When I first got into investing, Firstrade was my pick.
It is beginner-friendly and it offers $0 commission trading with SIPC protection.
Let’s take a look at what the trading platform offers first. I will tell you my experience in the later part.
History of Firstrade
Firstrade began in 1985 as the discount broker First Flushing Securities, serving the investment needs of the local community. Achieving steady and organic growth, the company caught sight of the benefits to be gained from tapping into the capabilities of the Internet.
Top Features
- Low-cost investing
• $0 Commission Trades
• $0 Options Contract Fees
• No Minimums, No Inactivity Fees
- SIPC protection
“Your account is insured by SIPC for up to $500,000”, according to Firstrade official website. It means that even if (touch wood), anything happens to Firstrade, you get your money back up to $500,000.
In other words, you don’t need to worry about depositing your money to Firstrade, it’s safe.
- Visa Debit Card
Not every broker provides a debit card, Firstrade does. Even if you are an international client, as long as you have over $25,000 in the account, you can apply for one, for free.
– Crypto Coverage
If you are a US citizen, you can trade crypto on Firstrade. So you don’t need to use multiple platforms for keeping your stocks and cryptos.
My Experience
- Sign-up was quick and easy
I remember from the original signing up for the account to be able to use it only took less than a week, and I’m ready to trade.
- Easy-to-use user interface
Getting started with investing, the last thing I want is hassle.
They have provided a clean and easy-to-use interface across all devices. The consistency in their theme styling is spot on.
As a beginner investor back then, I did not find any difficulty using their platform.
Oh, and I love their deep blue theme as well.
- Option contract is… free also?
Yes. You see, the commission fee charged per contact is almost a certain practice across all other trading platforms. However, Firstrade offers $0 commission for option contracts, which is too good to be true.
Fairly speaking, their option chain tool is rather lacking compared to IBKR with charts to show profit or loss potentials. I am not really an option trader, this is as far as I went, played with a few trades. It works though.
- Features are basic on the mobile app but good on the website
After I’ve tried countless platforms since then, Firstrade stood out as a straightforward and everyday investor-friendly investing tool.
If you are not a trader, more or less a long-term investor, you will definitely find Firstrade more than enough for what you need.
- Access to Morningstar rating
Morningstar, Inc. is a reputable American financial services firm that provides an array of investment research and investment management services. They give ratings to individual stocks based on the company’s earnings and potential. It is a quality service you need to pay to have access to.
As a Firstrade client, you have free access to this information on Firstrade website. See the stars here on the mobile app? It is from Morningstar too.
- Long trailing stop % execution duration
If you don’t know what it is, trailing stop selling % means to execute a trade whenever the stock has x% below its all-time high, it is a great tool to set your stop loss yet not limit your gain potential.
Some simpler brokers don’t have this feature at all. Some provide a limited 7 days, 14 days or 30 days. Firstrade on the other hand provides 90 days (as shown in the picture GT90 – Good till 90 days), which is quite enough.
- Hiccups happened a few times
It happened two times to me. Large users have reported “a wrong balance and holdings are shown on their account for 1–2 days”. I have experienced that myself as well.
It was worrying because the numbers were all wrong. For example, I remember on the app it showed that I had borrowed margin and shorted a stock which I never did. I didn’t know what to do except write an email to Firstrade CS. Got an automatic reply back on the following day saying they were fixing it.
The problem was resolved 2 days later.
Was it scary? Yeah a bit, especially if you’re doing trading among those dates. But if you’re a long-term investor? It doesn’t matter much.
- Leveraged ETFs and option trading out of the box
Unlike its competitors, I can trade SQQQ and TQQQ or such 3 times leveraged ETFs without applying nor doing paperwork.
For example, IBKR and Charles Schwab requires you to satisfy certain requirement (mostly account balance threshold and trading experience in different vehicles) AND apply to them for approval, before you can trade option and leveraged ETFs.
Firstrade provides those out of the box. Simple. Don’t forget it is free too.
Would I Suggest It To You?
Yes I would, especially if you’re new to investing or want something simple but feature-packed.
Give it a try, you won’t lose a penny (hopefully).
Or if you are a value investor and do long-term investing, it’s good for that too.
However, for day trading, I would suggest IBKR or Think Or Swim with Schwab.
Conclusion
Firstrade is one of the lowest-cost, easiest-to-use, beginner-friendly and feature-packed investing tools you can find on the market. The pros outweigh the cons, personally.
Note:
I might get a small commision if you sign up using the link.
Reference:
Firstrade – What are the minimum account requirements to place option trades?
Finding Out Which Type Of Investors You (Really) Are
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