Firstrade Review

 

Overall, Firstrade is an American company founded in 1985 with headquarters in New York, NY, United States.

The company has competitive spreads across all six account options; their spreads are competitive when compared to other FINRA Financial Industry Regulatory Authority and Securities brokers.

 

 

 

 

Firstrade Spider Chart

 

Pro and cons

 

Overview

 

• According to research in South Africa, Firstrade is an American company founded in 1985 with headquarters in New York, NY, United States.
• The company started out in 1985 as First Flushing Securities. By 1997, it was renamed Firstrade Securities, Inc.
• and launched Firstrade.com as one of the first online trading platforms.
• Today, Firstrade is a leading online brokerage firm offering a full line of investment products and tools designed to help investors take control of their financial future.

 

Featured Offered

• Firstrade offers a variety of featured promotions designed to enhance the investing experience for both new and existing clients.
• Current offers include a 1% ACAT transfer cash bonus for eligible asset transfers, a wire transfer fee rebate for deposits over $10,000, and an overnight trading feature allowing investors to trade over 1,200 U.S. stocks and ETFs outside regular market hours.
• These initiatives provide valuable incentives and flexible trading options, reflecting Firstrade’s commitment to helping investors maximize potential returns, though each promotion is subject to specific terms and eligibility requirements.

 

 

Firstrade Customer Reviews

• Firstrade’s customer reviews present a mixed picture.
• On Trustpilot, the company holds a modest rating of 1.9 out of 5 stars, based on 45 reviews.
• Many users have expressed frustration with the brokerage’s customer service, citing delayed responses and unhelpful support. For instance, one reviewer noted, “Don’t expect any customer service.
• No one bothers to provide any assistance. Representatives decided what/who to respond”

 

 

 

 

Firstrade Safe or scam

 

 

• All companies listed in the U.S stock market are regulated by the Securities and Exchange Commission.
• These U.S securities regulatory agencies include three main organizations: The Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corporation.
• Firstrade serves its clients through Firstrade Securities, Inc.
• It is regulated by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority and Securities Investor Protection Corporation (SIPC), and all customers are covered by the US investor protection scheme, called SIPC.

 

Is Firstrade a safe broker to use?

Yes, Firstrade is a safe and regulated U.S. broker. It is licensed and supervised by the SEC and FINRA, and client funds are protected by SIPC insurance. This ensures compliance with strict financial and operational standards.

 

Is Firstrade a scam?

No, Firstrade is not a scam. It has been operating since 1985, offering transparent brokerage services. While some customers report slow support, its regulatory oversight and client protections confirm it is a legitimate and trustworthy platform.

 

 

Firstrade at a glance

🔍 Broker's Name
📍 Headquartered	New York
📅 Year Founded	1985
🏛 Regulating Authorities	the Financial Industry Regulatory Authority (FINRA)
🌐 Countries not accepted for trade	Most countries accepted
☪️️ Islamic Account (Swap Free)	No
📒 Demo Account	Yes
📒 Institutional Accounts	No
💻 Managed Accounts	Yes
📊 Maximum Leverage	Margin of 6%
💳 Minimum Deposit	No Minimum Deposit
💳 Deposit Options	ACH, Cheque, Bank Wire Transfer
💳 Withdrawal Options	ACH, Cheque, Bank Wire Transfer
💻Platform Types	Firstrade proprietary platform
📲 OS Compatibility	PC and Mac OS, mobile for Android and IOS
📊 Tradable Assets	Stocks Options ETFs Mutual Funds Bonds/CDs/Fixed Incomes Margin Investing Dividend Reinvestment (DRIP) Securities Lending Income Program
🌐 Languages Supported	English, Traditional Chinese and Simplified Chinese
☎ Customer Service Hours	24 hours a day/ 5 days a week
📝Sign up	👉Open Account

 

Firstrade Account Types

 

• Firstrade offers a diverse range of account types to cater to various investment goals and preferences.
• For individual investors, options include standard brokerage accounts, which can be held individually or jointly, as well as retirement accounts such as Traditional, Roth, and Rollover IRAs.
• Additionally, Firstrade provides custodial accounts for minors, Coverdell Education Savings Accounts (ESAs) for educational expenses, and Trust accounts for estate planning purposes.
• Each account type is designed to offer flexibility and tax advantages, allowing investors to choose the structure that best aligns with their financial objectives.

 

Brokerage Accounts

 

• Firstrade’s brokerage accounts are designed for individual investors seeking flexibility in managing their investments.
• These accounts allow for the trading of stocks, ETFs, mutual funds, and options, with features such as extended hours trading, dividend reinvestment plans, and margin trading.
• Investors can choose between individual accounts or joint accounts, including Joint Tenants with Rights of Survivorship (JTWROS) and Tenants in Common, to suit their ownership preferences.

 

Retirement Accounts

 

• Firstrade provides various retirement account options to help individuals plan for their financial future:
• Traditional IRA: Offers tax-deferred growth, allowing contributions to be deducted from taxable income.
• Roth IRA: Provides tax-free growth and tax-free withdrawals in retirement, subject to certain conditions.
• Rollover IRA: Facilitates the transfer of funds from an employer-sponsored retirement plan into an IRA, maintaining the tax-deferred status of the assets.
• These accounts grant access to a wide range of investment options, including stocks, bonds, mutual funds, and options, with the added benefit of tax advantages.

 

Custodial Accounts

• Custodial accounts are designed to help parents or guardians invest on behalf of minors.
• These accounts are managed by a custodian until the minor reaches the age of majority, at which point control of the account is transferred to them.
• Custodial accounts can be used to invest in a variety of assets, providing a means to save for a child’s future educational or financial needs.

 

Coverdell Education Savings Accounts (ESA)

• The Coverdell ESA is a tax-advantaged account designed to help families save for educational expenses.
• Contributions to a Coverdell ESA grow tax-deferred, and withdrawals used for qualified education expenses are tax-free.
• This account allows for a broad range of investment options, including stocks, bonds, mutual funds, and ETFs, to help meet educational funding goals.

 

Trust Accounts

• Trust accounts are established to manage assets on behalf of beneficiaries, according to the terms set forth in a trust agreement.
• These accounts are suitable for estate planning purposes, allowing for the management and distribution of assets in a manner that aligns with the grantor’s wishes.
• Trust accounts can hold a variety of investments, providing flexibility in asset management and distribution.
  Firstrade Help Center

 

Cash Management Account

• Firstrade’s Cash Management Account combines the features of a brokerage account with the convenience of a checking account.
• It offers benefits such as a free ATM/debit card, check writing capabilities, and worldwide ATM access, all while providing the ability to trade and invest.
• This account is ideal for individuals seeking to manage their finances and investments in one place.

 

 

What types of accounts does Firstrade offer?

Firstrade provides a variety of account types, including Individual and Joint Brokerage Accounts, Retirement Accounts (IRA, Roth IRA, Rollover IRA), Custodial Accounts, and Margin Accounts. Each account type is designed to suit different investment goals and tax considerations.

 

Can I open both a cash account and a margin account at Firstrade?

Yes, Firstrade allows investors to open a cash account for standard trading and a margin account for leveraged trading. Margin accounts provide borrowing power to increase investment capacity but come with additional risks, including potential margin calls.

 

How to open a Firstrade Trading Account – Step by Step

• Opening an account at Firstrade is easy.
• You just need to fill out the online forms and send Firstrade the documents via email or fax.
• Firstrade saves your trading records and financial documents for up to 7 years.
• You can easily check and print your statements, trading confirmations, and tax documents at your convenience.

 

Step 1 – Navigate to the Firstrade website and click on ‘open an account.”

• Navigate to the account registration area on the Firstrade website.
• This can be accessed by clicking on the Open an Account tab at the top of the landing page

 

 

Step 2 – Fill out the Firstrade account registration form

• Fill out the short online registration form to request a live account.
• You will need to provide your contact number and proceed through the verification process.

 

 

Step 3 –  Provide Country of residence

• Once the registration form is submitted, you will be redirected through the KYC process, whereby the Country of Citizenship and Birth need to be provided. Click “next” to continue.

 

 

Step 4 – Upload the Passport image.

• The fourth step in the account registration process requires proof of a passport, as well as the passport’s signature  page

 

 

Step 5 – Firstrade Identity Verification Process

• Proceed through the Firstrade account verification process by providing personal information: First name, Last name, Date of birth, tax number, gender, and address.

 

 

 

Firstrade Fees and Spreads

• Firstrade provides horizontal spreads, which vary depending on the instrument traded.
• In terms of commissions, these are not charged on most assets, so trading fees consist of spreads only.

 

What trading fees does Firstrade charge?

Firstrade offers $0 commissions for online U.S. stock, ETF, and options trades. There are no account maintenance fees, inactivity fees, or hidden charges. Certain services, like broker-assisted trades or international transactions, may incur fees.

 

How are spreads handled on Firstrade?

Firstrade provides tight, competitive spreads for stocks, ETFs, and options. For options, the standard per-contract fee is $0, and for other instruments, spreads reflect market conditions without additional markup, ensuring transparent pricing for investors.

 

 

Firstrade Trading platforms

 

 

• The forex trading platform provided by Firstrade to its clients is the software to carry out their trades.
• Some brokers provide only one, others quite a few platforms.
• A multi-asset trading platform is one that allows clients to trade forex as well as other asset classes.
• The decision about which platform to choose will usually depend on what a client would like to trade.

 

Firstrade Web Platform

• The Firstrade web platform provides a comprehensive suite of tools for investors to manage their portfolios and execute trades efficiently.
• Users can access real-time market data, place conditional orders, and utilize advanced charting features.
• Additionally, the platform offers access to premium research from Morningstar, Zacks, and Briefing.com, aiding investors in making informed decisions.

 

Firstrade Mobile App

• Available for both iOS and Android devices, the Firstrade mobile app ensures that investors can manage their accounts and execute trades from anywhere.
• The app boasts features such as biometric login, real-time portfolio tracking, advanced options trading capabilities, and a user-friendly interface that mirrors the desktop experience.
• With access to over 2,500 banks for easy fund transfers, the mobile app offers convenience and flexibility for on-the-go trading.

 

Firstrade Overnight Trading

• Firstrade’s Overnight Trading feature allows investors to trade U.S. stocks during non-traditional hours, providing the flexibility to respond to global market movements anytime.
• This feature, launched in partnership with Blue Ocean, aims to set a new standard in flexibility and accessibility for after-hours trading.
• It ensures that investors are always in control, whether managing long-term investments or taking advantage of short-term opportunities.

 

Firstrade Options Trading Platform

• Designed for options traders, Firstrade’s platform offers $0 commission and $0 contract fees for options trades, with no exchange, exercise, or assignment fees.
• The platform provides advanced tools such as rolling options, implied volatility (IV) analysis, and Greeks, enabling traders to implement strategies like condors, butterflies, and straddles.
• Ranked 4.5 stars for “Ease of Use,” the platform caters to both novice and experienced options traders.

 

Firstrade Cash Management Account

• The Firstrade Cash Management Account offers investors the convenience of managing, investing, and spending their money all from one account.
• With no setup or annual fees, the account provides features like free ATM/debit card access, check writing, and worldwide ATM access.
• This integrated approach ensures that investors can capitalize on market opportunities without the need to transfer funds between separate accounts.

 

 

What trading platforms does Firstrade offer?

Firstrade provides a variety of trading platforms designed to meet the needs of all types of investors. This includes a web-based platform for easy online trading, a mobile app for trading on the go, and an advanced desktop platform with research tools, charts, and real-time market data.

 

Can I trade stocks, options, and ETFs on Firstrade platforms?

Yes, all Firstrade platforms support trading in U.S. stocks, options, ETFs, and mutual funds. They provide user-friendly interfaces, real-time quotes, and risk management tools to help investors execute trades efficiently and monitor their portfolios.

 

Firstrade Deposit and Withdrawals

• Firstrade has a limited selection of deposit methods, consisting of bank wire transfers, checks, and ACH payments.
• Check deposits are available to US clients only. In terms of deposit security, customers have reliable account protection through Firstrade’s SIPC insurance membership and additional coverage with Apex Clearing Corp.
• If you have a US-based bank account, you may link your bank account to your Firstrade account.
• Once you complete the setup, you will be able to transfer funds electronically without any fees. You can only withdraw money to accounts in your name.

 

What deposit methods does Firstrade offer, and are there any fees?

Firstrade allows deposits via bank wire, ACH transfer, check, or transfer from another brokerage account. Most deposit methods are free of charge, though certain wire transfers may incur a small fee from the sending bank. Deposits are usually credited within 1–3 business days.

 

How can I withdraw funds from my Firstrade account, and how long does it take?

Withdrawals can be made via ACH transfer, wire transfer, or check. ACH transfers typically take 1–3 business days, while wire transfers are usually completed the same day or next business day. Firstrade generally does not charge withdrawal fees, but third-party banks may apply their own fees.

 

💠 Feature	💰 Deposit	💸 Withdrawal
🏦 Payment Methods	ACH (U.S. bank), Wire transfer (domestic & international), Check (U.S. only), Broker-to-broker transfer	ACH transfer, Wire transfer (domestic & international), Check (U.S. only)
⏱️ Processing Time	ACH: 1–3 business days Wire: same day to 1–2 business days Check: up to 5 business days Broker transfer: several days depending on institution	ACH: 2–3 business days Wire: 3–5 business days Check: 5–10 business days depending on delivery method
💵 Minimum Amount	No minimum deposit required to open an account	No specified minimum withdrawal amount (subject to settled funds)

 

Leverage

• Firstrade offers margin accounts that allow investors to leverage their investments by borrowing funds to purchase additional securities.
• This borrowing capacity is typically up to 50% of the total purchase price, effectively enabling investors to double their buying power.
• For instance, with $10,000 in cash, an investor could potentially purchase up to $20,000 worth of securities on margin.
• The securities themselves serve as collateral for the loan, and the investor is required to maintain a minimum equity level, known as the maintenance margin, to cover potential losses.

 

Firstrade vs  Interactive Brokers (IBKR) – A Comparison

 

Research

• Firstrade offers a comprehensive suite of research tools designed to empower investors with actionable insights and data-driven strategies.
• In collaboration with Trading Central, Firstrade provides features such as Technical Insight® for trend analysis, TC Market Buzz® for AI-powered news sentiment, and curated thematic portfolios to explore sectors like AI and ESG.
• The Strategy Builder™ allows users to screen stocks based on over 65 criteria, while an economic calendar helps track significant events impacting the markets.
• Additionally, FirstradeGPT, an AI-powered research assistant, consolidates financial data and visualizes key metrics to support informed decision-making.

 

 

Awards

• Firstrade has received several industry awards recognizing its commitment to providing accessible and user-friendly investment services. It has been praised for ease of use and low commissions, consistently earning high ratings from leading financial reviewers.
• These accolades highlight Firstrade’s dedication to delivering high-quality, cost-effective trading solutions and exceptional value to investors, particularly for ETF and bond trading.

 

Customer Reviews

⭐ Aristos Panteli, Senior Account Manager

Aristos Panteli is a seasoned Senior Account Manager known for his professionalism and deep understanding of client needs. He provides personalized guidance, helping investors navigate complex trading options while ensuring their accounts are managed efficiently and securely.

 

⭐ Great assistance from Aristos Panteli!

Clients consistently praise Aristos Panteli for his exceptional assistance. He responds promptly to inquiries, offers clear explanations, and goes the extra mile to resolve issues. His support ensures a smooth and confident trading experience for both new and experienced investors.

 

⭐ I have worked with many different

Having worked with numerous brokers and account managers, clients note that Aristos Panteli stands out for his reliability and expertise. His approachable demeanor and thorough knowledge make him a preferred choice for anyone seeking professional guidance in managing investments.

 

 

Disclaimer

Online trading has fundamental risks due to system response and access times that may vary due to market conditions, system performance, and other factors.

An investor should understand these and additional risks before trading.

Carefully consider the investment objectives, risks, charges, and expenses before investing. All investments involve risk, and losses may exceed the principal invested.

Firstrade is a discount broker that provides self-directed investors with brokerage services and does not make recommendations or offer investment, financial, legal, or tax advice.

The investment choices and services on the Firstrade site are provided as general information only and are not intended to provide investment recommendations, tax, or legal advice.

 

You might also like:

Firstrade Account Types Overview

Firstrade Demo Account – Step by Step

Firstrade Fees and Spreads

Firstrade Minimum Deposit

Firstrade Sign up Bonus

 

Frequently Asked Questions

 

What types of accounts does Firstrade offer?

Firstrade provides individual, joint, retirement, and custodial accounts. Each account type is designed for different investor needs, including traditional and Roth IRAs, allowing for tax-advantaged investing, flexible trading options, and access to stocks, ETFs, options, and mutual funds.

 

What trading products are available on Firstrade?

Firstrade allows trading in U.S. and international stocks, ETFs, options, mutual funds, bonds, and IPO shares. Users benefit from commission-free trading for stocks, ETFs, and options, along with access to research tools, educational materials, and analytical resources for informed investing.

 

Is Firstrade regulated?

Yes, Firstrade is regulated by the SEC and FINRA, ensuring it follows U.S. securities laws. Client assets are protected by SIPC insurance, which safeguards securities and cash in case of broker-dealer failure, confirming its legitimacy and strong compliance standards.

 

How can I deposit funds into my Firstrade account?

Deposits can be made via bank transfer (ACH), wire transfer, or by mailing a check. Firstrade provides detailed instructions for each method. Most ACH transfers are instant or take one business day, while wire transfers are usually completed the same day.

 

What are the fees and commissions at Firstrade?

Firstrade offers commission-free trading for U.S. stocks, ETFs, and options, with no account maintenance fees. Some fees apply for mutual funds, bonds, or special services, but overall, it is a low-cost broker ideal for investors seeking affordable trading.

 

How does Firstrade ensure account security?

Firstrade uses advanced encryption, multi-factor authentication, and secure login procedures to protect user accounts. Client funds are segregated, and SIPC insurance covers assets up to applicable limits, providing a secure environment for trading and account management.

 

What research and educational resources are available?

Firstrade offers market news, stock screeners, trading tools, webinars, and guides to help investors make informed decisions. The platform provides detailed reports, IPO information, and options analysis, making it suitable for both beginner and experienced traders.

 

How can I withdraw funds from Firstrade?

Withdrawals can be made via ACH transfer or wire transfer. ACH withdrawals typically take 1–3 business days, while wire transfers are faster but may incur fees. Users must ensure their account is verified and any pending trades are settled.

 

Does Firstrade offer a mobile trading app?

Yes, Firstrade provides a mobile app for iOS and Android devices. The app allows users to trade stocks, ETFs, and options, access account information, receive market updates, and utilize research tools, offering full functionality similar to the web platform.

 

How is Firstrade’s customer service?

Firstrade provides customer support via phone, email, and online chat. While some reviews note delayed responses, the support team is available to assist with account issues, technical questions, and trading inquiries, aiming to help users navigate the platform efficiently.