LightSpeed Trading
Originally founded in 1994, Lightspeed Trading has built a reputation for having very fast and reliable trade execution (as the name implies). Lightspeed is also highly regarded for the cutting-edge technology applied to its trading platforms. Add to this the low fees that Lightspeed charges its customers and the result is a brokerage that appeals to active high-volume traders.
In May of 2018, Lightspeed Trading merged with Lime Brokerage and efutures. The combining of the three firms created an entity that will potentially handle approximately 1% of the US market in equities and options. The new brokerage will continue to operate under the name Lightspeed Trading and will owned by Limelight Holdings LLC. Lightspeed Trading is headquartered in New York City and has offices in Chicago, Boston, and Platteville, WI. It operates under FINRA and SEC regulations.
Lightspeed’s clearing agent Wedbush, provides excess Securities Investor Protection Corporation (“SIPC”) coverage for each client account carried by Wedbush on behalf of Lightspeed. Each Lightspeed account is covered up to $25,500,000. SIPC provides coverage up to $500,000, of which a maximum of $250,000 applies to cash credit balances.
In addition to the SIPC coverage, Wedbush also provides an excess SIPC bond that grants additional coverage for up to $25,000,000 in cash and securities for each client account, subject to an aggregate loss limit of $100,000,000. This bond covers cash credit balances to a maximum of $900,000 for a total of $1,150,000 in cash balances.
Markets Offered
Lightspeed Trading offers its clients a selection of tradable assets for U.S. Markets including stocks, EFTs, mutual funds, and options. Commissions will vary on assets depending on trade size and monthly volume. Lightspeed Trading offers its customers two pricing schedules. One based on share volume traded, the other charges a flat fee per trade Under the per-share schedule, the commission for stock and ETF trades decreases as volume increases. Under the per-trade system, the flat fee is based on the number of trades an account places per month and decreases as volume increases.
For clients that do not meet monthly trading volume criteria to qualify for Active Trader Commissions, below is a table that summarize the commissions with the lowest volume thresholds:
Tradable Instruments and Commissions: Non-Active Traders
| Asset class | Number of instruments | Starting Commission/ per share/contract | Total Monthly shares/contracts |
|---|---|---|---|
| Stocks (per share) | US markets | $.0045 per share | Up to 250,000 |
| Stocks (per Trade) | US markets | $4.50 per trade | Up to 250 |
| ETFs (per share) | US markets | $.0045 per share | Up to 250,000 |
| ETFs (per Trade) | US markets | $4.50 per trade | Up to 250 |
| Options | US markets | $.60 per contract | Up to 500 |
| Futures | US markets | $.60 per contract | Up to 500 |
For large institutional and high net worth clients that do meet monthly trading volume criteria to qualify for Active Trader Commissions, below is a table that summarize the commissions with the lowest commission thresholds:
Tradable Instruments and Commissions: Active Traders
| Asset class | Number of instruments | Lowest Commission/ per share/contract | Total Monthly shares/contracts |
|---|---|---|---|
| Stocks (per share) | US markets | $.0010 per share | Above 15mil. |
| Stocks (per Trade) | US markets | $4.50 per trade | Above 10K |
| ETFs (per share) | US markets | $.0010 per share | Above 15mil. |
| ETFs (per Trade) | US markets | $4.50 per trade | Above 10K |
| Options | US markets | $.20 per contract | Above 100K |
| Futures | US markets | $.25 per contract | Above 100K |
Account Types
Lightspeed Trading offers different types of brokerage accounts to fit the wide range of different types of clients ranging from novice traders to large institutional hedge funds. Standard investing, and IRA Retirement accounts are available for individual traders. International accounts are available for clients outside the US. And business accounts are available for institutional entities. Initial funding for opening an account at Lightspeed Trading is $10,000, and minimum equity is $2,000. Traders that that participate in pattern day trading techniques for trading require $25,000 of initial funding and minimum account equity.
Below is a list of the types of available accounts:
| Investment Accounts | |
|---|---|
| Individual | Yes |
| Joint | Yes |
| Retirement Accounts | |
| IRA (Traditional & Roth) | Yes |
| SEP IRA | Yes |
| Business Accounts | |
| Corporate & LLC | Yes |
| Partnership & LLP | Yes |
| Sole Proprietorship | Yes |
Below is a list of details and features for Individual Trader Accounts.
| Account Type | Standard |
|---|---|
| Scalping | Yes |
| Hedging | No |
| Demo account | Yes |
| Micro account | No |
| Standard account | Yes |
| Zero spread account | Yes |
| VIP account | Yes |
| Managed account | Yes |
| Islamic account | No |
| Min trade | $1 |
| Max trade | None |
| Min deposit | $10,000 |
| Account Setup | Free |
Lightspeed Trading charges its clients various service and securities processing fees. Below is a list of fees.
| Description | Fee |
|---|---|
| ACAT Fees – Inbound | FREE |
| ACAT Fees – Outbound | $95.00 |
| ACH Transfers Funds | FREE |
| ACH Recalls / Reversals | $30.00 |
| ACH Returns | $30.00 |
| Certificate Fees | $50.00 |
| Certificate Safe Keeping Fee | $30.00/Quarter |
| Conversion Fees (changing ADR to ODR) | $25.00 |
| DTC Fees | $25.00 |
| Foreign securities-ACAT Fees | Variable |
| IRA Opening Fee | $20.00 |
| IRA Annual Fee (First year waived) | $35.00 |
| IRA Closing Fee | $95.00 |
| Limited Partnership (Annual Fee) | $50.00 |
| Margin and Risk Liquidation Fees | $0.01/share or $1.00/contract with a $50 per position minimum |
| Minimum monthly commission, accounts under $15,000 | $25.00 |
| Options Exercise/Assignment Fee | $15.00 |
| Overnight Checks (Domestic) | $30.00 |
| Overnight Checks (International) | $50.00 |
| Paper Statement Delivery Fee (per mailing) | $5.00 |
| Paper Confirm Delivery Fee (per trade) | $2.00 |
| E-mail Statement and Confirm Delivery Fee | Free |
| Pre Pay Fees | $30.00 |
| Return Certificates | $25.00/Item |
| Saturday Delivery Checks | $30.00 |
| Stop Pay Fees (W/D) | $30.00 |
| Wire Fees (Domestic) | $20.00 |
| Wire Fees (International) | $50.00 |
| Wires Returned | $30.00 |
| OTCBB | $10.00 Per Trade |
| Phone Orders | $20.00 Per Trade |
| Securities Processing Fees | |
| ADR Hold Fee | Free |
| DRS Statement Withdrawal | $30.00 |
| Certificate Processing Fee | $75.00 |
| DWAC and DRS Process Fee | $30.00+Transfer Agent Fees |
| ESOP Trades | $125.00 |
| “F Stock”; Foreign Securities | $75.00 |
| Illiquid Charge | $250 |
| Non-DTC Eligible Securities | $75.00 |
| Non DTCC-eligible security execution fee | $7.50 |
| Non DTCC-eligible security DTC fee | $80.00 |
| Non DTCC-eligible security Deposit fee | $75.00 |
| Non DTCC-eligible security New York Window fee | $34.00 |
| Non DTCC-eligible security Transfer Agent fees | Ranges from $25.00 – $500.00 |
| Reorganization Items (Subscriptions, Redemptions, Tenders, Exchanges and Conversions) | $20.00 |
| Replace Lost Cerificate | $20.00 + Transfer Agent Fees |
| Request of Certificate for DRS eligible issue | $350.00 |
| Research Fee | $25.00 |
| Restricted Stock Processing | $125.00 |
| RUSH Transfer Request | $575.00 |
| Transfership request to mail to customer | $235.00 |
| Transfer of Securities Requiring Legal Opinion Documents | $50.00 (Per issue) |
| Warrant Exercise | $125.00 |
| Worthless Security Held | $7.50 / month / cusip |
| Worthless Security Reinstated | $15.00 / cusip |
Funding a Lightspeed Trading account can be accomplished via bank transfer, AHC, or check. Bank transfer transactions take up 5 business days. Opening an account with Lightspeed Trading is usually completed within up to 5 business days. Documents required are a valid ID (i.e. passport, driver’s license, or national ID), and proof of address (i.e. bank statement, utility bill, or tax invoice dated within the last three months and issued to your name and address).
Trading Platforms
Lightspeed Trading provides its clients with five trading platform options, LightSpeed Trader, Sterling, Livevol X, Eze EMS Pro, and a Web/Mobile application. Lightspeed Trading charges fees for three of the five platforms. The table below summarizes the features and fees of the trading platforms.
Features and Fees of the Lightspeed Trading Platform
| Platform Feature | LightS Trader | Sterling | Livevol X Options | Eze EMS Pro | Web/Mobile |
|---|---|---|---|---|---|
| Best for Active and Professional Traders | Yes | Yes | Yes | Yes | |
| Best for Hedge Funds and Institutions | Yes | Yes | Yes | Yes | |
| Best for Investors | Yes | Yes | |||
| Streaming Level 1 Quotes | Yes | Yes | Yes | Yes | Yes |
| Streaming Level 2 Quotes | Yes | Yes | Yes | Yes | |
| Equities | Yes | Yes | Yes | Yes | Yes |
| Options | Yes | Yes | Yes | Yes | Yes |
| Futures | Yes | ||||
| Watchlists | Yes | Yes | Yes | Yes | Yes |
| Hot Key Order Entry | Yes | Yes | Yes | ||
| Fully Customizable Order Routes | Yes | Yes | Yes | ||
| Basket Order Entry | Yes | Yes | Yes | Yes | |
| After Hours Trading | Yes | Yes | Yes | Yes | Yes |
| Customizable charts with studies | Yes | Yes | Yes | Yes | Yes |
| Mobile | Yes | ||||
| Up to 40 Screens of Custom Layouts | Yes | ||||
| Market Scanners | Yes | Yes | Yes | Yes | |
| Advanced Window Linking | Yes | Yes | Yes | ||
| Front End API (optional) | Yes | Yes | Yes | Yes | |
| Downloadable Application | Yes | Yes | Yes | Yes | |
| Web Based Application | Yes | ||||
| 24/7 Platform Access | Yes | Yes | Yes | ||
| GTC Orders | Yes | Yes | Yes | Yes | Yes |
| Multi Account Access | Yes | Yes | Yes | Yes | Yes |
| Futures Ladder View | Yes | ||||
| What If Analysis | Yes | ||||
| Portfolio Risk Dynamic Skew | Yes | ||||
| Options Scanners | Yes | ||||
| Historical Options Data | Yes | ||||
| Research | Yes | ||||
| Monthly Software Fee | $130 | $230-$260 | Free | $325 | Free |
| Software Fee Rebate Eligible | Yes | Yes | |||
| Monthly Market Data Fees | Variable | Variable | No | Variable | No |
| Reg-T / Cash Account Minimum | $25,000 | $25,000 | $25,000 | $25,000 | $10,000 |
Lightspeed Trader is the flagship trading platform. It is designed and well-suited for day-traders. The platform gives all levels of traders the capability to easily design and customize layouts, rules, and fully customizable home screens and reporting to best fit different trading styles.
Lightspeed Trader Trading Platform Screen Shot
Lightspeed Trading provides its clients with a mobile application for traders that trade on the go. For options and futures traders, Lightspeed Trading provides an options and futures analysis application. Also available is a powerful Application Programming Interface (API) for traders that prefer to use third party trading platforms.
Education
Lightspeed Trader offers several forms of educational materials on its website. You can access articles, videos, webinars and newsletters to improve yourself as a trader. Unfortunately, you may encounter links that do not work on the education overview page. We suggest that you head to each specific sub-menu.
Articles on the broker’s website discuss various trading topics ranging from tips to mitigate trading risks to updates on the futures market, and users can conveniently navigate through different topics via tabs. The articles, however, are not updated regularly. You may want to check other financial websites to get the latest updates in the market.
The broker offers video tutorials on its education page, which cover various trading topics, like short sale restrictions and volume-weighted average prices. These videos are compact yet do a great job explaining difficult trading concepts.
Lightspeed has also established a YouTube channel containing videos that will be helpful for traders. Compared with videos on its website, the broker’s YouTube videos have longer durations, meaning they go into more detail. However, Lightspeed rarely updates its channel.
Webinars might be one of the best educational content that the broker has to offer. On its website, you can see schedules for upcoming webinars. In these events, you can learn various trading concepts, specifically how to utilize Lightspeed’s tools to gain trading advantages. Through webinars, you can interact directly with in-house experts and ask them about features you are curious about.
Anyone can join Lightspeed’s webinar because the registration does not require you to list your broker account. If you miss out on any of the webinars, the website uploads its past online seminar events regularly.
Lightspeed offers a newsletter subscription for traders who want to receive the latest trading news. You simply need to register your email address on its website, and a newsletter will be delivered weekly to you.
If you are a registered Lightspeed trader, you may also want to check the broker’s Twitter account regularly to get the latest pricing news. You can also see the latest promotions offered by Lightspeed to maximize your gains.
Customer Service
A Lightspeed Trading customer service can be reached by U.S. or International Clients over the phone during the week from 7:00 am until 8:00 pm, EST, or by email. Customer service is provided in English, Spanish and Chinese. Weekend support is not available.
Safety
According to its website, Lightspeed is a member of several American financial organizations, namely the Financial Industry Regulatory Authority (FINRA), the National Futures Association (NFA) and the Securities Investor Protection Corporation (SIPC). As a member of those organizations, Lightspeed provides investor protection under U.S. laws.
If a broker registered in FINRA, NFA and SIPC undergoes financial trouble or even insolvency, customers can still receive compensation instead of losing all their money. Through a collaboration with capital firm Wedbush Securities, customers can receive SIPC protection of up to $500,000 — a maximum of $250,000 in cash.
Lightspeed-Wedbush also works together with London-based insurance firm Lloyd’s to provide additional coverage for clients. Each brokerage account can receive coverage of up to $25,000,000 at no charge.
Lightspeed complies with the Know Your Customer (KYC) regulation. During the registration, you must provide the necessary data, such as name, social security number, occupation and credit score.
To provide its services, Lightspeed will share your data with third parties, like the clearing company and custodians. However, the broker assures you that it will not sell your information for purposes other than trading.
The broker also implements a risk policy to protect client assets. Based on its website, the risk policy is not severely restrictive to allow clients the freedom to manage their own portfolios.
Lightspeed uses advanced risk management technology to monitor trading activities on its platforms. There are several parameters put in place to determine portfolio risk, including:
- Day trading leverage
- Concentration exposure
- Liquidity exposure
- Portfolio risk shocks
If the broker recognizes a high-risk client portfolio in its system, a representative will get in touch with the client to discuss the risks. Ultimately, the client makes the final decision regarding their portfolio.
Lightspeed has a Disaster Recovery and Business Continuity Plan, which is designed to minimize operational issues in the event of a disaster. The firm regularly backs up its database offsite. Additionally, clearing firms working with Lightspeed have copies of client data.
FAQ
What are the deposit method options offered by Lightspeed?
You can deposit funds to your Lightspeed account via a wire transfer from your bank accounts or other brokerage accounts. Traders can also conduct full or partial account transfers (Automated Customer Account Transfer Service/ACATS). The minimum deposit amount depends on your account type. For example, a Sterling Vol Trader account should have a minimum $25,000 deposit.
Can I withdraw funds from my trading account with a check?
Yes. You can request a check by following these steps:
- Sign into the Lightspeed trading account.
- Head to the funding tab.
- Choose “Check Request”
- Enter the amount you want to withdraw.
- Pick the delivery method.
Lightspeed will process your check request within the same business day. However, it may take three to five days before the check reaches you because it depends on the delivery method.
Why can’t I receive quotes for my orders?
A poor internet connection may sever your link to the quote server. Follow these steps to get your quotes:
- Sign out of the trading platform
- Sign back in
- Re-establish connection with the quote server
If you are still unable to receive quotes after those steps, you can contact Lightspeed’s support team by calling 1-888-577-3123 and pressing “4.”
Can I reuse my past Lightspeed trading account if I want to trade again?
Yes. You can reopen your old Lightspeed trading account by sending an email to newaccounts@lightspeed.com with your account number and reopening request. The broker’s representative will reach out to you to confirm the reopening. You may need to prepare updated financial documents beforehand, though.
Does Lightspeed charge maintenance fees?
Yes. Lightspeed charges you maintenance fees, which will be drawn from your account within the first business week of the month. The amount is based on the previous month’s commissions. These fees include:
- Software fee
- Market data
- Inactivity fee
Pros
- Targeting professional, high volume traders
- Trading platform is built for high speed
- Low commission via tiered volume discounts benefiting heavy traders
Cons
- High minimum deposit
- High fees, with extra charges for access to additional trading platforms
- Not suited for beginner traders or low volume traders
Fixed spreads
Variable spreads
Stop losses
Limit orders
One-click trading
Trailing stops
Expert advisors (EAs)
Virtual private server
Direct market access
STP broker
ECN broker
Market maker
Price alerts
Signal trading
Watchlists
Charting tools
iOS App
Android App
Windows App
Major Stock markets (US UK Germany)
Indices
Penny stocks
Forex
Majors
ETF
CFDs
Bitcoin
Commodities
ETFs
IPO
Options
Futures
Bonds
Hong Kong stocks
Japanese stocks
Listed on Stock Exchange
Scalping
Hedging
Demo account
Islamic account
Micro account
Standard account
VIP account
Zero spread account
Managed account
Credit cards
Bank transfer
PayPal
Neteller
Skrill
Electronic wallets