Lightspeed Review and Rating 2024

Lightspeed is an U.S.-based brokerage company with its headquarters located in New Jersey. It's an online trading broker that has low commissions, and offers a variety of trading platforms to select from. The company also has numerous educational materials although the minimum deposit amount is not a good choice for beginners.

Lightspeed is among the top brokers that cater to daily traders, professional traders as well as trading groups, institutions and hedge funds who are interested in the equity, futures, and options markets. We were impressed with their platform and commission schedule , but If you're not an active trader, then this broker might not be the right choice for you. We'll look at the details to help you determine whether Lightspeed is the best choice for your investment needs. All the opinions in this Lightspeed review article are at writer's disposal. AtoZ Markets is in no way responsible for any of it.

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Lightspeed Review: Account Types

Lightspeed provides a variety of accounts, each one of which is able to satisfy the particular needs of your business. Lightspeed is an introducer broker for Wedbush Securities, Inc.

They provide the following types of accounts for active traders:

• Regulation T Margin Account

As per Regulation T, you may be able to borrow up to 50 percent of the cost of securities that are able to be purchased using a margin. This is also known in the first margin.

• Portfolio Margin

The SEC-approved rules for Portfolio Margin permit requirements to more accurately reflect the real risk of the portfolio within a particular brokerage account. This means that customers who are qualified could increase their leverage over the standard intraday 4:1 or overnight 2:1 margins in the standard margin account.

• Separately Manitated Account (SMA)

Lightspeed provides accounts managed separately for customers who need an individual solution that meets particular investment requirements.

• DVP/RVP

Delivery versus Payment or Receipt versus payment. Lightspeed offers a variety of DVP services.

• CMTA Arrangements

An agreement that permits an investor to engage in derivative trading with a restricted number of brokers, and then consolidate these trades with a single brokerage house to clear.

Other Account Types:

Individual Account/Joint Account

Partnerships Account

Corporate Account

LLC Account

Registered Hedge Fund Account

Trust Account

Retirement Accounts. IRAs—Traditional, Roth, and SEPs (US taxpayers only)

Lightspeed Review: Products Offering

Lightspeed is designed to appeal to active traders. The platform is focused on stocks, options and futures (you require an additional account to trade futures). The company does not offer commission-free ETFs or forex or mutual funds. Moreover, its fixed-income offerings are limited to T-bills that can be traded through live brokers. Fractional shares cannot be supported.

Investors of Lightspeed can also trade:

Stocks long and short

OTCBB

Futures/Commodities

Futures options

Simple and multi-leg options (up to four legs)

T-bills (via a live broker)

Lightspeed Review: Minimum Deposit

Lightspeed's intended audience is professionals, or highly involved or high volume traders. However, the minimal investment requirements of the broker are more than some of its competitors. Following are the minimum requirements for Lightspeed Trader Accounts.

For Lightspeed WebTrader Accounts, the minimum requirement as follows:

Lightspeed Trading Fees

The fee for Stocks and ETFs ranges from $0.0010 to $0.0045 for per stock depending on your monthly volume. And fees for Stocks and ETFs for per trade starts from $2.5 up to $4.5.

 

On top of that, you have to pay routing fees of up to $0.0035 per stock traded.

The fee for options for per contract ranges from $0.20 to $0.6 depending on per month volume. Those who trade more than 100,000 contracts per month will pay $0.20 per contract. But who does trade 100,000 contracts per month?

You can also trade Futures by using Lightspeed Trading, but for that you have to use their platform Eze EMS also known as RealTick as well as CQG. If you're a Futures trader, then you're better off with a broker specialising in trading Futures. For Futures per side fees, it is $1.29 and Options – $1.79 per side.

For Lightspeed Trader and Sterling Trader Pro A minimum commission cost is applied to orders of smaller than 100 shares. The amount charged is the same as the rate per share * 100.

In the case of Eze EMS (formerly RealTick) There is a minimal commission amount of $3.00 that will be added to all orders.

In the case of Lightspeed Web & Mobile, the minimum commission of $4.50 will be added to any option order. Equity pricing per share is not available for Lightspeed Web & Mobile.

Along with this, All routing fees, margin fees and regulatory fees are charged separately.

 

Lightspeed Platforms and Their Fees

Lightspeed stands out when it comes to platform offerings. They have various trading software solutions and platforms. Let's have a look.

Lightspeed Trader

There is the standard Lightspeed Trader, which can be used for stock trading. Over 100 routing destinations are available. It offers charting, level 2, advanced stock scanners, and news.

Monthly software fee: $130

Lightspeed Trader

Lightspeed Trader is the ideal software for day traders and investors . It is our leading trading platform, which offers options and equities routing to more than 100 destinations. See some of the features below:

• Multi-core multi-threaded processing with advanced multi-threaded technology
• Optimized Level II quote messaging
• Execution with low latency
• Historical intraday chart data
• Order routing destinations
• Advanced strategies for trading options
• Alert for block ticker and block alert
• Fully customizable
• Capabilities for research enabled by TipRanks

Monthly fee for Lightspeed Trader: $130

Lightspeed Mobile and Web Trader

Lightspeed Web & Mobile platform was designed to look and feel in a way comparable to our desktop platforms. It is an online trading platform and was created for active traders in the field. This Web & Mobile application allows traders to trade from any computer, Mac, smartphone or tablet connected to the internet.

Features are:

• Streaming Level 1 Quotes
• Equities & Options
• After Hours Trading
• Customizable Layout
• Dynamic Time & Sales Data
• Watchlists

Monthly software cost: $0

Sterling Trader Pro

Sterling Trader Pro, a fully-featured Level II trading platform for professionals working in the fast-moving electronic markets, is available. This terminal is ideal for trading groups because it offers high-quality order routing and management capabilities as well as real-time profit/loss reporting.

Key Sterling Trader Pro features:

• Advanced charting package

• Highly customizable level II order entry system

• Instantaneous action with programming keys and load order entry

• Window linking and customisation

• Real-time profit and loss information

• Smart destination preferences and advanced pinpoint accuracy for order routing and management

• For easy integration with internal networks, it uses Intel technology and Microsoft Windows.

• Complete control of system components to ensure fastest access to markets or exchanges

• API is available to connect with third-party and custom applications

Monthly software cost: $230 -$260

Livevol X Options Trading

Livevol X, the next-generation execution platform, combines intelligence from Livevol Pro with advanced options trading capabilities. It also offers sophisticated risk analysis. LVX provides a wide range of features that allow you to identify trade opportunities and develop strategies.

Below are a few examples of the features included in the software:

• Order Execution

• Analysis of Risk, Position and Trade

• Information about Brokerage Accounts

• Create and save layout

• Analytics using Historical Data

• Live Order Flow Information

• Option Market Scanners

• Option Analytics Components

Monthly software fee: $250

 

Eze EMS (formerly RealTick) Pro

Townsend Analytics created Eze EMS, which is used by professional traders. Eze EMS can be used by active traders, registered investment advisers (RIAs) and hedge funds. It offers sophisticated trading tools, unparalleled liquidity access, real-time data and charting as well as streaming news. The unsurpassed flexibility of Eze EMS is ideal for all trading styles, whether they are global, multi-broker, or multi-asset.

Monthly software fee: $325

Lightspeed also have some Specialized Stock and Option Trading Softwares such as Derivix, SILEXX OEMS, Wex and efutures Platform for Futures trading.

Risk Management Tools By LightSpeed

Lightspeed is exceptional when it comes to providing tools and softwares. There are many risk-management tools available to help control and monitor the risk

Lightspeed Gateway

It is  for Pre-trade risk management that meets the risk validation requirements of Rule 15C3-5. These rules are designed to monitor risks that are associated with purchasing power, the buying power factor, the maximum order size, maximum size of position, P&L loss thresholds, short-checking allowances for odd lots or restrictions, and setting to deny all orders.

Lightspeed Risk Suite

It's a program created to assist traders and risk supervisors in managing risk across several accounts. It includes a variety of real-time tools for loss, profit and stopped symbols.

Option Risk Manager

It is a software which focuses on the risks that come with margin trading and trading options. It includes summary tabs for asset management , and it can calculate the day-to-day trading margin requirements in real time.

Auto Risk

Auto Risk is a program which allows managers to define trade parameters and limits in the Lightspeed Trader platform for different users.

The Broker Order Entry Interface (BOEI)

A further measure of risk management by Lightspeed Trader is that you can also use the The Broker Order Entry Interface (BOEI). The interface allows managers to connect to the accounts of and make orders in real-time on accounts they control or oversee.

Pros and Cons of Lightspeed

• Pros

√ They have a long list of software platforms.

√ Website has helpful educational resources.

√ The broker has insurance with SIPC and is regulated by FINRA.

√ It has multiple commission schedules.

√ Best for Active traders as they get discounts on trades and software.

√ The Lightspeed order router is extremely fast.

• Cons

— They have a maximum of 4:1 leverage.

— PDT rule in force.

— Their account minimum is very very high.

— They don't have forex and cryptocurrencies.

— They have no commission-free trading no matter whatever platforms you choose.

— It is rather pricey for occasional traders.

— Lightspeed is not good for novice or new traders.

Is Lightspeed Secured and Insured?

Lightspeed Financial Services Group LLC provides the latest authentication technology. Their two-step verification adds an additional layer of security to your account settings as well as transferring funds by sending one-time use passwords to your smartphone.

Wedbush offers additional Securities Investor Protection Corporation (SIPC) insurance for each client account managed via Wedbush as a representative of Lightspeed Financial Services Group LLC. Each account is insured with up to $25,000,000 at no cost. SIPC offers coverage that can go up to $500,000 with the maximum amount is $250,000 that applies to cash balances. In addition to SIPC insurance, Wedbush has purchased from Lloyd's of London an excess SIPC bond that offers protection of the amount of $25,000,000 securities and cash for every client account with a maximum aggregate maximum loss of $100,000. The bond covers cash credit balances up to an amount of $900,000. This is an aggregate of $1150,000 in cash balances. It is not clear if SIPC coverage or the coverage in the excess of coverage provided by SIPC will cover a decrease in the worth of an asset of a client due to market losses.

You can also read: Firstrade Review to Know if it's a Realiable Broker

Is Lightspeed Regulated?

Lightspeed is an authorized, licensed brokerage company based in the USA. It is licensed for futures and stock trading services. The US markets for stocks are monitored through the Securities Exchange Commission (SEC) and firms are monitored and regulated by organizations like The Financial Industry Regulation Authority (FINRA). And Lightspeed is monitored by both authorities.

Futures trading is governed by the same structure, but with different authorities. The markets are controlled through the Commodities Futures Trading Commission (CFTC) and the firms are regulated by the National Futures Association. Futures trading of Lightspeed is controlled and regulated by CFTC and NFA.

It means that the broker is fully regulated in its operations in US markets and offers an honest, safe service. US regulatory authorities are recognized in Europe as well.

Customer Support

The Lightspeed Trading customer service team is available throughout normal hours of the market. Customers can contact them through the contact numbers and email addresses listed below.

International Telephone: +1-646-393-4800

Domestic Telephone: 1-888-577-3123

Email - contactus@lightspeed.com

Being a high stake broker, it's surprising that they don't have live chat support.TD

Conclusion

To conclude our Lightspeed Review, we can say that Lightspeed is an ideal choice for large-volume equities as well as options and futures traders. The company provides a variety of cutting-edge trading tools and flexible order types and a variety of trading options. The most popular software, Lightspeed Trader, is user-friendly and offers a variety of choices for customization. But the broker is not suitable for beginners as its minimum deposit amount is so high. And they do not have live chat support many other brokers. Apart from this, Lightspeed is a safe and well regulated broker that you can trust.