Online brokerage firm Firstrade Securities has eliminated its commissions for more than 700 exchange-traded funds (ETFs) with immediate effect.
Firstrade now offers more commission-free ETFs than any other online brokerage firm with more than three-quarters of the funds having received a Morningstar Rating, or “star rating” of three, four or five stars.
Under the just introduced program, Firstrade investors will have a wide selection of ETFs to choose from across eight asset classes, three exchanges, 82 categories and 40 fund families. These available ETFs are designed for long-term investors and must be held for at least 30 days (if less than 30 days, the low-cost commission is USD2.95). Also included are low expense ratio ETFs from leading fund families — Vanguard, iShares, SPDR State Street and First Trust, among others. In order to minimize risk, no leveraged ETFs are being offered.
Investors will continue to receive the many benefits of Firstrade’s powerful trading tools that they have come to expect, and free access to proprietary research from Morningstar and other leading financial industry experts.
“Firstrade’s mission since its inception has been to provide its customers with the tools necessary to make it simpler and seamless to execute their investment strategies,” says John Liu Firstrade’s founder and chief executive officer. “We’ve carefully selected our offerings to best empower investors to design diversified and customised portfolios. It’s wealth management at no cost, an investment philosophy we are proud to be pioneering.”
Firstrade had already set among the lowest trading commissions in the industry, having reduced its commission for stocks, ETFs and options from USD4.95 to USD2.95 per trade in September 2017. Now it has gone a step further by totally eliminating commissions on a wide range of ETF offerings, enabling its customers to invest their wealth without having to worry about any added costs and saving money in the process.
In the current market, ETFs – baskets of stocks, bonds or commodities – have becoming increasingly valuable investment tools for self-directed investors seeking greater portfolio diversification, reduced risk, increased flexibility and tax efficiency through exchange-traded investing. Investors can choose from a wide array of funds in virtually any sector, industry or asset class.
Assets of ETFs globally continue to explode, increasing to more than USD4.5 trillion in 2017 from USD396.5 billion in 2005. ETFs are widely expected to grow in popularity, making Firstrade’s no-cost trading even more attractive and timely for investors.
“We continue to deliver for our customers through our advanced technologies, easy-to-use platforms, customer service and no-cost to low-cost trading,” adds Liu. “Given the expected continued growth in the ETF market, we’re helping to facilitate great investment opportunities.”