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.
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 StockBrokers.com 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.