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A pioneer of commission-free trading offering truly free options (no contract fees) and mutual funds—one of the most cost-effective brokers available.
Firstrade stands out with completely free options trading—$0 commission AND $0 per contract. Most brokers charge $0.50-0.65 per contract, which adds up quickly for active options traders.
Combined with free stock and ETF trading, Firstrade is one of the most cost-effective platforms available for dividend investors who also want to generate income through covered calls.
This pricing has been Firstrade's differentiator since they were among the first brokers to offer commission-free trading.
Unlike most brokers that charge transaction fees on mutual funds, Firstrade offers free trading on ALL mutual funds—a deal few competitors can match.
This makes Firstrade particularly attractive for investors who prefer mutual funds over ETFs or want access to actively managed dividend funds.
Combined with the free DRIP, you can build and compound a mutual fund-based dividend portfolio at zero trading cost.
Firstrade's free DRIP allows you to automatically reinvest dividends into additional shares. Once enrolled, any dividend from eligible stocks is automatically reinvested.
Eligible stocks must be priced at $4 or more per share. You can enroll in or cancel DRIP participation at any time.
Note that Firstrade doesn't offer fractional share purchases directly—DRIP may be the only way to accumulate partial shares.
Firstrade offers a securities lending program where you can earn extra income by lending your fully-paid shares to other investors.
This is an additional way to generate returns on your dividend portfolio beyond just the dividends themselves.
The income varies based on demand for the securities you hold.
Firstrade's platform interface is dated and can be challenging to navigate. It lacks the polish and intuitive design of modern competitors.
Research and analysis tools are basic. You won't find sophisticated screeners, in-depth analyst reports, or advanced charting found at Fidelity or Schwab.
Uninvested cash earns just 0.15%—far below the 4%+ offered by many competitors. Keep cash in a high-yield savings account instead.
No forex, futures, or cryptocurrency trading. If you want exposure to these asset classes, you'll need a different broker.
No direct fractional share purchases—a significant limitation for small-dollar investors who want to diversify across expensive stocks.
Professional investors seeking advanced platforms may be disappointed with the basic tools.
Transparent breakdown of all fees you might encounter.
| Fee Type | Cost |
|---|---|
| Stock & ETF Trades | $0 |
| Options Trades | $0 (no contract fee) |
| Mutual Fund Trades | $0 |
| Account Minimum | $0 |
| Account Maintenance Fee | $0 |
| Inactivity Fee | $0 |
| Dividend Reinvestment (DRIP) | Free |
| Cash Interest Rate | 0.15% (low) |
| Account Transfer Out (ACAT) | $75 |
Truly free options trading (no contract fees) makes covered call strategies more profitable.
One of the only brokers offering commission-free trading on all mutual funds.
Rock-bottom pricing across all securities types keeps more money invested.
Firstrade is a compelling choice for cost-conscious investors who want truly free trading across stocks, ETFs, options, and mutual funds. The zero per-contract options fees and free mutual fund trading are genuine competitive advantages. However, the dated platform, lack of fractional shares, and minimal research tools mean it's best for experienced investors who don't need hand-holding. If you value low costs over platform polish, Firstrade delivers. For a more complete experience, consider Fidelity.
Compare All PlatformsSee how Firstrade stacks up against the competition
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