Firstrade

Firstrade is an online trading app that lets investors enjoy commission-free trading on a wide range of assets like stocks, ETFs, options, and bonds. It offers a robust spread of services, including no-fee IRA retirement services, money management, and advanced trading tools, which makes Firstrade a great choice for investors from all types of backgrounds.

Firstrade is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), and it’s insured by the clearing firm Apex Clearing Corporation. Our Firstrade review highlights other important aspects of this online brokerage, such as the platform’s user experience, any commission rates or fees you might encounter during your trading session, and the types of trading accounts you can open when joining as a new member.

Because we took the time to test out Firstrade, we can confidently say that this is a competitive, intuitive trading platform well-suited to beginners and intermediate traders. Their strength lies in its low costs (suitable for traders just starting), plenty of low-cost funds, great educational tools, and intuitive platform. It’s not the best trading platform for traders who need to access more advanced securities like foreign-issued securities (F stocks). The leading group that Firstrade caters well to are newbies and those with some moderate experience in options trading. Those with a lot of seasoned experience would find better success with a different brokerage service.

Pros and Cons of Firstrade

What does Firstrade do well, and where could they improve? A key component of an honest Firstrade review was being able to look at the trading platform objectively. Part of our due diligence was presenting a list of pros and cons that any investor will encounter when using Firstrade.

Pros

• Commission-free stocks, options, and ETFs
• $0 contract fee on options trades
• Excellent educational resources
• Robust research tools for traders
• Low trading fees
• Top-tier investors protection
• No deposit fees
• No minimum deposits for opening a new account
• User-friendly design
• Wide variety of order types is available

Cons

• No forex or futures trading
• Low interest rates on uninvested cash
• E-wallets and bank cards aren’t available for deposits
• Trade only in US markets
• High fee for outgoing wire transfers
• Account verification can take time to happen
• Mutual funds and bonds aren’t covered on the mobile app

Key Highlights of Firstrade

The best way to begin our review of Firstrade is to review some of the features and benefits the platform offers that differentiate it from competitors in the options market. We’d also like to draw attention to notable awards or recognitions that Firstrade has received over the years for the strides they’veit has made.

Unique Features

Certain features and functions of Firstrade stood out to us more than others, and we’d like to take this opportunity early on to mention them as standout offerings for options traders.

• Trading Free of Commissions: It isn’t the case for every instrument offered, but there aren’t any commissions on trades that include stocks, mutual funds, options, or ETFs.
• Good Trade Execution: A notable aspect of Firstrade is its 0.1-second trade execution guarantee, which ensures investors’ trading moves and strategies are executed quickly and efficiently.
• Minimal Fees: You won’t find any account minimums or inactivity fees using Firstrade, which keeps your operating expenses down.
• Trading Hours: Traders and investors can trade options on Firstrade between 8 AM and 8 PM, which are extended hours compared to competitors.
• SIPC Insurance: Firstrade is insured through SIPC for up to $500,000 to guard its customers from staggering losses in options trading.
• Timely Market Updates: Firstrade’s Market and News feature allows investors to gain insights into market sentiments.
• Firstrade GPT: This tool offers handy research tips and data visualization, which can help investors make the most informed trading decisions.
• Multiple Accounts Offered: Traditional and Roth IRAs accounts are offered, as are accounts for educational savings and custodial accounts for children’s benefits.

Awards & Recognition

Firstrade has a modest number of awards or industry recognitions for the work they’ve done in the realm of online options trading. These accolades indicate that you’re dealing with a legit trading broker, not to mention that the Firstrade Securities company has been around since 1985.

• 2023: Firstrade won the Kiplinger Best Online Brokers’ award for “Best for Options Traders.”
• 2019: Firstrade was named the “Best in Class” by StockBrokers.com.
• Barron’s, Smart Money, and Forbes have all rated Firstrade as one of the best online brokers.

Commission Structure and Fees

Like many other online options trading apps, Firstrade offers zero commissions on options, stocks, and ETF contracts. Still, they also have more competitive pricing and minimal fees compared to the other options trading platforms on the market. Explore this section of our Firstrade review to discover how much money you’ll have to pay to trade on Firstrade via commissions and fees.

Trading Fees

If you’re looking for a detailed breakdown of commission rates and other pricing at Firstrade, you’re in the right place. Learn about the credit interest rates and margin rates the platform carries and the regular pricing on instruments like options, mutual funds, stocks, and ETFs.

Pricing

• Stocks (Commissions): $0.00
• ETFs (Commissions): $0.00
• Options (Commissions): $0.00
• Options (Contract Fee): $0.00
• Options (Exercise and Assignment Fees): $0.00
• Mutual Funds (Load Funds): Free
• Mutual Funds (No-Load Funds): Free
• Mutual Funds (NTF Funds): Free
• Fixed Income (Treasury Bills, Notes, and Bonds): Net Yield Basis
• Fixed Income (Municipal Bonds): Net Yield Basis
• Fixed Income (Agency Bonds): Net Yield Basis
• Fixed Income (Zero and Strips): Net Yield Basis
• Fixed Income (Primary Market CDs): $30
• Fixed Income (Secondary Market CDs): Net Yield Basis

Margin Rates

Credit Interest

Additional Fees

Firstrade is notable for not having any account maintenance fees or inactivity fees. However, there are some withdrawal fees to keep in mind before moving funds out of your Firstrade account:

• Domestic Wire Transfers: $25
• International Wire Transfers: $25
• Complete Outgoing Transfer: $75
• Partial Transfer Cost: $55
• Mutual Fund Shares: $19.95 (if held less than 90 days)
• Redemptions Less Than $500: $19.95

Firstrade’s Account Types

Firstrade offers a competitive set of offerings to traders and investors, but some account limitations could make it less than ideal for some users. They don’t offer fractional shares, and you won’t find futures or forex trading either. What they carry will probably satisfy a good number of traders and investors, but this is an area where Firstrade is a bit weak and could do much better.

Account Options

Check out the types of accounts you can open on the Firstrade app or website after you’ve created your new account. Many of these offerings are best geared toward new traders with intermediate experience with options and investments.

• Cash Accounts: These brokerage accounts require the investor to pay for the security using the cash from their account. They can sell securities such as bonds, mutual funds, ETFs, stocks, etc.
• Margin Accounts: Another common offering in online options trading, margin accounts let investors and traders borrow money from the broker to buy options, stocks, futures, and other valuable securities.
• Short Accounts: Short positions are created when the trader sells a security with a plan to repurchase it later at a lower price or cover it later at a lower price. The difference between the price at which the security was bought and the price at which the security was sold determines the potential profit or loss.
• Retirement Accounts: Firstraders offers investors the opportunity to invest in traditional IRAs, Roth IRAs, or rollover IRAs. Traders can earn tax-deferred savings using a conventional IRA, move one old 401k into another using the rollover IRA, and enjoy the benefit of tax-free growth with a Roth IRA.
• Education Savings Accounts: These are tax-advantaged investment accounts that traders or investors can use to pay for educational expenses. They include investments like mutual funds, stocks, ETFs, and options.

Minimum Deposit

While Firstrade doesn’t require an investor or trader to open a new account, there are a few types of accounts where a minimum deposit is expected, like corporate accounts, which require a $500 minimum deposit to maintain the account. There’s also an account opening fee of $100.

Account Features

Let’s look at the unique features or benefits of different account types at Firstrade.

• Research Tools: Traders can access free research reports from third pirates like Benzinga, Zacks, Morningstar, and Briefing.com.
• Educational Resources: Firstrade offers a host of videos, articles, readings, and live webinars designed to teach traders more about trading strategy and technique.

Trading Platform at Firstrade

Suppose you’re looking for information on the Firstrade website or app and how the trading platform operates as a whole. In that case, you’ll find it here in this section, where we discuss the user experience, the mobile app compared to the Firstrade website, and the special trading tools and features that come with each format.

The primary way to use Firstrade is to visit the web platform, where you will find a dynamic options trading setup perfect for desktop computers. Along with this web version, there’s the Options Wizard, which offers tools and research for analyzing trades, and the Firstrade Navigator, which helps out with managing account balances, trades, and orders. There is also the mobile app, but we’ll discuss that in more detail in the following sections.

Platform Usability

The Firstrade website and mobile app were both easy to use and learn. As we tested out the platform to familiarize ourselves with its operation, we found many of the additional tools (Options Wizard, Firstrade Navigator, Firstrade GPT, etc.) helpful in getting us comfortable with online trading.

We liked how Firstrade was adept at closing complex positions quickly because of how well they were at finding the correct strategy and combinations to use. The user interface was easy to learn and navigate, and the signup process was minimal. It didn’t take long to complete, and many exciting customization options created a unique user experience.

Tools and Features

Now, let’s examine the trading tools, charting options, and technical analysis tools available on the Firstrade app.

• Strategy Builder: Traders can develop a thematic approach to their investment strategies and consult with experts to develop advanced strategies appropriate for their intermediate experience.
• Market News: Firstrade’s news platform provides real-time breaking news and historical statistics, providing a good context for your trading decisions.
• Technical Insight: This tool helps traders analyze a stock’s performance by identifying market trends and patterns.
• Advanced Screeners: This free trading tool allows users to build their investment portfolios professionally.
• OptionsPlay Wizard: Explore options strategies using this helpful trading tool.
• FirstradeGPT: This research assistant (powered by AI) provides traders with financial data, data visualization, and company analysis. It’s done through the assistant generating charts, summarizing financial research, and giving analyst estimates.
• Analyst Reports and Ratings: Traders can access Morningstar research reports and five-star ratings from professional analysts.
• Stock Price Alert: Build your investment portfolio by making timely trading decisions. This tool notifies investors when certain stocks reach the entry point they prefer.
• Streaming Watchlist: Traders can track assets they want to invest in using the streaming watchlist. They can use these to closely monitor key price movements, news updates, volume changes, and other important market information.
• Sectors and Industries Stock Research Tool: Chart performance data by checking out stats and info from individual companies and sectors.

Mobile App

If you want a trading experience where you can take everything on the go via your smartphone or tablet, there’s also the Firstrade mobile app, which lets you trade and transfer funds around with the greatest of ease. The app lets traders view their order history and create watchlists, too. Unfortunately, mutual funds and bonds can’t be accessed on the mobile app—this is one of the major ways that the website diverges from the app.

Research and Education

Good options trading websites and apps provide resources for traders who want to continually learn so they can improve their insights and skills in trading. These platforms must also have plenty of research tools for investors who want to create successful trades and form viable strategies. Luckily, Firstrade has some decent research and educational content that can help investors along their journey.

Educational Resources

When you go to the Firstrade Education Center, you’ll find several options for learning more about options trading with the website or app. Along the top part of the main menu, you’ll find the following options:

• Stocks
• Options
• ETFs
• Mutual Funds
• Fixed Income

Research Tools

Charles Schwab investors and traders can gain access to market research, analysis, and third-party research reports, as well as the following tools:

• Options Tools and Research: Get real-time research after placing your trades.
• Schwab Stock List: Find the price performance and analyst ratings on the top-ranked companies.
• Screeners: Use customized screens or pre-defined ones provided by Charles Schwab.
• Charts: Gain insights into volume and price movement.
• Quotes: Traders can find performance data and pricing information.
• Mutual Fund and ETF Screeners: Research your funds or ETFs correctly.
• The Model: Create an investment theme by using this algorithm that curates the most relevant information.
• thinkorswim via Desktop: Get real-time data and market updates with this tool.
• Portfolio Builder: Use this tool to research funds correctly.
• Select Lists: View screened mutual funds and ETFs for the best liquidity.

Under each of these links, you’ll be directed to informational pages that cover each of these securities in great detail. You can find out which investments are best for you and how they work.

At the bottom of the page, you can also access an investment glossary full of terms you might not be familiar with and a series of educational videos on various subjects. These subjects include Trailing Stop Orders, Funding Your Account, Placing Stock Trades, and Margin Account Overview.

Research Tools

Head over to the Firstrade Resources and Research Tools page to find the available tools for researching your investments and trades on the website or app:

• Video Commentary: These videos come out daily, weekly, or quarterly, and there are discussions on certain topics based on the latest earnings reports and the most significant economic or market events. Topics discussed include asset classes or securities, and the discussions are amongst independent analysts with a trusted reputation.
• Strategy Builder: Use this helpful research tool’s search criteria and filters to discover the best investment strategies. It covers everything from quantitative criteria to fundamental analysis and technical analysis points.
• User-Friendly Charts and Personalized Calendars: These charts and calendars keep you in the loop with important events like dividends, earnings announcements, economic indicators, ratings changes, and IPOs. Investors can anticipate events, monitor the market closely, and act on market movements quickly.
• Analyst Reports and Ratings: Through Morningstar, Firstrade traders and investors can access comprehensive research reports and 5-star ratings from expert analysts on the companies and stocks they want to invest in.
• Technical Insight: Examine each stock’s performance with a brief snapshot. Identify trends, patterns, and historical price changes to understand how certain stocks and options perform. Receive notifications through Technical Alerts that inform traders of event opportunities and price alerts on stocks and options they want to invest in.

Support for Traders

Firstrade offers support for its customers in several ways, including resources like mentoring or coaching services. This variety of offerings is excellent for investors who want to improve their online trading skills and investment knowledge.

• Video Library: Enjoy video content at Firstrade that teaches you about options trading techniques and strategies.
• Live Events: Traders can attend events where Firstrade brings professional investment strategists to share their insights with the crowd.
• Courses: Access free options trading courses for beginners and intermediate traders.
• Webinars: Each week, investors at Firstrade can access morning market overview sessions. There are even options trading webinars. Traders and investors can get highlights on trade ideas, research, markets, and investment strategies.
• Guides: Traders and investors can also access helpful guides at Firstrade. They can learn the basics of trading ETFs, setting the optimum strike price, or placing the best stock traders rooted in sound research.

Security and Regulation

This section of the Firstrade review covers the security measures the website has in place for its members, how Firstrade is regulated, and how Firstrade practices compliance with the regulatory bodies that oversee the platform. We’ll review which entities oversee Firstrade’s operations and the practices that Firstrade must exercise to keep its license.

Regulatory Compliance

Firstrade is a member of the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and the Securities Investor Protection Corporation (SIPC). It is also regulated by each US state securities regulator, as well as by each US stock and option exchange.

For additional information on Firstrade and its regulatory compliance, please visit brokercheck.finra.org.

Security Measures

Firstrade conducts regular audits to ensure the effectiveness of its security measures. Firstrade offers its users extra layers of security using safety measures like encryption and two-factor authentication. The SSL-encrypted connections ensure that all users’ private data is kept safe and secure by being presented in jumbled code to anyone who tries to hack into the system. The two-factor authentication is designed to provide an added layer of security when logging into any Firstrade account. Not only do you have to enter your password, but you’ll also have to answer a security question to get in.

Insurance

The Securities Investor Protection Corporation (SIPC) insures all Firstrade accounts up to $500,000. For cash balances, the limit is $250,000. Firstrade’s clearing firm, Apex Clearing Corporation, also has an additional insurance policy of $150 million.

These insurance policies don’t protect investors against loss in the market value of securities in their trading account; they only protect against the failure of the Firstrade website or mobile app to provide adequate protection for their customer’s private data.

User Experience

Part of writing an honest, accurate review of Firstrade involved testing the platform for a few weeks to experience the online trading experience firsthand. We set up a new account, used the app for trades, and generally navigated around the platform to find out where all the key features and functions were placed. We even tested the customer service center to see how attentive they were. In this next section, we’ll highlight our key takeaways from the overall user experience at Firstrade.

Setting Up an Account

Signing up for an account with Firstrade can take two to three business days, as Firstrade has to verify any new account applications it receives. If you want to learn how to sign up for a Firstrade account, follow the instructions below.

1. Visit the Firstrade website or download the mobile app.

2. Find the online application by clicking on “Register,” “Sign Up,” or “Create a New Account.”

3. Please enter the required information on the signup form. This includes your name, social security number, date of birth, contact information, and a few other things. This is to confirm that you’re a legitimate user.

4. For international accounts, you must upload an image of your passport.

5. Submit your application and wait for Firstrade to review and process your request.

6. After you’ve been approved, you can log in to your account with your username and password. Then, fund your account and begin trading!

Opening up a new account is relatively easy. Still, the one major downside is having to wait one or two business days for Firstrade to verify your new account before you can start using it. The time it takes to get signed up and submit your first trades will differ for everyone, but it generally takes 48 hours or less.

Platform Navigation

Firstrade has a simple, straightforward design that makes everything easy to find. It made figuring out the platform much more accessible than some other trading websites and mobile apps that were reviewed in the past.

• Use the dashboard to access account details, charts of specific instruments, and open positions.
• Use “My Positions” to view your current assets.
• Use charting tools to draw or select a trend line by clicking on the chart.
• Use the Trading Hotkeys Settings to execute specific trade functions using certain key combinations.
• Customers can tap the Webull logo to select the account they want to trade.

Performance

We didn’t have any major issues with using Firstrade’s trading platform from the standpoint of reliability, performance, and speed. From what we understand, the app and website consistently update their system to ensure it’s running at a rate that can keep up with the user volume. They did a big update about five years ago that greatly improved the experience.

We had no problems using the research or educational tools for our trading strategies. We were able to add positions to our portfolios quickly and execute strategies like covered calls or cash-secured puts without any apparent issues. The process was intuitive, and everything went smoothly during our practice trading sessions.

Customer Service

Visit the customer support center to view all possible customer service options. There’s a troubleshooting FAQ menu that’s great for traders who want to solve their problems and would rather avoid talking to someone in person. Aside from the FAQ center, there are the following contact options that proved to be most helpful:

• Phone Number: 1-800-869-8800 (US) and 1-718-961-6600 (outside the US)
• Fax: 1-718-961-3919
• Email: Via generic contact form

The quickest way to contact the customer service center is by using the toll-free number, but we didn’t care that there wasn’t a live chat feature like you see with many other online brokers.

Final Thoughts: Is Firstrade Right For You?

After testing Firstrade for a few weeks, we can confirm that this trading app is best suited to beginners looking for an intuitive app design and good educational tools, as well as intermediate traders who want to continually improve their trading skills and overall approach through great research tools.

The best aspects of using Firstrade include zero commissions on stocks, options, and ETFs, no fees for opening options contracts, and minimal margin rates ranging from 1.00 to 1.75%. Your overhead at Firstrade is lower than most other trading platforms, perfect for beginners or intermediate traders who might have limited capital and are looking to save money in places where they can.

Firstrade is a decent trading app, but it might not be the best option for advanced or seasoned traders looking for a broader range of securities to invest in. Ultimately, we’d recommend another trading app to investors like this because Firstrade’s overall design caters more to traders with middle-of-the-road experience or under.