Introduction to SpeedTrader
SpeedTrader is a direct-access trading platform catering primarily to day traders, swing traders, and other high-frequency traders. Founded in 1999, it has established itself as a reliable platform for those who prioritize speed, advanced tools, and comprehensive market access. SpeedTrader is often compared to industry leaders like Lightspeed and Interactive Brokers, but it has carved out its niche by emphasizing its streamlined, trader-focused approach.
This review explores all facets of SpeedTrader, from its pricing and features to user experience and customer support, to provide a comprehensive understanding of whether it fits your trading needs.
1. Platform Overview
SpeedTrader offers two main platforms for traders:
- SpeedTrader Pro: A desktop-based platform tailored for active traders requiring robust tools and high-speed execution.
- Web/Mobile Platforms: Accessible for traders who prefer flexibility and on-the-go trading.
Each platform has its own strengths, but SpeedTrader Pro is undoubtedly the star offering. The desktop application delivers:
- Real-time Level II quotes for deep market insights.
- Advanced charting tools for technical analysis.
- Customizable hotkeys for lightning-fast order execution.
- Direct market access (DMA), allowing traders to route orders to specific exchanges and ECNs.
These features position SpeedTrader as a high-performance platform for traders who need speed and precision in fast-moving markets.
2. Account Types and Market Access
SpeedTrader supports both cash and margin accounts. Margin accounts, in particular, are critical for day traders who require leverage to amplify their trades.
Markets and Instruments
SpeedTrader provides access to:
- Equities: A wide range of U.S. stocks on major exchanges.
- Options: Competitive commissions for options traders.
- OTC Markets: Includes penny stocks and other over-the-counter securities.
However, SpeedTrader does not support futures, forex, or cryptocurrencies. This narrow focus on equities and options may deter traders looking for a more diverse portfolio.
3. Pricing and Commissions
One of the critical factors for any trading platform is its pricing structure. SpeedTrader employs a tiered pricing model designed to reward higher-volume traders. Here’s a detailed breakdown:
Equity Trades
- Per-share pricing: Starts at $0.0044 per share, with volume discounts available for traders executing over 500,000 shares monthly.
- Per-trade pricing: Flat $2.95 per trade, suitable for lower-volume traders.
Options Trades
- $0.40 per contract, with a $1.00 minimum charge per trade.
Other Fees
- Platform Fee: SpeedTrader Pro costs $49/month, but this fee can be waived for high-volume traders.
- Market Data Fees: Level II quotes and other premium data feeds require additional monthly subscriptions.
Assessment
While SpeedTrader is competitively priced for high-volume traders, occasional or low-frequency traders may find the fees excessive. For these users, platforms like Robinhood or Webull might be more economical.
4. Speed and Order Execution
SpeedTrader’s claim to fame is its direct market access (DMA) and fast execution speeds. Here’s why this matters:
- DMA Advantage: Allows traders to send orders directly to specific market centers, bypassing intermediaries and reducing latency.
- Customizable Order Routing: Traders can choose between ECNs (like ARCA or EDGX) or smart routing to ensure the best execution price.
- Hotkey Functionality: The ability to execute trades with a single keystroke is invaluable for day traders managing multiple positions simultaneously.
Execution Speed Test
SpeedTrader consistently ranks as one of the fastest platforms in its category, making it ideal for scalpers and momentum traders.
5. User Interface and Tools
SpeedTrader Pro
The desktop platform is highly customizable, allowing users to configure layouts, charts, and watchlists according to their preferences. Key features include:
- Advanced Charting: Over 100 indicators, drawing tools, and real-time chart updates.
- Integrated News Feed: Keep up with breaking news and events that could impact trading decisions.
- Trade Alerts: Set custom alerts based on price levels, volume changes, or other criteria.
Web and Mobile Platforms
The web and mobile versions are less feature-rich but still functional for basic trading needs. They include:
- Real-time quotes.
- Simple order entry forms.
- Limited charting tools compared to the desktop version.
6. Research and Educational Resources
SpeedTrader’s offerings in research and education are relatively limited compared to competitors like TD Ameritrade or Fidelity. The platform lacks:
- Comprehensive educational content for beginner traders.
- Advanced research reports or stock screeners.
However, it does provide:
- Market news integrated into the platform.
- Third-party research tools available at an additional cost.
This makes SpeedTrader more suitable for experienced traders who rely on external resources for research and analysis.
7. Security and Regulation
SpeedTrader is a member of FINRA and SIPC, ensuring a high standard of regulatory compliance and customer fund protection. SIPC insurance covers up to $500,000 per account, including $250,000 for cash claims.
8. Customer Support
SpeedTrader offers customer support through:
- Phone: Monday through Friday, during market hours.
- Email: Typically responds within 24 hours.
- Live Chat: Available on the website and within the platform.
Reviews suggest that support is responsive and knowledgeable, though some users report slower resolution times during peak hours.
9. Strengths and Weaknesses
Strengths
- Blazing-fast execution: Ideal for high-frequency traders.
- Customizable platforms: Tailored for active trading strategies.
- Direct market access: Provides greater control over trades.
- Volume discounts: Competitive pricing for professional traders.
- Reliable customer service: Generally responsive and helpful.
Weaknesses
- High costs for low-volume traders: Monthly fees and data costs can add up.
- Limited asset classes: No support for futures, forex, or cryptocurrencies.
- Minimal research tools: Not suitable for beginners or research-heavy traders.
- Outdated web/mobile platforms: Lacks the polish and features of competitors.
10. Who Should Use SpeedTrader?
Best Fit
- Active Day Traders: The platform’s speed, direct market access, and hotkey functionality make it a top choice.
- Professional Traders: Volume discounts and advanced tools cater to high-volume users.
- Options Traders: Competitive commissions and robust routing options.
Not Ideal For
- Beginners: The platform’s steep learning curve and lack of educational resources may be overwhelming.
- Low-frequency Traders: High platform and data fees make other platforms more cost-effective.
- Diversified Traders: If you trade futures, forex, or cryptocurrencies, you’ll need to look elsewhere.
Final Verdict
SpeedTrader excels in providing a high-performance environment for seasoned traders who demand speed, precision, and flexibility. Its focus on equities and options, combined with advanced tools like direct market access and hotkey trading, makes it a favorite among day traders and professionals.
However, its pricing structure, limited asset coverage, and lack of educational resources make it less suitable for beginners or casual investors. Competitors like Interactive Brokers or TD Ameritrade may offer a more well-rounded experience for those with diverse trading needs.
For its target audience of active traders, SpeedTrader is a reliable and efficient platform, but prospective users should carefully assess their trading style and volume to determine if the benefits outweigh the costs.
