Firstrade Review & Rating 2022» Is it Reliable or Scam?
Firstrade is one of the most well known online brokerages in the world. They offer a comprehensive range of brokerage services to help you find stocks, ETFs, Margin Loans, Options, Fixed Income and mutual funds that are right for you.
We will provide an "in-depth" analysis of Firstrade below including pros and cons, features, customer service quality, commissions & fees charged by Firstrade brokerage and more. It's going to be an unbiased review. AtoZ Markets is in no way responsible for any opinions by the writer. If you are from Firstrade and think the writer did a misrepresentation of the broker, you are advised to contact AtoZ Markets' editorial team.
The journey of Firstrade began in the year 1985, as it was a discount-based broker First Flushing Securities in New York providing financial needs to the local community. Growing organically and steadily the company was able to see the advantages to be realized by tapping into the power that was available on the Internet. A true pioneer in the field of online trading, Firstrade.com online was founded in 1997 and joined the handful of other stock brokers that operate online on the internet.
Firstrade's pledge to give the most value for the least was a hit with investors. Firstrade's brokerage and trading online system was rapidly growing, offering self-directed investors with speedy order execution, outstanding customer service, and outstanding website performance. The major industry publications like Barrons, Forbes, and SmartMoney have all ranked Firstrade among the top online brokers for the past few years.
How to Open an account with Firstrade
Firstrade has some steps of opening an account. Let's look at.
Visit https://signup.firstrade.com/apply/en-us/ and provide your first name, last name and email address then click on continue. You will get an email with verification code, verify the code and go to the next page.
The next step is to select the types of accounts you would like to create. They have a wide range of account types to select from.
After selecting the account type, click on the 'Continue' button.
On the next screen, you must provide your personal information like the First name, the last name, Gender and Date of Birth, Social Security Number, Marital Status, Number of dependents, Citizenship Status, Country of Citizenship, Mobile Number, Permanent Address etc. Then Click on Continue.
On the next screen you will need to provide your details regarding employment and financial information. Then Click on Continue.
Next, on the page you must answer a few concerns regarding your investment profile as well as affiliation details. After that, click Continue.
The next step is to set up your bank account details for funding. You can do it by instant verification. You can also skip it by clicking on 'Set Up Later'. After that, click on 'Continue'.
The next step is to review all the details you have provided and click on 'Confirm My Information'. In the next page, you have to agree with the terms and conditions and click Continue.
In the next page, you have to set up your username, password and 4 digits pin code.
You also have to set your security questions. Then click on submit and on the screen you will see your account number.
Once you have been approved for your account, you'll be able deposit funds to trade.
The year 2005 was the one when Firstrade received the honor of being named as"the "Best Deal" in the online discount broker category by Smart Money Magazine. And in 2006, Kiplingers Magazine called Firstrade the "Clear Winner in the Mutual Funds Category'' and "Top Clean-Hands Firm".
Products Offered by Firstrade
Firstrade provides a wide range of products, ranging from the stock market to trading options. However, these products are just the US market, and they do not offer Forex, and Futures.
If you love to trade stocks, you can trade stock on 5 different US markets. They are NYSE, NASDAQ, AMEX, OTCBB, OTC Pink. You can trade both listed and Over The Counter (OTC) stocks. They also offer penny stocks to large cap stocks.
ETFs (Exchange Traded Funds)
Firstrade allows you to trade every ETF that is available on the market. It also offers greater commission-free ETF trading options than any other broker. They offer 2200+ commission free ETFs with a lot of research tools.
Firstrade seems the best choice when it comes to Options trading. They offer true value investing with $0 commissions and $0 contract fees for options trades without any hidden fees, as they claim. They also have a proprietary platform for option trading named 'Options Wizard' with a lot of amazing features.
Mutual funds can be the perfect opportunity for diversifying your portfolio. At Firstrade, they have more than 11,000 mutual funds you can select from to your account.
Fixed Income investments can provide longer-term stability, while also generating greater returns than conventional savings accounts. Firstrade offers fixed income in the following products.
- Secondary Market CDs
- Treasury Bills
- Notes & Bonds
- Primary Market CDs
- Municipal Bonds
- Zeros & Strips
- Agency Bonds and more
International Accounts- Firstrade International Accounts also offer investment products including stocks, options, Exchange Traded Funds (ETFs), mutual funds, bonds and CDs.
Securities Lending Income Program- With this program, you can earn extra income from stocks you already own with Firstrade.
Extended Hours Trading- Firstrade offers extended trading hours for stock market after-hours & pre-market trading with securities listed on the NYSE, NASDAQ, or AMEX exchanges.
- Firstrade offers a comprehensive range of services to help you find stocks, ETFs, and mutual funds that are right for you.
- They have been in business since 1985 and are one of the most well known brokerages in the world.
- Firstrade is commission free for stocks and ETFs which is a major benefit for investors.
- They offer excellent customer support for traditional and simplified Chinese as well as English accounts.
- Firstrade does not offer forex and cryptocurrency trading which may be a deal breaker for some investors.
- Their commissions and fees are slightly higher than some of the other brokerages available.
- Firstrade is not as well known for their research and analysis tools as some of the other larger brokerages.
- Firstrade doesn't have 24/7 customer support.
- They have limited functionality in web and mobile platforms compared to others.
Is Firstrade a safe and trusted broker?
The short answer is Yes. Firstrade has been awarded an A- score by the Better Business Bureau. The BBB evaluates companies with a scale of grades from A plus to F. Therefore, an A- rating means that Firstrade is a leader in customer service and business practices.
According to the BBB's website, its ratings are a reflection of how a business communicates with its customers. It also analyzes customer complaints as well as whether a company can respond to and then close every complaint. Each investment app may not have the same rating - for example, Robinhood currently holds an F rating because of the number of customer complaints as well as the BBB's concerns about the company's business policies.
Firstrade hasn't been the subject of major scandals or lawsuits since its inception at the end of 1985. BBB information shows that the company has only three complaints brought against them in the last three years, and two cases were dismissed in the past 12 months.
For security of accounts, Firstrade offers the basics, such as firewalls, 128-bit encryption for accounts, Two-Factor Authentication for mobile customers and other security features for mobile devices.
Firstrade provides the usual $500,000 of Securities Investor Protection Corporation (SIPC) coverage, as well as another $37.5 million of insurance for securities, and $900,000 of cash-through insurance that they purchase through their clearing company, Apex Clearing Corporation. This type of insurance does not cover any losses that result from your investment decisions however it will cover you in case the company is unable to continue operations due to any reason.
Firstrade has few trading platforms. They are: Firstrade Navigator, Options Wizard and Mobile Apps.
With Firstrade Navigator, Traders can see all account information as well as screens for trading are accessible from one spot. You can quickly place and manage your orders, check your balances and positions and monitor the market. It offers all accounts and market data updated in real time. Adjustable layout
The Firstrade Navigator offers collapse columns and panels. It allows traders to alter their experience to suit their needs. You can have a choice between a smaller layout or open it up to enjoy the full experience.
It allows you to add and drag market and account related widgets by clicking. Set them up wherever you'd like to make it easy to access the information you require.
The most advanced charting system is accessible to all Navigator users. Numerous technical studies to help you analyze and forecast stock movements.
Through pie graphs, you can have quick insight into the state of your account.
Firstrade's Options Wizard offers advanced analytics that convert market data into actionable data to help you develop the most effective options strategies.
Options Wizard has the following features:
- It has trading strategy checklists
- You will get 1-month/6-month trend indicators in it.
- It shows you support/resistance levels.
- It had Proprietary OptionsPlay Score
- Options Wizard has 65+ technical indicators
- It also has 40+ complex options strategies
For Options trading with Firstrade, you have to open a personal investment account.
Firstrade has both iOS and Android apps. The Firstrade mobile app is user-friendly and simple to use. Order entry is available in a complete variety of limit, stop and market orders, however advanced order types such as OCO or OCA can only be found in the Navigator application available to iPad users. The mobile app has charts created by MultiCharts (TradingView) and was robust and fast, however they did not incorporate trades using the charting feature.
The mobile application's watchlist as well as ordering features are integrated into the web-based Navigator platform. This makes for a seamless experience.
Firstrade offers a variety of online trading accounts to meet your investment needs.
- Joint (WROS & Tenants in Common)
- Coverdell ESA
- Traditional IRA
- Roth IRA
- Rollover IRA
- SEP IRA
- SIMPLE IRA
Is Firstrade Fees High?
Firstrade offers commission free trading for stocks and ETFs. Their commissions and fees are slightly higher than some of the other brokerages available, but they still offer a competitive pricing structure.
Firstrade's commission and fee schedule is as follows:
- Stocks and ETFs - Commission free
- Options - $0 Commission, $0 Contact Fees.
- Mutual funds - $19.95 per trade
- Bonds - $24.95 per trade
Overall, Firstrade offers a competitive pricing structure with excellent customer service quality. They are a good choice for investors who want commission free stock and ETF trading. However, they do not offer options trading which may be a deal breaker for some people.
Deposit and Withdrawal fees for Firstrade is $0.
Firstrade's customer service is good in the industry. They offer excellent quality support and have an extensive knowledge base available on their website. You can contact them by phone, email, available Monday through Friday 8 a.m. to 6 p.m. Eastern Time.
Is Firstrade a regulated broker?
Yes, Firstrade is a regulated and licensed broker. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Firstrade offers a comprehensive range of services to help you find Stocks, ETFs, Options, Fixed Income and Mutual Funds that are right for you. They have been in business since 1985 and are one of the most well known brokerages in the world. It is commission free for ETFs, stock and Options trades, though they don't offer forex and cryptos. If you are a stock trader, you can choose Firstrade as it's a safe and secure broker. It's a good choice compared to many other brokers. Any investments involve risk, get enough knowledge before jumping into it.