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@grausch did make some really good points, esp. about due diligence. You do need to be a "bona fide" resident outside the US, just an address in Turkey will not cut it. That means photo ID residence card, bills in your name, etc.
So if the minimum bet is a pound per point, that's like 1/30th of an E-Mini, even smaller than the proposed E-Micro. Cool beans! Spread not too bad either; ES has a 'real' spead of .25 points, so I'm only paying an additional .15 point.
It looks from your image like I'd need to trade using their interface. Do you know if they support trading direct from a platform, e.g. Ninja?
We'll have that. Worse case the account would have to be in the wife's name, but that shouldn't be a problem. "Honey, I shrunk the nest egg!" DoH!
While LMAX may call themselves an exchange, they are registered as a CFD broker. Refer to the FCA register here - https://register.fca.org.uk/s/. The London Stock Exchange is also registered with the FCA, and their registration provides the example of what an exchange registration should look like - https://register.fca.org.uk/s/.
@Balanar is right. Since LMAX is not an exchange, their product is by default a CFD/swap and thus OTC.
Another way of looking at it is that an exchange-traded instrument has its price determined by market participants and the exchange is not involved in setting the price of the ES. If the ES trades away from fair value other market participants can arbitrage the difference away, so it will track the SP500, but the exchange is not ensuring that the price track the index. All of your CFD brokers provide their participants with the price, as well as, the bid-ask spread. They in essence need to track the index otherwise they will be on the wrong side of arbitrage transactions.
Trading: Mini and micro US Indexes/ DAX/ FX/VIX/GOLD
Posts: 180 since Apr 2010
Thanks Given: 53
Thanks Received: 164
LMAX is different in that it offers a neutral venue and takes a commission. They have variable spreads which reflect liquidity variations. They do not act as counterparty as the other market participants and liquidity providers take this. They had no losses and no liability during the Swiss Franc fracas, for example (unlike IG and Interactive Brokers) because they held no risk. They are neutral and great for trading the Dax at 1 euro/ point and a spread of 0.6/7 usually.
Thanks guys. So I guess a company can call itself an 'exchange' but that's just marketing BS. Like in that Tom Waits song, "The large print giveth, but the small print taketh away."
Still, to try out a strategy I think they could be useful, as well as making longer term trades where slippage is less of an issue & you want smaller risk exposure.