Firstrade Review 2024
Website: www.firstrade.com
Min. Deposit: US$ 0
Leverage: Margin Trading
Trading Platforms: Firstrade Proprietary Trading Platform, Options Wizard, Mobile Apps
Regulation: SEC, FINRA, SIPC
Headquarters: USA
Founded: 1985
Regulatory Licenses:
- Firstrade Securities Inc. - authorized by SEC (USA) CRD#: 16843/SEC#: 8-34642
- Firstrade Securities Inc. - member of FINRA & SIPC (USA)
Updated on February 5, 2024
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Our approach to reviewing Firstrade involved a comprehensive analysis that compared its services against over 1000 brokers. This methodical evaluation encompassed various critical aspects such as regulatory compliance, trading platform capabilities, product offerings, fees, customer service, and educational resources. We aimed to provide an unbiased and detailed review to help potential investors make an informed decision.
Firstrade Securities is a brokerage firm based in the United States, offering a platform for individual investors to engage in trading Stocks, ETFs, Options, Mutual Funds, Fixed Income, and Bonds. It operates under strict regulatory oversight by the US Securities and Exchange Commission (SEC) and is a member of both the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Firstrade provides competitive trading conditions, an intuitive trading interface, and a suite of market research tools to support investors in managing their portfolios and making informed trading decisions.
Pros
Commissionfree trading for stocks, options, and ETFs
A variety of research tools and educational resources
No account minimums, welcoming investors with different capital sizes
Cons
The platform lacks some advanced features found in competitor offerings
Service and feature availability may vary, requiring verification on Firstrade’s website
Is Firstrade Safe or a Scam? ▲
Firstrade is a reputable stock brokerage firm, adhering to stringent regulations by the SEC, FINRA, CFTC, and SIPC. These regulatory bodies ensure low-risk trading and protect client assets, thereby confirming that Firstrade is not a scam but a trustworthy broker. The firm’s dedication to operating within regulated jurisdictions and its transparent business practices further attest to its legitimacy.
Firstrade offers margin trading, allowing investors to leverage their positions by borrowing funds. This service enhances the potential for higher returns, though it also increases risk since it involves trading with borrowed money. Firstrade provides specific requirements and interest rates for margin trading, and it is crucial for investors to fully understand these terms. According to SEC, FINRA, and SIPC regulations, US traders can access margin levels up to a maximum of 1:50 for major currency pairs.
Our thorough investigation into the platform's offerings reveals that it provides a range of account types, each designed to suit different investment needs and objectives. These include Brokerage, Retirement, and International accounts. The Brokerage account is suited for general trading and investing, the Retirement account is tailored for long-term retirement savings with potential tax advantages, and the International account caters to non-U.S. residents looking to invest in U.S. securities. This diversity in account types enables investors to choose an option that best aligns with their financial goals and strategies.
Pros:
No Minimum Deposit: This feature makes the platform accessible to a broad range of investors, regardless of their initial investment capacity.
Fast and Easy Account Opening: The platform's streamlined account setup process allows for quick and hassle-free account opening.
Variety of Account Types: Catering to different investor needs with various account types, the platform offers flexibility and customization in investment strategies.
Cons:
No Paper Trading or Demo Account: The absence of a demo or paper trading option can be a drawback, especially for new or inexperienced investors who may prefer to practice trading strategies in a risk-free environment before committing real funds.
Overall, while the platform excels in offering a variety of account types with an easy account opening process and no minimum deposit requirement, potential users should be aware of the absence of a demo trading feature. Investors should also consider the specific features and tax implications of each account type in relation to their individual investment objectives before deciding on the most suitable Firstrade account for their needs.
The broker presents a diverse array of trading products to cater to the varied preferences of investors, which includes an assortment of Stocks, ETFs, Options, Mutual Funds, Fixed Income, and Bonds. While the primary concentration is on stocks and options, the breadth of product offerings is designed to accommodate a wide range of investment strategies and preferences. The broker's Market Range Score stands at a commendable 4.0 out of 5 for its comprehensive trading products, which is highly regarded for introducing some distinctive investment opportunities and options.
Our analysis reveals that the firm is celebrated for its competitive fee structure, particularly for its commission-free trading across stocks, options, and ETFs. This model is particularly attractive to investors aiming to reduce transaction costs. However, despite the low or non-existent trading fees, there are other charges that may be incurred. These could include margin interest rates for those partaking in margin trading, mutual fund transaction fees, and charges related to specific account activities. The Firm's Fees are considered moderate or average with an overall score of 4.3 out of 5, based on our evaluation and in comparison, to over 1000 other brokers for all applicable fees. While some services are offered free of charge, other services may be subject to fees. Further comparison details are provided below:
Our assessment indicates that Firstrade is widely acclaimed for offering commission-free trading on a variety of financial instruments. This fee structure significantly enhances the platform's attractiveness among investors, especially those who trade frequently or are particularly sensitive to costs. However, it's important to note that trading commissions and fees are subject to change over time and may differ based on specific investments and market conditions. Hence, it's advisable for investors to thoroughly review the platform's fee specifics to gain a clear understanding of the costs associated with their investments. Firstrade's Commission is regarded favorably with an overall score of 4.3 out of 5, according to our comparison with other brokers, demonstrating that the fees are competitive, transparent, and conducive for investing.
Trading Hours
Our investigation has determined that the broker adheres to the standard trading hours of major U.S. stock exchanges, which typically span from 9:30 AM to 4:00 PM Eastern Time, from Monday through Friday. Firstrade enables users to execute trades during these hours, thus granting access to real-time market conditions and execution. It is also noteworthy that the firm, akin to numerous brokerage platforms, extends its trading hours, allowing users to engage in trading activities before the market opens or after its closure.
Firstrade offers a variety of methods for depositing funds into trading accounts, including ACH electronic transfers from linked bank accounts, wire transfers, and checks. Processing times for these funding methods may vary, so investors are advised to consider their personal preferences and the urgency of their transactions when selecting a funding option. When reviewing Firstrade's funding methods, we assigned a good rating, with an overall score of 4.0 out of 5. The fees are competitive, and the diverse funding options add to the platform's accessibility.
Pros
Various funding methods available
Low fees enhance accessibility
Cons
Processing times can vary depending on the method
Firstrade does not require a minimum deposit to open a brokerage account, making it an accessible option for investors at all levels, including those starting with smaller amounts of capital. This is in contrast to many other brokers that require a minimum deposit of $500.
For withdrawals, Firstrade provides several options to suit user preferences. Traders can initiate withdrawal requests via the online platform or mobile app. However, it's important to be aware of potential fees associated with certain withdrawal methods, such as wire transfers. Processing times for withdrawals can also vary.
To withdraw funds from Firstrade, the firm outlines a series of steps:
Log in to your account
Select 'Withdraw Funds' in the menu tab
Enter the amount to be withdrawn
Choose your preferred withdrawal method
Complete the electronic request with the necessary details
Confirm the withdrawal information and submit
Check the current status of your withdrawal through your Dashboard
Firstrade provides a proprietary trading platform featuring a user-friendly interface for trading and managing investments efficiently. The platform is accessible via mobile apps for both iOS and Android devices, allowing investors to trade and monitor their portfolios from anywhere. Furthermore, Firstrade’s Options Wizard tool offers valuable resources for options trading, including educational insights and assistance in building and executing options strategies. With an overall rating of 4.0 out of 5, Firstrade’s platform stands out compared to over 1000 other brokers for its advanced trading capabilities.
The Options Wizard tool is particularly beneficial for both novice and experienced options traders. It provides educational insights and a structured approach to understanding and implementing various options strategies, enabling users to align their strategies with their investment goals and risk tolerance.
The platform offers 24/5 customer support through email, phone, and social media channels, ensuring that users can easily get assistance with their inquiries and concerns. Firstrade's customer support is rated highly, with an overall score of 4.0 out of 5, based on our testing. Users can expect fast and knowledgeable responses from the support team during working days.
Firstrade places a strong emphasis on investor education, providing a wide array of resources aimed at enhancing users' financial knowledge. The platform offers educational materials such as articles, tutorials, and webinars covering a broad spectrum of investment topics. These resources are designed to support both beginners and experienced investors, helping them to make well-informed decisions about their portfolios. Based on our research, Firstrade’s educational offerings are rated 4.3 out of 5, indicating a robust commitment to investor education and research.
In summary, Firstrade is a dependable online brokerage that distinguishes itself with its commission-free trading model, appealing to cost-conscious investors. The platform features a user-friendly interface, comprehensive educational resources, and a variety of trading tools suitable for a broad range of investors. While it may lack some advanced features, Firstrade’s focus on accessible trading and investor education makes it an excellent option for those seeking a straightforward and cost-effective trading experience.
Firstrade is highly recommended for:
US traders
Investing
Stocks and Options trading
Advanced traders
Professional trading
Low fees
Competitive investment environment
Exceptional educational materials and research
Supportive customer service
