1 FTSE 100 contract (open+close)...I markets will have to cut there rates, and I guess profits as well
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nairda thanks for your reply - what value is one LMAX contract I cant seem to see it on their site - how does a contract work ?
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value of 1 contract come down to what you buy/short...
in the case of FTSE 100 index1 contract is about £5500, so a openand close will cost you £0.50 what are you trading? |
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Mostly trade shares but occasionally indexs , so can see from above that costs trading on LMAX are much less , when will LMAX trade shares
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Lmax has said in paper that shares will start sometine in 1Q 2011
just open account and see...have a smail trade and work it out for yourself |
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