Firstrade Paper Trading

Firstrade does not provide paper trading, simulated or practice account. For a free virtual trading get Webull practice account.

Webull Promotion

Open WeBull Account

Firstrade IRAs

We would recommend Firstrade as a very strong alternative for your IRA account for a number of reasons, namely because they also have zero commissions, but also offer a more robust selection of investments (including mutual funds) and a more resourceful website for investors. First, we’ll tell you a bit more about these features at Firstrade and then go over the different types of IRA accounts they offer.

Investment Offerings and Pricing at Firstrade

With a Firstrade IRA, you can trade stocks, ETFs, thousands of mutual funds, and options all with no commission. Additionally, if you want to include less risky fixed income investments in your portfolio, you can trade treasury bonds, CDs, and municipal and agency bonds, however these have an implied commission that Firstrade embeds within the bid/ask spread they quote you. You can open your Firstrade IRA today with $0 because the account doesn’t have any minimum requirements or maintenance fees.

Tools to Build your IRA Portfolio

Most investors will agree, if you are looking to build your own retirement portfolio, whether you are using mutual funds and ETFs or individual stocks, a high quality screening tool goes a long way in making the process more efficient and effective. Firstrade offers screeners to help you scan through the thousands of mutual funds, ETFs, and stocks they offer by attributes including valuation metrics, earnings growth, sector, dividend yield, etc. and identify the investments that are best for your portfolio. Firstrade’s website also gives you easy access to company-specific news headlines, research, and stock charts.

IRA Accounts with Firstrade

When it comes to opening an IRA there are two main types of IRAs to choose from, both of which are offered by Firstrade. The U.S. government offers unique tax savings with both the Traditional and Roth IRAs in order to incentivize people to start saving for their retirement sooner so they will be more financially independent and supported in their older years. We’ll go over these two types of IRAs next.

Traditional IRA

The traditional IRA is structured very similarly to the typical 401K account that is offered by many large employers but is geared towards those who are self-employed or work for small businesses that don’t have employer-sponsored 401Ks. Traditional IRAs are funded with pre-tax earnings, which means any contribution to one of these IRAs will lower your taxable income, and therefore your income taxes. Your IRA account is also able to grow faster since you won’t be taxed on those contributions or your investment gains until you withdraw the money in retirement, at which point the entire redemption amount will be subject to income tax.

FirstTrade IRA Account

Roth IRA

A Roth IRA is a more recent derivation of the Traditional IRA that offers some unique advantages. A Roth IRA is funded by income that you’ve already been taxed on, and so it doesn’t lower your current taxes like the Traditional IRA, however the major advantage of the Roth is that once you withdraw funds, they are 100% tax-free because your investment gains are tax-free and you already paid taxes on the contributions. Another benefit with the Roth IRA is that you can withdraw your contributions before retirement if you want without any penalty (however if you withdraw any investment gains before retirement those may be subject to taxes), whereas withdrawing from a Traditional IRA before retirement will be subject to penalties and taxes.

IRA Limitations

Because both types of IRAs offer some really nice tax advantages, the IRS does impose some limits on contributions. The IRS allows an individual to contribute up to $6,000 per year to a Traditional IRA, plus an additional $1,000 for those aged 50 and up. For a Roth IRA, the maximum contribution in any given year is $6,000 per individual, and in addition you can only contribute to a Roth IRA if your gross income in that year was below 137,000.

WeBull IRA Account Summary

Although it’s currently not possible to open an IRA with Webull, we think it’s a blessing in disguise just because there are other brokers, like Firstrade, that do offer IRAs and so much more than Webull in terms of functionality and investment options, in addition to the $0 commissions.


Continue Reading