Discount brokers give you the chance to start investing with very little cost. Traditionally you could expect to pay a handsome fee to a stock broker if you wanted to take advantage of their services. While a traditional stock broker normally gives a personalized service, helps you to understand the ins and outs of trading and guides you every step of the way, discount brokers don't often provide this level of service. They simply help you place your trades. But they are much more affordable than a normal broker. So if you don't have a whole lot to spend, but you want to get started in trading stocks, then discount brokers may be exactly what you need. Today there are quite a few discount brokers that you can find and get started with online. So not only can you get a break on the price, it's also very convenient to use them. One of the discount brokers that is well-known that we're going to take a look at is First Trade.

First Trade. It was established in 1985 A.D. It started as a discount brokerage firm which serves the local community. It was launched online in 1997. First trade was the pioneer of the online stock brokerages. Let us know some pros and cons about First trade.

Pros

It has $6.95 fee for the real time trading which is slightly less than Scottrade. First trade offers free mutual fund investing to its users. They offer a wide range of mutual fund choices.(more than 11000) They have been offering this service since last 2 years and are planning to continue it for a long time. They also offer free dividend reinvestment, which is a major plus in comparison with Scottrade. They do not charge any monthly or yearly fees. Nor do they charge any inactivity fees or account maintenance fees. They also offer level 1 and level 2 streaming quotes. They also have an attractive affiliate/referral program. You can get up to 50 $ for referring a single friend. Cons Although the fee is slightly less than Scottrade, $6.95 is still not low enough. There is no standalone platform like Scottrade. The whole process is the web based only. First trade usually transfers fund very slowly. Amount above $5000 may take up to four business day to be available. There is no systematic investment plan available to the users. You cannot buy the fractional share except the dividend reinvestment.

Verdict: Best competitor for Scottrade. You Should give a try if $6.95 fee is affordable for you.