Is Firstrade Safe?
Firstrade Securities is a decades-old broker, trusted by investors in the United States and abroad since 1985. The
firm offers a wide range of tools and services and has a zero-commission pricing model to keep costs low for its customers. Firstrade is a fully licensed broker registered with FINRA and the SEC, and customer assets receive SIPC protection.
If you wonder if Firstrade is safe, the quick answer is yes. We can look at several things to determine whether a broker can be trusted.
First, it is important to note that Firstrade is regulated by the major oversight organizations in the investment industry. We can also look at the broker’s insurance policies and security protocols it uses to keep customer money and data safe.
Is Firstrade Legitimate?
Firstrade Securities is registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Both of these regulatory bodies provide Firstrade with the right to do business within the investment industry, so long as the broker adheres to the rules and regulations of each.
Rules from SEC and FINRA go a long way to help ensure that customers are safe. Brokers must provide a secure platform for investing and actively protect customer data.
Is Firstrade Insured?
Firstrade Securities is a member of SIPC, and it also offers an FDIC sweep program through Apex Clearing and participating program banks. Depending on how your funds are organized, you may be protected by SIPC, FDIC coverage through the sweep program, or both.
FDIC protection is active when funds are swept into program banks. Uninvested cash in your account is automatically deposited into the FDIC Sweep Program through Firstrade’s clearing partner, Apex Clearing Corporation. Once active in the program banks, cash is protected up to $250,000 per depositor, per insured bank, subject to FDIC rules.
The default brokerage protection 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 offers excess coverage beyond normal SIPC limits. Apex’s excess policy covers up to $37.5 million per customer, with a $900,000 limit for cash.
Firstrade BBB Rating
One place you can look to determine if you can trust a broker is the BBB (Better Business Bureau).
Although companies may pay to be accredited by the BBB, activity on the site can still provide some valuable clues.
Firstrade’s BBB rating is currently B+. The broker is also BBB accredited.
Compared to other brokers, Firstrade has very few complaints. The broker is generally good about responding to the
few complaints it has, and there is no indication that customers cannot resolve their issues.
Firstrade Reviews & Complaints
The few complaints you will see at the BBB all seem to be based on similar general topics. Some customers had trouble with withdrawals or account servicing, and they apparently wanted to use BBB’s website to voice their frustration. However, Firstrade does appear to respond to complaints on the BBB platform.
From what we have seen, nothing on the BBB website appears especially alarming when compared with the broker’s size and long history.
Robinhood Promotion
Firstrade Review
Firstrade can be trusted, but you might also wonder how good the broker is. How does Firstrade compare to other low-cost online brokers? Why do investors choose Firstrade?
Here are a few details to help you answer your Firstrade-related questions.
Available Securities
One of the benefits of investing at Firstrade is that many securities are available for trading. You can invest in stocks, options, ETFs, mutual funds, and fixed-income products.
Stocks & ETFs
Firstrade offers a broad range of stocks and ETFs. You can trade U.S. exchange-listed securities and over-the-counter securities. Pink sheets and penny stocks are also available.
Options
If you are looking for leveraged products, options trading at Firstrade comes with a few distinct advantages. You can build complex strategies to take advantage of the ever-changing marketplace, and Firstrade imposes no commissions and no contract fees for online options trades.
Mutual Funds & Fixed-Income
An impressive listing of mutual funds and fixed-income products creates additional potential for investors. Using the mutual fund screening tool or wizard, you can find the fund that best meets your goals and risk appetite. Firstrade offers online mutual fund trades for $0, although other fund-level or special-case fees can still apply.
Account Types
Another attractive thing about Firstrade is the available account types. There are accounts for standard brokerage services, retirement, and cash management. There are also accounts for saving for a child’s future and 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 and Custodial)
- 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 account for the additional fees attached to securities like options contracts and stocks trading on
the OTC marketplace.
At Firstrade Securities, online trades of stocks, ETFs, options, and mutual funds are $0. There are still broker-assisted charges and the standard regulatory/clearing
fees for FINRA, the SEC, and other industry participants when applicable.
Webull Promotion
Notable Features
Many extra features help Firstrade’s customers make the most of their time in the markets.
These are:
Extended hours trading allows investors to buy and sell stocks and ETFs for more than the regular session. The regular cash session is only 6.5 hours, but Firstrade customers can be active from 8 AM to 8 PM ET and also in overnight sessions from 8 PM to 4 AM ET on eligible securities.
Customizable watchlists are another nice feature. Watchlists can be built and modified using the website or the mobile application. Each item in the watchlist contains live, streaming market data, enabling investors to make real-time decisions.
OTC Market access (Pink sheets included) has a few unique features. The most notable is that Firstrade does not charge for pink sheet trading. Penny stocks can be traded using the mobile app or the website, and there are various order types on both.
Dividend reinvestment (DRIP) plans complement long-term investment strategies and go quite well with Firstrade's periodic investing plans and securities lending program.
Low-cost mutual funds and fixed-income investment products like bonds and CDs also help bring notoriety to Firstrade. The broker offers several wizards that help investors choose the best investment product.
Zero-commission trading is certainly a highlight at Firstrade. While it is common to see stock and ETF trading included in the zero-commission model, it is far less common to see options and OTC stocks included.
Morningstar research is provided at no extra cost to the investor. Some brokers charge for this information, but Firstrade delivers it for free. Whether you're looking for market sentiment, analyst recommendations, or industry-related news, Morningstar research can help you form educated decisions.
Firstrade Pros
All in all, Firstrade Securities provides users with a very positive experience. There are plenty of features that help traders take advantage of market-generated opportunities, and the broker is undoubtedly well-established within the retail investment industry. There are some aspects of the broker that could 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 pink sheet trading
- Advanced screening technology is available
- "Extras" such as free market data and market research are complementary
- 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 desktop trading platform
- Mobile application is not as advanced as many competing apps
Recommendations
If you're still wondering if Firstrade suits you, here is our recommendation.
Firstrade Securities is an excellent broker for anyone looking for a wide selection of account types and investable securities. The broker offers everything from stocks, OTC access, advanced options trading, and mutual funds. You can also set up accounts designated for investing, saving for a child's future, managing your cash flow, and retirement.
Although there are many positives regarding Firstrade and its offerings, we do not recommend Firstrade to active investors who depend on advanced trading platforms. Technical charting tools, hotkey support, and other popular features found on professional trading platforms are not a part of Firstrade’s approach.
Updated on 3/23/2026.
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.
|