Firstrade is a long-established US broker with a 40-year operating history, offering commission-free investing across stocks, ETFs, mutual funds and options. The platform provides access to the full universe of US-listed ETFs, as well as margin lending, securities lending and fixed income securities. However, the broker remains heavily focused on the US market. Investors cannot directly select execution venues, while Payment for Order Flow (PFOF) forms part of the firm's business model. Although PFOF remains common practice in the United States, it can make it difficult for investors to independently assess execution quality and hidden spread costs. The platform also lacks multicurrency accounts, recurring investing for ETFs and meaningful access to international exchanges. Firstrade is a privately held company and does not publicly disclose detailed financial information, client asset figures, profitability metrics or credit ratings. While the firm's four decades of operating history provide some comfort, transparency remains below that of publicly listed brokers.
⚠️ This broker serves international clients directly from the US. It has no European entity, so EU rules such as PRIIPs do not apply. The upside is access to US-domiciled ETFs that are normally off-limits to EU investors, and these are often larger, cheaper, and more liquid than UCITS equivalents. The catch is US estate tax. As a non-resident alien, your US-situs assets above $60,000 may be taxed up to 40% on death unless a treaty between your country and the US reduces it. Make sure to verify your situation before opening an account.
Passive Investors: Somewhat Suitable. Investors will appreciate access to US-listed funds unavailable at many European brokers, but should carefully consider the tax and estate-planning implications of holding US-domiciled ETFs.
Semi-Active Investors: Somewhat Suitable. Good product offer but the lack of multicurrency functionality and direct exchange selection may prove restrictive.
Active Investors: Somewhat Suitable. Options trading, margin lending and low-cost access to US markets, but lacks of broad international market coverage.
Pros & Cons And Suitability
▶ Pros & Cons
Large range of US-listed ETFs
International account availability
$500k US Protection Scheme (SIPC)
40+ year operational history
No tax-advantaged accounts for international customers
$75 fee for share transfer
Significant PFOF reliance
No direct access to exchanges
No multicurrency
Private firm with limited financial transparency
$25 wire withdrawal fee
▶ Suitability
Passive
Somewhat SuitableUS ETF universe, but beware of tax implications.
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Semi-Active
Somewhat SuitableProducts are attractive but no multicurrency and direct exchange access
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Active
Somewhat SuitableMargin Loan, Security Lending and options are available
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Featured Broker GuideUCITS vs U.S. ETFs – Pros and Cons for Non-US Investors
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Broker Snapshot
Why Firstrade is A Tier 1 Broker?
Firstrade has more than four decades of operating history since its founding in 1985 and is one of the longest-established online brokers in the United States. The broker fits into our Tier 1 classification due to its long track record, traditional brokerage business model, and focus on securities investing rather than speculative trading products. Firstrade provides access to stocks, ETFs, options, mutual funds, bonds and fixed-income securities, serving investors seeking broad access to U.S. financial markets. Unlike many newer fintech platforms, the company has operated through multiple market cycles and has established itself as a recognised participant in the U.S. brokerage industry. However, Firstrade remains privately held, does not publish detailed financial statements, and does not have a public credit rating, making independent assessment of its financial strength more difficult than for listed competitors. Prominent firms targeting a similar investor audience include Charles Schwab, Fidelity and E*TRADE, although Firstrade operates on a smaller scale than these industry leaders
40 Years Of History, But Limited Transparency
Firstrade has been operating since 1985 and is one of the longest-established discount brokers in the United States. The company remains privately held and is regulated by the SEC and FINRA. However, unlike some larger competitors such as Interactive Brokers, Firstrade is not publicly listed, does not have a public credit rating, and provides limited financial disclosure.
▶ Company Info
Inception Year: 1985
Headquarters: New York, US
Key Owner: John Liu (founder)
Bank Affiliated: No
Listed on Stock Exchange: No
Parent Rating: No
Net Income: Not disclosed
▶ Regulation
Key Regulators: FINRA, SEC
US Guarantee: SIPC - $500,000
US Market Access at Low Cost
Firstrade provides access to US-listed ETFs, options, margin lending, securities lending and fractional shares. Despite its broad product offering, the broker charges no custody fees and no commissions on stocks, ETFs or options trading.
We rate the company 3.5 out of 5.0. Firstrade has operated since 1985 and remains a privately owned, founder-controlled brokerage. Unlike larger competitors, the company is not publicly listed, does not publish detailed financial information, and is not rated by the major credit rating agencies, limiting transparency into its financial strength. The broker's revenue model is primarily driven by interest income on client cash and margin balances, supplemented by Payment for Order Flow and other execution-related arrangements that remain common among US retail brokers. While Firstrade lacks the transparency and scale of leading international brokers, its four decades of operating history and generally positive regulatory record support our assessment.
Firstrade was founded by John Liu in 1985 and has successfully navigated multiple industry cycles, including the transition from traditional brokerage to online trading. As a privately held company, Firstrade does not publish detailed financial information, making it difficult to independently assess its profitability, capital position, or financial performance. The firm remains founder-controlled through Firstrade Holding Corporation, with ownership concentrated within the Liu family. While writing this review, we were unable to identify reliable public information regarding the number of client accounts or assets under administration. For European residents looking to open an international account, a key regulatory nuance applies here: because Firstrade is an American brokerage operating under US jurisdiction, it is governed strictly by SEC and FINRA rules rather than local European frameworks. Consequently, the platform is entirely unaffected by the EU-wide ban on Payment for Order Flow (PFOF). Instead, PFOF remains a completely legal, regulated, and foundational revenue source for Firstrade.
As a privately held company, Firstrade Securities Inc. is neither publicly traded nor rated by the major credit rating agencies, limiting the transparency and external scrutiny typically associated with larger listed brokers. This makes independent assessment of the firm's financial strength and default risk more difficult. However, Firstrade has operated continuously since 1985, suggesting a durable business model and an ability to navigate multiple market cycles. As a US broker, it also operates under a mature regulatory framework and is a member of the Securities Investor Protection Corporation (SIPC), which provides protection of up to $500,000 per client account, including a $250,000 limit for cash balances.
Firstrade is regulated by the SEC and FINRA and is a member of the SIPC compensation scheme. This provides a guarantee on up to $500,000 of assets including up to $250,000 in cash.
Apex Clearing Corporation have custody of your assets. Firstrade does not disclose which banks your uninvested cash is held with.
Firstrade has a generally positive regulatory and reputational track record. In 2013, FINRA fined the firm $300,000 for anti-money laundering compliance deficiencies relating to the 2008–2011 period. We are not aware of any major regulatory actions since then. The firm's four decades of operating history suggest an established and durable position within the US brokerage industry.
Fee Structure ⓘ
We rate the fee structure 3.0 out of 5. Firstrade offers commission-free trading in stocks, ETFs, mutual funds and options, with no custody or inactivity fees. On the surface, the broker appears among the lowest-cost options available to US investors. However, a significant portion of the firm's revenue is derived from Payment for Order Flow (PFOF) arrangements, whereby market makers compensate the broker for order flow. As a result, investors cannot directly assess whether the savings from zero commissions fully offset potential costs embedded in execution quality and bid-ask spreads. Firstrade also does not allow investors to directly select execution venues. While the broker's visible fees remain highly competitive, the reliance on PFOF and limited execution transparency weigh on our assessment.
Firstrade charges no commissions on stocks, ETFs, mutual funds or options trades. Fixed income securities, including corporate and government bonds, are generally offered on a net-yield basis, with Firstrade acting as principal and incorporating a markup or markdown into the quoted price rather than charging a separate commission. As a result, bond trading costs are embedded within the execution price and may be less transparent than the commission schedules applicable to stocks and ETFs
Currency Exchange Fees
Firstrade does not have FX fees as all trading activity is conducted on US exchanges in USD.
Our calculator for traditional brokers is not suitable for this broker.
No explicit trading commissions are charged by this broker. The broker’s revenue model relies on payment for order flow (PFOF), where wholesale market makers pay the broker to route your orders to them rather than to a lit exchange. Your cost is not a visible commission. It is the potential gap between the price you actually receive and the price you could have obtained under conflict-free routing. This execution quality cannot be assessed independently on a per-trade basis. For smaller trades, this may be acceptable but it may be problematic for larger transactions and serious investors.
Withdrawal. Wire transfers out of the account cost $25, which may represent a meaningful cost for investors who expect to withdraw funds frequently. Investors with access to a US bank account can instead use the ACH system for free deposits and withdrawals.
Transfer Out. Firstrade charges a $75 fee for a full account transfer and a $55 fee for a partial account transfer when transferring assets to another brokerage.
Transfer In. Firstrade does not charge fees for incoming account transfers. In addition, the broker offers a transfer fee reimbursement of up to $250 when investors complete a full account transfer of at least $2,500 from another brokerage (excluding mutual funds and fixed income products), subject to the broker's terms and conditions.
Platform & Features ⓘ
We rate the platform capabilities 3.3 out of 5. Firstrade provides access to a broad range of US-listed securities, including stocks, ETFs, mutual funds, bonds and options. The broker also offers margin lending and a securities lending programme, features that are often unavailable at many low-cost competitors. The platform itself is relatively easy to use and suitable for most retail investors. However, Firstrade remains primarily focused on US markets and does not provide meaningful access to international exchanges. Investors cannot directly select execution venues, multicurrency accounts are not available, and the broker does not support recurring investments into ETFs. These limitations reduce its appeal for globally diversified long-term investors compared with some larger international brokers.
Account Opening Process
Firstrade offers a fully digital account opening process. Applicants are required to provide standard personal information, tax residency details, and identity verification documents. Most accounts are approved within a few business days, although additional documentation may be requested for international clients. Once approved, accounts can be funded via bank transfer, ACH (for US clients), wire transfer, or eligible account transfer from another brokerage.
UCITS ETFs Availability
Firstrade's ETF offering is primarily focused on US-listed ETFs rather than UCITS ETFs. Unlike most European brokers, Firstrade is not subject to the EU PRIIPs regime and therefore is not restricted by Key Information Document (KID) requirements. As a result, eligible investors can access a broad range of US-listed ETFs that are unavailable through many European platforms. However, investors should carefully consider the tax, estate planning, and regulatory implications of investing in US-domiciled funds.
Firstrade primarily focuses on US markets. Investors cannot directly select execution venues, with orders routed according to the broker's execution arrangements and best execution obligations. Firstrade also receives Payment for Order Flow (PFOF) from market makers for certain order flow, a common practice among US brokers. As a result, investors may find it difficult to independently assess execution quality and spread costs relative to brokers offering direct exchange access and venue selection.
Features
Desktop PlatformMobile AppMargin LoansShare TransferSecurity Lending – CompensatedMulticurrencyCRESTRobo AdvisoryCash InterestAutomated InvestingFamily & Friends Sub-accountsElective Professional Investor Status
Modern Platform: The web platform is modern, uncluttered and easy to navigate.
Mobile App
Large Range Of Securities: Firstrade has an excellent range of securities available, from mutual funds and ETFs through to fixed income products, options and fractional shares.
Lack Of ETF Regular Investing Service: Firstrade has a regular investing program available for mutual funds, but not for ETFs and shares.
Advanced investors may appreciate that the broker offers some advanced features such us margin loans and access to US markets.
Firstrade's Fully Paid Securities Lending Program allows eligible investors to lend out fully paid shares and receive a portion of the lending revenue generated from borrowers.
Firstrade receives Payment for Order Flow (PFOF) from certain market makers in exchange for routing eligible equity and options orders to them, a practice that remains legal and widespread in the United States. Under this model, market makers compensate brokers for order flow while assuming responsibility for executing trades. While PFOF allows the broker to offer commission-free trading across stocks, ETFs and options, it can create potential conflicts of interest because brokers may have an economic incentive when selecting execution venues. Investors cannot directly select execution venues and may find it difficult to independently assess whether the benefits of zero commissions fully offset any costs embedded in execution quality and bid-ask spreads. Firstrade publicly discloses its Payment for Order Flow arrangements through SEC-mandated Rule 606 and Rule 607 reports. While these disclosures improve transparency relative to many international brokers, investors may still find it difficult to determine whether the benefits of commission-free trading fully offset any costs embedded in execution quality and bid-ask spreads.
Firstrade pays interest on uninvested cash balances through its FDIC-insured cash sweep programme but they are usually modest.
In May 2022, Firstrade launched Firstrade Crypto LLC, expanding its offering beyond traditional securities into cryptocurrency trading.
As a US platform, Firstrade provides access to the entire universe of US-listed ETFs, many of which are unavailable through European brokers. The possibility of holding US ETFs as an international investor may be attractive given their low costs and broad selection, but investors should carefully consider the tax and estate-planning implications of holding US-domiciled funds rather than UCITS ETFs.
Eligible investors can borrow against their portfolio through a margin account, allowing them to increase purchasing power or access short-term liquidity. Margin rates start at the broker's base rate plus 1.75% for smaller loan balances.
Firstrade does not offer derivatives.
User Satisfaction ⓘ
Users generally appreciate Firstrade\'s zero commission structure and international accessibility, though some express concerns about platform performance and limited advanced features. International users particularly value the broker\'s acceptance of foreign addresses and reliable service.
Positive
40+ mentions · over past 12 months
What Users Like
Zero commissions on stocks, ETFs, options and mutual funds
International-friendly with foreign address acceptance
No contract fees for options trading
No minimum deposit or inactivity fees
Reliable service for long-term users
Common Complaints
Slow trading system and platform performance issues
Limited platform functionality during pre-market hours
Basic app interface lacks advanced features
Platform updates cause trading interruptions
⚠️ This sentiment analysis is based on our proprietary algorithm relying on sentiment from public user reviews and discussions. This section does not represent the view of Banker on Wheels.
Country Considerations
Available Tax Wrappers
IRA
Tax Reporting
For non-US investors, Firstrade provides account statements, trade confirmations and Form 1042-S where applicable. However, the broker does not provide tax reports tailored to foreign tax regimes and investors remain responsible for calculating and reporting taxes according to the rules of their country of residence.
Click on a flag below to read more:
United States Investors
Firstrade provides comprehensive tax reporting for US taxpayers. Clients receive the standard IRS forms required for preparing federal tax returns, including Consolidated Form 1099 statements covering dividend income, interest income, capital gains, withholding taxes and proceeds from securities sales. Investors holding retirement accounts also receive the relevant IRA tax forms where applicable.
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