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-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 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 most stringent oversight organizations in the investment industry. We can also look at the broker’s insurance arrangements and the 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 the SEC and FINRA go a long way to help keep customers safe. Brokers must follow customer-protection, disclosure, capital, supervisory, and recordkeeping rules. 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 organized, eligible cash may receive FDIC protection after it is swept to a program bank.
FDIC protection is active 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 has 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 you can look to determine if you can trust a broker is the BBB (Better Business Bureau).
Although companies must 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 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 to 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 few complaints you will see at the BBB cover several topics, including withdrawals, transfers, customer service, and billing issues. In many responses, Firstrade says it contacted the customer or addressed the issue through its service channels.
From what we have seen, nothing suggests that Firstrade is a scam. However, the complaint history does show that some customers have experienced frustration with service, transfers, or account processes.
Firstrade Promotion
Currently, no promotions.
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, fixed-income products, and other products supported by the platform.
Stocks & ETFs
Firstrade offers a broad 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 has restrictions on OTC-listed penny stocks.
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 or per-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 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 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)
- 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 have $0 commissions. Standard regulatory, exchange, clearing, service, broker-assisted, short-borrow, and other fees may still apply.
Firstrade Promotion
Currently, no promotions.
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 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 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 has a few unique features. The most notable is that Firstrade does not charge online commissions for OTC stock trading. Penny stocks can be traded using the mobile app or the website, although there are trading and transfer restrictions on some OTC-listed penny stocks.
Dividend reinvestment (DRIP) plans complement long-term investment strategies and go quite 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 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 so to see options and mutual funds included.
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 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 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 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 major part of Firstrade’s approach.
Updated on 6/10/2026.
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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