If you’re an active trader searching for a reliable online brokerage, you might have come across SpeedTrader. As with any financial services provider, it’s essential to ask, “Is SpeedTrader legit?” In this article, we’ll delve into the company’s background, features, and benefits, helping you make an informed decision about whether SpeedTrader is the right fit for your trading needs.
SpeedTrader, founded in 1999, is a U.S.-based online brokerage firm owned by Stock USA Execution Services, Inc. The company’s headquarters are in New York, and it primarily serves active traders, day traders, and professional trading institutions. The platform specializes in providing direct market access (DMA) trading solutions, focusing on fast execution, competitive pricing, and advanced trading tools.
SpeedTrader operates under the regulatory supervision of the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). As a member of the Securities Investor Protection Corporation (SIPC), it provides its clients with account protection up to $500,000, including a $250,000 limit for cash.
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Is SpeedTrader Worth it?
SpeedTrader is an online brokerage platform that caters primarily to active and day traders. It offers a variety of advanced trading tools, competitive commissions, and direct market access, making it an attractive choice for certain types of investors. However, it may not be ideal for everyone. Here is a quick overview of the types of investors SpeedTrader is best suited for and those for whom it may not be the right fit:
- Active traders: SpeedTrader is designed specifically for active day traders who make multiple trades per day. The platform offers fast execution, low-latency direct market access, and competitive commission structures that appeal to active traders seeking to capitalize on short-term market fluctuations.
- Day traders: Day traders who require advanced trading tools and real-time market data will find SpeedTrader’s platform appealing. Its customizable trading software, advanced charting, and a range of technical analysis tools make it a suitable choice for day traders looking to optimize their strategies and make quick decisions.
- Experienced traders: SpeedTrader’s advanced features and complex trading tools cater to experienced traders who are well-versed in market mechanics and trading strategies. The platform’s sophisticated functionality may be overwhelming for beginners but can be highly beneficial for seasoned traders seeking to gain an edge in the market.
Not ideal for:
Beginner investors: SpeedTrader’s advanced tools and features can be overwhelming for beginner investors who may not have the necessary knowledge and experience to utilize them effectively. Those new to trading may find more user-friendly platforms that offer educational resources and a simpler interface to be a better fit.
Long-term investors: SpeedTrader is primarily focused on active trading and may not be the best choice for long-term investors or those who prefer a buy-and-hold strategy. These investors may prefer platforms that offer more robust research tools, financial planning services, or lower fees for long-term holdings.
Investors with limited capital: SpeedTrader requires a minimum account balance of $30,000 for day trading accounts, which may not be suitable for investors with limited capital. Additionally, the platform’s per-trade commission structure may not be cost-effective for those who trade infrequently or with smaller amounts.
Fee-sensitive investors: While SpeedTrader offers competitive commission rates for active traders, its fees can add up for less frequent traders or those with smaller account balances. Investors who prioritize low fees and commission-free trading may find other discount brokerages or commission-free platforms to be a better fit.
SpeedTrader is best suited for active and experienced traders who require advanced trading tools, fast execution, and direct market access. It may not be the ideal choice for beginners, long-term investors, or those with limited capital or who prioritize low fees.
Trading Platforms and Tools
SpeedTrader offers a range of powerful trading platforms and tools designed to meet the diverse needs of active and professional traders. Its three primary platforms are SpeedTrader PRO, SpeedTrader ActiveWeb, and Sterling Trader Pro.
- SpeedTrader PRO: This desktop-based day trading platform is tailored for experienced traders, providing advanced charting, hotkeys, custom layouts, and over 50 routing options for optimal order execution. It also includes features such as streaming news, stock scanners, and various chart types, making it a comprehensive tool for active trading.
- SpeedTrader ActiveWeb: This web-based platform is ideal for individual traders who require mobility and accessibility without the need for software downloads. It offers essential features such as streaming quotes, watchlists, and basic order entry. The SpeedTrader ActiveWeb platform also includes video tutorials to help traders get started with the platform’s functionalities.
- Sterling Trader Pro: Targeted towards professional traders, this platform delivers advanced functionality like algorithmic trading, basket trading, programmable hotkeys, and options trading. It is a robust solution for those who require a high level of customization and advanced features.
Fees and Commissions
SpeedTrader’s trade pricing is structured to cater to active traders, with two commission plans available: a per-share plan and a per-trade plan. The per-share plan charges $0.0044 per share, with a minimum fee of $1.99 per ticket, while the per-trade plan offers a flat fee of $4.49 per trade. High-volume traders can benefit from discounts on monthly commissions.
Additional fees to consider include routing fees, Software Fees for platforms like Sterling Trader Pro, and inactivity fees. SpeedTrader charges a Quarterly inactivity fee for accounts with low trading activity.
SpeedTrader’s customer support is available via phone, email, and live chat, providing assistance with account setup, platform inquiries, and trading-related questions. While they do not offer 24/7 support, their business hours support is generally well-regarded by users.
While SpeedTrader is primarily focused on stocks and options trading, the platform does not currently support mutual fund trading. It is worth considering other brokerage firms if mutual fund investments are a priority.
Minimum Deposit and Account Requirements
SpeedTrader requires a minimum deposit of $30,000 for day trading accounts. The platform is a division of Mint Global Markets, which is a member of FINRA and SIPC.
SpeedTrader is an excellent choice for experienced traders and professional traders looking for a powerful trading platform with advanced features, competitive trading fees, and customizable trade pricing. However, it may not be suitable for those interested in mutual fund investments, and its inactivity fees and minimum deposit requirements may not appeal to all investors.
Final Thoughts – Is SpeedTrader Legit?
SpeedTrader is a legitimate and reputable online brokerage platform that primarily caters to active and experienced traders. With a strong focus on providing advanced trading tools, fast execution, and direct market access, SpeedTrader has built a solid reputation in the industry since its inception in 1999.
Regulated by both FINRA and the SEC, and being a member of SIPC, SpeedTrader offers a secure environment for traders to conduct their activities with confidence. However, it is essential to understand that the platform may not be suitable for everyone, particularly beginners, long-term investors, or those with limited capital.
If you are an active or professional trader seeking a robust and powerful trading platform with competitive fees and customizable trade pricing, SpeedTrader may be an excellent choice. Click here to check it out today!