Firstrade Review

Company background

Firstrade is an online brokerage firm founded in 1985 and established in New York. It serves self-directed investors and active traders with online and mobile trading of stocks, ETFs, options, mutual funds, fixed income products and margin. The broker also offers regular brokerage accounts and retirement accounts, including Traditional, Roth and Rollover IRA accounts.

Fees and pricing

Firstrade's pricing is built around $0 online trades for stocks, ETFs, options and mutual funds. Options have $0 commission, $0 contract fees, and $0 exercise and assignment fees. The pricing page also lists Free load funds, no-load funds and No Transaction Fee funds. Fixed income trades are priced on a net yield basis for Treasury bills, notes and bonds, municipal bonds, agency bonds, zeros and strips, while Primary Market CDs cost $30.

There are still specific charges to watch. Broker-assisted orders cost $19.95 for stocks and ETFs, and options broker-assisted orders cost $19.95 plus $0.50 per contract. A $19.95 short-term redemption fee applies to mutual fund shares held for less than 90 days, and redemptions of less than $500 can also incur a $19.95 fee unless the entire value of the fund is less than $500. SEC and options regulatory pass-through fees are also listed.

Regulation and safety

Firstrade Securities Inc. is a member of FINRA and SIPC. SIPC coverage protects securities customers of its members up to $500,000, including $250,000 in cash awaiting reinvestment. Firstrade's clearing firm, Apex Clearing Corporation, has purchased an additional policy that supplements SIPC protection, with limits including $37.5 million per customer and cash up to $900,000. The account protection page also describes FDIC insurance for eligible cash swept to Program Banks.

Platform experience

Firstrade supports web and mobile trading, with iOS and Android apps. The mobile app includes stock and options order entry, watchlists, account information, research, order history and electronic funding. Options traders get tools such as Options Wizard, which includes strategy checklists, support and resistance levels, profit and loss simulations, 65+ technical indicators and 40+ complex options strategies.

Pros and cons

The strongest parts of Firstrade are its low listed online commissions, $0 options contract fees, no deposit minimum, no inactivity fee and extended trading access, including overnight sessions from 8 PM to 4 AM ET. The main limitations are the broker-assisted order fees, mutual fund redemption charges, limit-order-only overnight trading and ACH funding restrictions tied to U.S. financial institutions.