TD Ameritrade IRA Promotion
Trade free for 60 days + get up to $600.
TD Ameritrade IRA promotion conditions.
Read TD Ameritrade IRA Review.
Discover Bank IRA Offer
Link for CD IRAs: Discover Bank IRAs
Discover IRA promotion conditions.
Read Discover Bank IRA Review.
Scottrade IRA Promotion
Get up to $2000 when you open new account or add funds to existing account.
Scottrade IRA promotion conditions.
Read Scottrade IRA Review.
Scottrade does not have any account opening fee, account maintenance fee, or inactivity fee for their IRA accounts. Online trading commissions start at $7. A full listing of their transaction
fees can be seen here: Scottrade fees.
Scottrade IRA Pros
The biggest advantages to opening an IRA with Scottrade are the lack of account opening, maintenance, and inactivity fees. Additionally, the multiple available channels for customer service – physical branches, online chat, and phone availability – make it easy to ask questions and get help.
Another advantage to the Scottrade IRA is that they pay interest on your uninvested cash balance, known as the Scottrade Sweep Program. Uninvested cash (up to $500,000) is automatically “swept” into one or more interest-bearing, FDIC-insured bank accounts. When purchasing securities, the necessary cash is automatically swept back into your brokerage account.
Scottrade also offers the Scottrade Flexible Reinvestment Program (FRIP) – a commission-free dividend reinvestment program. Scottrade’s FRIP allows you to select which dividend-paying equities you own to purchase up to five eligible securities at a time, with no commission. Unlike most dividend reinvestment programs, you are not confined to reinvesting into the securities that generated the dividends. The “set it and forget it” system makes the dividend reinvestment easy and automatic.
Lastly, opening an IRA with Scottrade allows access to a wealth of free trading information, including free real-time streaming quotes and charts, and live webinars and events.
How to create Etrade account?
Capital One 360 checking promotion
Scottrade vs Ameritrade
Drawbacks to Scottrade IRAs
The only cons to opening your IRA with Scottrade are minor inconveniences. Their website requires a login with your account number, which is more difficult to remember than a user-generated username (although they provide wallet-sized cards with your account number for convenience).
Additionally, the Scottrade platform only allows you to purchase full shares of a security; you are unable to purchase partial shares.
Lastly, you are only able to contribute through salary reductions and employer contributions; to contribute from an external bank account, you would have to open up a separate Traditional or Roth IRA. However, this disadvantage is not limited to Scottrade, but is a provision of all IRA accounts.
Scottrade is an excellent choice to open an IRA. They offer a wealth of knowledge for all users, and their Flexible Reinvestment Program is a huge bonus. The only drawbacks
to the Scottrade IRA are minor inconveniences and are greatly outweighed by the advantages.
Updated on 11/24/2015.