Is LightSpeed Trading Safe?
Lightspeed Trading is a popular broker among various types of traders. It offers a robust set of tools and services designed to help give investors an advantage in the markets. Is Lightspeed Trading safe? Can it be trusted? Let’s find out.
Is LightSpeed Trading Legitimate?
To determine if Lightspeed is a safe place to invest, we can examine its licensure with industry regulators, its insurance policies, and customer reviews.
Lightspeed is registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), both of which are leading regulatory organizations within the financial industry.
The SEC is an independent agency of the U.S. government that oversees financial markets. FINRA is a private corporation that regulates brokers, clearing firms, and investors in the financial industry.
Both organizations require brokers to adhere to strict rules in order to operate, ensuring a level of safety for investors.
Is LightSpeed Trading Insured?
To protect customer assets, Lightspeed is a member of the Securities Investor Protection Corporation (SIPC). SIPC insurance protects investors from any poor business decisions brokers may make.
With SIPC, securities in your brokerage account are covered up to $500,000. If you also have cash, half of the original coverage amount (up to $250,000) can be used to protect your funds.
Better Business Bureau Ratings and Reviews
The Better Business Bureau (BBB) can often be a good source for customer opinions, but in the case of Lightspeed Trading, there are no listed reviews.
The BBB has given Lightspeed a B- rating and does not accredit it (companies must apply for and pay for BBB accreditation).
Top Competitors
Trustpilot Reviews
Reviews on Trustpilot give us some insight into Lightspeed’s customer experience, though they are limited to just six reviews.
Most reviews are five stars, praising features like excellent customer service, fast and reliable execution, and a robust set of tools for active traders.
Overall, investors appreciate the professional-level services that Lightspeed offers.
Lightspeed Overview
Since Lightspeed Financial Services Group follows the regulations set by industry oversight bodies, we can confidently say that the broker is legitimate.
Here are some features to help you decide if Lightspeed is right for you.
Available Securities
Lightspeed offers trading in stocks, ETFs, options, and futures.
Costs and Fees
To access the lowest commissions at Lightspeed, you need to trade frequently and in large volumes. Trading commissions, margin rates, and option contract fees can be significantly reduced. These reductions occur on a tiered system when new trade volume milestones are reached.
Platforms and Trading Tools
Lightspeed is known for its versatile trading platforms. No matter what type of trading you plan to do, Lightspeed has a platform suited for it.
Lightspeed Trader: Lightspeed’s flagship platform is highly customizable and includes support for multiple assets, hotkeys, and much more. The monthly cost is $130, but trading commissions are deducted from the monthly fee.
Lightspeed Web & Mobile: Lightspeed’s web and mobile platform is fast and reliable but lacks some features such as multi-leg option support, Level II data, conditional orders, and customization. There is no monthly fee, but you must maintain at least $10,000 in your account.
Sterling Trader Pro: A popular platform among Lightspeed users, designed for smooth operation on personal computers but very fast and feature-rich. The cost is $260/month, with a $25,000 account minimum.
Sterling Vol Trader: Offers unique features not found elsewhere, including voice control, powerful risk analysis tools, and advanced workflow from concept to order ticket. Popular with institutions and professionals, it costs $600/month with a $25,000 account minimum.
Eze EMS Pro/Eze EMS Express: A comprehensive trading platform offering multi-account and multi-asset access from a single login. The cost is $350/month, with a $25,000 account minimum.
LightSpeed Trading Pros
Here are some notable pros of Lightspeed Trading:
- Direct access order routing
- Diverse selection of trading platforms
- Wide range of investment vehicles
- Competitive low commissions
LightSpeed Trading Cons
- Advanced trading platforms are subscription-based
- High account minimums ($10,000-$25,000) for access to premium platforms
Recommendations
Lightspeed is recommended for active traders seeking fast and reliable trade execution. With features like direct access routing and hotkey support, along with a comprehensive list of securities, Lightspeed is a preferred choice for many day traders. It’s also suitable for investors with large portfolios, portfolio managers, and institutional investors.
Retail investors and those seeking a more budget-friendly approach can also benefit from Lightspeed’s tools, although features are limited on the free trading software.
Updated on 7/5/2024.
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