There is a little known discount stock broker out there by the name of Firstrade. While not as popular at Zecco or Options House, Firstrade might be a great option for you. Firstrade offers a wide range of financial services and investment options. They have everything from Roth-IRAs to traditional IRA accounts to individual trading accounts.
First, a little history of Firstrade…
-Founded 25 years ago as First Flushing Securities focusing on smaller communities.
-Firstrade was officially launched in 1997
-In 2005, Firstrade was named “best deal” by Smart Money Magazine
-Firstrade continues to rapidly grow and put an emphasis on customer service
Usability and site design
Firstrade’s site is extremely clean and easy to use. I love their tabbed navigation bar and clear login box on the right side. Firstrade makes it clear as to what they offer and always make it known what the latest deal or marketing program is going on. Research is also very easy on Firstrade’s website. They provide simple, easy to use screening tools and track stats of your return on investment.
Financial Products
-Stocks: You have a choice of a wide variety of investment options. Choose stocks from NYSE, AMEX, NASDAQ, and other OTC markets.
-Exchange Traded Funds
-Bonds/CDs/Fixed Incomes
-Mutual Funds
-Options
-Dividend Reinvestment
-Roth IRA and 401k support
Pros
- $6.95 flat fee for real time trading, lower than Scottrade
- Free mutual fund investing
- Free dividend reinvestment
- No inactivity or account maintenance fees
- $50 Firstrade referral bonus
- 250 free trades ($1,000+ deposit)
Negatives
- $6.95 commission is not cheape compared to Zecco or Options House
- No stand alone trading platform, web based only
- Slow fund transfer
- No systematic investment plan yet
- Can’t buy fractional shares
All in all
Firstrade offers a wonderful selection of mutual funds, but stocks and large orders are too expensive in my opinion. Also, Firstrade’s platform is outdated and probably makes more sense for options traders. Plus, their education sources are slim to none. They need to do a better job at attracting the average stock trader or investor. For cheaper brokerages with better options, check out Options House and Zecco (both I highly recommend.)
READERS: Has anyone used Firstrade before? What’s your experience with them? Any good? Any horror stories?
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