Interactive Brokers vs LMFX | Our In-Depth Analysis 2024

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Interactive Brokers and LMFX are online forex brokers that offer their trading services to traders and investors. Interactive Brokers is a highly regulated and trusted forex broker. It is regulated by multiple regulatory authorities including SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. On the other hand, LMFX is an offshore forex broker which is not regulated by any regulatory bodies. Both the brokers have their own strengths and weaknesses.  

In this article, we will review and compare the brokerage services offered by Interactive Brokers and LMFX. We will explore options such as regulations, reputations, fees, features, leverage, and more. Additionally, we will analyze and rate the brokers based on macro and micro categories and options. By reviewing these aspects, you will get a clear idea of which broker suits you best for your trading journey.

Interactive Brokers vs LMFX: In a Nutshell

Interactive Brokers

Founded in New York, USA in 1978 by Thomas Peterffy, Interactive Brokers has grown into a global brand with over 2.1 million clients. It is an American Multinational brokerage firm headquartered in Greenwich, Connecticut.  It has become one of the leading online trading solutions for traders, investors, and advisors. The brokers give access to over 5000+ tradable assets including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, and Bonds. To trade online, IBKR offers WebTrader, FIX API, MobileTrader (MobileApp), and TWS trading platforms. To learn more about IBKR, you can read our review of Interactive Brokers

Interactive Brokers Overview

Interactive Brokers Overview
  • Founded In: 1978
  • Founder: Chairman Thomas Peterffy
  • Headquarters: Greenwich, Connecticut, United States
  • Minimum Deposit: None
  • Maximum Leverage: 500:1
  • Regulations: SEC , CFTC ,FCA, FSCS, ASIC , IIROC , FSA
  • Trading platform: WebTrader, FIX API, MobileTrader
  • Account Types: Family Office Account ,UGMA/UTMA, IRA, Trust ,Joint, Individuals
  • Payment Options: Bank Wire (BankTransfer/SWIFT), ACH (Automated Clearing House), BPAY, Check, Direct Debit, Local Bank Deposits, Transfer from Existing Broker
  • US Traders:  Accepted 

LMFX

Traders who desire high leverage, multiple payment options, or even fixed spreads should consider trading with LMFX. Founded in 2015, the broker has successfully operated without hitches while growing its client base through the delivery of excellent services. Trading fees are low and there is an account type for every broker. 

LMFX Overview
  • Founded In: 2015
  • Trading Instruments: 100+ trading instruments including Forex, CFDs (Indices, Commodities, Metals, Shares)
  • Minimum Deposit: $50
  • Maximum Leverage: 1:1000
  • Regulations: None 
  • Trading platform: MT4 on desktop, web, mobile
  • Bonus: Available
  • Account Types: Premium, Fixed, Zero, Micor, Islamic
  • Payment Options: Crypto, Credit Card, 
  • Trading Styles: Scalping, hedging, EA Trading, News trading are allowed. 
  • Trading Tools:Economic calendar, Free VPS, trading calculators
  • US Traders: Accepted

           

Interactive Brokers vs: LMFX Features

Interactive Brokers

  • Trading Instruments: 5000+Trading instruments including forex, CFDs, warrants, ETFs Options, Futures, Mutual Funds, stocks, options, and Bonds
  • Maximum leverage: 50:1  for US Clients, 30:1  for EU clients, and 400:1 for global clients. 
  • Minimum Deposit: The Interactive Brokers minimum deposit is $0 for a cash account, $2,000 for a T Reg margin account, and $110,000 for a portfolio margin account. The minimum deposit is subject to change depending on the trading account opened and the base currency selected.
  • Trading Fees: spreads starting from as low as 0.1 pips, Stock fees USD 0.005 per share. 
  • PAMM/ MAM:  Not Available
  • Scalping: Allowed 
  • News Trading: Allowed
  • EA/ Robot Trading: Allowed with Capitalise.ai

LMFX

  • Trading Instruments: Forex, CFDs (Indices, Commodities, Metals, Shares)  
  • Maximum leverage: 1000:1
  • Minimum Deposit: $5
  • Account Types: Four ( Premium, Micro, Fixed, Zero Account) 
  • Trading Fees: Spread starting from 1 pips or commission $4 
  • PAMM/ MAM:  Not Available
  • Scalping: Allowed 
  • News Trading: Allowed
  • EA/ Robot Trading: Allowed

Interactive Brokers vs LMFX: Pros and Cons

Interactive Brokers Pros & Cons

Pros
  • IBK is a Forex and Stock Broker 
  • Excellent reputation (founded in 1978)
  • Regulated by top regulators like  ASIC, FCA, FSA, SFC, IIROC 
  • A wide range of products offered warrants, ETFs, Options, Futures, Mutual Funds, Bonds 
  • Over 18,000 no-transaction-fee mutual funds.
  • No monthly inactivity fee
  • Low trading fees and high interest (up to 4.58% for USD) on cash balances
  • Access to international markets and exchanges 
  • Mobile apps are convenient for individual investors.
Cons
  • Complicated account opening 
  • Learning Curve for Beginners
  • The maximum leverage is only 1:40 
  •  No Metatrader platforms (MT4, MT5) offered 
  • High minimum deposit requirements for some account types 
  • Interactive Advisors (Robo-advisor feature) is only available for US customers
  • No fixed spread is available 

LMFX Pros & Cons

Pros
  • The maximum leverage is as high as 1:1000.
  • Tight Spread Starting from 0  pips 
  • Free VPS for high-volume traders.
  •  Allow Scalping, News Trading, EA Trading
  • Does not have any FIFO Restrictions 
  • Deposit bonus and other bonuses.
  • Due to the absence of regulatory restrictions, the broker is open to clients worldwide
  • Multiple payment options including crypto and e-wallets.
  • 4 Types of accounts available ( Premium, Micro, Fixed Zero)
  • Traders are supported with trading tools like calculators, economic calendars, etc.
Cons
  • Not Regulated by Any Authority 
  • Crypto CFDs are not available to Trade 
  • No Investor Protection Scheme 
  •  No access to MetaTrader 5. Only MT4 and Webtrader are available. 
  • The minimum deposit for bank wire transfers is $250
  • Managed Accounts and Social Trading (MAM, PAMM Accounts) are not Available

Interactive Brokers vs LMFX: Side-by-Side Comparison

Interactive Broker
LMFX
Product
Product
Interactive Broker
LMFX
Founded In
Founded In
1978
2015
Founded By
Founded By
Chairman Thomas Peterffy
Carter Anthony Smith
Headquarters
Headquarters
Greenwich, Connecticut, United States
Skopje, North Macedonia
Regulations
Regulations
SEC, CFTC, FCA, FSCS, FINRA, FCM, IIROC, MAS, FSA
None
Min Deposit
Min Deposit
None
$50
Max Leverage
Max Leverage
1:500
1000:1
Tradable Assets
Tradable Assets
Stocks, options, futures, currencies, bonds, and funds
Forex, stocks, indices, and commodities.
Fees
Fees
Spread starting from 1 pips
Spread from 1.0 pips
Platforms and Tools
Platforms and Tools
WebTrader, FIX API, MobileTrader
MT4, WebTrader
US Traders
US Traders
Allowed
Allowed

Interactive Brokers Vs LMFX: Our Scores and Ratings

We rated both brokers, Interactive Brokers and LMFX, on a scale of 1 to 10, with 0.1 increments. To achieve a comprehensive rating, we broadly grouped all services offered by brokers into 6 macro categories and assigned percentage weights to them. Each macro category is subdivided into several data points which contributes to the total score of 1.0-10.0 assigned to each macro category. Since all categories are not equally important, our weight percentage plays a significant role in assessing the broker accurately. For example, Regulation and Security contributes a total weight of 40% to the whole ratings because this is the most important rating category. To learn more, read our methodology.

Interactive Brokers :

9.1
Interactive Brokers Score
Regulation and Security (40%)10
Fees and Commissions (20%)8
Trading (15%)9
Trading tools (10%)7
Customer Support (10%)9.5
Trading Education (5%)9

LMFX

3.6
LMFX Scores
Regulation and Security (40%)1.5
Fees and Commissions (20%)6.5
Trading (15%)6
Trading tools (10%)1
Customer Support (10%)5
Trading Education (5%)3

Final Verdict :

Both Interactive Brokers and LMFX offer similar trading services worldwide. However, there are differences in their regulations, reputations, and operations. Interactive Brokers is a regulated and trusted forex broker, supervised by top-tier regulatory authorities, including the SEC, CFTC, FCA, FSCS, FINRA, FCM,  IIROC, MAS, FSA. In contrast, LMFX is an unregulated offshore forex broker. Interactive Brokers provides multiple trading platforms, including WebTrader, FIX API, MobileTrader (MobileApp), TWS, while LMFX does not offer MT5 and uses only MT4 as its trading platform.

Since Interactive Brokers is licensed in the USA, it can accept U.S. clients. However, Interactive Brokers does not offer high leverage or CFD instruments due to regulatory obligations in the USA. In contrast, as an unregulated offshore broker, LMFX can offer U.S. traders high leverage and CFD trading. Our score for Interactive Brokers is 9.3, and for LMFX, it is 9 (according to our expert ratings, brokers that achieve a score of 8.00 or higher are considered safe and trustworthy).

Therefore, if you are looking for a U.S.-regulated forex broker, Interactive Brokers is a good choice. However, if you prefer to trade CFDs with high leverage, you may consider LMFX. Keep in mind, though, that trading with an unregulated offshore broker carries significant risks.

Written by

Jason Paine is a forex trader, researcher, and tech enthusiast. He is passionate about financial markets and cutting-edge technology. With a dynamic 16-year trading career, he's on a mission to guide fellow traders. Having navigated diverse forex brokers, Jason shares his insights at Brokersway to bridge the gap between traders and the right brokerage.

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