Firstrade’s mission is to empower its customers with the most advanced technology to make it simpler and seamless to execute their investment strategies. It's self-directed investing, placing the needs of their customers first through no-cost trading. Firstrade provides online and mobile trading of Stocks/ETFs, Options, Mutual Funds, Fixed Income products and more. They offer extended hours trading from 8am-8pm and stand by their trading tools with a 0.1 second trade execution guarantee.
How you make money
Combining proprietary trading technology, a highly intuitive user interface, outstanding customer service and mobile applications, Firstrade offers a comprehensive solution for all of your investing needs. Whether you are a new investor or an active trader, they are committed to excellence and putting the needs of all their customers first. Firstrade offers many different ways to earn. Among their offerings, Firstrade provides online and mobile trading of Stocks/ETFs, Options, Mutual Funds, Fixed Income products and more. They offer extended hours trading from 8am-8pm and stand by their trading tools with a 0.1 second trade execution guarantee.
How Firstrade makes money
Firstrade makes money primarily from interest generated on its credit balances and margin balances, similar to how a bank makes interest on deposits and mortgage income. Firstrade also receives income through routing venues and shares execution income. Although they do share execution income with their routing venues, that revenue is used to cover their operating costs to improve your trading experience. If you want to take a deep dive into their order routing practices, you can find more information here: SEC Rule 606 disclosure
Is it safe?
Firstrade was founded in 1985 and over the years, major industry publications including Barron's, Forbes, and Smart Money have all rated it as one of the best online brokers. The platform is currently estimated to have around $70 billion under management.
When it comes to safety, Firstrade Securities Inc. is a member of the Securities Investor Protection Corporation (SIPC). SIPC provides up to $500,000 of coverage, with a limit of $250,000 for cash balances. In addition, their clearing firm, Apex Clearing Corporation, has purchased an additional insurance policy through a group of London Underwriters (with Lloyd's of London Syndicates as the Lead Underwriter) to supplement SIPC protection. This additional insurance policy is limited to a combined return to any customer from a Trustee, SIPC and London Underwriters of $37.5 million, including cash of up to $900,000. These protections do not protect against a decline or loss in market value of the securities in your online trading account.
Firstrade also has a team of security experts who monitor attempts to circumvent their security systems, and are continually implementing additional security protocols in order to provide safe, secure transactions for all of our customers.