4.5-star brokerage firm rating

Scottrade Review

4-star brokerage firm rating

TDAmeritrade review

TD Ameritrade vs Scottrade



Scottrade vs TD Ameritrade in 2014: Account Pricing, Commissions, Fees




Scottrade


TD Ameritrade

  • Stocks and ETFs: $7
  • Stocks and ETFs broker assisted: $32
  • Stocks and ETFs interactive voice response (IVR) telephone system: $32
  • Options: $7 + $1.25 per contract
  • Mutual funds: 3,000+ commission-free NTF funds, $17 for others
  • CDs, OTC Secondary Corporates, OTC Secondary Municipals, U.S. Treasury Bills, Notes, Bonds and STRIPS, New Corporate Offerings: subject to a markup or markdown
  • Listed Corporate Bonds: $35 + $3 per bond (minimum investment $1,000)
  • Unit Investment Trusts (UIT): $50 liquidation fee
  • Foreign Stocks Transferring In or Out: $60 per transaction
  • Investment products: stocks, options, mutual funds, CDs, munis, U.S. Treasury, Canadian and foreign stocks, ETFs
  • Scottrade minimum deposit to open account: $500 for a cash account, $2,000 for a margin account
  • All Scottrade fees

  • Stocks and ETFs: $9.99
  • Stocks and ETFs broker assisted: $49.99
  • Stocks and ETFs interactive voice response (IVR) telephone system: $34.99
  • Options: $9.99 + $0.75 per contract
  • No-load mutual funds: $49.99
  • Treasuries at auction: $25
  • All other bonds and CMOs, CDs: on a net yield basis
  • Futures: $2.25 per contract (plus exchange & regulatory fees)
  • Forex: Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges.
  • Investment products: stocks, mutual funds, options, ETFs, bonds, CDs, UITs, futures, and forex
  • TD Ameritrade\TDA minimum deposit to open account: $0 for cash account, $2,000 for margin account
  • All TD Ameritrade fees




Scottrade vs TD Ameritrade: Pros




Scottrade


TD Ameritrade

  • No inactivity, account maintenance or hidden fees
  • No-fee IRAs
  • #1 in customer satisfaction according to JD Power and Associates
  • 500+ local branches for in-person assistance
  • Great support for beginner investors with a massive number of educational resources
  • Online user community
  • Good banking services: savings, CDs, money market and free checking accounts (free ATM withdrawals, VISA check card, and first order of checks free)
  • Only $500 minimum to open account
  • Free real-time streaming quotes and charts
  • Free dividend reinvestment for mutual funds (but not for stocks)
  • Largest number of mutual funds - over 14,500

  • No surcharges on penny stocks, large orders, or after-hours trading
  • Large and well known company with 126 local branches
  • Two excellent trading platforms: ThinkOrSwim and Trade Architect
  • Practice trading without risking your own money using paperMoney
  • No-fee IRA accounts
  • No account maintenance or inactivity fees
  • Rich selection of independent, third-party research from 12 firms (Standard & Poor's, Morningstar, Jaywalk, TheStreet, etc.)
  • Large number of mutual funds - over 13,000 available; 2,500 NTF (no-transaction fee) funds
  • Free DRIP: dividend reinvestment plan




Scottrade vs TD Ameritrade: Cons




Scottrade


TD Ameritrade

  • Additional 0.5% of the principal value commission for stocks under $1
  • No electronic withdrawals, but you can use a debit card or check. Once you receive checks, you will have the routing number and account number, which you can use to withdraw money via ACH initiated from other financial institutions

  • At $9.99 for stocks and ETFs and $49 for mutual funds, commission rates are very high
  • Extremely high margin rates




TD Ameritrade vs Scottrade: Comparison Summary



Scottrade (Scottrade Review) and TD Ameritrade (TD Ameritrade Review) are some of the most recognizable and largest brokerage houses in the nation. Scottrade is definitely much better priced: $7 for stock/ETF trades and $17 for mutual fund transactions versus TD Ameritrade's $9.99 for stock/ETF trades and $49 for mutual fund transactions.

Both companies offer fee-free IRA accounts - they don't even have IRA termination fee, which almost all other online brokers charge! TD Ameritrade and Scottrade also don't have surcharges on large orders and extended hours trading as well as account inactivity, maintenance and hidden fees. Scottrade, however, charges additional 0.5% of the principal value commission for stocks priced under $1 (penny stocks).

TD Ameritrade offers some of the best trading platforms in the industry - Thinkorswim and Trade Architect - that have all the bells and whistles one would expect from the professional trading software. The firm also provides free virtual trading and the best selection of independent, third-party investment research from 12 firms. Both companies offer free streaming quotes and access to helpful online trader communities.

We rated Scottrade one of the Top Brokerage Firms in 2014. We recommend TD Ameritrade to active traders (for them company's expensive commissions are negotiable), Futures and Forex traders. Scottrade is recommended for an IRA account, as well as for mutual funds, beginner, "buy-and-hold", and long-term investors.

You could also open accounts with both firms with no money down and no obligation in about 20 minutes, and take advantage of everything these top brokers have to offer at no charge.

Scottrade Promotion - $100 in transfer fees
reimbursed:

Scottrade Review
TD Ameritrade Promotion - 60 days free
trading + up to $600:

TDAmeritrade review


This article was updated on 2/12/2014.



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Review discount online brokerage firms comparison: Scottrade or TD Ameritrade? Differences between investment companies. Recommendation for stocks, options, ETFs, mutual funds, bonds investors. TD Ameritrade versus Scottrade for beginner investors, long term, individual retirement accounts, active/day traders. See what stock broker service is better, cheaper, offers lower fees, cost, rated higher and easier to use. Which you should choose?


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