Overview of Speedtrader
Founded in 1999 and headquartered in the United States, SpeedTrader offers access to multiple trading platforms, including SpeedTrader Pro, Active Web, and a mobile application, enabling the trading of stocks, options, ETFs, and mutual funds. Despite its comprehensive service offerings, SpeedTrader operates without regulatory oversight. The firm provides non-discretionary services, meaning clients are fully responsible for their own trading decisions. Additionally, the firm supports its clients with educational resources such as a blog and webinars.
Pros and Cons
SpeedTrader has been operating since 1999, demonstrating a long-standing presence in the financial market. The broker offers stocks, options, ETFs, mutual funds, and short selling tools. Additionally, SpeedTrader provides advanced trading tools and direct market access. The broker also offers detailed instructions for account funding and transfers, making it easier for clients to manage their accounts. Moreover, SpeedTrader supports sophisticated API trading options.
However, SpeedTrader is not regulated by any major financial authority. The broker also has higher minimum deposit requirements for certain platforms. Furthermore, SpeedTrader does not support deposits via debit/credit cards or e-wallets, limiting the convenience of funding accounts. Various non-trading fees, such as software fees and transfer fees, are also charged, which can add to the overall cost of trading. Finally, SpeedTrader does not offer 24/7 customer support.
Is Speedtrader legit or a scam？
SpeedTrader operates without regulation from any recognized financial authority. This lack of regulatory means that there is no external entity to ensure the broker's compliance with industry standards or to protect clients' interests.
Market Instruments
SpeedTrader offers brokerage services to retail investors, providing access to trading platforms that allow customers to trade various financial instruments, including:
Stocks: A wide range of U.S. stocks from different sectors.
Options: Robust options trading for strategic and hedging purposes.
ETFs: Various market exposure through exchange-traded funds.
Mutual Funds: Multiple mutual funds for long-term investment.
Customers can choose their own routing options for transactions, benefiting from direct market access (DMA) to key U.S. exchanges like NYSE, NASDAQ, and CBOE.
SpeedTrader operates on a non-discretionary basis, meaning it does not provide advice or recommendations for securities transactions or strategies. The firm does not monitor clients' investments or accounts.
Services
Short Selling / Stock Locate Search: SpeedTrader Pro, powered by DAS Trader Pro, includes an advanced short locate tool. Traders can send locate requests to multiple venues simultaneously and receive cost information instantly. This tool streamlines the short selling process, allowing for quick acceptance and execution of short sale orders. The service is complemented by stock borrowing status information and personalized support through the Elite Trader program.
OTCBB and Pink Sheet Stocks: SpeedTrader facilitates trading in various tiers of OTC stocks, including OTCQX International, OTCQX U.S., OTCQB, OTC Pink, Expert Market, Grey Market, and Caveat Emptor. Traders can execute large volume trades (up to 1,000,000 shares) at competitive rates.
Direct Market Access (DMA): SpeedTrader provides true direct market access to major U.S. exchanges like NYSE, NASDAQ, and CBOE. This direct access eliminates intermediary routing, resulting in faster and more efficient trade executions. The service also includes sponsored access, scrape routes, market makers, and dark pool access.
SpeedTrader API Trading: The platform supports a variety of API trading services through DAS Trader, including Trading API, Short Locate API, Direct Access Routing API, Automated Trading Strategy API, Algo Trading API, and HFT Trading API. These APIs support multiple programming languages and appeal to both retail and institutional traders.
Account Types
SpeedTrader offers a range of account options:
SpeedTrader Pro Platform: Requires a minimum deposit of $10,000. This platform offers advanced trading tools, including Level 2 trading software, direct market access, and multiple chart types and indicators.
Active Web Platform: Requires a minimum deposit of $2,500. This web-based platform is suitable for traders who prefer an online interface, providing real-time Level 1 quote data, live streaming news, and various risk-management tools.
Day Trading: Requires a minimum deposit of $30,000 for both U.S. and foreign clients. This account is for traders who engage in frequent day trading activities and must comply with specific regulatory requirements.
SpeedTrader also offers a demo account to help traders practice their strategies and get accustomed to the platforms features.
How to Open an Account with Speedtrader
Visit the Website: Go to the SpeedTrader website and navigate to the “Open an Account” section.
Complete the Online Application: Enter your personal details, including email and password. You can also opt to fill out the form offline.
Submit Identification Documents: Provide necessary identification documents like a government-issued ID and proof of address for verification.
Fund Your Account: Deposit the required minimum amount via wire transfer or ACH. A minimum deposit of $30,000 is needed for day trading accounts.
Account Activation: After your application and deposit are processed, you will receive a confirmation email, and your account will be activated for trading.
Spreads & Commissions
SpeedTrader provides a commission rates structure for active traders. For stocks, the rate is as low as $0.0009 per share. Options trades incur a commission of $0.25 per contract.
Other Fees
SpeedTrader imposes several non-trading fees. These fees encompass software usage, data services, account maintenance, transaction-related costs, routing fees, and margin fees. Here is a brief overview of each type:
Software Fees
SpeedTrader's software fees are structured based on the platform and trading activity. For SpeedTrader Pro, the fee is $0 per month for traders with over $499 in monthly commissions, $49 for $199-$499 in commissions, and $99 for those below $199. The ActiveWeb and Mobile platforms have a similar structure, with $0 fees for over $199 in commissions and $35 for those below.
Data Fees
Data fees are charged based on the level of data access and user type. The Level 1 data package costs $15 per month for non-professional users and $115 for professional users. Additional data services, such as options data and PinkSheets/OTCBB, cost $20 per month for non-professionals and $40 for professionals. Level 2 data packages range from $24 to $70 per month.
Account Maintenance Fees
An inactivity fee of $30 per quarter is charged if fewer than 15 trades are made during that period. Other account-related fees include $10 for paper statements, $75 for ACAT transfers, and $4 for paper confirmations. These fees cover the costs associated with account administration and maintenance.
Transaction-Related Fees
Wire transfer fees are $30 for domestic transfers and $75 for international ones. Overdraft and returned check fees are set at $40 each. These transaction-related fees are necessary for managing the transfer of funds and handling any issues that could arise during transactions.
Routing Fees
Routing fees vary depending on the type of order and market access. For example, routing fees for stocks via ARCA are $0.0020 per share for adding liquidity and -$0.0025 for taking liquidity. Other routes and market access options are priced accordingly.
Margin Fees
Trading on margin involves additional costs. Margin interest rates are variable and depend on the margin debit balance. Traders need to contact SpeedTrader for the most current rates. Margin fees are important for those looking to leverage their trading positions and need to be factored into the overall cost of trading.
Trading Platform
SpeedTrader offers three trading platforms. The flagship platform, SpeedTrader Pro, powered by DAS Trader, provides Level 2 desktop trading with features such as fast trade executions, direct access order routing, advanced charting, and hot-key support. For traders preferring a web-based solution, SpeedTrader ActiveWeb offers real-time Level 1 quotes, live news, and comprehensive trading tools. The mobile app offers full control and real-time data on the go, allowing portfolio management.
Trading Tools
The platform integrates various tools offering support, real-time data, and enhanced trading capabilities.
One of the primary tools is the integrated short locate tool built into the SpeedTrader Pro platform, powered by DAS Trader Pro. This tool helps to send locate requests to multiple venues simultaneously, receiving responses and costs directly within the platform in seconds.
SpeedTrader also offers real-time Level 1 and Level 2 quote data. The Level 2 data provides deeper market insight by displaying the full depth of market participants, helping traders understand the supply and demand dynamics better.
Additionally, SpeedTrader includes advanced charting capabilities with various chart types and indicators. These tools helps to track price movements, identify trends, and make data-driven trading decisions.
For traders who rely on news and market updates, SpeedTrader offers live streaming news and real-time market data. These features offer the latest market developments, helpful for timely decision-making in volatile markets.
The platform also includes risk management tools such as profit/loss display and customizable watch lists.
Deposit & Withdrawal
At SpeedTrader, clients can fund their accounts through wire transfers or ACH transfers, with guidelines available on the Account Funding page of SpeedTraders website. For account transfers, completing an ACAT form along with a recent brokerage statement is necessary.
Customer Support
Office: 2875 Route 35, Suite 5C-2, Katonah, NY 10536
Phone Numbers
Email: info@speedtrader.com
Live chat and Contact Form are available.
Hours
Monday-Thursday: 8AM-5PM
Friday: 8AM-4:30PM
Educational Resources
The SpeedTrader Blog is a key educational resource, offering a wealth of articles on technical analysis, trading tips, and other relevant topics.
Additionally, SpeedTrader hosts webinars that focus on day trading and stock market education. These webinars are conducted by experts and cover a wide range of topics, providing traders with the opportunity to learn directly from experienced professionals. The webinar archive is available for clients who wish to revisit past sessions or catch up on missed events.
Conclusion
SpeedTrader, established in 1999 and based in the United States, provides stocks, options, ETFs, and mutual funds, through advanced platforms like SpeedTrader Pro, Active Web, and a mobile app. While the broker boasts sophisticated tools and direct market access, its absence of regulatory oversight indicates possible challenges. High minimum deposit thresholds and limited funding options further restrict its accessibility. Additionally, non-trading fees and restricted customer support hours add to the cons.
FAQs
Q: Is SpeedTrader regulated？A: No, SpeedTrader does not have regulation from any major financial authority.
Q: What trading instruments are available on SpeedTrader？A: You can trade stocks, options, ETFs, and mutual funds on SpeedTrader.
Q: What are the minimum deposit requirements for SpeedTrader accounts？A: Minimum deposits are $10,000 for SpeedTrader Pro, $2,500 for Active Web, and $30,000 for day trading.
Q: Does SpeedTrader offer a demo account？A: Yes, SpeedTrader offers a demo account for practice trading.
Q: What trading platforms does SpeedTrader offer？A: SpeedTrader provides the SpeedTrader Pro, Active Web, and mobile app platforms.
Q: What are the funding options for SpeedTrader accounts？A: Funding options include wire transfers and ACH transfers.
Q: Does SpeedTrader charge any non-trading fees？A: Yes, there are several non-trading fees such as software fees, data fees, account maintenance fees, and transaction-related fees.
Risk Warning
Online trading poses substantial risks, with the potential for complete loss of invested capital, rendering it unsuitable for all traders. It is imperative to comprehend the inherent risks and acknowledge that the information provided in this review is subject to change due to continuous updates in the company's services and policies.
Additionally, the review's generation date is a critical consideration, as information may have evolved since then. We strongly advise readers to verify updated details directly with the company before making any decisions, as the readers must be aware of and willing to accept the inherent risks involved in utilizing this information.
2024-07-04 18:10
2023-02-21 15:56
