Lightspeed has a tiered commission system, and has a high minimum deposit threshold. New traders may experience a bit of whiplash while trying to adapt to the platform.
Active, high-volume traders will get the most benefit out of Lightspeed. With an excellent network, top-tier customer service, and a platform that allows you to process orders faster, Lightspeed is the cream of the crop when it comes to stock broker services and apps.
Key Takeaways
Lightspeed trading platform is the best option for experienced traders because of how fast the processing speeds for orders are, and believe it or not, that’s more than enough of a reason to charge the commissions and fees the way they do.
If you’re just breaking into the world of investing and don’t come with a lot of liquid cash to move around, it’s imperative that you begin on another platform like Webull or Robinhood, who offer commission-free trades.
Lightspeed offers some of the best, dedicated customer service that you’ll find from any trading platform, and offers analytical tools, charts, and intel that rivals the best trading platforms out there.
You’re looking at the upper echelon of trading platforms and apps.
Pros & Cons
Active traders need an active, fast-moving platform to accommodate their fast-moving funds. Lightspeed isn’t just a stock trading app, but a full stock broker service that helps you step up your game.
For serious investors or day traders who want to make investing a career and switch from the nine-to-five, Lightspeed’s platform is exactly what you need.
This is everything you need to know about what they offer, what to look out for, and how you can utilize Lightspeed to its full potential.
About Lightspeed
Lightspeed is a for-profit business with an interest in high-volume investors that want to move serious capital and stocks. Built on a network of multiple platform types, Lightspeed is the most versatile broker service on the market.
Their goal is to help you identify risk, minimize it, and assist you in making the best financial decisions possible. At the end of the day, the risk is on you, but their customer service and educational content on the platform will help you become the best day trader you can be.
Lightspeed Products
- Regulation T Margin Accounts: These accounts allow you to borrow up to 50% of the purchase price of securities
- SMAs: Separately managed accounts for customized client solutions; this is a feature you must request and is not accessible via the UI of their platform
- LLC Trading Accounts: Yes, even as a business entity, you can trade on Lightspeed
Other account types offered are as follows:
- Individual/Joint
- Corporate
- Partnerships
- Trust
- Registered Hedge Fund
- IRAs
- CMTA Agreements
- DVP/RVP
Lightspeed Trading Fees & Commissions
Lightspeed offers tier-based share sale prices. For volumes underneath 249,999 shares, you will pay $0.0045 per share. At the other end of the ladder, you only pay $0.0010 per share sale, but that’s for volumers over 15,000,000 (monthly).
ETFs have a tier-based system as well. Under 250 monthly trades mean that you’ll spend $4.50 per trade, but on the other end of the scale at 10,0p00 monthly trades, it’s $2.50 per trade rate.
This system continues for their options orders, per contract, but per contract future orders are structured at $1.29 per side. Lightspeed definitely doesn’t shy away from their pricing structure, and it’s definitely not linear, but they’re transparent about every step of the process.
Who is Lightspeed Best For?
Lightspeed is absolutely a seasoned professional day trader type of platform. High-volume day traders that spend multiple hours per day watching stock prices will benefit from Lightspeed the most.
Lightspeed is not for beginners. Investors with a lot of liquid cash to invest and constantly move are the clientele that Lightspeed appears to be looking for.
Because their pricing structure is defined by the number of shares you sell, the lower the volume, the more you’ll have to pay directly to Lightspeed in terms of fees.
While you can’t avoid fees for high-volume trading (even on apps like Robinhood where they pass the government fees off to the customer), it’s definitely something to consider.
Lightspeed FAQ's
Yes, Lightspeed is a reliable brokerage service with plenty of history to build up their reputation. While they aren’t talked about as often as Webull and Robinhood, that’s primarily because they charge a fee for sales, so they’re not typically looked at by beginner investors.
Lightspeed also goes above SIPC insurance to offer a $100,000,000 aggregate loss coverage system, which you can learn more about right here. They want to take all of your worries out of the equation.
Because penny stocks can yield such small returns, the fees aren't worth it. For a novice investor who isn't dealing with high volume, you’re better off using an alternative platform that doesn’t issue sale fees (apart from what apps like Robinhood pass on to the customer).
It’s not the worst option, but unless you’re trading high volume and you can easily eat the fee without cutting into your profit, you’re better off with a lighter platform.
No. Lightspeed is designed for experienced brokers who have money to invest. Apps like Robinhood and Webull are excellent for beginners.
Lightspeed is better suited for those who have a background in investing to some extent, or have the capital to begin with their minimum threshold of a $25,000 initial investment. This is typically a much higher ceiling than beginners have to work with.
Lightspeed makes money through commissions, which isn’t something that every one of these app platforms do. Additionally, their high minimum investment threshold means less clientele and more cash, so they’re able to make money through cash growth.
There are quite a few account fees that you need to be aware of, which are all the little ways they can make money. Lightspeed isn’t Robinhood; they’re an aggressively for-profit business, but if you know how to use this service properly, you can avoid a ton of fees and still utilize this platform to its full effect.
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Lightspeed Trader is our flagship trading platform and one of the best trading software platforms available on the market.
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Lightspeed Trader is our flagship trading platform and one of the best trading software platforms available on the market.
