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Scottrade

By on November 6, 2012
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Scottrade Logo

 

Scottrade dates back to 1980, a clear veteran in the investment industry. From modest beginnings, Scottrade has now risen to the point where it has over 500 local offices spread throughout the United States. In addition to investment services, Scottrade also offers banking.

In this Scottrade review, I’ll cover what Scottrade has to offer, who they’re right for, and give you guys some links to the latest Scottrade promotions. If you’ve used Scottrade before, please add your own rating and review below.


Scottrade – The Basics:

Investments: Stocks, mutual funds, options, CD’s, municipal bonds, Canadian and other foreign stocks and US treasury.
Commissions: All stock trades cost $7 irrespective of the number of shares traded. Option trading has a minimum of $7 with each contract costing $1.25. Mutual fund transactions cost $17 (there are over 2800 free mutual funds to choose from). Trading in listed corporate bonds has a fee of $35 in addition to $3 per bond. Scottrade also offers international trading in China through its subsidiary based there. Trading in foreign stocks cost $60 per transaction. UIT’s have a $50 liquidation fee.
Investor Education: Very comprehensive investor education program which consists of over 2000 educational articles besides providing interactive tools and access to free seminars and webinars.
Mobile apps: iPhone, Android and Blackberry apps, plus a mobile version. Apps allow you to view streaming data, news, charts, quotes and watch lists.

 

Scottrade is known for providing access to good research amenities which include some really great tools, independent third party articles and complementary news articles from Dow Jones. Customer service is available via phone, email and by in-person executives in any of the over 500 local branch offices. Their customer service comes highly rated.

Scottrade requires a minimum deposit of $500 for a cash account and $2,000 for a margin account. Apply for an account now.


Pros & Cons Of Scottrade:

Pros Cons
  • Personalized customer service.
  • No account inactivity or maintenance fee.
  • No hidden fee.
  • No fee IRA’s.
  • Over 500 local branch offices.
  • Highly rated customer service.
  • Massive educational resources.
  • Active online trader community.
  • Banking services offered.
  • Low initial deposit of $500 to open up cash account.
  • Facility to provide free streaming of quotes and charts.
  • High margin rates.
  • For stocks under $1, an additional charge of 0.5% of principal value is levied.
  • No facility for electronic withdrawals.
  • Dividend reinvestment plan is not offered.
  • Expensive brokerage, especially for frequent traders.
  • Limited features from mobile apps.
  • Complex options trades have to be executed on a separate platform.

How Others Rated Scottrade In 2012:

Barron’s: 3/5 stars

          Highest rated category: Customer Service and Education

          Lowest rated category: Costs

Smart Money: 2nd Overall

          Highest rated category: Commissions and Fees

          Lowest rated category: Trading Tools


Word On The Street Is…

The best feature about Scottrade is easily their excellent customer service. It’s been rated as the best customer service in its 17th annual review of online brokers. Coupled with its great customer service, Scottrade also provides some really great research amenities along with fantastic educational resources.

Overall takeaway: A place for a novice long-term investor who is wanting to learn. And the over 500 local branches are the icing on the cake.


Scottrade Promotion Code:

Hit the link below to claim the latest Scottrade promotion. Click below to claim promotion code Get a $100 transfer rebate 3 free trades when you open a new account

Where To Open A Scottrade Account:

Open A Personal/Joint/Custodial/Business Account With Scottrade: Apply Here

Open An IRA Account With Scottrade: Apply Here

Open A Forex Trading Account With Scottrade: N/A

 


P.S. Don’t forget, if you’ve used Scottrade before, please help us by adding your rating and review below!

References:

  1. http://online.barrons.com/article/SB50001424052748704759704577267660673833538.html#articleTabs_article%3D0
  2. http://online.wsj.com/media/smbrokersurvey0612.gif
  3. http://www.scottrade.com/mobile-trading.html
  4. http://www.scottrade.com/online-brokerage/reasons-to-choose.html#tab4

About Peter Voga

Self-confessed coffee addict. Family man. Rage Against The Machine fan. Lover (and sometimes hater) of the stock market. Founder of BrokerChats. For more, follow me @petervoga or check me out on Facebook or Google+.

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