Firstrade charges $0 per options contract. E*TRADE charges $0.65. That one number is the entire decision for a lot of traders, and it should not be, because the $0.65 buys something real: Morgan Stanley-backed research and a trading platform built specifically for options flow. Whether that’s worth paying for depends on what you actually do with your account.
- Firstrade is free on options ($0/contract) and stocks; E*TRADE charges $0.65/contract, or $0.50/contract if you trade 30+ times a quarter.
- E*TRADE’s Power E*TRADE platform and Morgan Stanley research depth are the actual products you’re paying for, not just “a bigger name.”
- Firstrade has no paper trading account; E*TRADE does, which matters if you want to rehearse a strategy before risking real money.
- Neither broker supports futures or fractional shares, so this comparison doesn’t hinge on either feature.
- Firstrade offers bilingual English/Chinese support and platform access, a real differentiator for households that need it.
The cost comparison, side by side
Both brokers charge $0 in stock commissions, so the entire cost difference between them lives in options pricing. Here’s the verified breakdown:
| Feature | E*TRADE | Firstrade |
|---|---|---|
| Stock commission | $0 | $0 |
| Options, per contract | $0.65 (as verified 2026-10-09) | $0.00 (as verified 2026-10-03) |
| Active-trader options rate | $0.50/contract at 30+ trades/quarter | Not applicable, already $0 |
| Account minimum | $0 | $0 |
| Paper trading | Yes | No |
| Futures trading | No | No |
| Fractional shares | No | No |
| Platform | E*TRADE Web / Power E*TRADE | Firstrade web + mobile |
| Backing | Morgan Stanley | Independent |
Run the math on volume and the gap is immediate: a trader doing 20 contracts a month pays Firstrade nothing and pays E*TRADE $13/month, or $156/year, at the standard rate. Hit the 30-trade-per-quarter active-trader threshold and E*TRADE’s rate drops to $0.50/contract, which narrows the gap but doesn’t close it. There’s no volume tier at either broker that makes E*TRADE cheaper than Firstrade on options. It’s a zero-sum comparison on price alone.
What the extra $0.65 actually buys at E*TRADE
The fee isn’t nothing, but it isn’t arbitrary either. E*TRADE, acquired by and backed by Morgan Stanley, runs two platforms side by side: the standard E*TRADE Web experience for casual investors, and Power E*TRADE, a dedicated active-trading interface with options-specific tools like a strategy scanner, risk/reward visualizations, and deeper options chain analytics. If you’re regularly building multi-leg positions, iron condors, verticals, calendars, Power E*TRADE’s tooling is a meaningfully different experience from a bare-bones options ticket.
The research side matters too. Morgan Stanley’s backing means E*TRADE account holders get access to institutional-grade market commentary and analyst research that a no-frills discount broker simply doesn’t bundle in. For a trader who wants a second opinion on sector positioning or earnings-season setups, that’s a real input, not marketing copy.
E*TRADE also offers paper trading, a built-in practice account that lets you test an options strategy with simulated money before committing real capital. If you’re newer to multi-leg spreads or adjusting a position mid-trade, that’s a genuinely useful feature Firstrade simply doesn’t have.
What Firstrade’s simplicity costs you
Firstrade earns its $0 options pricing by staying lean. The platform itself, per its own published fee schedule, is smaller and has more limited charting than what you’d get at a broker built around active-trader tooling. There’s no paper trading account, so if you want to test a strategy risk-free, you’re doing it with real money or not at all. There’s also no Power E*TRADE-style scanner or strategy builder baked in.
What Firstrade does have, and what nothing in this comparison replaces, is genuine bilingual access: full English and Traditional/Simplified Chinese support across the platform. For a bilingual household or a trader who’s more comfortable trading in Chinese, that’s not a minor convenience. It’s the deciding factor, full stop, regardless of what the fee comparison says.
Account minimums and inactivity fees are a non-issue either way. Firstrade confirms no account minimum and no inactivity fee on its own fee schedule, matching E*TRADE’s $0 minimum. Neither broker will penalize you for keeping a small or dormant account.
Where this comparison doesn’t apply
If futures trading is part of your plan, neither broker supports it, so this comparison is moot on that front and you’ll need to look elsewhere (both tastytrade and Interactive Brokers support futures, for reference). Same with fractional shares: neither offers them, so that feature isn’t a differentiator here either. This is purely an options-and-stock-trading decision between two brokers that happen to be evenly matched on everything except price, platform depth, and language support.
Who each broker actually fits
E*TRADE fits a trader who wants deeper research, a dedicated active-trading platform, and the ability to practice strategies risk-free before going live, and who doesn’t mind paying $0.65 per contract (or $0.50 at volume) for that. It makes the most sense for someone building multi-leg options positions regularly enough that Power E*TRADE’s tooling earns its cost. E*TRADE’s account page has the current signup details; note that E*TRADE does not currently run a public affiliate program, so this is a direct link rather than a tracked one.
Firstrade fits a cost-sensitive trader who wants free options execution without extra platform complexity, and especially a bilingual trader who needs Chinese-language support. The tradeoff is a smaller charting toolkit and no practice account, so it suits someone who already knows their strategy and just wants to execute it for free. Account opening is handled directly through Firstrade.
Account types and getting started
Both brokers support the standard lineup most options traders need: individual and joint taxable brokerage accounts, traditional and Roth IRAs, with $0 minimums across the board at both firms. Neither requires you to fund a minimum balance just to open an account, so there’s no barrier to trying either one with a small position first.
Where they diverge is onboarding experience. E*TRADE’s application flow is built around Morgan Stanley’s broader account infrastructure, which means a slightly more involved setup if you’re also interested in managed accounts or banking products down the line. Firstrade’s application is leaner and faster for traders who just want a brokerage account and nothing else, consistent with its overall approach: fewer extras, lower cost, faster path to placing a trade.
Bottom Line
If options cost per contract is the deciding factor, Firstrade wins outright at $0 versus E*TRADE’s $0.65. If you need deeper research, a dedicated active-trading platform, or a paper trading account to test strategies first, E*TRADE’s fee buys something concrete. Pick based on what you’ll actually use, not just the lower number.
Frequently Asked Questions
Q: Does E*TRADE ever match Firstrade’s $0 options pricing?
A: No. Even at E*TRADE’s active-trader rate (30+ trades per quarter), options cost $0.50 per contract, still above Firstrade’s $0. There is no volume tier that brings E*TRADE to zero.
Q: Can I paper trade at Firstrade before going live?
A: No, Firstrade does not offer a paper trading or simulated account. E*TRADE does, through Power E*TRADE.
Q: Does either broker support futures trading?
A: No. As of the last verification (E*TRADE 2026-10-09, Firstrade 2026-10-03), neither broker offers futures trading. If futures are part of your plan, look at a broker like tastytrade or Interactive Brokers instead.
Q: Is Firstrade actually bilingual, or just marketed that way?
A: It’s a real platform feature. Firstrade offers full English and Traditional/Simplified Chinese language support across its trading platform, not just translated marketing pages.
Q: Which broker has better research tools?
A: E*TRADE, by a clear margin. Its Morgan Stanley backing gives account holders access to institutional-grade research and commentary that Firstrade’s leaner platform doesn’t bundle in.