Even LMAX rejects orders !

LMAX claims to be an exchange but not so , I found this complaint on the internet.

2 brokers ( 1 of them an ex-broker) using LMAX liquidity ,confirm these order rejections so we are still waiting for a real forex exchange

 

Use FX futures instead.

 

IB does not. I clear multiple hundred million usd notional each month with IB.

 

as long your order flow is not considered “toxic” , you should have no problems..

what is the your typical size per trade ?

 

My algos split up size, generally sub 5mln. What is your toxic flow you speak thereof. If you attempt to place frequent orders on both sides by trying to make a market inside the bbo you should rightly be booted off their platform.

 

why you should be booted off their platform trying to make a market ?

 

Because they are liquidity providers and they aim their business at liquidity takers. I agree that they should spell that out clearly in their client agreements but essentially it boils down to this. If you were in their shoes and had clients that took away your business you would probably react similarly.

Having said that I sometimes trade in and out of positions within minutes and I was never prevented from doing that. There is a reason why most exchanges and liquidity pools require you to register as market maker : liquidity providers have certain obligations and market makers who are registered can be held accountable. If you constantly provided liquidity only inside the spread then you essentially feed off those liquidity providers without assuming any of their responsibilities. I hope that makes it clearer. Don't get me wrong, I favor a completely free market where anyone can place orders anywhere they want but I share with you the status quo as market participant. If there were thousands like you then large liquidity providers would not have a business case to provide larger amounts or liquidity anymore and that harms large investors who need that liquidity as takers. Or can you constantly provide me with executable bids and offers in 5mln or more?

 

He was a news trader and he was warned so fair enough.

As others have said, trade futures.

 

yeah, banks will probably always have “last look”

 

None of them are banks. They are exchanges and brokers who facilitate or pass on liquidity. You need to read the fine print to see whether a trading venue reserves the right of last look. IB does not. Neither do multiple other venues. News trading in my book should not be discouraged. Making markets inside the spread unless you are a market maker should. Choose the broker that suits your approach to trading.