After cutting its primary trading rates from $6.95 to $4.95 in February 2017, Firstrade is back again with another fresh round of commission cuts that affect both stock and options trades.

  • Stock trades: $4.95 –> $2.95 per trade
  • Options trades: $4.95 + $.65 per contract –> $2.95 + $.50 per contract

The rates go into effect immediatley for all Firstrade customers.

When Firstrade made its first cut in February to $4.95, both Charles Schwab and Fidelity had not yet reached their new low rates of $4.95. When they did ultimately drop to $4.95, this put Firstrade in a tough spot as Firstrade historically positioned itself as a value alternative to the big brokers.

Because of this, a second rate cut does not surprise me and despite the hit to the bottom line for Firstrade, it’s a smart move. With the 2018 Review kicking into gear, these new rates will certainly go a long way to helping Firstrade score higher in the category of Commissions & Fees.