Is Firstrade Safe?
Firstrade Securities is a long-established broker that has served investors in the United States and abroad since 1985. The
firm offers a broad lineup of tools and services and uses a zero-commission pricing model to help keep customer costs low. Firstrade is a fully licensed broker-dealer registered with the SEC and FINRA, and it is a member of SIPC. FDIC insurance may apply only to eligible swept cash held at program banks, not to securities or to Firstrade itself.
If you are wondering whether Firstrade is safe, the short answer is yes. Several factors can help determine whether a broker can be trusted.
First, Firstrade is regulated by some of the most important oversight organizations in the investment industry. We can also review the broker’s insurance arrangements and the security protocols it uses to help protect customer money and data.
Is Firstrade Legitimate?
Firstrade Securities is registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). These two regulatory bodies allow Firstrade to operate in the investment industry as long as the broker follows their rules and regulations.
SEC and FINRA rules provide meaningful protections for customers. Brokers must follow customer-protection, disclosure, capital, supervision, and recordkeeping requirements. Firstrade’s BrokerCheck report shows that the firm is registered with the SEC, 1 self-regulatory organization, and 53 U.S. states and territories.
Is Firstrade Insured?
Firstrade Securities is a member of SIPC. It is not a bank and is not itself an FDIC-insured institution. Depending on how your funds are arranged, eligible cash may receive FDIC protection after it is swept to a program bank.
FDIC protection applies when eligible funds are swept into program banks. Firstrade’s account-protection page says that when an account is enrolled in money market funds, Apex sweeps excess cash balances to a program bank. These funds, together with any other deposits held at the same bank, are FDIC insured up to the standard limit, subject to conditions.
The default protection for securities accounts is SIPC.
Brokerage accounts are protected up to $500,000, including up to $250,000 for cash claims. Firstrade’s clearing firm, Apex Clearing, also carries an additional insurance policy that becomes available after SIPC limits are exhausted. This additional policy provides protection for securities and cash up to an aggregate limit of $150 million. The combined return to any customer from a trustee, SIPC, and the London underwriters is limited to $37.5 million, including up to $900,000 for cash. This coverage does not protect against market losses.
Firstrade BBB Rating
One place to check when deciding whether a broker can be trusted is the BBB (Better Business Bureau).
Although businesses must pay to become BBB accredited, activity on the site can still offer useful clues.
Firstrade’s BBB rating is currently B+. The BBB profile shows 14 complaints filed against the business, and the complaints page shows 14 total complaints in the last 3 years and 4 complaints closed in the last 12 months. Firstrade is not BBB accredited.
Compared with many other brokers, Firstrade has relatively few BBB complaints. The broker appears to respond to most of the
complaints it receives, although customers should still review the complaint history before opening an account.
Firstrade Reviews & Complaints
The limited number of BBB complaints covers several topics, including withdrawals, transfers, customer service, and billing issues. In many responses, Firstrade says it contacted the customer or handled the matter through its service channels.
Based on what we have seen, nothing suggests that Firstrade is a scam. However, the complaint history does show that some customers have had frustration with service, transfers, or account procedures.
Firstrade Review
Firstrade can be trusted, but you may also want to know how good the broker is. How does Firstrade stack up against other low-cost online brokers? Why do investors choose Firstrade?
Here are a few details to help answer your Firstrade questions.
Available Securities
One advantage of investing at Firstrade is that many securities are available for trading. You can invest in stocks, options, ETFs, mutual funds, fixed-income products, and other products supported by the platform.
Stocks & ETFs
Firstrade offers a wide range of stocks and ETFs. You can trade U.S. exchange-listed securities and OTC stocks. Pink sheets and penny stocks are also available, although Firstrade does place restrictions on OTC-listed penny stocks.
Options
If you are looking for leveraged products, Firstrade’s options trading has several notable advantages. You can create complex strategies to respond to changing market conditions, and Firstrade charges no commissions or per-contract fees for online options trades.
Mutual Funds & Fixed-Income
A large selection of mutual funds and fixed-income products creates additional opportunities for investors. Using the mutual fund screening tool or wizard, you can search for funds that fit your goals and risk tolerance. Firstrade charges $0 online transaction fees for mutual funds, including load and no-load funds, although fund-imposed loads, expense ratios, and short-term redemption fees may still apply.
Account Types
Another appealing part of Firstrade is its account lineup. There are accounts for standard brokerage use, retirement, and cash management. There are also accounts for saving for a child’s future and for international customers.
- Standard brokerage accounts (cash and margin)
- Joint brokerage accounts (Tenants in Common and WROS)
- Retirement (Traditional, Roth, Rollover, SEP, and SIMPLE)
- Education Planning (Coverdell ESA)
- Trust
- Custodial
- International
- Cash Management
Trading Costs and Fees
Trading costs and fees are very low at Firstrade Securities. Many brokers advertise zero-commission trading but do
not always include the extra fees connected to products such as options contracts and stocks trading on
the OTC market.
At Firstrade Securities, online trades of stocks, ETFs, options, and mutual funds have $0 commissions. Standard regulatory, exchange, clearing, service, broker-assisted, short-borrow, and other fees may still apply.
Notable Features
Many extra features help Firstrade customers get more out of their time in the markets.
These are:
Extended hours trading allows investors to buy and sell eligible stocks and ETFs outside regular market hours. Firstrade customers can trade from 8 AM to 8 PM ET during extended-hours sessions, and the broker also offers overnight trading from 8 PM to 4 AM ET, Sunday to Friday.
Customizable watchlists are another useful feature. Watchlists can be created and edited on the website or mobile app. Each item in a watchlist contains live, streaming market data, helping investors make real-time decisions.
OTC Market access has a few distinct benefits. The most notable is that Firstrade does not charge online commissions for OTC stock trading. Penny stocks can be traded through the mobile app or website, although some OTC-listed penny stocks have trading and transfer restrictions.
Dividend reinvestment (DRIP) plans support long-term investment strategies and work well with Firstrade's periodic investing tools and securities lending program.
Low-cost mutual funds and fixed-income investment products like bonds and CDs also help bring attention to Firstrade. The broker offers several wizards that help investors choose suitable investment products.
Zero-commission trading is certainly a highlight at Firstrade. While stock and ETF trading are commonly included in the zero-commission model, it is less common to see options and mutual funds included as well.
Fractional-share trading is now available at Firstrade. The Firstrade mobile app says investors can start with as little as $5 in eligible stocks.
Premium research is provided at no extra cost to the investor. Firstrade says customers get research from Morningstar, Briefing.com, Zacks, Benzinga, Trading Central, and other tools. Whether you're looking for market sentiment, analyst recommendations, or industry-related news, these resources can help you make better-informed decisions.
Firstrade Pros
Overall, Firstrade Securities gives users a strong experience. There are many features that help traders pursue market opportunities, and the broker is clearly well established in the retail investing industry. Some parts of the broker could still improve, however. Here are the pros and cons as we see them.
- Low-cost entry point for new and experienced investors
- Good selection of investable securities
- No-commission options trading
- No-commission OTC stock trading
- Advanced screening technology is available
- "Extras" such as free market data and market research are complimentary
- Good selection of account types helps investors streamline their financial workflow
Firstrade Cons
- Although quite capable, Firstrade's website trading feels limited at times.
- There is no professional-grade trading platform comparable to the most advanced active-trader platforms
- The mobile application is not as advanced as many competing apps
Recommendations
If you're still wondering whether Firstrade is right for you, here is our recommendation.
Firstrade Securities is a strong broker for investors who want a wide selection of account types and tradable securities. The broker offers stocks, OTC access, advanced options trading, and mutual funds. You can also open accounts designed for investing, saving for a child's future, managing cash flow, and retirement.
Although Firstrade has many positives, we do not recommend it for active investors who rely on advanced trading platforms. Technical charting tools, hotkey support, and other popular features found on professional trading platforms are not a major part of Firstrade’s approach.
Updated on 9/18/2026.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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