LightSpeed Review

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LightSpeed Review

 

LightSpeed Financial is an online broker headquartered in New York that focuses on the active trader with direct market access, advanced order routing, active trading commission rates, and a stable platform that has a plethora of customization features and tools.

The company has been recognized by Barron’s as the best broker for active traders for the past six years and by Stockbrokers.com for 2016 as they continue to surpass client expectations. They offer all the standard financial products you may want to trade including Futures.

They do have account minimums with regular cash account at $2,000 and active day traders at $25,000, which is an SEC regulation for day traders to have that much. Commissions are competitive and will be covered in more detail below. Overall this is a great broker for active and professional traders and one I utilize in my own trading.

 

Commissions

LightSpeed Trading offers excellent commission rates with different rates for both active traders and standard traders. Below is a table of rates for commissions for active traders which is based off volume so the more size and frequent you trade the better your commission rate will be. For standard traders, you’re looking at $4.50 per trade for stocks and ETFs with options and futures at just $0.60 per contract.

Lightspeed Review

 

Tools

LightSpeed offers an abundance of tools with customizable features and robust graphics. LightSpeed Trader is their proprietary trading platform that is packed with the latest technology to lightning quick real time quotes and blistering fast executions. This meets and exceeds the necessary requirements for active and professional traders with its high end features including:

  • Complex option trading
  • Integrated charting with studies
  • Multi-threading for hyper-speed
  • Advanced scanners and filters
  • Direct Market Access

The only catch is there is a $100 monthly fee to use the platform unless you you generate that much in commission per month then there will be no fee to use the platform. If you do not generate $100 in commissions then they will just take the $100 fee and subtract it from what you have generated for the month. So the more you trade the less you have to pay out of pocket for the platform.

Within the platform they offer many features including scanners, block trade screen, hi/lo ticker, order imbalance indicators, risk management solutions and automated trading capabilities. LightSpeed also offers a wealth of information on its products through its webinars and video tutorials that can be found on their website or on youtube.com.

A really nice tool that LightSpeed offers is a risk management software that allows individual traders or groups of traders to monitor and manage risk according to their strategy and risk tolerances. This is a great tool that can really help take the stress out of managing a lot of positions. Along with the risk management software they also have a reporting software that organizes and details your trading history including fees and commissions as well as:

  • Total shares traded
  • Unrealized profit & loss
  • Realized profit & loss
  • Gross and Net profit & loss
  • Total commission
  • Equity percent change for the day
  • A real-time risk monitor for each authorized account
  • Ability to view each authorized account, and see the detail in each account
  • Ability to create customized risk monitors for all authorized accounts

Overall, LightSpeed offers just about everything an active trader would need and then some. The speed and stability of their trading platform is crucial for traders looking to move in and out of positions quickly. The only thing that could be improved is the charting but I use eSignal to make up for as it links to their platform.

 

Final Thoughts

There’s not much to complain about with LightSpeed Trading and their superior service and products accompanied with very competitive rates. Their technology is superior to most retail brokers and they have been recognized as the best in the business for active traders multiple times over the years. If you’re serious about trading and are looking to find a home where you’ll receive top notch everything, then this is where you need to be. They offer a demo account that you can set up with out having to worry about depositing funds so you can check them out for yourselves and see what I am talking about.

 

As always, if you have any questions or comments, please leave a comment below.

 

3 COMMENTS

  1. Ticker.tv thank you for the review on LightSpeed… Very helpful in my search for deciding the next broker I want to go with. I like their rates and LightSpeed has a clean user interface!

  2. I am very interested to know how the Short list is with Light Speed, do they have a good list of shorts like SPEED TRADER does? that is one of my main concerns with this platform.

  3. Actually, I find Lightspeed a bit dated. They ONLY have FIFO for settlement which is simply stupid. Every other brokerage offers LIFO or lowest cost or highest cost in addition to FIFO. You can’t trade by position or lot. If you buy at market pre-market, they call that pegging while every OTHER brokerage fills it as a market order AT open. Customer service is bit horrible, I have had to call in and make sure they make buying power available. Nothing real great here for the way I trade.

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