Let's get more information out there on Lime Brokerage within Elite Trader's forums. I'm sure I'm not the only member here looking for more information on Lime. I have been debating switching to Lime Brokerage from Interactive Brokers for over a year now and would be grateful for some constructive/helpful feedback. I meet all of their requirements (call them to discuss), but would have to start implementing FIX to use their systems effectively. What would be the benefits of switching for a low latency trader using IB (not high frequency yet), and what would the downsides be? Also, how trustworthy is this firm in regards to stealing trading ideas (at one time the hedge fund Tower Research traded through lime and was owned by the same company)? Thanks for your time and feedback in advance.
It would be because of their systems. Lime Brokerage apparently has a faster infrastructure in regards to recognizing orders and executing them relative to IB.
I went through your posts quickly to figure out why you asked. The main reason I'm thinking of switching is latency. This only applies to high frequency traders and other low latency traders. I am happy with IB, and will keep money with them regardless. They have a lot of awesome features, including their mobile applications which you will enjoy. I trade from my car all of the time when speed isn't an issue (when I'm exiting a large trade). Also, it's good for monitoring. Lime doesn't have this. Additionally, Lime is for traders who execute at least 250,000 shares per day.
I don't trade with Lime. Although it is a consideration. I exchanged a few emails with them yesterday and they told me something new I hadn't heard before. They charge a minimum of $4k a month for commissions. I don't know what is up with that. Another employee that I had been talking with only hours before told me something completely different. They couldn't even agree on the commissions cost (gave them the same number of volume I'd do per month). Seems like these guys make it up as they go. I wish these guys would have their costs written down and stick to it. This isn't the first time I've been told one thing and someone else told me they've been told something else. Some of their competitors may not be as well suited to HFT. However, they seem to have a set of costs and stick to them.
It's been a while since I looked at them - my recollection is that Lime requires colocation at their facility (basically renting rack space from them) and you cannot get third party feeds in there (at least, not easily, cheaply). Assuming the situation hasn't changed, those aren't really huge impediments anyway, just something to be aware of. I know a couple of folks who have used Lime for quite some time, so I'm assuming their service-to-annoyance ratio is acceptably high.
The firm is under new ownership as of last year. http://www.securitiestechnologymonitor.com/news/wedbush-acquires-lime-brokerage-28156-1.html
Long story short, I could not be happier with Lime Brokerage now that I have changed my account over. Lime is wayyyyyyyyy better than IB in terms of commissions, speed, and slippage.