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 Ustocktrade. 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 Ustocktrade
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 Ustocktrade 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, Ustocktrade is cheaper per trade at $1.00 than Firstrade at $2.95/trade.
When it comes to having support for mutual funds, there is a clear division between Firstrade and Ustocktrade. Firstrade does have support for mutual funds, while Ustocktrade does not.
|Review||Firstrade Review||Ustocktrade 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|
|Stock Trades||$2.95/trade||$1/trade + $1/monthly|
|Options Trades||$2.95/trade + $0.50/contract||N/A|
|Investment Types||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds||Stocks, ETFs|
|Access||Website, iOS App, Android App||Website, iOS App, 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.
Ustocktrade is an interesting concept, creating a truly community-based investment platform. It may be ideal for new and small investors, as well as early adopters, since the fees are very low and there are no account minimums. However, the service will probably be of very limited use to larger, more sophisticated investors.