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Best bond brokerage firm in 2010
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Scottrade Commissions, Fees and Investment Products Offered (2010)
- Stocks and ETFs: $7
- Options: $7 plus $1.25 per contract
- Mutual Funds: 2,800+ for free, $17 for all others
- Investment products: stocks, options, mutual funds, CDs, munis, Canadian stocks, ETFs
- Minimum to open account: $500
- All Scottrade fees and margin rates
Scottrade’s Fixed Income fee schedule is as follows: Scottrade acts as principal, incorporating a mark-up on a
buy order and a mark-down on a sell order, when executing trades for the following:
· Corporate Bond
· Municipal Bond
· Agency/GSE Bond
· Treasury
· Secondary CD
Scottrade’s mark-up is factored into the purchase price that a customer sees when viewing bond offerings on
Scottrade.com. When a customer receives a BID price from Scottrade, the mark-down has already been factored
into the price.
Scottrade acts as agent, charging a flat fee, when liquidating the following:
· UITs
· Auction Rate Preferred Securities
· Municipal Auction Rate Securities
A Scottrade Representative will notify you of this fee when submitting a sale request for one of the above securities.
Scottrade receives a concession, which is predetermined by a third party dealer, when offering the following at par
value ($1,000 per bond) to our customers:
· New Issue Corporate Bonds
· New Issue CDs
Scottrade boasts award-winning trading tools. Customers could trade from the website as well
as from fully customizable, stand-alone application called ScottradeELITE. ScottradeELITE is an advanced, professional
trading platform for active traders with an account balance of at least $25K. Clients could also trade
from their hand-held devices using Scottrade Mobile Trading Site.
- No inactivity, account maintenance or hidden fees
- No-fee IRAs
- Highest customer satisfaction according to JD Power and Associates
- 450+ local branches
- Great support for beginner investors with massive amount of educational resources
- Margin rates are among lowest of national online brokers
- Online community
- No ACAT fee
- Only $500 minimum to open account
- Additional 0.5% of the principal value commission for stocks under $1
Scottrade Review Summary
Scottrade is one of the veterans of the discount stock trading -- a solid, well-established company that
has been around for over 30 years. The firm has $7 flat rate commissions (with exception for penny stocks).
We ranked Scottrade #1 among Top Brokerage Firms in 2010.
Scottrade keeps customers happy by avoiding unnecessary fees for things like IRAs,
large orders, extended-hours trading, account maintenance or inactivity.
It's also one of only two firms that does not charge account closing and transfer (ACAT) fee. Scottrade
is a leader in customer service and investor satisfaction according to JD Power and Associates.
Because Scottrade is a stable, seasoned brokerage firm with a good reputation, it is
the natural choice for people who don't trust their money with newer companies but
also don't want to pay $10+ for trades (and multiple fees!) with other established brokers.
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