Is Firstrade Reliable? A Real User's Experience with This US Stock Trading Software

Image Source: unsplash

You might be wondering: Is Firstrade really reliable? As an investor who has used it for years, I can give you a straightforward answer: Yes, it is reliable, but with some caveats.

Firstrade’s reliability lies in its fund safety protections and low trading costs. Whether it suits you depends entirely on your investment needs. Choosing a US stock app comes down to whether it matches your usage habits. This article shares my real experiences to help you make a judgment.

Key Points

• Firstrade is a strictly regulated US broker with SIPC insurance protecting your funds.
• Firstrade offers zero-commission trading for US stocks and ETFs, but charges fees for options and international wire transfers.
• Firstrade’s Chinese interface and account opening process are beginner-friendly, but advanced trading features are limited.
• Firstrade’s mobile app is basic and not suitable for traders needing complex analysis.
• Firstrade’s Chinese customer service has limited hours, making off-hours communication inconvenient.

Part 1: Fund Safety and Regulation

When investing in US stocks, fund safety is the top priority. When you transfer real money to an overseas broker, your biggest concern is likely: Is my money safe? What if the broker goes bankrupt? Let’s discuss Firstrade’s strong protections in terms of fund safety.

SIPC Insurance: Up to $500,000 Account Protection

First, you need to know about a key organization: the Securities Investor Protection Corporation (SIPC). Firstrade is a member of SIPC. This means your account automatically receives SIPC insurance coverage.

This insurance provides up to $500,000 in protection per separate account, including up to $250,000 for cash. Securities in your account such as stocks, ETFs, bonds, and mutual funds are covered.

Important Note: SIPC protection covers asset safety in the event of broker failure; it does not cover investment losses due to market fluctuations. That is a risk inherent to investing.

This protection is not just on paper. Since its establishment in 1970, SIPC has successfully handled liquidations of hundreds of failed brokers, with over 99% of eligible investors recovering their full assets. This provides a very solid safety net.

Fund Segregation: My Real Sense of Account Security

Beyond SIPC’s after-the-fact protection, daily fund safety regulation is even more important. This gives me the most direct sense of security. In the US, all brokers are subject to strict regulation.

• Dual Regulation: Firstrade is regulated by both the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
• Strict Membership: Becoming a FINRA member requires comprehensive review to ensure the firm’s operations and finances meet standards.
• Regular Inspections: Regulators frequently inspect brokers to ensure compliance with federal securities laws.

Among these, the SEC’s “Customer Protection Rule” (Rule 15c3-3) is core. This rule mandates that brokers fully segregate client funds and securities from the broker’s own assets. Simply put, Firstrade cannot use the money or stocks in your account for its own purposes. Your assets are yours, fundamentally eliminating the risk of fund misappropriation and allowing worry-free investing.

Part 2: Real Fee Breakdown

Image Source: pexels

Besides fund safety, your next biggest concern is likely trading costs. Firstrade’s biggest selling point is “zero commissions”, but does this mean trading is completely free? Let’s find out.

Zero-Commission Policy: Stocks, ETFs, and Options

Firstrade excels at lowering trading barriers. When trading US stocks and ETFs, it truly offers zero commissions. This is now standard in the industry.

For options trading, it’s slightly different. While the base commission is $0, you pay a standard per-contract fee.

Note: “Zero commission” does not mean “zero cost.” Firstrade charges $0.65 per options contract. This is in line with mainstream brokers like Fidelity and Schwab but slightly higher than tastytrade ($0.50 per contract).

Additional Costs: Deposit and Withdrawal Wire Fees

For investors in mainland China, the real costs mainly come from cross-border fund transfers.

• Deposit Costs: Firstrade itself does not charge deposit fees. However, when wiring internationally from your bank (e.g., a licensed Hong Kong bank) to Firstrade, your sending bank will charge an international wire fee, with the industry average around $44.
• Withdrawal Costs: When withdrawing from Firstrade, it charges a $25 international outgoing wire fee.

If you plan frequent deposits/withdrawals, these fees can add up. To reduce these costs, some investors explore third-party payment tools like Biyapay as alternatives or supplements for better exchange rates and lower fees.

Hidden Advantages: No Account Management Fees or Minimum Deposit

One of Firstrade’s hidden strengths is its friendliness to small and long-term investors.

It has no account maintenance or inactivity fees. This means even if you open an account and don’t trade for a long time, or have a small balance, you won’t be charged extra. In contrast, some other brokers may charge inactive or low-balance accounts.

Additionally, Firstrade has a $0 minimum deposit requirement. You can open an account first and deposit any amount later, offering great flexibility for US stock beginners.

Part 3: Software Review: A Qualified US Stock App?

Image Source: pexels

Once you’ve addressed concerns about fund safety and fees, the next core question is: Is Firstrade’s software user-friendly? Can it meet your trading needs? As a free US stock app, it performs adequately, but you must understand its strengths and weaknesses.

Account Opening and Funding: Real Test for Mainland China Users

For investors in mainland China, one of Firstrade’s biggest attractions is its convenient online account opening process. You don’t need to be in the US; the entire process can be completed online and is very user-friendly.

Based on my real test and official requirements, you need to prepare:

• A valid passport (including personal information and signature pages)
• A mobile number that can receive SMS verification
• A valid email address

You simply fill out the online application, upload passport photos, and e-sign. The process usually takes 10-15 minutes. After submission, Firstrade typically completes review in 1-2 business days.

Once approved, the next step is funding. You can wire internationally from a licensed Hong Kong bank account. Additionally, some investors choose third-party tools like Biyapay for better rates and lower fees, adding more flexibility.

Interface and Features: Beginner-Friendly but Limited for Experts

Firstrade’s web trading platform and desktop software give me an initial impression of “clean and clear.”

Its strengths are prominent:

1. Full Chinese Interface: From account opening and funding to trading and report viewing, everything offers complete Chinese support—a huge benefit for beginners with limited English.
2. Intuitive Layout: Core functions like buy/sell, position checking, and order history are prominently placed, requiring almost no learning curve.

However, this simplicity also brings limitations. If you rely on complex technical analysis, Firstrade may feel insufficient. Its charting tools offer basic indicators like MACD and RSI, but compared to professional platforms, features are “quite basic”.

In contrast, platforms like thinkorswim are known for “advanced charting and customization”, providing powerful tools for professionals. Firstrade’s design philosophy leans toward making investing simple rather than offering a complex analysis “sandbox.”

Thus, if you mainly do long-term investing or don’t rely on complex charts, Firstrade is sufficient. But for technical traders, its features may limit your potential.

Investment Products and Signature Features

In terms of investment breadth, Firstrade performs well. You can trade multiple financial products in one account, including:

• Stocks (stocks)
• ETFs
• Options
• Mutual Funds
• Bonds

Beyond diverse products, Firstrade offers useful features, most notably extended hours trading and Dividend Reinvestment Plan (DRIP).

1. Extended Hours Trading

You can trade outside regular US stock hours. This is crucial for capturing opportunities from pre-market earnings or after-hours news.

2. Dividend Reinvestment Plan (DRIP)

You can set dividends to automatically buy more shares of the same stock (including fractional shares). This is an excellent tool for compounding growth, especially for long-term value investors.

Real Shortcomings of the Mobile App

When discussing Firstrade’s software experience, the mobile app is its most criticized aspect. While it meets basic needs for checking quotes and placing orders anywhere, it has clear shortcomings in features and user experience.

Based on my experience and many user feedbacks, this US stock app’s mobile version has these main issues:

• Overly Basic Charts: The app’s candlestick charts lack many common indicators, such as 5-day or 10-day moving averages.
• No Real-Time Order Book: You cannot see real-time Level 1 bid/ask quotes, which is disadvantageous for judging market sentiment and entry points.
• Delayed Options Pricing: For options traders, this is a serious issue. Options chain prices update slowly, potentially causing missed opportunities or unfavorable fills.

In summary, Firstrade’s mobile app is more of a basic trading tool than a powerful analysis platform. If you rely on mobile for high-frequency or complex trading, this US stock app may disappoint.

Part 4: Customer Service Real Test

When you encounter account issues or trading questions, a responsive support team is crucial. For overseas investors, language and efficiency directly affect your experience. Firstrade’s customer service, especially its Chinese support, is a major selling point, but you need to know its limitations.

Chinese Customer Service: Phone and Email Experience

Firstrade’s most praiseworthy aspect is its comprehensive free Chinese customer service. You can communicate via phone and email, removing a major barrier for non-English speakers.

However, user experiences are mixed.

• Positive Feedback: Many international clients like me find the service professional and helpful, effectively resolving issues (e.g., withdrawals).
• Negative Feedback: Some users report the opposite—emails unanswered for weeks or no timely help with account anomalies, feeling helpless.

In short, contacting Firstrade’s Chinese support might connect you with an efficient professional or lead to long waits. This uncertainty is a factor to consider.

Service Limitations: Off-Hours Communication Costs

Firstrade’s main customer service limitation is its hours. It is not 24/7 but follows US Eastern Time business days. This means for users in Asia, daytime emergencies often fall during US nighttime, with no immediate live support. This time difference creates significant “communication costs.”

To address this, Firstrade launched a chatbot named Sami, offering 24/7 support. It handles common questions but not complex personal account issues.

In comparison, global brokers like Interactive Brokers provide 24-hour live phone support on weekdays via centers in America, Europe, and Asia. If you require instant service, Firstrade’s non-24/7 live support may be a drawback.

Firstrade is absolutely “reliable” in fund safety and low costs—a properly regulated legitimate broker. Its core strengths are zero commissions and full Chinese support.

So, is Firstrade right for you? If you fit this profile, it’s a highly cost-effective choice:

• Cost-conscious beginners
• Medium- to long-term value investors
• Users needing full Chinese support

Conversely, if you’re a high-frequency trader needing complex charts for technical analysis, this US stock app may not suffice; consider brokers offering MetaTrader 4 or cTrader, such as IC Markets or top forex brokers.

FAQ

Does Firstrade charge account inactivity fees?

You don’t need to worry about inactivity fees. Firstrade charges no account maintenance or inactivity fees. Even if you don’t trade for a long time, your account incurs no extra costs—perfect for long-term holders.

Can I trade penny stocks on Firstrade?

You can trade most OTC-listed penny stocks.

However, stocks priced below $1.00 may be subject to specific restrictions. Check Firstrade’s official guidelines before trading.

Does Firstrade support short selling stocks?

Firstrade currently does not support short selling. You can only buy and sell long positions. If your strategy requires shorting, consider more feature-rich brokers.

Is my personal information safe with Firstrade?

Firstrade uses industry-standard SSL encryption to protect data transmission on its website and app. As a strictly regulated institution, it complies with privacy laws to ensure your personal information is secure.