Online brokerage services have existed for over 20 years. Trading investments today has never been cheaper. So while the race towards cheap trades (in some cases free) is happening, other functionality is becoming more important when selecting a stock broker.
For this review, I compare Firstrade and Robinhood. Which one is better depends on your needs? So let's examine the major features first.
We've determined with online brokerages the most critical feature customers care about is the
cost per trade. The second most important feature is the minimum deposit, and the last is if the broker
offers mutual funds. Let's look at how Firstrade and Robinhood
stack up against each other on these points.
To start, we will consider the minimum investment required for both applications. In
how much does one need to invest to use the service?
Both Firstrade and Robinhood have the same minimum of $0. So they are equal in this requirement.
Next I'll consider cost per trade for both brokers.
Out of the two, Robinhood is cheaper per trade at $0.00 than Firstrade at $2.95/trade.
When it comes to having support for mutual funds, there is a clear division between Firstrade and Robinhood. Firstrade does have support for mutual funds, while Robinhood does not.
|Review||Firstrade Review||Robinhood Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Amount of Deals|
|Promotions||Up $300 Cash and 500 Free Trades||None|
|Options Trades||$2.95/trade + $0.50/contract||Free|
|Investment Types||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds||Stocks, ETFs, Cryptocurrencies|
|Access||Website, iOS App, Android App||Website, iOS App, Apple Watch, Android App|
|Broker Assisted Trade|
|No Fee ETFs|
|Sign Up||Sign Up|
Firstrade is a discount brokerage firm that charges only $2.95 per trade in commissions. That's one of the lowest fees we've found from an online broker. However, unlike other stock broker options, Firstrade doesn't offer a robo advisor.
If you think free stock trades are a fantasy, think again! Robinhood offers commission-free stock trades. No fees, really! If a free, simple, basic stock trading app with no extras sounds good to you, Robinhood might be the broker you’ve been looking for.