Word familiarity may affect magnocellular processes of word recognition. To explore this idea, we measured reading rate, speed-discrimination, and contrast detection thresholds in adults and children with a wide range of reading abilities. We found that speed-discrimination thresholds are higher in children than in adults and are correlated with age. Speed discrimination thresholds are also correlated with reading rate, but only for words, not for pseudo-words. Conversely, we found no correlation between contrast sensitivity and reading rate and no correlation between speed discrimination thresholds WASI subtest scores. These findings support the position that reading rate is influenced by magnocellular circuitry attuned to the recognition of familiar word-forms.