Are you confused about whether to choose Robinhood vs Firstrade as a broker for your investing needs?
In this side-by-side comparison, we analyse Robinhood vs Firstrade to help you understand how these apps compare on some of the most common features and make a better-informed decision about the best broker for you.
Below, you’ll find the pros and cons of each broker, as well as a comparison table that features the different fees charged, the financial instruments supported, the regulation, and more. Keep reading!
Robinhood vs Firstrade: In a Nutshell
US beginner investors
Robinhood offers commission-free trading, meaning users can buy and sell stocks, cryptocurrencies, options, and ETFs without paying any fees.
Robinhood offers a user-friendly interface that simplifies the investing process. It provides real-time market data, personalized news feeds, and price alerts to inform users.
It is regulated by the Securities and Exchange Commission (SEC), and it is a member of the Securities Investor Protection Corp. (SIPC). Your assets are protected up to $500,000 (of which up to $250,000 is for cash).
US investors looking for US options only
Firstrade is a traditional company founded in 1985 that recently changed its strategy to become a commission-free online trading platform for stocks, ETFs and options.
The broker is considered safe, with a long track record that survived a few crises and top-tier regulators’ supervision.
The main drawbacks are its limited products offering (no European ETFs, stocks,…) and the fact that it only offers fractional shares on reinvested dividends.
Pros and Cons
Robinhood
Pros
- Commission-free trades
- IRAs and 401(k)
- Fractional shares
- IPO Access
- No account minimum
Cons
- No mutual funds or bonds
- Limited customer support
Firstrade
Pros
- Commission-free stock, ETF, mutual fund and options trading
- Good research and educational content
- No inactivity fees
- No minimum deposit
Cons
- You can trade only on US markets
- No 24/7 customer support
- No demo account
- No fractional shares
Robinhood vs Firstrade: Side-by-side Comparison
- General Information
- Founded in
- Demo Account
- Account Minimum
- Interest on unninvested cash (annually)
- Products
- Stocks
- ETFs
- Bonds
- Funds
- Options
- Futures
- CFDs
- Leverage Products
- Forex
- Cryptocurrencies
- Commodities
- Fees
- US stocks
- EU stocks
- ETFs
- Cryptocurrencies
- Custody Fee
- Inactivity Fee
- Withdrawal Fee
- Connectivity Fee
- Currency Conversion Fee
- Security
- Regulators
- Investor Compensation Scheme(per person, per institution)
Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.
