I'm actually in the situation as a US grad now in Ontario doing residency and going into R3. Did not have to write the LMCC with other residents. I have continued to be able to get my licence from the College of Physicians and Surgeons of Ontario and am eligible to sit for Royal College Exams.
I still encourage the OP to write the MCCQs - it's so much easier in the long run.
You are able to get your educational license from the College of Physicians and Surgeons of Ontario because it's an educational license for residents - no province requires the MCCQs for this purpose. But when you try to get a license to practice medicine independently, most provinces require your LMCC License Number (which you are issued after finishing the exams).
So, drawback number one is that without the LMCC License Number you are restricted to Ontario and Alberta.
The second problem is that when you try to get an independent license in Ontario, you will discover that without the LMCC License Number, you are only eligible for a
restricted license to practice (see below). This is not the same as a full license, and has some . . . well, restrictions . . . placed upon it (see the text in red).
Summary: OP - do the MCCQs. A lot less trouble in the long run.
http://www.cpso.on.ca/policies/policies/default.aspx?id=1640
Alternatives to the Medical Council of Canada Examinations Parts 1 and 2
Applicants who are not licentiates of the Medical Council of Canada but who have successfully completed one of the following examinations:
1. USMLE Steps 1, 2 and 3. Step 2 Clinical Skills (CS) is required if Step 2 was taken after June 12, 2004.
2. ECFMG certification plus USMLE Step 3. Applies to international medical school graduates who passed USMLE Step 2 Clinical Skills Assessment (CSA) between July 1, 1998 to June 14, 2004.
3. FLEX component 1 and component 2 successfully completed (score of 75 on each component) between January 1, 1992 and December 31, 1994.
4. NBME Part 1, 2 and 3, successfully completed between January 1, 1992 and December 31, 1994.
5. The Comprehensive Osteopathic Licensing Examination (COMLEX-USA) Levels 1, 2 and 3. COMLEX-USA Level 2 Performance Evaluation (PE) component is required if Level 2 was completed after September 2004. (Applies to graduates of osteopathic schools accredited by the American Osteopathic Association.)
6. Examen Clinique Objectif Structuré (ECOS) of the Collège des Médecins du Québec passed between January 1, 1992 and December 31, 2000.
may be eligible for a certificate of registration with the following conditions,
provided the applicant meets all other criteria for registration:
The physician must practice with a mentor and/or supervisor until he or she has successfully completed an assessment.
The physician must undergo an assessment after completing a minimum of one year of practice in Ontario.
The certificate of registration automatically expires 18 months from the date of issuance, but may be renewed by the Registration Committee, with or without additional or other terms, conditions and limitations.
All applications submitted under this policy require review and approval by the Colleges Registration Committee.