I prefer fixed broadheads since some mechanicals open in flight or fail to open if double banded; don't shoot through mesh well. To that end I have had great performance from Slick Trick magnums, a 4-bladed, low profile head. Superb terminal performance too.
Crossbows perform best with arrows hat have a much higher FOC ratio than verts. Try Gold Tip Lazer IIs, with 110 br brass inserts and 2" Blazers. With a 100 gr head will weigh 405 grns, FOC over 18%.
As for sighting, I LOVE the Hawke MAP on my Cyclone. It's 5 aimpoint match the trajectory of my Cyclone at 20,30,40 and 50 yards. It is realtively small so will fit the Toronado well; in fact a version of the Hawke scope is sold with Parker package deals.
It comes with a free trajectory program to match your trajectory with the aimpoints.
I shoot 2 recurves with lighted reticules, have yet to use one under hunting conditions. If it's too dark to shoot, a lighted reticule won't enable to see the (target) any clearer and, as you imply, may actually obscure it if too bright.

Best luck.