All of our online brokerage reviews follow the same format. After you’re familiar with one, the rest will be easy to navigate, you’ll be able to skip right to your favorite sections to quickly compare sites.
Click on a category below to go to a Firstrade section of interest. When you’re ready to check out another section, click on the Return to Index ↑ link.
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Firstrade Overall Rank - #7 |
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| Navigation |
If you’re accustomed to the web, you’ll learn your way around this site very quickly, Firstrade has great navigation. The tabs are well organized and they keep the content of each page down so that it never feels cluttered. They’re also using the latest and greatest technology for web design, which is why every page looks great but still loads quickly.
Of all the sites that we reviewed, we felt that Firstrade was the best for beginners because it is the most user-friendly and easy to master site you’re going to find. It’s also great for traders that get their investment recommendations from Brokers, Newsletters, or do their own research through independent 3rd party resources. Firstrade was the low cost leader among all sites that offer a complete suite of products. This is a great site for experienced investors that only need a simple trading platform for Stock, Mutual Fund, and Option transactions. |
| Dependability |
This is a very dependable site. We couldn’t find any recent record of problems, traders will rarely have to worry about service interruptions or crashes at Firstrade. |
| Customization |
Firstrade keeps it simple. They are attractive to investors that want a straightforward trading and account management experience so you won’t find a lot of customization options. This can be disappointing if you came from one of the high-end competitors and expected all of the same bells and whistles. However, this works out perfectly for new or non-techie investors, they can get comfortable with their home page, portfolio tracking, transaction screen, and even the research tools much more quickly than at other sites. |
| Trade Execution |
3 second guarantee. Not great, but most sites don’t offer any at all so this is a nice peace of mind gesture on Firstrade’s part. |
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| Intuitive Commission Structure? |
Yes, very straightforward and one of the lowest price structures in the business. |
| Minimum to Open an Account |
No minimum deposit. |
| Stocks |
Internet Trades = $6.95 flat fee up to 5,000 shares
Interactive Voice System = $16.95 flat fee up to 5,000 shares
Broker Assisted = $26.95 flat fee up to 5,000 shares |
| Options |
Internet Trades = $6.95 + $0.75 per contract
Interactive Voice System = $16.95 + $0.75 per contract
Broker Assisted = $26.95 + $0.75 per contract
Option assignment and exercise fee is $16.95.
Two-legged complex option orders are charged a single commission but contract fees are charged on each leg.
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| Mutual Funds |
No-Load No-Fee Funds = $0.00 Free, No commissions or transaction fees charged by the Mutual Fund or Firstrade. (607 available)
No-Load Funds = $9.95 transaction fee charged by Firstrade. (2900 available)
Load and Fee Funds = Fees charged by mutual fund and possibly by Firstrade as well.
A Short Term Redemption Fee of $19.95 will be applied to redemptions of mutual fund shares held less than 90 days. Broker-Assisted redemptions will incur a charge of $26.95.
Tip: Avoid any funds with loads or fees. Firstrade has a great selection of no-load no-fee funds so there's no reason to ever pay them! |
| Treasuries & Bonds |
Treasuries, Bonds and Secondary Market CDs = Net yield basis. Firstrade may act as principal on any fixed-income transaction. When acting as principal, they will add a markup to any purchase, and subtract a markdown from every sale. This markup or markdown will be included in the price quoted to you.
Primary Market CDs = $30 |
| Rates & Fees |
Margin Rate:
| Balance |
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Rate Calculation |
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Rate as of 3/18/2008 |
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| $1,000,000+ |
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Base - 0.75% |
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4.00% |
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| $500,000 ~ $999,999 |
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Base + 0.50% |
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5.50% |
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| $250,000 ~ $499,999 |
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Base + 1.25% |
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6.25% |
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| $150,000 ~ $249,999 |
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Base + 1.75% |
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6.75% |
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| $100,000 ~ $149,999 |
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Base + 2.00 % |
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7.00% |
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| $50,000 ~
$99,999 |
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Base + 2.50% |
|
7.50% |
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| $0 ~ $49,999 |
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Base + 2.75% |
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7.75% |
| Firstrade's current Base Rate (FBR) is 5%. |
Interest Paid on Cash (Sweep): Accounts < $25,000 = 0.1%, Accounts $25,000+ = 0.25%
Paper Statements: $2
Electronic Statements: Free
Checking Available? Yes
Wires: $30 domestic, $35 foreign
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| Phone Reps |
Customer service was spotty up until 2006, but in 2007 and YTD in 2008 Firstrade has shown a lot of improvement. Wait times and complaints are down, the positive feedback is finally starting to outweigh the negative. The reps that we talked to were helpful and knowledgeable, they were able to answer every question on our list eventually. The hours also offer traders a lot of flexibility, they are open 8:30AM–9PM Monday through Friday and 10AM–2PM on Saturday. |
| Online Support |
Live chat support is a great perk and Firstrade was one of the first in the industry to offer this helpful service. They have a somewhat limited FAQs section but we can forgive this. They offer live chat and short wait times for phone support and both of these alternatives are more convenient than searching through a FAQs page. |
| Advanced Support (Options, Funds, Bonds, etc.) |
Firstrade Does not offer advanced support but does offer advanced trading in the form of Mutual Funds, Bonds, and Options. You may be able to get some instruction on using the transaction screens to complete trades but for advanced investing questions you’ll have to seek third party advice.
We were a little surprised how little basic investing education material is available on the site. That’s inconsistent with their business model if they are trying to attract beginning investors or investors new to online trading. Hopefully Firstrade will develop some more training material or partner with a 3rd party investing education site in the near future. That’s one of the few weaknesses we found. |
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| Market Research |
Firstrade is a low cost leader. When you compare them to other deep discount brokers, such as SoGoTrade, they are miles ahead in terms of product offerings, support, and research and analysis tools. While they are ahead of the other deep discount brokers, be aware that Firstrade is still a pretty stripped down and basic site compared to the premium brokerages. They have less research available and the investing tools are less flexible, but since Firstrade competes on price, they’re still offering great value overall. |
| Level II Quotes & Streaming Data |
$19.95 per month. |
| X-Stream Real Time |
X-Stream Real Time is Firstrade’s web-based trading platform. Most sites have specialized trading platforms available but they usually have net worth and trade volume requirements, whereas this tool is available to every Firstrade client. This is a great starter platform. You will be exposed to real-time technical analysis, real-time charting, personalized watchlists, and streaming quote data.
There’s not near as much on the X-Stream screen as you will see on competitor versions, but this reduces the clutter and makes the information more manageable. Beginners can absorb a lot more when they’re not bombarded with 100 things at once. Unfortunately, traders will eventually outgrow this tool and may go to another online broker since there isn’t an upgrade available. |
| Mutual Fund and Stock Screeners |
Very limited, but again, these are great training tools for beginners. Screening tools are becoming standard at most sites, and Firstrade’s is limited but they can give you enough experience to decide whether or not you’d enjoy a self-directed portfolio or if you’d prefer a planner or broker managed account. |
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| Quicken and Money Compatible |
This tool allows you to download your account summary, transactions and statements right into Quicken and Microsoft Money. This is free to all Firstrade customers. |
| Low Priced Mutual Funds |
Firstrade has No-Fee and No-Load Funds. For the No-Load Funds that have a transaction Fee, Firstrade is the industry leader at only $9.99 per trade. |
| Current Specials |
New Accounts: They will pay your transfer fee (up to $100) if you transfer at least $25,000 into your new Firstrade account
Referral: Firstrade will give you 5 free trades for referrals |
| High Volume Discounts |
No, but Firstrade is the low-cost leader. |
Section 6: Product Offerings
Return to Index ↑ |
| Retirement Accounts |
IRAs, Roth IRAs and personal 401Ks |
| Education |
529, Custodial, and Education Savings Accounts |
| Managed Account |
No |
| Specialty Accounts |
Estate, Trust, Investment Club, LLC, Partnerships, Corporations, and Pension Plans for Small Businesses |
Section 7: Security
Return to Index ↑ |
| SIPC Member |
Yes. SIPC protects securities in your account up to $500,000. Firstrade also carries insurance over and above the SIPC protection. |
| Firewall Secured and Fraud Protection |
Yes. All of the major sites have dependable security. They can't afford to make mistakes, they wouldn't survive a year if they gained a reputation for mishandling money or for lax security. |
