Outline
Schwab is a major broker with lots of client assets. Firstrade is a smaller brokerage firm, and it doesn't advertise as much as the first broker. Still,
Firstrade has some strong services. Let’s take a look at both companies and see which one is better - Charles Schwab or Firstrade.
Cost Comparison
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Firstrade
|
$0
|
$0
|
$0 per contract
|
$0
|
$0
|
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
Services Comparison
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Firstrade
|
|
|
|
|
|
|
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Charles Schwab
|
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Promotions
Firstrade: 3% match on contributions and 2% on transfers with a No-Fee IRA.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Technology
Schwab has an easy-to-use website with many helpful tools. A trade bar sits inside the browser, but trades can't be placed on it. Orders have to be entered on a web page form. The trade bar does show key details, such as bid and ask prices. A chart can also be opened from the trade bar.
thinkorswim is Schwab’s advanced desktop trading program. Although it's very powerful, it is free for all clients. Market depth, similar to Level II quotes, comes with no extra charge. Other useful tools include advanced charting with full-screen options.
The Firstrade website is also easy to navigate, but it doesn't have the same amount of information. The broker
also has a trade bar, and it’s more advanced than Schwab’s. For instance, you can place trades (including options) right on it
and there is detailed security data on it, too.
Firstrade does not have a desktop platform, nor a straightforward browser-based system. Therefore, its trading ticket
and web pages are the only ways Firstrade users can place orders. Charts on the Firstrade site provide multiple
graph formats and technical studies. Charts on thinkorswim are more advanced, though.
Overall, Schwab seems like the better pick here.
Mobile Apps
The Firstrade mobile app works on devices using Android or Apple systems. Orders for options, exchange-traded funds (not mutual funds), and stocks can be sent from the app. The broker’s software doesn't include any stock or option research tools. There is also no funds transfer or mobile deposit feature.
In addition to Apple and Android, Schwab clients can use Kindle Fire. The broker also has a platform for Apple Watch. Unlike Firstrade, Schwab provides free live CNBC streaming. The Schwab app also includes mobile check deposit, funds transfer, and bill pay.
Schwab wins another category here.
Customer Support
Schwab clients can reach the broker’s service team anytime, day or night. In addition to phone help, there is a handy online chat tool. Support agents speak Mandarin, Cantonese, Spanish, and Vietnamese. The firm provides a phone number for customers traveling abroad. There are many Schwab offices across the country, plus some overseas.
Firstrade offers phone and chat support on weekdays from 8:00 am to 6:00 pm, Eastern Standard Time. The chat feature is available during those hours. Firstrade does not have weekend support or any branch offices, except for its main location in Flushing, New York. The broker offers Chinese language support both online and by phone.
Schwab takes this category as well.
Trading in Funds
The mutual fund search function on the Schwab website shows over 5,000 choices. More than 3,000 have no load and no transaction fee. If a fund is not on this NTF list, Schwab charges $49.95 to purchase it, but sells it for free. For any fund on the NTF list, Schwab applies a $49.95 early redemption fee if sold within 90 days.
Firstrade offers more mutual funds than Schwab, roughly 10,000 in total. Over 5,000 have no load. All of Firstrade's funds have no
transaction fee - they are free to buy and sell. There is a short-term redemption fee of $19.95 for selling any fund in less than 3 months after purchase. There is another $19.95 fee at Firstrade for fund redemptions under $500, unless the fund’s balance is under $500.
Both Firstrade and Schwab let you trade all ETFs at no cost.
Firstrade wins here because it charges no commissions.
Commissions and Account Minimums
Both brokers don't charge any ongoing fees. Neither firm has maintenance, low-balance, annual, or inactivity fees. While Firstrade does not require a minimum deposit to open an account, Schwab does require $1,000. However, this can be waived if you open a Schwab checking account alongside your brokerage account.
Schwab recently lowered its stock commission to $0. Firstrade did the same. Option
contracts cost an extra 65¢ at Schwab, while Firstrade charges 0¢.
Firstrade wins this category as well.
Research & Educational Resources
Schwab offers a wide range of learning materials on its website. It provides free stock reports from multiple third parties, such as Credit Suisse, CFRA, Thomson Reuters, and Ned Davis. Schwab also creates its own research. Beyond stocks, there's a good amount of content on general financial topics, like taxes and estate planning. The Schwab site includes articles and videos.
Firstrade’s site has far fewer educational resources. It only provides Morningstar reports, and the
number of articles on financial education is quite small.
Firstrade does not win this last round.
Promotions
Firstrade: 3% match on contributions and 2% on transfers with a No-Fee IRA.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Firstrade vs Charles Schwab: Results
Schwab (read review) took four categories,
and Firstrade (read review)
was the winner in two. Even though Schwab got more wins, Firstrade is still a good choice for people seeking very low costs and for mutual fund and ETF traders.
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Updated on 1/28/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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