In today’s broker review we will be taking an in depth look at what Lightspeed offers and how they compare to their competition. We really liked their platform and commission schedule but if you aren’t an active trader then this broker may not be for you.
Lightspeed Trading is headquartered in New York City and provides extremely cost efficient brokerage services to professional day traders, proprietary trading firms, and Hedge funds who trade stocks, options, futures, and ETFs through Direct Market Access(DMA) technology all with minimal latency, as the name suggests.
What They Offer
Lightspeed Trading caters to the very active trader who demands instant order execution at low rates on a state of the art, highly customizable software based platform. They have a competitive commission schedule and we’re happy announce that we have worked out an even more favorable commission structure for Warrior Trading students, which I will cover in more depth below.
Within the platform itself, Lightspeed offers many feature rich tools to help navigate today’s markets. These include user a defined scanner, block trade screener, hi/lo ticker, ticker specific news headlines, order imbalance indicators, risk management solutions, and automated trading capabilities.
Through the Lightspeed website and online community, a wealth of educational tools are available through video tutorials and webinars.
Lightspeed Trading Advantages
Extremely low latency (incredible execution speeds)
Highly competitive commission rates
Free demo account for strategy building
Fully customizable, innovative trading platform including advanced orders
Lightning quick order entry through keystrokes(hot keys) or mouse clicks(hot buttons)
Risk management tools to control unnecessary loss and promote capital preservation
Won Barron’s awards for Highest Ranking Broker and Lowest Cost Broker for frequent traders
Much improved client support
Lightspeed Trading Disadvantages
No mobile app
High minimum deposit of $10,000
High broker assisted trade cost of $20
Platform configuration overwhelmingly difficult at first attempt
Software can be system intensive
Useless charting(can be expected on most platforms as brokers are focused on the executions)
Monthly maintenance/data fees
Lightspeed Trading offers two separate commission structures; per share and per trade. Equity orders are $.0045/share with a $1.00 minimum, or $4.50/trade. However, if you trade enough volume per month you may qualify for their “active trader commission group” where you will receive a discount on commissions.
The active trader commission structure looks like this:
- Over 250,000 shares traded per month —> $0.0035 per share
- Over 1,000,000 shares traded per month —> $0.0025 per share
- Over 3,000,000 shares traded per month —> $0.0020 per share
- Over 6,000,000 shares traded per month —> $0.0015 per share
Options and futures are $.60/contract and OTCBB are $10/trade. Broker assisted trades are available for $20/trade as well as the normal applicable commission charges.
Special Commission Rate For Warrior Trading Students
We are very excited to announce that Warrior Trading students will enjoy a commission rate $2.50 per trade, plus ECN fees, on accounts funded with a min of $25k.
Warrior Pro students who are using Lightspeed can take advantage of the rebate program for an even better commission rate of just $2 per trade! You’ll receive the discounted rate until you have reached the amount equal to the cost of your entire education.
The Final Look
Lightspeed Trader is a very reliable day trading platform for the active and experienced professional trader who look for attention to detail with complete control in execution. They are always innovating new offerings for their customers all while providing a very competitive commission structure.
Although there are few shortcomings with the platform, such as no mobile app, useless charting, and monthly maintenance/data fees, the advantages far outweigh the disadvantages and any trader will recognize such after some time is spent on the Lightspeed trader platform in the markets.