Firstrade

Overview

Firstrade Securities Inc., based in the United States, operates as an unregulated brokerage firm, offering commission-free trading for stocks, ETFs, and options. The platform provides user-friendly trading platforms accessible on various devices, including desktops, iPads, and mobile phones, with additional advanced analytics tools like OptionsWizard for serious investors. Investors can trade a diverse range of assets, including stocks, ETFs, options, mutual funds, fixed income securities, CDs, and bonds. Firstrade offers various account types, including Individual and Joint brokerage accounts, as well as Traditional, Roth, and Rollover IRAs, catering to different investor needs. Customer support is available via email, phone, fax, Help Center, and in-person support at the New York headquarters during specified hours. Payment methods include ACH Electronic Funds Transfer, Wire Funds, Transfer from Another Financial Institution, and Check Deposit. Additionally, investors can access real-time news and research from reputable sources like Morningstar, OptionsPlay, Briefing.com, and Zacks for educational purposes.

Regulation

Firstrade operates as an unregulated broker, lacking oversight from government agencies such as the SEC or FINRA. Without regulation, investors may face increased risk and potential challenges in resolving disputes or ensuring fair trading practices. It's essential for investors to carefully consider the regulatory status of a brokerage firm before engaging in any financial transactions.

Pros and Cons

Firstrade presents investors with several advantages, including commission-free trading for stocks, ETFs, and options, along with access to a wide range of investment products and account types. Additionally, the platform offers transparent pricing and convenient payment methods. However, as an unregulated broker, Firstrade lacks oversight from government agencies, potentially exposing investors to increased risk and challenges in dispute resolution.

In summary, Firstrade offers attractive benefits such as commission-free trading and a diverse range of investment options. However, the absence of regulatory oversight may pose risks for investors, requiring careful consideration before engaging with the platform.

Market Instruments

Firstrade offers a comprehensive range of investment products to diversify portfolios:

1. Stocks/ETFs: Firstrade enables trading of stocks and Exchange-Traded Funds (ETFs) listed on major exchanges such as NYSE, AMEX, Nasdaq, and Over-the-Counter (OTC) markets. Investors can diversify their portfolios by investing in a wide range of stocks and ETFs without paying any commission fees.

2. Options: Investors can hedge their portfolios using options trading, facilitated by Firstrade with zero commission charges and no contract fees. This feature allows investors to manage risk effectively and implement various trading strategies involving options contracts.

3. Mutual Funds: Firstrade provides access to a vast selection of over 11,000 mutual funds, allowing investors to create professionally managed portfolios. With this extensive range of mutual funds, investors can tailor their investment portfolios to suit their financial objectives and risk tolerance, all without incurring commission fees.

Account Types

1. Brokerage Account:

1. These accounts are suitable for building wealth, managing investments, and accessing various investment opportunities across different asset classes.

2. With an Individual brokerage account, you can invest on your own behalf, while a Joint account allows multiple individuals to invest together.

3. Firstrade offers Individual and Joint brokerage accounts, providing access to a diverse range of asset types.

2. Retirement Account (IRA):

1. These IRA options enable investors to save for retirement in a tax-efficient manner, with flexibility in choosing the timing and tax treatment of contributions and withdrawals.

2. Rollover IRA: This account allows you to transfer funds from a former employer's retirement plan, such as a 401(k), into an IRA without incurring taxes or penalties.

3. Roth IRA: Contributions to a Roth IRA are made with after-tax dollars, but qualified withdrawals, including earnings, are typically tax-free, offering tax-free growth potential.

4. Traditional IRA: Contributions to this account may be tax-deductible, and earnings grow tax-deferred until withdrawal during retirement, potentially lowering your current taxable income.

5. Firstrade provides several types of Individual Retirement Accounts (IRAs) to help investors save for retirement while potentially enjoying tax benefits.

Pricing

1. Stocks and ETFs:

1. Commission: $0 for both stocks and ETFs, allowing investors to trade these securities without incurring any transaction fees.

2. Options:

1. Exercise and Assignment Fees: $0, providing cost-free options trading.

2. Contract Fee: $0 per contract.

3. Commission: $0 per trade.

3. Mutual Funds:

1. No Transaction Fee (NTF) Funds: Investing in NTF funds is also free, offering a range of mutual funds without transaction fees.

2. No-Load Funds: Free to buy no-load mutual funds.

3. Load Funds: No charge for purchasing load funds.

4. Fixed Income:

1. Secondary Market CDs: Pricing is based on a net yield basis.

2. Primary Market CDs: $30 fee for transactions involving primary market CDs.

3. Agency Bonds and Zeros & Strips: Pricing follows a net yield basis.

4. Municipal Bonds: Similarly, pricing is based on a net yield basis.

5. Treasury Bills, Notes & Bonds: Pricing is based on a net yield basis.

Overall, Firstrade's fee structure is designed to be transparent and cost-effective, with no commissions for stocks, ETFs, and options trading, and minimal fees for fixed income investments, ensuring investors can manage their portfolios efficiently without incurring excessive costs.

Payment Methods

1. ACH Electronic Funds Transfer:

1. ACH transfers typically take 2-3 business days to set up, and you'll need to verify two small deposits in your bank account.

2. Amend Existing ACH Transfer: Follow similar steps as above to update your ACH profile.

3. Setup Initial ACH Profile – ACH Form: Download the Electronic Funds Transfer (ACH) Agreement, fill in your details, attach a voided check or bank statement, and submit via online document upload, email, fax, or mail.

4. Setup Initial ACH Profile Online: Log in to your account, go to “My Accounts” -> “Deposit/Transfer” -> “Bank Profile,” and follow the instructions.

2. Wire Funds:

1. Different procedures apply for international and domestic transfers.

2. Funds are available immediately after receipt of the wire.

3. Provide sending institution with details including amount, bank name, address, SWIFT code, account name, account number, and final credit information.

3. Transfer from Another Financial Institution:

1. Transfers usually take about 5-7 business days and require matching account types.

2. Initiate the process online, providing details of your existing brokerage firm and matching Firstrade account.

4. Check Deposit:

1. Different guidelines apply for IRA contributions and deposits, and certain types of checks are not accepted.

2. Mail checks to the provided address, including account number on the check.

3. Make checks payable to Firstrade Securities, ensuring they're in U.S. dollars and from a U.S. bank.

Firstrade offers these four convenient methods for users to deposit funds, transfer between accounts, and initiate account transfers, providing flexibility to suit individual preferences and needs.

Trading Platforms

Firstrade offers user-friendly trading platforms accessible on desktops, iPads, and mobile phones, allowing investors to manage their accounts and execute trades conveniently.

For serious investors, the OptionsWizard provides advanced options analytics to identify investment opportunities in the options market.

Additionally, users can explore trade ideas with real-time news and research from reputable sources like Morningstar, OptionsPlay, Briefing.com, and Zacks. They can access analyst reports, monitor earnings, browse upcoming IPOs, and receive daily trading ideas and weekly income reports.

In summary, Firstrade's platform offers a range of tools and resources to help users make informed investment decisions and capitalize on market opportunities.

Customer Support

Firstrade offers comprehensive customer support through various channels:

1. Help Center: Users can access answers to frequently asked questions in the Help Center section, providing quick solutions to common queries.

2. Email Support: Customers can reach out to Firstrade's customer service agents via email for assistance with any questions or concerns they may have.

3. Phone Support: Live support is available Monday to Friday, from 8:00 am to 6:00 pm ET. Users can contact Firstrade's U.S. toll-free number for assistance, or use the international number if calling from outside the U.S.

4. Fax: Customers can send forms, agreements, and other documents via fax to the provided number for assistance with account-related matters.

Additionally, Firstrade provides important links on their website for easy access to resources such as searching for forms and funding accounts. Their headquarters in New York is also available for in-person assistance during specified office hours from Monday to Friday.

Overall, Firstrade offers multiple avenues for customers to seek assistance, ensuring that they receive the support they need promptly and efficiently.

Conclusion

In conclusion, Firstrade provides a comprehensive suite of investment services, offering a wide range of market instruments and account types to cater to investors' needs. With transparent pricing structures and convenient payment methods, investors can manage their portfolios efficiently while enjoying cost-effective trading. The user-friendly trading platforms, coupled with advanced analytics tools and extensive research resources, empower investors to make informed decisions and capitalize on market opportunities. Additionally, Firstrade's commitment to customer support ensures that users receive prompt assistance through various channels. Overall, Firstrade presents a compelling option for investors seeking a reliable and accessible online trading platform.

FAQs

Q1: How can I open a Firstrade account？

A1: You can easily open a Firstrade account online by visiting our website and following the simple account opening process.

Q2: What types of accounts does Firstrade offer？

A2: Firstrade offers a variety of account types including Individual and Joint brokerage accounts, as well as Traditional, Roth, and Rollover IRAs for retirement savings.

Q3: Are there any fees for trading stocks and ETFs？

A3: No, Firstrade charges $0 commission fees for trading stocks and ETFs, allowing you to invest without incurring transaction costs.

Q4: How long does it take to set up an ACH transfer profile？

A4: Setting up an ACH transfer profile typically takes 2-3 business days, during which you'll need to verify two small deposits in your bank account.

Q5: Can I get assistance with account-related queries？

A5: Yes, Firstrade offers comprehensive customer support through various channels including email, phone, and a Help Center to address any questions or concerns you may have.

Risk Warning

Online trading carries substantial risk, potentially leading to the total loss of invested funds. It may not be appropriate for all traders or investors. It's crucial to fully comprehend the associated risks before engaging in trading activities. Additionally, the content of this review is subject to change, reflecting updates in the company's services and policies. The review's creation date is also relevant, as information could have become outdated. Readers should confirm the latest information with the company prior to making any investment decisions. The responsibility for utilizing the information provided herein lies exclusively with the reader.