For my coral tank, I'm right now setting up a large Chaetomorpha fuge (44 gallon Brute) and plan on using a Kessil H380 Halo II as light.
On the fuge compartment of my haddoni biotope tank, I'm using a PAR 38 grow LED bulb and the Chaetomorpha there grows quite well.
As for the flow, you need enough to keep the Chaetomorpha ball afloat and rotating so that all sides get light and nutrients. And you want to have enough water throughput to make an impact on the main tank. I try to have the entire main tank volume pass through the fuge at least once per hour.