Overview of Interactive Brokers and LightSpeed Trading
If you trade a large number of financial instruments every month, you should consider Lightspeed and Interactive Brokers. These firms cater to active and day traders, offering technology and commission schedules to support this type of trading. However, there are key differences between them. Let’s explore them.
Fees
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
IB
|
$0+
|
$14.95
|
$0.25+ per contract
|
$0-$240**
|
$30
|
|
LightSpeed
|
$4.50
|
na
|
$0.60 per contract
|
$25 monthly fee (if less than $15,000 in assets)
|
$25 monthly fee (if less than $15,000 in assets)
|
|
WeBull
|
$0
|
na
|
$0
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
IB
|
|
|
|
|
|
|
|
LightSpeed
|
|
|
|
|
|
|
|
WeBull
|
|
|
|
|
|
|
Promotion Links
LightSpeed Trading: none right now.
Interactive Brokers: Get up to $1,000 of IBKR Stock for FREE!
Webull:
Get up to 40 free stocks when you deposit money at Webull!
Trading Platforms
Lightspeed offers several trading platforms with various investment tools. The simplest platform is the browser-based system, which includes watchlists, order entry, and charting with technical studies.
Next is Livevol X, which offers basket order entry and advanced window linking. LS Trader, which follows, provides hotkey order entry and customizable order routes. It also supports up to 40 screens of custom layouts.
Sterling Trader Pro is another option at Lightspeed, featuring API access and direct-access routing. RealTick Pro is the only platform at Lightspeed capable of trading futures.
In addition to these, Lightspeed offers specialty programs like Wex, SILEXX OEMS, Derivix, and CQG.
Interactive Brokers, on the other hand, offers just one platform: Trader Workstation. Despite being a single platform, it is highly sophisticated, providing access to global securities and a simulated trading mode.
Trader Workstation offers extensive customization, including the ability to adjust candlestick thickness. The platform also features advanced charting tools and a trading ticket with various order types and time-in-force options.
Both Trader Workstation and Lightspeed's Livevol X and browser platforms are free. However, some Lightspeed platforms, like RealTick Pro and LS Trader, carry monthly fees, though they may be eligible for fee rebates.
Mobile Platforms
Both brokers offer free mobile platforms. Lightspeed's app includes advanced order types, such as trailing stops, watchlists, and free market data. It also features charting and Level I quotes.
Interactive Brokers' mobile platform offers robust charting with around fifty technical studies and allows users to change graph styles. It also includes a watchlist, AI helper iBot, several order types, and profit & loss information.
Level II Quotes
Both companies offer Level II data, which is essential for active traders. Almost every platform at Lightspeed supports Level II data, except for the mobile and browser systems.
Trader Workstation provides Level II data through two windows: Market Depth and Market Depth Trader. The latter offers more tools and color-coded prices from various market centers.
Options and Other Financial Instruments
Interactive Brokers offers a wide range of financial instruments, including stocks, options, bonds, ETFs, futures, forex, contracts for difference, and mutual funds. Lightspeed offers options, ETFs, and futures but does not provide access to mutual funds, bonds, or contracts for difference. Moreover, Interactive Brokers provides access to a vast range of global securities, which Lightspeed does not.
Options can be traded on all Lightspeed platforms, although the browser and mobile systems do not offer Level II quotes. Livevol X is specifically designed for derivative trading and includes option market scanners and analysis tools.
Trader Workstation offers option chains with calls and puts. Enabling "Strategy Builder" within the options window allows for multi-leg strategies, and clicking a bid or ask price adds a leg to an order ticket.
Extended Hours
Both brokers offer extended-hours trading. Lightspeed’s pre-market session runs from 4 am to 8 am, and the after-hours session is from 4 pm to 8 pm. Interactive Brokers offers the same extended-hours sessions.
Margin
Lightspeed currently charges 12% for margin debits below $50,000. The initial margin requirement for long stock positions is 50%, with a maintenance margin of 25%.
Interactive Brokers offers a lower rate of 6,33% on debit balances under $25,000, with the same margin requirements as Lightspeed.
Security Research
Both firms provide security research tools. Trader Workstation features a stock scanner that can search European and Asian exchanges and ETFs. BookTrader displays time and sales data, and forex tools are also available.
Lightspeed offers research on all its platforms, with market scanners available on LS Trader, Sterling, and Livevol X. RealTick Pro includes streaming news and fundamental research, while Livevol X provides historical options data and a portfolio risk dynamic skew.
Recommendation
For forex, fixed-income, CFD, and mutual fund traders, Interactive Brokers is the better choice.
If you prefer trading within a web browser, Lightspeed may be more suitable. Although Lightspeed offers multiple desktop platforms, some traders might prefer a simpler option. Interactive Brokers, with its single platform, might be an easier choice.
For margin traders, we recommend Interactive Brokers due to its competitive margin rates. It’s also a good choice for low-volume traders, as its platform is free, and infrequent trading would only cost $10 per month.
Promotions
LightSpeed Trading: none right now.
Interactive Brokers: Get up to $1,000 of IBKR Stock for FREE!
Webull:
Get up to 40 free stocks when you deposit money at Webull!
Interactive Brokers vs LightSpeed Summary
Lightspeed and Interactive Brokers offer great resources for day traders and sophisticated investors. However, Lightspeed does not offer a commission-free plan, making it more expensive. For $0 commission trading, Webull is also a great choice for traders.
|