FirsTrade - $0 Commissions

[Anderson317 5]

It looks like FirstTrade has moved to $0 trades for stocks and options. 

 

https://www.firstrade.com/content/en-us/aboutus/press?page=pr180823

 

Does anyone use FirstTrade or have any opinion on them.  I asked and they don't have a test account or paper trading account so I have no idea what their platform looks like.  Wondering what peoples opinions of it are.

[FrankTheTank 839]

This is really great news.  Eventually we will see more and more $0 commission brokers and Firstrade appears to be legit with a real brokerage behind it.  Here is one recent review about them:  

 

 

 

 

Edited August 31, 2018 by FrankTheTank
update

[FrankTheTank 839]

Just tried to open an account with Firsttrade but noticed they consider spreads to be a margin account and not available with IRAs.   Still seems like a good alternative though for non-IRA accounts.  

[skydragon 51]

@frank the tank I can't speak for FirstTrade's policies, but a number of brokers (eg TW, Tradier, TDA, Schwab) will let you enter into a "limited margin" agreement within an IRA, which allows (some) spread trading in an IRA. Sometimes a higher minimum acct bal is needed (typically $25K).  If you haven't yet, try contacting FirstTrade and see what they have to say.

[Seth H 29]

What kind of trading platform do they use? Third party platforms like Tradier or do they have their own?

[NJ_KenRob 157]

 

While Firstrade requires no minimum balances to open an account or invest in equity securities, we do require minimum balances in order to place certain option orders. The following table lists the option strategy and the minimum equity required to place option orders:

Option Strategy	Minimum Equity Required
Covered Calls	No Minimum
Cash-Secured Equity Puts	No Minimum
Buying Puts & Calls	No Minimum
Spreads & Straddles	$10,000
Uncovered Puts	$25,000

 

[SBatch 2,184]

12 minutes ago, Seth H said:

What kind of trading platform do they use? Third party platforms like Tradier or do they have their own?

They have their own.  They have been around for a long time but just recently started offering zero commissions.  Therefore no SO or platform fee.

[Seth H 29]

I have looked around on their website but no further info on pricing other than saying $0 commissions. Do they charge a fixed monthly fee like Tradier? 

[MikeCl 4]

26 minutes ago, NJ_KenRob said:

 

While Firstrade requires no minimum balances to open an account or invest in equity securities, we do require minimum balances in order to place certain option orders. The following table lists the option strategy and the minimum equity required to place option orders:

Option Strategy	Minimum Equity Required
Covered Calls	No Minimum
Cash-Secured Equity Puts	No Minimum
Buying Puts & Calls	No Minimum
Spreads & Straddles	$10,000
Uncovered Puts	$25,000

 

@NJ_KenRob I take it you work with or for Firsttrade. Can you please examine the "Elephant" trade that will be introduced this coming week here: 

This trade consists of 190 options, entered in both credit and debit spreads. Will this trade be commission free at Firsttrade? 

[NJ_KenRob 157]

I have no affiliation with FirstTrade.

Just wanted to let people know the requirements if they are going to be trading SO strategies...

[MikeCl 4]

1 minute ago, NJ_KenRob said:

I have no affiliation with FirstTrade.

Just wanted to let people know the requirements if they are going to be trading SO strategies...

Oh ok, I just saw where you said, "we do require minimum balances in order to place certain option orders." Possibly you were quoting from them here. 

[NJ_KenRob 157]

That is just a cut and paste from their website.

They state there is no minimum balance required to open an account, which is technically true.

It would just suck for somebody to open and fund a new account with less than 10k, try to do one of the SO trades, and not be able to.

 

Edited January 13, 2019 by NJ_KenRob

[MikeCl 4]

1 minute ago, NJ_KenRob said:

That is just a cut and paste from their website.

They state there is no minimum balance required to open an account, which is technically true.

It would just suck for somebody to open and fund a new account with less than 10k, try to do one of the SO trades, and not be able to.

 

Yes, makes sense. Would it be correct to assume that the "Elephant trade" coming in "Creating Alpha" could be done with 10K or does that sound more like the 25K minimum on their site?

[NJ_KenRob 157]

Trade is designed for a 10k allocation.

Min requirement for an account that trades spreads is 10k.

So, seems like you would be good to go.

I personally would call and make sure that was the case, especially what would happen if the account dipped below 10k.

Does that impede your ability to trade?

I would need to have that answered before opening an account.

 

 

 

[Gen88 19]

Anyone know how are their fills?

[kannaiah 11]

Chat-bot replied that they open accounts for permanent residents of following countries,

China
Taiwan
Hong Kong
Macau
Japan
Mexico
New Zealand
Singapore
Korea, Republic of (South)
Israel

 

[g5harlan 140]

52 minutes ago, Gen88 said:

Anyone know how are their fills?

I am not sure how you get a defined answer to this question unless you are trading the exact same option on a FirstTrade account and another broker at the same time. 

[SBatch 2,184]

Their fills will be the same as Tradier, TastyWorks, and RobinHood as they all execute through Apex.

[g5harlan 140]

54 minutes ago, SBatch said:

There fills will be the same as Tradier, TastyWorks, and RobinHood as they all execute through Apex.

Ally also uses Apex for clearing.

[Gen88 19]

Overall seems a good broker to try, I’m tempted with the $0 commission.

[Seth H 29]

There is a lot of negative reviews on their Android app being too old and some people complained about funding practices. I guess they only do wire or check? Please let us know if anyone tries them.

[anand331 137]

Apex is just the clearing agent. Isn't clearing post-trade activity and should it have any impact on quality of execution?

[aamaot 0]

1 hour ago, SBatch said:

Their fills will be the same as Tradier, TastyWorks, and RobinHood as they all execute through Apex.

I think Robinhood has its own clearing now.

https://blog.robinhood.com/news/2018/10/9/introducing-clearing-by-robinhood

[Alan 107]

On ‎1‎/‎13‎/‎2019 at 9:58 AM, Seth H said:

I have looked around on their website but no further info on pricing other than saying $0 commissions. Do they charge a fixed monthly fee like Tradier? 

I just called them. The guy told me that there is no monthly fee. I asked him how the firm makes money. He said they have other corporate ways but wasn't able to divulge them.
 

[SBatch 2,184]

13 minutes ago, anand331 said:

Apex is just the clearing agent. Isn't clearing post-trade activity and should it have any impact on quality of execution?

Clearing agent directs to market maker (Wolverine, Citadel, etc.).  Apex makes the choice of which MM to submit to and MM uses smart routing to the exchanges.  In return exchange pays MM a rebate fee and the MM shares a portion with Apex which in turn shares a small portion with the Introducing Broker (Tradier, FirstTrade, etc.).

[anand331 137]

1 minute ago, SBatch said:

Clearing agent directs to market maker (Wolverine, Citadel, etc.).  Apex makes the choice of which MM to submit to and MM uses smart routing to the exchanges.  In return exchange pays MM a rebate fee and the MM shares a portion with Apex which in turn shares a small portion with the Introducing Broker (Tradier, FirstTrade, etc.).

Thanks @SBatch. 

[SBatch 2,184]

Very intersting broker comparison with Firstrade.  It seems they are burying all other Apex Introducing Brokers with speed of order routing to Apex (this would include Tradier and TastyWorks).  Considering this and the following facts: They only charge .0343 per contract, have what looks like a decent mobile app, an online platform which resembles the old OptionsXpress platform which I loved, the elimination of the Tradier TradeHawk and SO fees.  Looks like a winner at this point.  Just submitted my application!

https://www.firstrade.com/content/en-us/aboutus/press?page=pr190109

 

 

[Gen88 19]

I’m sure there already are comparisons with IB deep some why. Anyone know of the whether IB is better or FirstTrade? Commission, trade execution and min requirements in relation to the SO trades?

[Noah Katz 90]

Wow, sounds almost too good to be true.

 

Is there a way, like Tradehawk's Strategies, to group positions into calendars, Flys, etc for monitoring?

 

Also, any thoughts on how to deal with the ~5 day account transfer dead period so as to minimally disrupt trading activities?

[SBatch 2,184]

10 minutes ago, Noah Katz said:

Wow, sounds almost too good to be true.

 

Is there a way, like Tradehawk's Strategies, to group positions into calendars, Flys, etc for monitoring?

 

Also, any thoughts on how to deal with the ~5 day account transfer dead period so as to minimally disrupt trading activities?

Don’t know about grouping yet.  I would simply cut your allocation in half and wire half the capital over then the other half with trade closure.

[Seth H 29]

30 minutes ago, SBatch said:

Don’t know about grouping yet.  I would simply cut your allocation in half and wire half the capital over then the other half with trade closure.

Do you know if we can wire directly from Tradier to Firstrade? Or do I have to first bring the money to my checking and the re-wire it?

[SBatch 2,184]

1 hour ago, Seth H said:

Do you know if we can wire directly from Tradier to Firstrade? Or do I have to first bring the money to my checking and the re-wire it?

I would think it can be wired directly, at the end of the day it is a simple transfer from one Apex sub-account to another within the same bank.

 

[Noah Katz 90]

6 hours ago, SBatch said:

I would simply cut your allocation in half and wire half the capital over then the other half with trade closure.

 

Good idea, thanks

[aamaot 0]

Any thoughts on how Firstrade compares to Robinhood?

[Seth H 29]

Did anyone try their platform yet? I just a watched one of their webinars on their option wizard OptionPlay platform and it seems very basic and it only helps to populate the multileg option trade into the trading page on their main site. Other than that, I could not see live feed of option quotes, bid/ask prices and where you can adjust your limit price depending on where the mid price is moving. How can you place a trade without seeing live feed of option quotes?

 

Any experience?

Edited January 21, 2019 by Seth H

[SBatch 2,184]

4 hours ago, Seth H said:

Did anyone try their platform yet? I just a watched one of their webinars on their option wizard OptionPlay platform and it seems very basic and it only helps to populate the multileg option trade into the trading page on their main site. Other than that, I could not see live feed of option quotes, bid/ask prices and where you can adjust your limit price depending on where the mid price is moving. How can you place a trade without seeing live feed of option quotes?

 

Any experience?

Option Play is their analysis software not the trading platform.

[akito 184]

When someone has a chance, please check to see if their mobile app has multi-legged option support now or not. Last I checked a couple months ago with their support team, their mobile app did NOT support multi-legged option orders.

[anand331 137]

I checked with their support and they don't have streaming realtime quotes. If you refresh you'll get realtime prices but you'll have to keep refershing. That is a deal breaker for SO trades. I had just opened an account and good thing I checked before funding it.

[4REAL 109]

1 hour ago, anand331 said:

I checked with their support and they don't have streaming realtime quotes. If you refresh you'll get realtime prices but you'll have to keep refershing. That is a deal breaker for SO trades. I had just opened an account and good thing I checked before funding it.

@anand331  thanks for sharing, I was planning to open an acc, but no streaming realtime quotes is indeed a deal-breaker