Overview of Firstrade and E*Trade
If you are searching for a commission-free online broker to trade stocks, ETFs, mutual funds, and options, you may wonder whether E*TRADE or Firstrade is better.
Both brokers offer many benefits, but there are some key differences to consider before selecting the best one for your needs.
E*TRADE, owned by Morgan Stanley, is a commission-free broker that offers a variety of trading platforms, traditional investment options, different account types, cash management, and automated investment portfolios. With a wide range of services and educational materials, E*TRADE is suitable for investors of all levels.
Founded in 1985, Firstrade is a commission-free broker that offers access to various securities, including mutual funds, OTC-listed securities, and crypto. It also provides excellent research and educational resources and offers a wide selection of account types, including international brokerage accounts.
Cost Comparison
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Firstrade
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$0
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$0
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$0 per contract
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$0
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$0
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Etrade
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$0
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$0
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$0.65 per contract
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$0
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$0
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When it comes to pricing, Firstrade is impossible to beat! The broker has no commissions on all products.
Services Comparison
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Firstrade
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Etrade
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Promotions
Firstrade: Get 2% IRA match and up to $250 in transfer fee rebate.
E*Trade:
Get zero commission on stock and ETF trades.
Investment Options
Both E*TRADE and Firstrade offer a range of securities for trading, including stocks, ETFs, options, mutual funds, fixed-income securities, IPOs, and OTC securities.
However, there are also some differences between the two brokers. E*TRADE provides futures trading and managed portfolios, while Firstrade offers free options trading and a more extensive selection of securities trading on OTC BB and OTC Pink markets.
Regarding futures trading, E*TRADE has an advantage over Firstrade, while Firstrade has an edge in offering trading of penny stocks and free options trading.
Account Types
Both E*TRADE and Firstrade offer a variety of account types, such as individual margin/cash accounts, joint brokerage accounts, traditional and Roth IRAs, rollover IRAs, SEP IRAs, SIMPLE IRAs, and education savings accounts.
However, E*TRADE has a broader range of account types, including beneficiary IRAs, E*TRADE Complete IRAs with cash management features for investors over 59.5, and individual and Roth individual 401(k) accounts.
On the other hand, Firstrade offers international accounts, whereas E*TRADE does not.
Platforms and Trading Tools
E*TRADE has two web-based platforms, a professional PC trading platform, and two mobile apps. These platforms offer features such as tick-based futures charting, advanced order entry, simulated trading, multi-leg option strategies, hotkey trading, and customizable watchlists.
Firstrade takes a more traditional approach. Although it offers options such as advanced order entry, portfolio management tools, robust screening, and complementary live data, it does not have dedicated trading platforms. All trading occurs on the website or mobile application.
E*TRADE is the better choice for professional trading tools, but Firstrade is sufficient for most investment strategies that don't require advanced platforms and tools.
Cash Management Solutions
Both brokers offer a free debit card, cash transfers, online bill pay, and check deposit services. However, there are differences in how their cash management features work.
E*TRADE integrates with bank accounts provided by its parent company, Morgan Stanley. You can expect all the same features of a regular checking account, along with the added benefit of accessing your brokerage account with a debit card and easily moving money between accounts.
Firstrade partners with Apex to add cash management features to your brokerage account. You can get a Visa debit card for spending and deposits - all through your trading account. No additional accounts are needed, but you must keep a minimum balance of $25,000 to gain access to the feature. E*TRADE doesn't have account balance requirements for its checking account add-on.
Fees, Margin, and Commissions
In most cases, Firstrade is less expensive than E*TRADE. Here are some of the main differences between them:
E*TRADE and Firstrade have zero commissions on options and mutual funds, but E*TRADE charges $0.65 per options contract, while Firstrade does not.
E*TRADE charges $1.5 per futures contract, while Firstrade does not offer futures trading.
E*TRADE charges $1 per bond with a $10 minimum, while Firstrade offers fixed income on a net yield basis.
E*TRADE's managed portfolio fee is 0.30%, while Firstrade does not offer managed portfolios.
E*TRADE's margin rates range from 11.45% to 13.45%, while Firstrade's margin rates range from 9% To 13%.
Both brokers charge $75 for outgoing ACATs, but Firstrade also offers a $55 partial ACAT fee.
Ease of Use
In terms of ease of use, both brokers are suitable for investors of any experience level. Each option provides a traditional brokerage website where investors can conduct research, access various educational resources, place trades, and manage their portfolios.
However, E*TRADE also offers advanced software that is more appropriate for experienced investors.
Promotions
Firstrade: Get 2% IRA match and up to $250 in transfer fee rebate.
E*Trade:
Get zero commission on stock and ETF trades.
E*TRADE and Firstrade: Pros and Cons
Deciding between E*TRADE and Firstrade depends on your preferences and goals. Here are some pros and cons for each broker:
E*TRADE Pros
- Offers various account types, including individual and Roth individual 401(k) accounts.
- Provides futures trading and managed portfolios.
- Offers advanced trading platforms and tools.
- There are no account balance requirements for its add-on checking account.
E*TRADE Cons
- Charges a $0.65 fee per contract for options.
- It has higher margin rates compared to Firstrade.
- Charges a managed portfolio fee of 0.30%.
Firstrade Pros
- It has lower fees compared to E*TRADE.
- No contract fees for options trading.
- Offers fixed income on a net yield basis.
- It has lower margin rates compared to E*TRADE.
Firstrade Cons
- Requires a minimum account balance of $25,000 for cash management account.
- Doesn't provide futures trading.
- Doesn't offer managed portfolios.
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