Firstrade Review

Item: Firstrade
Rating: 4.5
Author: Chad Morris

Firstrade Pricing and Minimum Deposit

Investments	Commissions
Stocks and ETFs	$0
Options	$0
Mutual funds	$0
Treasury Bills, Notes, Municipal and Agency Bonds, Zeros & Strips	net yield basis
CDs	$30 for primary market CDs, net yield basis for secondary market CDs

Investments	stocks, options, mutual funds, bonds, CDs, ETFs
Firstrade minimum deposit to open account	$0
Fees	Firstrade fees

Firstrade Brokerage Review

Firstrade is a smaller brokerage that offers a range of services for investors. Here's an overview of what to expect from this brokerage:

Bulls Talk About...

Outstanding commission rates. Despite its size, Firstrade offers some of the best commission rates compared to larger competitors.

Updated cash management policies. Firstrade has improved policies, now allowing most account holders to obtain a debit card.

International accounts available. Firstrade allows residents from most countries to open an account, which is not commonly offered by other firms.

Bears Talk About...

Reduced customer service. This cutback is a side effect of Firstrade's new $0 commission schedule.

Limited trading tools. Firstrade's trading tools need improvement.

Insufficient educational resources. The educational content is brief and limited.

Cash Management Tools

Firstrade offers checkwriting and a debit card for brokerage accounts without additional fees. However, Firstrade does not offer standalone bank or cash management accounts and requires a minimum of $100 in assets to qualify for these tools. The first set of checks and the card can be shipped globally at no cost.

A drawback is that Firstrade does not reimburse ATM fees and does not have its own ATMs, which means ATM withdrawals will incur fees. Additionally, transactions in foreign currencies have an extra charge of 3%.

UMB Bank provides the debit card and check services for Firstrade, similar to Fidelity.

Tradable Assets

Firstrade offers a variety of tradable assets including mutual funds, ETFs, bonds, stocks, and options. It also allows trading in OTC securities and penny stocks priced above $0.10.

However, Firstrade does not support trading in precious metals, warrants, forex, futures contracts, options on futures, or cryptocurrencies.

Commission Schedule

Most trades at Firstrade, including stocks, ETFs, mutual funds, and options, are commission-free. Firstrade was one of the first firms to adopt a zero-commission model. This includes no per-contract fees for options and no charges for exercises and assignments.

Bonds are the exception, with fixed-income securities incurring a fee of $30 per transaction or a markup/markdown pricing model. Over-the-phone trades for stocks, ETFs, and options incur a $19.95 fee plus a $0.50 per-contract fee for options.

Although mutual funds are commission-free, there is a $19.95 short-term redemption fee for shares held less than 90 days.

Margin rates at Firstrade range from 8.75% to 13%.

Promotions

Firstrade continues to offer promotions despite its $0 commission model. Current offers include 2 free stocks for new accounts with a $2,000 deposit.

Another promotion includes reimbursing ACAT fees up to $200.

Promo Link

Visit Firstrade Website

Customer Support

Firstrade offers 24/7 AI chat support through an AI named Sammi, although it has limitations, such as not providing stock prices. Since moving to a zero-commission model, Firstrade has discontinued live chat support.

Phone support is available during the week with toll-free and international numbers, and a callback service if lines are busy. Firstrade also supports communications via fax, mail, and email.

The Firstrade office in Flushing, New York, is open for visits, and the website includes a document upload tool and a comprehensive download center for various forms.

Mutual Funds

Firstrade offers over 11,000 mutual funds, with 8,127 having a load. The platform includes a fund screener with moderate filtering options and profiles that pull data from Morningstar.

Firstrade Review - mutual funds

Exchange Traded Funds

Firstrade's ETF screener is more comprehensive than its mutual fund counterpart, offering detailed filtering options. ETF profiles are also sourced from Morningstar.

Firstrade Review - ETFs

Mobile Trading

The Firstrade mobile app includes robust charting tools and biometric login capabilities. However, it lacks features like mobile check deposit and streaming news.

Firstrade Review - Mobile

Website Trading

The Firstrade website supports trading across multiple asset classes, including mutual funds. It offers advanced order options and has a trading bar for quick access.

Firstrade Website Trading Review

Account Types

Firstrade offers a variety of account types, including individual, joint, and various retirement and educational accounts, all with no associated fees.

Global Investing

Firstrade offers international accounts but lacks options for trading in foreign securities directly, aside from ADRs and OTC stocks. It provides services in multiple Chinese dialects.

Learning Materials

Firstrade provides basic educational resources and detailed data pulled from Morningstar for investment analysis.

Firstrade Review - Learning Materials

Other Services

Dividend reinvestment and automated mutual fund purchases are available at no cost at Firstrade.

Comparison

Firstrade competes well with other brokers like Robinhood and Charles Schwab, offering comparable or better options for investors.

Recommendations

Small Accounts: Firstrade is recommended for small accounts due to its lack of fees and minimums.

Individual Retirement Accounts: Firstrade is excellent for IRAs.

Beginners: Beginners might find better support and resources at brokers like Schwab or E*Trade.

Mutual Fund Investors: Firstrade's no-transaction-fee policy for mutual funds is unmatched.

Active ETF and Stock Trading: Firstrade's offerings may fall short for advanced traders; Webull could be a better fit.

Awards