Lightspeed is a part of Lime Brokerage and it strives to fulfill the needs of a certain kind of investor- the active, high volume trader. Their ideal client is a professional trader but it does not mean that amateurs cannot use Lightspeed. However, its value is in the quick order entry and execution which benefits the day traders and not the beginners. If the order execution speed is not relevant to you, there are several other alternatives to Lightspeed.
Lightspeed has several trading platforms for the clients and it has a minimum deposit requirement of $25,000. It is specially designed for active traders who seek high data speed and best possibility executions. The platform is also integrated with third-party software providers to offer custom trading solutions for traders.
This platform has a software fee of $130 for a month and the commission spend will apply towards this fee. Hence, if you spend a minimum of $130 in commissions, the fee of $130 will not be applicable. But if you spend only $50 in commission, you will have to pay a commission fee of $80 ($130-$50) for the month.
The trading platform has a Per-share pricing plan with a Per trade plan. Let us take a look at all the costs associated with it.
This plan has a standard commission of $.0045 per share unbundled and $.006 per-share with the LSPT route where 15 pips are charged. This will cover the per share rate into a bundled structure. The phone orders have $20 and a standard commission rate. For active trader commission rates, you might have to get in touch with Lightspeed. The per-share rate for monthly volume exceeding 250,000 shares is $0.0035 and shares exceeding 1,000,000 is $.0025. For a volume of over 3,000,000 shares, the per-share rate is $.0020 and for a volume over 6,000,000 shares is $.0015. Lastly, there is a $1 minimum charge.
Minimum account fees
Lightspeed trading platform has a minimum amount of $10,000 for web trader platform, $2,000 for IRAs, and $25,000 for other platforms. Its margin account requirement is $175,000 and $10,000 for IRAs.
There is a charge of $25 minimum monthly commission for those accounts under $15,000. Also, there is an IRA opening fee of $20, an IRA annual fee of $35, and an IRS closing fee of $95.
Stock Trade cost
For active trader commission, you need to get in touch with Lightspeed. It has a per trade rate of $4 for orders over 250, $3.50 for orders over 750, $3 for orders over 1500, and $2.75 for orders over 3000, and $2.50 for orders over 10,000 trades.
Options Trade cost
There is no base commission for a Lightspeed Trader and the cost is $0.60 for a contract with a $1 minimum in case of fewer than 500 contracts a month. The volume discount is as low as $.20 per contract. For Lightspeed mobile and web, the minimum commission is $4.50 for all options
For active traders, you need to contact Lightspeed first. The per-contract rate is $0.50 for more than 500 contracts a month, $0.45 for more than 2000 contracts a month, $0.35 for more than 10,000 contracts a month, $0.25 for more than 50,000 contracts monthly, and $0.20 for more than 100,000 contracts.
Trading platform charges
The Lightspeed Trader Desktop for active traders, institutions, and funds has a $130 monthly platform fee. It is reduced by the amount of commission generated. The Lightspeed mobile/web trader is for occasional day traders and there is a $0 platform fee.
There are retirement accounts but the charge is $20 to open them, there is an annual fee of $35 which is waived in the first year and there is a $95 closure fee.
Lightspeed rebates 50% of the qualified commissions in the first three months for new accounts. It rebates up to $10,000 cashback.
Is Lightspeed the right choice?
Lightspeed is ideal for active traders who have high volume. It has direct market access and your orders are sent to one of the routed destinations, which allows you to skip the typical stop at a brokerage firm. The order fulfillment is quick and convenient. If you want to try the platform, open a free demo or paper trading account. Lightspeed stands out for the options but there are several other brokers who have a $0 commission for stocks and options. This platform is ideal for hedge fund managers, institutions, high-volume day traders, and active traders. You can try the demo account to understand how it works and then make a decision.