Scottrade or Etrade: Fees and Investments (2012)
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- Stocks and ETFs: $7
- Stocks and ETFs broker assisted: $27
- Stocks and ETFs interactive voice response (IVR) telephone system: $17
- Options: $7 plus $1.25 per contract
- Mutual Funds: 2,800+ free mutual 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 fee plus $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
- Minimum to open Scottrade account: $500 for a cash account, $2,000 for a margin account
- All Scottrade fees
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- Stocks and ETFs: $9.99 if 0-149 trades per quarter; $7.99 if 150+ trades per quarter
- Options: $9.99 plus $0.75/contract if 0-149 trades per quarter; $7.99 plus $0.75/contract if 150+ trades per quarter
- Mutual Funds: $19.99
- Futures contracts: $2.99 per contract, per side + fees
- Investment products: stocks, bonds, mutual funds, futures, options, ETFs
- Minimum to open Etrade account: $2,000 for margin account. For securities accounts (except retirement accounts), an account minimum deposit of
either at least $500 in cash or a deposit of securities is required within 60 days of account opening for the account to remain active. There is no initial minimum deposit requirement for retirement, custodial, or employee stock plan accounts. Accounts not meeting the minimum deposit requirement will be closed after 60 days.
- All Etrade fees
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Scottrade vs Etrade: Pros
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- No inactivity, account maintenance or hidden fees
- No-fee IRAs
- One of the highest customer satisfaction ratings according to JD Power and Associates
- 500+ local branches
- Great support for beginner investors with massive amount of educational resources
- Online user community
- Banking services: savings, CDs, money market and checking accounts (visa check card and first order of checks is free)
- No ACAT fee
- Only $500 minimum to open account
- Free real-time streaming quotes and charts
- Free dividend reinvestment for mutual funds (but not for stocks)
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- Very good trading tools
- No IRA account fees, no minimums with electronic statements and confirms
- Minimum to open: $1,000 for cash account, $2,000 for margin account
- Banking products: checking, savings, money market accounts, CDs and credit cards
- No surcharges on large orders, penny stocks and extended hours trading
- Great research amenities
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Scottrade vs Etrade: Cons
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- Additional 0.5% of the principal value commission for stocks under $1
- No electronic withdrawals (but can use debit card or checks)
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- High commissions on all investment products
- High margin rates
- Customer service complaints
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Etrade vs Scottrade: Comparison Summary
Scottrade (Scottrade Review) and
Etrade (Etrade Review)
are some of the best-known brokerage houses in the country. Scottrade is definitely better priced: $7 stock and
ETF trades and $17 mutual fund transactions versus Etrade's $9.99 stock and ETF trades and $19 mutual fund transactions.
Both firms do not have IRA setup and annual IRA fees. Unlike almost all other brokers, Scottrade doesn't even have ACAT
(transferring account to another firm) and IRA closing fees and therefore it made it into our
Recommended Brokerages for IRA Account list.
Etrade and Scottrade provide their customers with intuitive trading tools and great customer service. Unlike Etrade, Scottrade has over 500
branches where customers could visit and talk with a representative face-to-face. The firm's biggest disadvantage is additional
commission on penny stock trades.
Thanks to helpful online community, where users could ask questions and learn from more experienced investors, as well as plethora of
learning materials, Scottrade is one of the
Best Brokerages for Beginner Investors.
Based on much lower commissions (which means huge savings over the years) and wider array of free services, we recommend Scottrade to most investors.
Etrade is a decent option for an IRA account for users who rarely trade.
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