Platform Comparison

E*TRADE vs Firstrade

Compare E*TRADE and Firstrade on fees, DRIP, fractional shares and research for dividend investing.

Higher Rated
ET

E*TRADE

★4.6

Morgan Stanley's full-service brokerage pairs $0 commissions and free dividend reinvestment with institutional-grade research—and in 2026 it finally added direct fractional shares and crypto trading.

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FT

Firstrade

★4.2

A pioneer of commission-free trading offering truly free options (no contract fees) and mutual funds—one of the most cost-effective brokers available.

Full Review

E*TRADE vs Firstrade: Fees, Minimums & DRIP Compared

FeatureE*TRADEFirstrade
Our Rating4.6/54.2/5
Trading Commissions$0$0
Account Minimum$0$0
Fractional SharesYes (phased rollout)N/A
DRIPFreeFree
Research ToolsExcellentBasic
Best ForResearch-Driven Dividend InvestorsOptions Income Investors

E*TRADE vs Firstrade: Pros and Cons

E*TRADE

Pros

  • + Commission-free trading on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional shares, enrollable per security
  • + Industry-leading research from Morgan Stanley, Morningstar, and MarketEdge
  • + Direct fractional-share purchases now rolling out (started Q2 2026)
  • + Crypto trading live at a 0.50% fee—cheaper than Coinbase, Schwab, and Fidelity

Cons

  • - Fractional-share purchases are still in a phased rollout—not every stock is eligible yet
  • - No dollar-based orders yet; fractional buys are share-quantity only
  • - Low interest rate on uninvested cash
  • - Website navigation can be confusing

Firstrade

Pros

  • + Commission-free stocks, ETFs, options, AND mutual funds
  • + No per-contract fees on options—truly free options trading
  • + Free dividend reinvestment program
  • + No account minimums or inactivity fees
  • + Securities lending lets you earn extra income on shares

Cons

  • - Very low 0.15% interest on uninvested cash
  • - Dated platform interface that can be hard to navigate
  • - No forex, futures, or cryptocurrency trading
  • - Limited research and analysis tools

Which Is Better for Dividend Investors: E*TRADE or Firstrade?

Choose E*TRADE if you...

  • Are in E*TRADE's core audience: research-driven dividend investors
  • Prefer a higher-rated overall platform

Choose Firstrade if you...

  • Are in Firstrade's core audience: options income investors

Want the full breakdown of fees, DRIP, and research tools? Read our E*TRADE review and Firstrade review.

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Investment Disclaimer

Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.