Latest Comprehensive Review of Firstrade

Basic Introduction

　　Firstrade is a U.S.-based online brokerage founded in 1985, offering services for trading stocks, ETFs, options, and mutual funds. Renowned for zero-commission trading and a variety of investment tools, Firstrade provides a convenient and cost-effective trading platform for investors. Firstrade is also committed to providing educational resources to help investors better understand and engage in the market.

Pros and Cons Comparison

　　Firstrade's advantages lie in its cost-friendliness: offering commission-free trading for stocks, ETFs, and selected mutual funds, allowing investors to reduce trading costs. In addition to stocks and ETFs, Firstrade supports options, bonds, mutual funds, and other investment products, catering to various investor needs. Opening an account requires no minimum deposit, making it suitable for beginners and small investors.

　　Firstrade also offers intuitive web and mobile trading platforms, a range of research tools and data, as well as extensive educational resources including video tutorials, investment guides, and market news to enhance investor knowledge.

　　Firstrade's disadvantages include limited customer service, with some users reporting slow response times, potentially affecting investors in need of timely assistance. For professional traders or those requiring advanced trading features, Firstrade may not offer as rich a feature set as some other brokers. Additionally, Firstrade supports only the U.S. market and does not have bank cards or e-wallets available for transfers.

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Fees

Trading Fees

　　Firstrade offers relatively low trading fees, with commission-free trading for stocks, ETFs, funds, and options trading, along with low trading fees and low non-trading fees. However, it's important to note that margin rates are relatively high.

　　Firstrade accepts order flow payments, similar to other online brokers.

　　Image Source: Firstrade

High Margin Rates

　　Firstrade's USD margin rates are higher than the industry average. The calculation model includes base rates plus tiered add-ons.

Low Options Commissions

　　Firstrade offers commission-free U.S. stock index options trading.

Other Fees

　　Firstrade does not charge inactivity or account fees, but there are withdrawal fees.

Security

　　Firstrade is regulated by the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Firstrade's clients are predominantly top financial institutions and are protected under the U.S. Investor Protection Plan. This protection prevents loss of cash and securities in the event of broker bankruptcy.

　　It's important to note that Firstrade does not have a negative balance protection plan and does not hold a banking license.

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　　Firstrade has insurance provided by the Securities Investor Protection Corporation (SIPC). In the event of broker failure, it compensates up to $500,000 (with a maximum of $250,000 in cash).

Account Opening

　　Firstrade's account opening process is fully digital and user-friendly, but it takes about 3 days for successful verification. There is no minimum deposit required to open a Firstrade account.

　　The process typically involves registering an account, providing identity verification information, verifying the account, depositing funds, and starting trading.

　　To get started, users can visit Firstrade's official website or application, click the “Register” button, and fill out necessary personal information including name, email address, and contact number. To comply with financial regulatory requirements, identity verification information such as scanned copies or photos of identification documents (such as passport or driver's license) and proof of residence (such as utility bills or bank statements) are also required.

　　Once these steps are completed, users can wait for Firstrade to verify the applied account, after which they can fund their account and start trading.

Trading Platforms

　　Firstrade supports both mobile and web-based trading platforms.

　　Web-Based Trading Platform: The web-based platform features a spacious interface displaying more information and functionalities. It includes robust search capabilities, offers multiple order types, and provides clear fee breakdown reports.

　　Mobile App Trading Platform: The mobile platform requires only one-step verification for login, which is less secure compared to two-step verification. It also features biometric login technology, making it more user-friendly for operational use. Due to the limitation of smaller screens, the app's interface is typically more streamlined. Notably, it supports various order types. The mobile app is more suitable for quick trading operations on mobile devices and generally provides more timely market information and real-time quotes compared to the web-based version.

Product Variety

　　Firstrade offers a variety of trading products including stocks, ETFs, options, etc. However, Firstrade's products cover only the U.S. market stocks. Users can trade on major exchanges such as the New York Stock Exchange, NASDAQ, and American Stock Exchange.

　　For most individual investors, these products are sufficient to cover primary investment needs. However, for investors seeking a diversified investment experience, Firstrade lacks diversity in product offerings.