The Advantages of ETFs
Flexibility and Liquidity
ETFs are bought and sold just like stock, and unlike Mutual Funds, can be purchased at intraday prices, bought on margin, and even sold short.
Investing in an ETF means buying into a basket of securities, thereby diversifying your investment and reducing your risk.
ETFs usually have lower expenses than other investments like mutual funds. ETFs at Firstrade are only $2.95/trade, and $0/trade for over 700 ETFs.
There are ETFs that track markets in various regions or countries, making it an ideal way to invest overseas.
ETFs track individual indices or commodities and you can easily tell where your asset is being invested.
An ETFs tracks an index, making it less prone to turnover, resulting in lower capital gains tax.
Why Trade ETFs with Firstrade
More Choices, Opportunities to Save
Firstrade lets you trade every ETF available in the market and offers more commission-free ETF trading opportunities than any other broker.
Comprehensive Research & Tools
Use our easy-to-use screener and Morningstar research to help you find the right ETFs based on performance and analyst ratings.
$0 Commission ETFs by the numbers
Broker Comparison - ETF Offers
|Number of ETF providers||40||8||2||13|
|Redemption Fee of early sell||$2.951||$19.99||$12.952||$19.993|
1 Firstrade short-term trading fee (Holding period less than 30 days) is $2.95.
2 Fidelity short-term trading fee (Holding period less than 30 days) online is $4.95, automated phone system is $12.95.
3 E*trade short-term trading fee (Holding period less than 30 days) is $19.99 for customers with 0–149 stock/options trades per quarter, $15.99 for 150+ stock/option trades per quarter.
Firstrade data as of 4/9/2018. Competitor data as of 4/1/2018.
Buying ETFs through Firstrade is identical to that of buying stocks. Just enter the ETF symbol, designate the number of shares, enter the price desired (if limit order) and submit the order.
*Before investing in an ETF, be sure to carefully consider the fund's objectives, risks, charges, and expenses. Please read the prospectus carefully before investing. You can review a symbol’s prospectus by searching for a detailed quote and clicking on the “prospectus” link.
Trading involves high risks. Firstrade's offering in commission-free ETFs is not meant to encourage investors to trade in high frequency without paying attention to the possible risks, such as international risk, currency risk, commodity risk, leverage risk, credit risk, and interest rate risk. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small-capitalization securities, and commodities.
Investors should carefully consider the investment objectives, i.e., risks, charges and expenses of ETFs before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies.
You can buy and sell ETFs available through the Firstrade’s commission-free ETF program without paying brokerage commissions. The commission-free trades on ALL eligible ETFs must be placed online in a Firstrade account. Commission-free trades apply to all buy and sell transactions. Other fees may apply for trade orders placed through a customer service representative. Firstrade reserves the right to update and change the terms and conditions of the Free Commission ETFs at any time without prior notice.
Short-Term Trading Fee (Holding Period less than 30 Days). ETFs available commission-free that participate in the ETF Market Center may be subject to a holding period that commences with any purchase and extends through the following THIRTY (30) calendar days. An account owner must hold all shares of an ETF position purchased for a minimum of THIRTY (30) calendar days without selling to avoid a short–term trading fee where applicable. There is no limit to the number of purchases that can be effected in the holding period. Any order to sell within THIRTY (30) calendar days of last purchase (LIFO – Last In, First Out) will cause an account owner's account to be assessed a short–term trading fee of $2.95, where applicable. For the purposes of calculation, the day of purchase is considered Day 0. Day 1 begins the day after the date of purchase. The short–term trading fee may be applicable to each purchase of each ETF where such ETF is sold during the holding period.
Morningstar Risk-Adjusted Ratings: The Overall Rating is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10- year (if applicable) Morningstar Rating Metrics. Morningstar, Inc. is an independent publisher of mutual fund research and ratings. Ratings reflect a fund's risk-adjusted 3-, 5-, and 10-year total returns, including any sales charge. A Fund is rated against all other funds in its category. 5 stars are assigned to the top 10%; 4 stars to the next 22.5%; 3 stars to the next 35%; 2 stars to the next 22.5%; and 1 star to the bottom 10%. Morningstar only rates funds with at least a 3-year history.
The list of 700 commission-free ETFs is selected by Firstrade Securities Inc. Firstrade Securities can remove, add and change the list if necessary.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. ETFs are subject to management fees and other expenses. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
Investment information provided by Firstrade is for educational purposes only and should not be considered as an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. You are fully responsible for your investment decisions.
Research and planning tools are obtained by unaffiliated third party sources deemed reliable by Firstrade. However, Firstrade does not guarantee accuracy and completeness, and makes no warranties with respect to results to be obtained from their use.
Market volatility, volume and system availability may delay account access and trade executions.
This is not an offer or solicitation in any jurisdiction where Firstrade is not authorized to conduct securities transaction.