Lightspeed Trading - LSPT Route: Effects on Slippage/Liquidity?

NeoTrader

NeoTrader

Hello, I would like to place this question to those who have experience with Lightspeed Trading.

I was going through the Fee Schedule in Lightspeed Trading´s Website and came across the sentence below. I found this interesting, since I send A LOT of market orders throughout the day to the market(removing liquidity) and that costs me about 0,003/share currently (on average), while with the system below, I would pay literally half of that.

"You can choose to route your orders to exchanges which have lower market center fees or in some cases no market center fees at all. We offer the LSPT and LSPD routes which have significantly lower routing costs when compared to the major exchanges and ECNs."

My concern is, since there´s no free lunch in this world, how does that affect slippage/liquidity?
 
You won't know until you try it. In general, if those routes avoid maker/taker fees, they are routes to equity market makers. The question is, if they don't trade with you, where does your order go? If it stays in a dark pool, I would avoid it. If it is then routes to an exchange/ECN for execution later, I'd give it a try.
 
1245 said:
You won't know until you try it.
More...

LOL... Now that we got rid of the obvious:rolleyes:...

Thanks anyway... But, as I wrote in the very beginning, my question was aimed to people WHO HAVE EXPERIENCE WITH LIGHTSPEED AND THIS SYSTEM...
 
Routes seeks liquidity to edga or byx or nsdq bx in first place. Them to some dark pools then to lit market. This way it lowers your fee for taking liquidity.

Take a try :)
 
I tried it for a while and found slippage to be pretty bad. IEX smart router is WAY better, but more expensive. If you are trading <500 shares then LS route would probably be fine, but any more than that go with IEX.
 
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