Firstrade Review – $0 Commissions Trading
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Firstrade was the original online stockbroker. In 1997, it switched to online-only and has remained a dependable, $0 commission option ever since.
9/10
Cost
9/10
Ease of use
9/10
Services
9/10
Features
8/10
If you’ve spent time investing on your own, you know how quickly commissions and fees can chip away at your hard-earned money. Using a discount broker isn’t a new concept for the DIY investor, but using one that doesn’t charge commission fees on any trades, including mutual funds, is hard to find with any other broker. And if you are an options trader, you may be even more surprised to learn there are no contract fees.
Our Firstrade review examines how this investment platform is paving the way for those tired of paying commissions on stocks, ETFs, options, and mutual funds.
Related: Best Robo Advisors
In this article
What is Firstrade?
While do-it-yourself investing seems like a newer concept, Firstrade was founded in 1985 as a technology-driven brokerage firm. Under the Firstrade Securities umbrella, Firstrade focuses its proprietary technology on the user experience and interface, including account management and a user-friendly dashboard. This makes it possible for virtually any beginner to make trades alone and within a split second if necessary.
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How does Firstrade work?
Firstrade offers multiple products for self-directing investing. This includes:
- Stocks
- Crypto
- Options
- Mutual funds
- Bonds/CDs/fixed incomes
- Margin investing
- Dividend reinvestment (DRIPs)
In addition to regular investing, Firstrade offers education funds, (Traditional, Roth, and Rollover options), and custodial accounts for your minor children.
Like any online trading platform, you must create an account with Firstrade to get started. One of the many advantages of Firstrade is the $0 minimum account requirement.
When your Firstrade account is established, and you’re ready to start investing, Firstrade offers complete online management and a fully functioning and highly-rated mobile app. Both options allow full access to real-time market data, your portfolio dashboard with all your accounts in one place, and full mobile trading and online trading access.
How much does Firstrade cost?
Like most online brokers, Firstrade is commission-free for trading stocks, ETFs, bonds, and other transactions. It takes it one step further than others with trading fees and does not charge a per-contract fee for options, which is not typically found.
Another bonus with Firstrade is that, unlike traditional brokerage accounts, there are no inactivity or annual fees. The company is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which means the top regulators oversee it.
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- Over 100 Stock Picks with 100%+ Returns
- Averaged Stock Pick Return over 593% (vs. 165% for the S&P)
- 2 New Stock Picks Every Month
- Investment Community With 700,000+ Loyal Members
- 30-Day Membership-Fee-Back Guarantee
- Joy Wallet Reader Deal: The Motley Fool is offering 50% off its top stock-picking service for new members (Limited Time)
Features
Numerous trading options
Customers have access to trading stocks, bonds, ETFs, mutual funds, and options for the self-directed investor. Users will find stocks on the New York Stock Exchange, NASDAQ, and over-the-counter markets. CDs and fixed-income securities are also available.
Various account types
The online brokerage accounts include a regular investing account, IRA retirement accounts, ESA education planning, custodial accounts for minors, and the Firstrade Cash Management Account for banking and stock trading services in one.
Extended hours trading
If you want to trade eligible stocks but it’s after hours, you can take advantage of extended-hours trading. Extended hours are between 8 a.m. and 9:25 a.m. and 4:05 p.m. and 8 p.m. Eastern time.
Firstrade Navigator
Using the Navigator, users can manage and trade from one screen. Firstrade’s platform provides real-time streaming of market data, and an adjustable layout means you can customize your online trading platform as needed and view all charts, graphs, positions, and balances in one place.
Additional research tools
You’ll get the latest investing news and research tools from historical to breaking in a Morningstar, Briefing.com, Zacks, and Benzinga roundup. This helps you hone in on the investment, and Firstrade customers can access Morningstar’s comprehensive analyst reports and ratings.
Streaming watchlist
If you need to monitor market performance, you can set up a streaming watchlist to see the action in real time. You don’t have to download software or a plugin to watch and react as needed.
Advanced screener
The advanced screener features allow you to filter and customize the types of investments you want to see and how you want to categorize them. The Options Wizards takes it further and shows you potential losses and gains based on some of the pre-selected investment strategies. Using the Firstrade screener, you can create trading strategies for high-yield, large-cap growth, and small-cap stocks.
Digital tools
You can trade online, via the mobile app, or by calling customer service to place your order by phone if you need to.
Retirement accounts
Firstrade offers retirement accounts, including Roth, Traditional, and Rollover IRAs, including the $0 commission and no account fees.
Margin loans
If you want to borrow against the value of your securities and use it to purchase additional securities, then Firstrade offers margin loans. You can borrow at a low 9.75%, which is competitive compared to other online options.
Who is Firstrade best for?
Firstrade offers plenty of advantages for multiple groups of investors. The groups who would benefit the most from Firstrade include:
- Mutual fund investors
- International investors
- Option traders
- Chinese-speaking investors
Anyone concerned about maintaining a minimum account balance or having a smaller account minimum in the beginning will appreciate the $0 threshold for both of these.
Use Motley Fool's Stock Advisor To Invest
- Over 100 Stock Picks with 100%+ Returns
- Averaged Stock Pick Return over 593% (vs. 165% for the S&P)
- 2 New Stock Picks Every Month
- Investment Community With 700,000+ Loyal Members
- 30-Day Membership-Fee-Back Guarantee
- Joy Wallet Reader Deal: The Motley Fool is offering 50% off its top stock-picking service for new members (Limited Time)
Who shouldn’t use Firstrade?
As much as Firstrade offers, it may not be best suited for every investor. It does not offer foreign exchange markets (forex), futures, cryptocurrencies, or fractional share investments. It also only allows investments in the U.S. markets, which means no international trading is available.
Pros and Cons
Pros
- Commission-free trading
- No account minimums or inactivity fees
- Educational resources available for beginners
- Dashboard keeps all accounts in one place, plus it’s customizable, so you can see it exactly the way you prefer
- Language support for investors who speak Chinese (both Mandarin and Cantonese), including live customer support in Chinese
Cons
- No investment offerings for forex, futures or fractional shares
- U.S. markets only, which means no international trading
- Limited customer service hours by phone
Firstrade vs. competitors
Platform | Account minimum | Stock trading cost | Tradable securities |
Firstrade | $0 | $0 | Stocks, bonds, mutual funds, ETFs, options, crypto |
E*TRADE | $0 | $0 | Stocks, bonds, mutual funds, ETFs, options, futures |
Robinhood | $0 | $0 | Stocks, ETFs, options, crypto, ADRs, fractional shares |
E*TRADE
E*Trade is another low-cost option for beginner investors or anyone interested in self-directing their investment accounts. E*Trade is also commission-free for stocks, ETFs, and mutual funds. You can choose E*TRADE’s Core Portfolios if you would rather have a robo-advisor help you select your investments instead. While Firstrade offers over 11,000 mutual funds, E*Trade has over 6,500 by comparison.
Robinhood
Robinhood was initially designed as a mobile app or online-only investment option based on giving anyone in the U.S. access to investment opportunities in the stock market. Like E*Trade and Firstrade, it doesn’t charge fees to open or maintain an account. Robinhood does allow the buying and selling of cryptocurrencies, with $0 commissions, too. Robinhood is ideal for beginner investors due to its user-friendly and simple-to-understand language.
FAQs
Is Firstrade really free?
Firstrade does not charge any fees for trading stocks, bonds, ETFs, mutual funds, or options. Retirement accounts are also free to open.
Is it safe to use Firstrade?
Firstrade offers Securities Investor Protection Corporation (SIPC) coverage, which includes the standard $500,000. There is additional coverage guaranteed by Firstrade, which includes $37.5 million of coverage for securities and $900,000 for cash. You should note this isn’t coverage based on losses due to the market conditions, but rather if Firstrade was to go under.
Does Firstrade allow me to invest in crypto?
Yes, you can currently trade 38 coins including bitcoin, ethereum, cardano and litecoin.
Can I use Firstrade on my phone?
Yes; Firstrade mobile app, available on iOS and Android phones, provides full access to your investing and retirement accounts.
Use Motley Fool's Stock Advisor To Invest
- Over 100 Stock Picks with 100%+ Returns
- Averaged Stock Pick Return over 593% (vs. 165% for the S&P)
- 2 New Stock Picks Every Month
- Investment Community With 700,000+ Loyal Members
- 30-Day Membership-Fee-Back Guarantee
- Joy Wallet Reader Deal: The Motley Fool is offering 50% off its top stock-picking service for new members (Limited Time)
The bottom line
Firstrade was the original online stockbroker. In 1997, it switched to online-only and has remained a dependable, $0 commission option ever since. With so many features, it’s one of the top considerations for a discount brokerage and a solid choice for beginner investors. It doesn’t charge for mutual fund trades or per contract for options, making it stand out in the crowded online brokerage space.
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Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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