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Written by Cari Scribner on January 16, 2021
Category: 
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Here's How To Make Money With Firstrade

Firstrade is a solid online investing broker offering zero commissions on stocks, ETFs, options and mutual funds. They do not have a minimum deposit and there are no other hidden fees.

Firstrade has free options contracts with zero assignment fees for options trades. The platform doesn’t charge trading fees on any of the thousands of mutual funds it offers. It is also available to international traders.

Understanding The Platform

All of us get into investing with the same goal in mind: to increase our initial investment, preferably many times over!

None of us want to get in over our heads and make bad decisions that could cause our account to plummet in value.

One of the first ways to avoid this is to clearly understand the platform you’ve chosen. Designers built Firstrade for beginning investors looking for an easy to navigate app.

In fact, in a  2020 review on StockBrokers.com, Firstrade earned 5 stars for ease of use.  If you have questions and need immediate answers, the platform has licensed customer service reps ready to help via phone, live chat, or email.

Making  Money With Dividends

You can count on earning dividends from your investments on Firstrade. A dividend is a distribution of profits by a company to its shareholders. When a company sees a surplus, it will pay out a percentage of this as dividends to investors.

The dollar amount of your dividends depends entirely on the profits of the specific company stocks in your portfolio.

One way to make money on Firstrade is to reinvest your dividends. Your other choice is to take the dividend in cash and spend it impulsively. This isn’t the best option!

Reinvesting dividends means you are buying additional shares of the companies that paid them out.

Firstrade lets you buy fractional shares with your dividends. These are not offered by every platform. They are smaller percentages of a whole share that costs too much for you to  buy. These portions of shares help you make the most of your paid dividends, grow the value of your portfolio, and avoid having cash just sitting around doing nothing.

Firstrade DRIP

Firstrade has a free, simple system to use your dividends to buy more shares of the company that paid them out to you.

It’s called a Dividend Reinvestment Plan (DRIP). Since not all investing platforms offer this, you can consider this an effortless way to make money on Firstrade.  You will get the benefits of compounding returns on your investment without having to place an order or pay a commission. Since the platform offers fractional investing, you don’t even have to buy whole shares through the plan.

Here’s another plus: you don’t have to take any steps to set up the reinvestment plan. When you register, Firstrade automatically enrolls you in the DRIP of all those stocks offering the plan.

The platform gives you the option to enroll specific stocks or ETFs and leave others out. But clearly, the best option is simply to enroll your entire account.

firstrade advantage

 

What Happens When Stocks Rise In Value?

This situation is, of course, the hope of every investor. You want to buy low and watch the value of the securities steadily rise.

One of the best ways to see your investments grow is to study the market thoroughly and plot out the moves you make beforehand. Firstrade offers comprehensive research and reports from Morningstar, Briefing.com, Zacks and Benzinga.

Investors consider these some of the most exceptional resources out there today.

 Take Advantage Of Rewards

The third way to make money on Firstrade is to take advantage of special offers.

Right now, you can get up to $200 in transfer rebates when you switch to Firstrade from another broker.

You can also get a free stock when you refer a friend or family member and they open a Firstrade account. The free stock is one share selected randomly and determined by an algorithm. The value of the share will be anywhere between $3 and $200, and fluctuates based on market movements. Firstrade will choose from the most popular companies on its platform, based on the trading volume in the last quarter.

Conclusion

If you choose Firstrade as your online investing platform, there are several ways to make money. The first is to get to know the app, which designers made for beginners. The second is to take advantage of dividend reinvesting, and leave your whole account enrolled. The third is to use research materials from Firstrade to map out your investing decisions. And finally, take advantage of the transfer and refer-a-friend awards of cash and free stocks. 

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How to make money on firstrade
Article written by Cari Scribner
Cari Scribner is a career journalist with 20 year’s experience writing for newspapers and magazines. Now a freelance writer, she is also a published fiction writer with more than 15 short stories in literary mags. She recently completed a novel that is on the desk for consideration at two publishing houses. She lives with her two small dogs, Miloh and Lucy, in Upstate NY.

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