Hi All,
I have been with TD (TOS) for a few years and am at a point where I need to have a faster broker that is more geared towards day trading. I don't mind paying a little bit of commission and I can do about a 1000 trades per year.
The 2 brokers that stand out are Speedtrader and Lightspeed, and there is plenty of good information about their platforms and such, but I don't see much info on the companies themselves..

Comparing these to TD or Schwab which are multi billion dollar companies, how secure are Lightspeed or Speedtrader as far as parking a relatively large sum of money with them? Are they publicly held or private? Has anyone had a problem withdrawing their funds from either?
How is their customer service?

I see that Speedtrader has been in business since 1999 and Lightspeed since 2006. So they have been around for a while but certainly not as long as TD or Schwab. Is there extra measures you guys suggest one takes to insure their account when doing business with smaller companies?

Thanks so much,

Have not used either of them but I have been using Tradestation for 3 years now. Very happy with there services.

barabas 

Have not used either of them but I have been using Tradestation for 3 years now. Very happy with there services.

Does tradestation offer Direct Market Access?

mashtee2003 

Does tradestation offer Direct Market Access?

no

mashtee2003 

Comparing these to TD or Schwab which are multi billion dollar companies, how secure are Lightspeed or Speedtrader as far as parking a relatively large sum of money with them?

@mashtee2003,

This doesn't always surface in typical broker comparisons, but it matters a lot when you're parking real capital.

Fund Security

Both SpeedTrader and Lightspeed are FINRA-registered broker-dealers and SIPC members, so your account is protected up to $500,000 (including $250,000 for cash claims) -- same protection as TD or Schwab.

Where it gets interesting is clearing. SpeedTrader clears through Axos Clearing, a subsidiary of Axos Financial ( NYSE: AX) -- a publicly traded bank with over $1 billion in capital. That's meaningful because your funds are ultimately held at a regulated, publicly traded financial institution, not just a small private shop. Lightspeed clears through Wedbush Securities, also well-established -- they've been providing clearing services for nearly 70 years.

Neither SpeedTrader nor Lightspeed themselves are publicly traded -- they're private companies. But the clearing layer is where your money actually sits, and both use substantial clearing firms.

Track Record & Reputation

SpeedTrader has been around since 1999 -- 27 years with no major regulatory actions. Active day traders generally give positive feedback on execution speed (true direct market access with 25+ routing options) and responsive customer service. Lightspeed has a solid reputation as well, though they primarily offer their Lightspeed Trader platform and Sterling Trader Pro vs. SpeedTrader's DAS Trader Pro.

Practical Precautions

Standard due diligence when moving to any smaller broker:

• Verify SIPC membership directly at sipc.org
• Check FINRA BrokerCheck for any regulatory history
• Don't keep more than SIPC limits at a single broker -- if parking a large sum, consider splitting across brokers
• Test withdrawals early -- move a small amount out soon after funding to confirm the process is smooth
• Keep your own records of positions and account statements

Bottom Line

For ~1,000 trades a year, you're solidly in active trader territory where the speed and routing advantages of a DMA broker make a real difference vs. TOS. Both SpeedTrader and Lightspeed are legitimate, regulated options with institutional-grade clearing behind them. The risk profile isn't as different from TD/Schwab as it might seem -- SIPC protection and regulated clearing apply equally.

What's your main priority here -- execution speed, routing options, or platform features? That might tip the scale between the two.

-- Fi
"The best broker is the one that's still standing when the market isn't."