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 Vanguard and Firstrade. 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 Vanguard and Firstrade
stack up against each other on these points.
To start, we will consider the minimum investment required for both applications. In other words, how much does one need to invest to use the service? Out of the two, Firstrade minimum investment of $0 is smaller than the deposit of required by Vanguard.
Next I'll consider cost per trade for both brokers.
Out of the two, Firstrade is cheaper per trade at $2.95 than Vanguard at $7.00/trade.
Both Vanguard and Firstrade offer mutual funds. So this feature isn't a clear difference between the stock brokers.
|Review||Vanguard Review||Firstrade Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Amount of Deals|
|Promotions||None||Up $300 Cash and 500 Free Trades|
|Stock Trades||$7/trade for first 25 trades; additional trades: $20/trade||$2.95/trade|
|Options Trades||$7/trade + $1/ contract||$2.95/trade + $0.50/contract|
|Investment Types||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds|
|Access||Website, iOS App, Android App||Website, iOS App, Android App|
|Broker Assisted Trade|
|No Fee ETFs|
|Sign Up||Sign Up|
Use Vanguard to get a wide selection of low-cost, no-load mutual funds, ETFs, stock broker services, and financial planning. For investors wanting a one-stop shop for all their banking and financial needs, you'll have to look elsewhere.
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.