SpeedTrader has been around since 1999, offering state-of-the-art tools, one of the best brokerage accounts and platforms for day traders around the world to take advantage of the deep pools of liquidity in US stock markets. SpeedTrader is one of the best direct-access day trading brokers.
In our SpeedTrader review, we look at some of the pros and cons of this industry leader. We will look at the many advantages to using SpeedTrader, as well as some things to consider before putting your hard money to work. Looking at the nuances of a broker, you can discern whether it‘s the right place for you.
SpeedTrader Trading Platforms and Tools
SpeedTrader has three platforms available, which are suitable for all trading times. Overall, SpeedTrader focuses on the active trader, so obviously speed is the one take away you can make from this trading house.
SpeedTrader 14-Days Free Trial
You can use a 14-Day free trial of the SpeedTrader PRO platform.
SpeedTrader obviously will offer a web-based platform, which of course is a given in this industry, but the robust platform that is based online gives you:
- real-time Level II data
- options chains
- live streaming news
as well as real-time stock charting with a massive amount of indicators. Quite frankly, this platform stands up quite well to many standalone applications. This is an excellent addition to your standalone application, as you can trade from anywhere, like your mobile device, when the internet connection of your stationary PC is lost.
SpeedTrader Pro is a standalone platform that gives you:
- Level II quoting
- direct access order routing
- advanced order types
- multiple screen support
- point-and-click trading
- options chains
- and hotkey support.
It‘s an extraordinarily fast platform that is the envy of many trading platforms out there. The order book with market depth is showing you liquidity across the marketplace. Plus, SpeedTrader Pro has been rated as one of the quickest platforms for years running.
Mobile Trading With SpeedTrader
In the modern trading era, it‘s vital to have a mobile trading app. SpeedTrader certainly hasn‘t forgotten this, offering a very robust mobile trading app for your cellular phone that gives you full control of your account and portfolio, so you can manage your trades while away from the desk.
Real-time data, news, real-time Level II quotes, order management, options chains, and advanced charting are all available on the platform. Just as they have done with the Web based platform, they have packed a very robust trading application in a small package.
Tradable Markets at SpeedTrader
While SpeedTrader doesn‘t offer global trading, and the broker serves just the US stock markets, options included, what it does specialize and is lightning fast bills, as traders will have direct access to over 25 routing options.
This is where SpeedTrader truly shines, not so much in the long list of tradable markets, but the long list of ways to take advantage of liquidity and getting a jump on the competition.
Faster fills means that you can profit much quicker and take advantage of better pricing. With this in mind, if you are looking to trade other markets, SpeedTrader won‘t be a good fit for you. However, if you are looking at just the US stock markets, as well as options that are available on US markets, then this brokerage will be hard to beat by its competitors.
SpeedTrader Commissions and Fees
SpeedTrader commissions structure gives you the option to be charged per trade or share. Keep in mind, you need an account balance of over $25,000 to day-trade. If you make more than 500 trades per month, the pricing is $2.95/trade.
Otherwise, between $3.95 and $4.49 are charged depending on your trade frequency. The per-share pricing starts at $0.0025 when trading over 500k shares per month. Options are charged at $0.30 per contract. Please check the following picture for details.
One thing that the average retail trader is not used to it is paying for the trading platform. Unfortunately, as you move up to the faster brokerage firms such as SpeedTrader, this becomes a reality. ActiveWeb starts at $25 a month. However, it is free for clients that generate over $199 per month in commissions.
The same goes for SpeedTrader Pro Level 1, which starts at $49 a month and is also free if you generate over $199 of monthly commissions. Finally, SpeedTrader Pro Level II starts at $104 per month, but is free for those generating more than $499 worth of monthly commissions. Be advised that mobile access does cost extra, depending on the account.
SpeedTraders target group are active day traders and it is not uncommon, to reach $499 of commissions easily per month, even though the commissions are extremely low.
As you know, low commissions are a must to be profitable in day trading so SpeedTrader is definitely an option. And the best of all, SpeedTrader offers a free paper trading account. This is an excellent opportunity to test the day trading platform intensively.
Education and Research
If you are trading at SpeedTrader, you probably won‘t need much in the way of education, but research is always useful. The educational videos that you will find at the website teach you how to use the platform, not necessarily how to trade.
They can be found at the following page: https://speedtrader.com/tutorials/. Plus, Trade Ideas is an excellent addition to the SpeedTrader brokerage account.
Customer service is paramount when it comes to a brokerage firm, and at SpeedTrader you will find a firm that is known for exceeding expectations. There is the main office in Carmel, New York as well as email and live chat. There are a couple of phone numbers that you can call, Monday through Friday 8 AM to 5 PM Eastern standard Time.
While lacking the 24 hour customer support that you may find that other firms, they do have an excellent rating at several of the my brokerage account reviews. Beyond that, they have been around since 1999, proving their worth over the long term.
SpeedTrader Review Summary
Simply put, SpeedTrader is an excellent choice for those looking to be active in their trading environment. It really comes down to the speed factor, and whether or not you need it.
Somebody who is looking to swing trade probably won‘t find a home here, but for those of you looking to day trade you will find that SpeedTrader should serve your needs quite nicely, assuming that you are trading US stock markets and options only.
The firm offers better prices for those who trade more volume. An alternative day trading broker is Interactive Brokers and Centerpoint Securities. It should be noted that the pattern day trader rule is in effect for all brokerages in the United States.
You can trade with less money in your account but if you want to trade hundreds of times during a month, you need more than $25,000 in your account anyway.
Long term investors will be better served at a more formal retail brokerage like Charles Schwab, who recently bought TD Ameritrade to join forces.
For those who need to make quick and dedicated pathway trades to take advantage of inefficiencies in the marketplace, SpeedTrader Pro is going to be one of the better places you can put your money to work.
One other big hurdle is that the SpeedTrader account minimum to open is $30,000 so that you can day trade. At this point, it becomes all about the size of your trading account.
However, this minimum account size makes sense, since by law there is a minimum of $25,000 account size to day trade. This regulation is made to protect you from speculation with low capital and an inadequate degree of risk.
The opening account size of $30,000 enables you to trade according to the pattern day trader rule freely. Furthermore, with this account size along with high trading activities, you generate commissions that are high enough to get the trading platforms for free.
I cannot point it out often enough. The commissions are the crucial fact if you are going to be profitable in day trading or not.
With a price per share of $0.0025, you will easily beat the pricing model of other retail brokerages, and also Ross Cameron and Tim Grittani have only positive words on this day trading brokerage.
However, first of all you have to get in touch with SpeedTrader trading platforms and tools. Instead of opening an account right away, you should give yourself the time to test the platform for free at first.
Related: TradeStation review