Historically, investing in stocks and options was reserved for those with ample financial means, taking into consideration the hefty fees and commissions. However, the rise of affordable online brokerages has democratized this space, enabling virtually anyone to kickstart their investment journey.
One pioneer in this realm is Firstrade, an early player in offering budget-friendly trading solutions in stocks, bonds, and mutual funds. This review aims to shed light on Firstrade’s offerings, assisting you in gauging if it aligns with your investment preferences.
Understanding Firstrade
Founded in 1985, Firstrade operated under the banners of First Flushing Securities and Firstrade Securities before embracing the online era with Firstrade.com. This platform, tailored for both beginners and intermediate traders, offers a user-friendly experience backed by essential research tools.
What Can You Trade?
While many economical online trading platforms tend to offer a restricted set of services, Firstrade breaks this mold. Catering to traders across multiple countries and languages, it showcases a broad spectrum of assets. Despite not being a full-fledged brokerage, Firstrade presents an enviable array of options such as stocks, ETFs, cryptocurrencies, mutual funds, and bonds.
These offerings, especially bonds and mutual funds, are pivotal components in the portfolios of many seasoned investors. Firstrade’s extensive range empowers traders to manage both short and long-term investments under one roof.
Beyond its web-centric interface, Firstrade’s mobile application offers an integrated trading experience, permitting the creation of diverse account types, including educational, IRA, and business portfolios.
Key Features of Firstrade
Firstrade comes packed with intriguing features:
- International Reach: Beyond standard brokerage offerings, Firstrade grants access to international markets, opening doors for certain global citizens to the U.S financial domain.
- DRIP Enrollment: With Firstrade, users can seamlessly enroll in the DRIP (Dividend Reinvestment plan) program for eligible stocks priced at a minimum of $4/share.
- IPO Tracking: Stay updated with a monthly roster of upcoming IPOs, detailing vital metrics.
- Advanced Filtering: This tool aids in refining your investment choices based on specific criteria.
- Educational Corner: Firstrade’s treasure trove of educational material, from articles to podcasts, empowers investors to sharpen their skills. Trusted research from Benzinga, Zacks, Briefing.com, and Morningstar is also at your fingertips.
- Cash Management: With an equity of $25,000 or more, gain access to a comprehensive cash management account, bundled with perks like travel insurance.
- Tax Assistance: Firstrade’s dedicated tax section furnishes crucial investment-related tax documents and discussions.
- Security: Firstrade assures protection with SIPC coverage up to $500,000 and pledges 100% compensation for any unauthorized online activities.
Exploring Firstrade’s Tech Landscape
Firstrade operates via two portals – the primary Firstrade platform and its sibling, Firstrade Navigator. Both cater to diverse trading needs, backed by top-notch research tools.
The main platform, accessible on both desktop and mobile, offers dual info columns by default: one for order specifics and the other for market insights. Both columns are customizable for ease of access. Trading becomes a breeze with its quick order entry panel and advanced order configurations.
The mobile version is a compact rendition of the main platform, while Firstrade Navigator caters to those seeking advanced charting and customizable widgets.
Costs Involved
Firstrade prides itself on being a budget-friendly trading hub. Pioneering in free trades for ETFs, stocks, options, and mutual funds, it charges no annual, inactivity, or maintenance fees. However, some fees, like mutual fund redemption ($19.95) or transfer fees ($55-$75), do apply.
Financial Tools at Your Disposal
Regardless of your expertise, Firstrade’s calculators are indispensable in evaluating your investment trajectory. Whether it’s estimating college savings or retirement outcomes, these tools are handy.
Research Capabilities
Firstrade’s comprehensive research tools include dynamic watch lists, in-depth Morningstar reports, and customizable alerts, ensuring you’re always in the know.
Mastering Options with Firstrade
Firstrade shines in the realm of options trading. Apart from providing access, it equips traders with potent tools like the Options Wizard, which offers actionable insights derived from market data.
Exclusive Firstrade Accounts
For elite investors, Firstrade rolls out its Gold Account and Platinum service level, offering exclusive benefits for those with significant account balances.
User Interface Insights
While online trading can appear complex, Firstrade endeavors to cater to both novices and veterans. Though there’s a learning curve, its structured asset screens facilitate easy access to vital data.
Weighing the Pros and Cons
Every platform has its strengths and limitations. Firstrade’s main advantages include its zero-commission framework, no inactivity fees, absence of account minimums, rich research content, customizable dashboard, multilingual support
