Compare Firstrade and Charles Schwab on fees, DRIP, fractional shares and research for dividend investing.
Updated August 26, 2026
Firstrade and Charles Schwab both charge $0 for stock and ETF trades, but Firstrade goes further on price: $0 options contract fees (versus Schwab’s $0.65) and free trading on every mutual fund. Schwab answers with what Firstrade lacks — strong research, 24/7 customer support, the thinkorswim platform, and fractional shares via Stock Slices.
For dividend investors the trade-off is clear: Firstrade is the cheaper toolbox with fewer tools — no fractional shares, dated platform, minimal research, 0.15% on idle cash. Schwab is the complete brokerage that costs slightly more only if you trade options heavily.
A pioneer of commission-free trading offering truly free options (no contract fees) and mutual funds—one of the most cost-effective brokers available.
A trusted full-service broker with zero commissions, 400+ branches, and powerful thinkorswim trading platform.
| Feature | Firstrade | Charles Schwab |
|---|---|---|
| Our Rating | 4.2/5 | 4.8/5 |
| Trading Commissions | $0 | $0 |
| Account Minimum | $0 | $0 |
| Fractional Shares | N/A | S&P 500 only |
| DRIP | Free | Free |
| Research Tools | Basic | Excellent |
| Best For | Options Income Investors | Beginners Who Want Support |
Want the full breakdown of fees, DRIP, and research tools? Read our Firstrade review and Charles Schwab review.
Schwab for most dividend investors — the research, support, and S&P 500 fractional shares are worth far more than Firstrade’s options savings for a buy-and-hold income strategy. Firstrade makes sense for experienced, cost-obsessed investors who sell covered calls or trade options around dividend positions, where $0 contract fees genuinely add up.
Schwab for most people: better research, 24/7 support, fractional shares on S&P 500 stocks, and free DRIP. Firstrade’s advantages are $0 options contract fees and free mutual fund trading, which matter mainly to active options traders.
No. Firstrade does not offer fractional share purchases. Schwab offers Stock Slices for S&P 500 companies, and both platforms reinvest dividends for free.
Both charge $0 for stocks and ETFs. Firstrade charges $0 per options contract and $0 for all mutual funds; Schwab charges $0.65 per contract and $6.95 for OTC stocks. Firstrade pays a low 0.15% on cash and charges $75 for transfers out versus Schwab’s $50.
Yes — that’s its sweet spot. With no per-contract fees, a covered-call income strategy costs literally nothing in commissions at Firstrade, while the same trades at Schwab cost $0.65 per contract each way.
Both reinvest ETF and stock dividends free. Firstrade has no direct fractional shares, so DRIP is the only way to accumulate partial shares there; Schwab reinvests into fractional shares but DRIP is off by default — enable it per position. Interactive Brokers, the third name in this search, charges a small commission on DRIP purchases ($0.35 or 0.1%, whichever is less) and only offers account-level reinvestment, though it has fractional shares on 10,000+ stocks and ETFs.
Not sure these are the right fit? Explore more comparisons.
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.