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Overall

Lightspeed caters to one type of investor, the hyperactive trader, and provides the functionality required to succeed.

Commissions & Fees
Offering of Investments
Platforms & Tools
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Best in Class
  • Commissions & Fees
  • Active Trading
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By Blain Reinkensmeyer on February 16th, 2016 | Last updated: December 1st, 2016

Dislikes
  • No support for mutual funds or bonds
  • No mobile trading support
  • $99 monthly platform fee (waived if certain conditions met)
Special Offer Get our cheapest pricing yet .002/share or $2/trade or .22/contract! Learn More


Lightspeed Trading Review

February 16th, 2016: This Review has been updated to reflect the latest research and results from the 2016 Review.

Feeling confused is a common experience for first-time visitors to the Lightspeed website, unless they can speak the lingo of Lightspeed's target market, the active trader.

Lightspeed is one of the few online brokers whose goal is to avoid newer investors and those with little experience. The definition of "active trader" has a different meaning at Lightspeed compared to other big names such as TD Ameritrade, ETRADE, Scottrade, and Charles Schwab. At Lightspeed, clients trading thousands of round trips per month is not uncommon.

For investors seeking retirement calculators, third-party reports, or stock education, Lightspeed has little to offer. However, those seeking top-tier executions, low prices, and speed, will find themselves right at home.

Commissions & Fees

With Lightspeed’s clientele being active and hyperactive traders, the broker’s commission structure caters accordingly. Through the main platform, Lightspeed Trader, two tiered commission structures are offered: per share and per trade. The more volume you trade or the more frequently you trade, respectively, each month, the lower your rate will be.

With per share trading, equities trades start at $.0045 per share, plus/minus routing fees ($1 minimum). For traders who place larger orders, flat-rate trades can be made starting at $4.50, plus/minus routing fees. Options trades start at $.60 per contract and scale down in cost according to monthly volume.

One of the important notes about Lightspeed, shared by only a select number of brokers, is that the company does not receive payment for order flow for equity trades. This means far cleaner fills for clients. Also, the broker passes all respective market center rebates (or fees) to the client, allowing seasoned traders to keep costs extremely low.

By adding liquidity through using limit orders, clients receive the full market rebate, which typically averages around $.002 per share, depending on the market center. On the flip side, routing a market order to one of the major exchanges (i.e., taking liquidity) will run an additional charge of around $.003 per share, on average.

Lightspeed TradingInteractive BrokersTradeStationMB TradingOptionsHouse
Stock Trade Fee (flat)$4.50N/A$9.99$4.95$4.95
Options Base Fee$0.00$0.00$0.00$0.00$4.95
Options Per Contract Fee$0.60$0.70$1.00$0.95$0.50
Commissions & Fees 4.5/5 0/5 3/5 0/5 4.5/5

Platforms & Tools

Lightspeed offers customers multiple different platforms to trade on. Under Lightspeed’s parent company, Professional Trading Solutions, three platforms are corporate owned: Lightspeed Trader, Lightspeed Web Trader, and Sterling Trader.

Third-party trading platforms focused on equities trading that were on offer to customers include RealTick Pro and Express. For options trading, there is Livevol X (owned by the CBOE, Lightspeed is the only broker with an enterprise license to offer the platform to customers), Derivix, Obsidian, OptionsCity, Valdi Options Solutions, and Wex. Lastly, for futures trading, customers can select from a slew of options: RealTick, CQG, CunninghamTrading Systems (CTS), NinjaTrader, Patsystems, Quick Screen Trading (QST), RAN, and Trading Technologies (TT).

For our review, we focused solely on Lightspeed's flagship platform, Lightspeed Trader, which is a desktop-based platform designed for speed, stability, and execution. While not the prettiest platform (it certainly would place last in any beauty pageant), the platform serves its purpose.

Lightspeed Trader

Although the learning curve is not too rough, ample trading experience is required to take advantage of all the order routing capabilities. Hotkeys are customizable down to order size, type, and routing instructions. Even the data is fed directly into the platform, showing that truly every millisecond matters to the broker and its clients.

Lightspeed hotkeys

Beyond placing lightning-fast trades, however, the platform has little to offer. I found the charting to be just okay, and the tools were certainly lacking. Users of industry leading TD Ameritrade's thinkorswim platform or TradeStation will feel as if they are back in the Stone Age. See: Best Brokers for Platforms & Tools.

Lightspeed stock chart

Furthermore, there is absolutely no research offered, and the options trading functionality, which has improved over the years, still lacks the quality theoretical analysis tools its competitors offer.

Overall, Lightspeed's platform is designed for professional investors to trade efficiently and do their jobs without any delays. In the world of hyperactive trading, every penny and second matters, and not having perfect fills each time is unacceptable. Lightspeed understands who their clients are and cater accordingly.

Customer Service

Lightspeed offers both phone and email support. The online broker used to offer current and potential clients access to live chat support; however, the service was shut down in mid-2012.

Lightspeed's phone support is commendable – the broker consistently delivers with speedy connection times in under a minute. The same holds true for email support: nearly every test email we sent over came back in less than one hour. Unfortunately though, one of our emails never received a response, despite sending it twice.

Overall, we found that Lightspeed support reps have a tendency to answer questions quickly and to the point, which could be explained by the fact that Lightspeed's clientele is all-business all the time. Having said that, the broker has room for improvement. Standardizing its templates could go a long way to improving the Lightspeed experience. See: Best Brokers for Customer Service.

Other Notes

In 2015 Lightspeed completed its clearing conversion to Wedbush Securities. Other clearing partners include Merrill Lynch Professional and Interactive Brokers.

Lightspeed does not offer any mobile trading support; neither does it offer any research beyond some basic technical analysis insight. Mutual funds are not supported for trading, and the broker's educational offering is very weak, which one might expect from a broker dedicated to professional traders.

Although Lightspeed lacks more mainstream "retail" investor offerings, it thrives in its offering for complex trading. The broker's institutional arm offers algorithmic (algo) trading through its Lightspeed Trader API and black box developer kits, both often used only by hedge funds. The broker also offers grey box trading in partnership with Trade Ideas, allowing clients to create and back-test their strategies, then use Lightspeed’s API to automatically trade them.

Final Thoughts

Lightspeed is not an online broker built with new or casual investors in mind. Instead, it caters to the hyperactive, professional, and institutional traders alike, all looking for quality executions, competitive commissions, and a dependable platform built to serve one purpose: trading.


Blain Reinkensmeyer

Reviewed by Blain Reinkensmeyer Blain heads research at StockBrokers.com and has been involved in the markets since placing his first stock trade back in 2001. He developed StockBrokers.com's annual review format six years ago which is respected by broker executives as the most thorough in the industry. Currently maintaining funded accounts with more than a dozen different US regulated online brokers, he's executed thousands of trades through his career and enjoys sharing his experiences through his personal blog, StockTrader.com.


Ratings Overall

Best in Class

2016
13

Overall
  • Commissions & Fees
  • Active Trading
2015
15

Overall
  • Commissions & Fees
  • Active Trading
2014
16

Overall
  • Commissions & Fees
  • Active Trading
2013
16

Overall
  • Commissions & Fees
  • Active Trading

Commissions & Fees

Commission Notes

Lightspeed offers multiple trading platforms for it's clients. The Lightspeed Trader platform requires a $25,000 minimum deposit and is designed for active traders seeking the best possible executions and data speeds. The Web Trader platform, on the other hand, requires only a $10,000 minimum deposit and is designed for low activity customers (for accounts less than $15,000, a $25 fee is charged each month, offset by total commission spend). Portfolio margin requires a $175,000 deposit.

Additionally, Lightspeed is intergrated with other third party software providers in order to offer custom trading solutions for active traders. These platforms include Sterling Trader, Realtick, Realtick Express, and Livevol X. Minimum deposits for all of these are the same as for Lightspeed Trader with the exception of Livevol X which requires a $35,000 deposit.

Note: the Lightspeed Trader platform charges a $100 software fee each month. Commission spend applies towards this fee, so if a client spends atleast $100 in commissions, the $100 fee is not applicable ($100 - $100 = $0). As another example, if the client only spends $40 in commissions, they would be charged $60 ($100 - $40) for that month.

Lightspeed offers a "Per Share" pricing plan alongside a "Per Trade" plan. Throughout the StockBrokers.com website we display the Per Share rate. To request a commission plan change, clients must call in to the broker. Full commissions schedule breakdown below.

Stock Trades (Per Share)

  • Standard Commissions - $.0045 per share ($1 minimum charge) unbundled or $.006 per share using the LSPT route which charges 15 pips (effectively converting the per share rate into a "bundled" structure). Phone orders are $20 + standard commission rate. For OTCBB trades, "Call for OTCBB/Pink sheet rates".
  • Active Trader Commissions - To qualify for active trader commission rates, the client must contact Lightspeed first. Per Share rate (Monthly Volume): $0.0035 (Over 250,000 shares), $0.0025 (Over 1,000,000 shares), $0.0020 (Over 3,000,000 shares), $0.0015 (Over 6,000,000 shares), $0.0010 (Over 15,000,000 shares). $1 minimum charge. All trades plus/minus applicable market center fees.
Stock Trades (Per Trade)

  • Standard Commissions - $4.50 per trade (up to 50k shares order size) plus/minus applicable market center fees. Phone orders are $20 + standard commission rate. For OTCBB trades, "Call for OTCBB/Pink sheet rates".
  • Active Trader Commissions - To qualify for active trader commission rates, the client must contact Lightspeed first. Per Trade rate (Monthly Volume): $4.00 (Over 250 trades), $3.50 (Over 750 trades), $3.00 (Over 1500 trades), $2.75 (Over 3000 trades), $2.50 (Over 10,000 trades). All trades plus/minus applicable market center fees.
Options Trades

  • Standard Commissions - $.60 per contract with a $1 minimum commission charge. All trades plus any applicable market center fees (depends on security being traded).
  • Active Trader Commissions - To qualify for active trader commission rates, the client must contact Lightspeed first. Per Contract rate (Monthly Volume): $0.50 (Over 500 contracts), $0.45 (Over 2,000 contracts), $0.35 (Over 10,000 contracts), $0.25 (Over 50,000 contracts), $0.20 (Over 100,000 contracts).

All excercise and assignments cost $25.

Mutual Funds - Mutual funds are not currently offered by Lightspeed.

Other Investments - Lightspeed also offers futures trading.

Retirement Accounts - Lightspeed offers retirement accounts but charges a $20 to open them, a $35 annual fee (waived first year), and a $95 closure fee.




Trade Commissions Breakdown

Stock Trade Fee (flat)* $4.50
Stock Trade Fee (per share)* $0.0060
Options Base Fee* $0.00
Options Per Contract Fee* $0.60
Options Exercise Fee $15.00
Options Assignment Fee $15.00
Mutual Fund Trade Fee N/A
Broker Assisted Trades Fee $25.00
Minimum Deposit $5,000.00

Margin Rates

Under $24,999.99 6.00%
$25,000.00 to 49,999.99 6.00%
$50,000.00 to $99,999.99 5.00%
$100,000.00 to $249,999.99 5.00%
$250,000.00 to $499,999.99 4.25%
$500,000.00 to $999,999.99 3.75%
Above $1,000,000.00 3.50%

Miscellaneous Fees

Bond Trade Fee N/A
Treasury Trade Fee $0.00
IRA Annual Fee $35.00
IRA Closure Fee $95.00
Returned ACH Fee $30.00
Returned Wire Fee $30.00
Stock Certificate Processing Fee $75.00
Stock Certificate Delivery Fee $50.00
Paper Statement Fee $5.00
Paper Confirmation Fee $2.00
Domestic Wire Fee $20.00
International Wire Fee $50.00


Account Features

Offering of Investments

Advisor Services help
No
Bonds (Corporate) help
No
Bonds (Municipal) help
No
Bonds (US Treasury) help
Yes
CDs help
No
Clearing Firm help
Wedbush and ML Pro and Interactive Brokers
Commission Free ETFs help
0
Direct Market Routing - Stocks help
Yes
Direct Market Routing - Options help
Yes
DRIPs help
No
# of Easy to Borrow Stocks help
5500
Forex Trading help
No
Futures Trading help
Yes
Member FINRA help
Yes
Member SIPC help
Yes
Mutual Funds help
No
Mutual Funds (Load) help
0
Mutual Funds (No Load) help
0
Mutual Funds (NTF) help
0
Mutual Funds (Total) help
0
Mutual Funds Phone Trades help
No
Mutual Funds Web Trades help
No
No Fee IRAs help
No
No Inactivity Fees help
Yes
No Minimum Deposit help
No
Options Exercising (Phone) help
Yes
Options Exercising (Web) help
No
Options Trading help
Yes
Options Trading (Mini) help
Yes
Options Trading (Weekly) help
Yes
OTCBB / Pink Sheets help
Yes
Stock Trading help
Yes

Customer Service

Phone Support help
Yes
Email Support help
Yes
Live Chat (Current Clients) help
No
24/7 Support help
No

Platforms & Tools

Desktop Platform (Windows) help
Yes
Desktop Platform (Mac) help
Yes
Web Platform help
Yes
Active Trading Platform help
Lightspeed Trader
Auto Investing help
No
Charting - Display Corporate Events help
No
Charting - Drawing Tools help
5
Charting - Notes help
No
Heat Mapping help
No
Ladder Trading help
No
Level 2 Quotes - Stocks help
Yes
Level 2 Quotes - Options help
Yes
Option Chains - Streaming Real-time help
Yes
Option Analysis - P&L Charts help
No
Stock Alerts Delivery - Email help
No
Stock Alerts Delivery - Sound help
No
Stock Alerts Delivery - Text SMS help
No
Streaming Time & Sales help
Yes
Streaming TV help
No
Trade Hot Keys help
Yes
Virtual Trading help
Yes
Watch Lists - Streaming Real-time Quotes help
Yes

Research

Research - ETFs help
No
Research - Mutual Funds help
No
Research - Pink Sheets / OTCBB help
No
Research - Fixed Income help
No
Equity Research - Research Reports help
0
ETF Research - Top 10 Holdings help
No
ETF Research - Morningstar Style Box help
No
ETF Research - Research Reports help
No
Mutual Fund Research - Research Reports help
No
Mutual Fund Research - Fees Breakdown help
No
Mutual Fund Research - Performance Analysis help
No
Mutual Fund Research - Top 10 Holdings help
No
Screener - Stocks help
No
Screener - ETFs help
No
Screener - Mutual Funds help
No
Screener - Options help
No
Screener - Bonds help
No

Education

Has Education - Stocks help
Yes
Has Education - ETFs help
No
Has Education - Options help
No
Has Education - Mutual Funds help
No
Has Education - Fixed Income help
No
Has Education - Retirement help
No
Investor Dictionary help
No
Client Webinars help
Yes
Live Seminars help
No
Videos help
Yes
Retirement Calculator help
No
Community Forums help
No

Mobile Trading

iPhone App help
No
iPad App help
No
Apple Watch App help
No
Android App help
No
Android Tablet App help
No
Mobile Site help
Yes
Quotes (Real-time) help
No
Quotes (Streaming Real-time) help
No
Watch List Syncing help
No
Market Movers (Top Gainers) help
No
Stock Alerts Delivery - Push Notifications help
No
Customizable Homescreen help
No
Stream Live TV help
No
Trading - Stocks help
No
Trading - Stocks (After-Hours) help
No
Trading - Simple Options help
No
Trading - Complex Options help
No

Banking

Member FDIC help
No
Checking Accounts help
No
Savings Accounts help
No
Debit Cards help
No
Credit Cards help
No
Mortgage Loans help
No
Mobile Check Deposit help
No
ATM Fee Reimbursement help
No
No Fee Banking help
No
Retail Locations help
0

Active Trading

Receives Payment for Order Flow (Equities) help
No
Client Liquidity Rebates help
Yes
Financial Information Forum (FIF) Participant help
No

Compare Lightspeed Trading

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All pricing data was obtained from a published web site as of 2/16/2016 and is believed to be accurate, but is not guaranteed. The StockBrokers.com staff is constantly working with its online broker representatives to obtain the latest pricing data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page. For stock trade rates, advertised pricing is for a standard order size of 500 shares of stock priced at $30 per share. For options orders, an options regulatory fee per contract may apply.




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