Name: Firstrade
Brand: Firstrade

Firstrade might be for you if: You want a low-cost brokerage, particularly for options trading. Firstrade is one of the few stock brokers that offers $0 commissions and no per-contract fee for options trades. It also stands out for its strong educational resources and wide selection of fee-free mutual funds. Read our full Firstrade review to find out if this online brokerage is right for you.

Ratings Methodology

Firstrade

Our Rating:

Rating image, 3.5 out of 5 stars.

3.5/5

Bottom Line

Firstrade's options pricing sets it apart from many other brokerage firms. In addition, Firstrade has a solid selection of accounts and a good mix of commission-free investment choices. Plus, its dividend reinvestment plan will appeal to buy-and-hold investors. That said, you may find lower margin rates and faster customer service elsewhere.

Fees:

$0 for stock, ETF, options, and mutual funds trades

Account Minimum:

$0

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.

Account	Fees	Account Minimum
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	$0 for stocks, $0 for options contracts	$0	Open Account for SoFi Active Investing
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	$0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold	$0	Open Account for Robinhood
Rating image, 4.5 out of 5 stars. 4.5/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Commission-free; other fees apply	$0	Open Account for E*TRADE

Full Firstrade review

Firstrade is a low-cost brokerage with a solid mix of investment products and accounts. If you're an options trader, the low fees and extra options-focused functionality make Firstrade worth a closer look. You should be aware that Firstrade's customer service does not score highly.

Our brokerage rating methodology

At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology

My investing experience

I've been investing for over five years and tend toward buy-and-hold investing. I hold a mix of ETFs and individual stocks, and look for brokerages that are easy to use and packed with research information. I value low fees and good customer service.

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Firstrade thinks out of the box

As you'll see in this review, Firstrade has some interesting extra features that could help you maximize your investments.

Free Dividend Reinvestment Plan: One of the powerful aspects of long-term investing is the way your returns can compound over time. With Firstrade, you can automatically reinvest any dividends without having to place an order or pay commissions.
Firstrade Securities Lending Income Program: This allows you to earn extra interest on your shares by loaning them out. There are risks associated with these programs, but it's an interesting way to boost your portfolio.

Investment offerings

Firstrade offers over 2,200 no-commission ETFs and over 11,000 mutual funds, which is a solid selection that will work for many retail investors. Investors can also buy fractional shares for as little as $5, which makes it easier to build a diversified portfolio. Firstrade does not offer IPOs and only allows limited OTC penny stock trading.

Investments

ETFs
Fixed income investments
Fractional shares
Mutual funds
Stocks

Brokerage accounts

Coverdell ESA
Custodial
Individual brokerage
IRA
Joint brokerage
Rollover IRA
Roth IRA
SEP IRA
SIMPLE IRA
Trust

TIP

Other financial services

If you want to combine your banking and brokerage accounts, Firstrade offers an annual-fee-free cash management account for customers with over $25,000. It includes:

Visa® debit card
Check writing
Free travel / accident insurance for tickets bought with the card

Commissions and fees

Firstrade offers zero-dollar commissions on online trades, which has become standard for many of the best online brokers. What's more, there's no account minimum. With $0 options commissions and no per-contract fee, the brokerage stands out for its options fees.

Reason	Cost
Online stocks, ETFs, and mutual funds	$0
Options	$0 (no per-contract fee)
ACH Electronic Transfer	$0
IRA Set Up / Annual Maintenance Fee	$0
Account Verification Fee	$15
Outgoing Wire Transfers	$25
ACAT Transfer Out	$75
Partial ACAT Transfer Out	$55
Inactivity Fee (Dormant Processing Fee)	$100

Data source: Firstrade.

Margin rates

Experienced margin traders may recognize that Firstrade's margin rates are slightly higher than that of some other brokers. Margin rates start at 13.75% for balances under $25,000.

Margin Balance	Effective Rate
$1 million or more	9.75%
$500,000-$999,999	10.35%
$250,000-$499,999	12.25%
$100,000-$249,999	12.50%
$50,000-$99,999	13.00%
$25,000-$49,999	13.50%
$0-$24,999	13.75%

Data source: Firstrade.

Research and education

Educational resources make a big difference in the hunt for a beginner-friendly stock broker. Firstrade's education center offers a wealth of knowledge for novice and experienced investors. Offerings include articles, videos, webinars, and more, and the education center covers a wide range of topics, from fixed-income securities to options contracts.

Firstrade's educational content is accessible to everyone and it's written in plain English. You don't even have to have an account to use it.

If you do have an account, you'll be able to access Firstrade's extra customer-only resources. This includes free access to research and news from Morningstar, Briefing.com, and Zacks.

Firstrade has also launched an AI assistant called Firstrade GPT, which will be free to customers during its initial launch period. Use the AI to research company fundamentals, visualize data, and summarize key information.

Interface

It is easy to navigate the customizable Firstrade interface. As you'd expect, the platform lets you manage your orders, view your portfolio, and filter by investment category. You can use its technical insight tool to identify trends and patterns. You can also set up price alerts, place limit orders for extended-hour trading, and access advanced charting tools.

As with the fees, options trading is where Firstrade really shines. Its Options Wizard will compare trading strategies, view over 65 technical indicators, and run profit/loss simulations.

If you're new to options trading, the jargon-free language makes it easier to get started. The idea is to give various types of options traders the information they need on one accessible screen. If Firstrade isn't for you, discover more great options trading platforms here.

App

The Firstrade mobile app is sleek and easy to use on the go. It has a rating of more than 4 stars on both iOS and Google Play stores. Users like the intuitive design and ease of trading, but some negative reviewers complained about glitches. If you regularly use your cellphone to trade, check out our selection of top free trading apps.

You can get a good overview of all your holdings, create watchlists, and access advanced charts and research. Horizontal scrolling lets you see all your data in one row. Given Firstrade's leaning toward options trading, it won't come as a surprise to learn it's straightforward to trade options, even complex ones, on your mobile phone.

Customer service

Firstrade's customer support team has received a lot of poor reviews. Reasons include slow response times to customer emails, difficulty getting approval for trading strategies and withdrawals, and inexperienced or poorly trained customer service representatives.

Here are the ways you can contact Firstrade customer service:

Phone line open Monday to Friday, 8 a.m. to 6 p.m. ET
Email response within one to two days
In-person in Flushing, New York

Security

Firstrade's security measures are in line with many other top brokerage firms. It keeps personal data encrypted, uses secure servers, and monitors the handling of private information. In addition to SIPC insurance, the company has an additional insurance policy with a group of London underwriters.

At a user level, it encourages two-factor authentication (2FA) on both the app and the desktop platform. The app boasts both face ID and fingerprint recognition features. Most importantly, Firstrade also promises to restore your account if there's any unauthorized activity -- as long as you've taken reasonable steps to protect it.

About

Firstrade started life in 1985 as First Flushing Securities, and went on to become one of the first online stock brokers. It is dedicated to providing commission-free investing alongside a commitment to excellence. It is one of the few brokerages that offers services in English, Mandarin, and Cantonese.

Learn more about Firstrade

Keep reading about Firstrade on these pages:

Firstrade Review

Firstrade vs. Robinhood

Review sources

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Firstrade Review: Stand-Out Broker for Options Traders