4.5-star brokerage firm rating

Scottrade Review

4-star brokerage firm rating

Etrade Review

Etrade vs Scottrade


Scottrade vs Etrade in 2014: Account Pricing, Commissions, Fees




Scottrade


Etrade

  • 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
  • All Scottrade fees

  • Stocks and ETFs: $9.99 ($7.99 if making 150+ trades per quarter)
  • Stocks and ETFs broker assisted: $34.99
  • Options: $9.99 + $0.75 per contract ($7.99 + $0.75 if making 150+ trades per quarter)
  • Mutual funds: $19.99
  • Futures contracts: $2.99 per contract, per side + fees
  • Forex: markup or markdown will be included in the prices quoted on the E*TRADE FX trading platform
  • Fixed Income: markup or markdown and any transaction fee will be included in the price quoted
  • Bonds: $1 per bond (minimum $10, maximum $250) for online secondary market trades. Includes Agency bonds, Corporate bonds, Municipal bonds, Brokered CDs, Pass-thrus, CMOs, Asset Backed Securities.
  • Investment products: stocks, bonds, mutual funds, forex, fixed income, futures, options, ETFs
  • Etrade minimum deposit to open account: $500 for non-retirement cash account, $0 for retirement cash account, $2,000 for margin account
  • All Etrade fees




Scottrade vs Etrade: Pros




Scottrade


Etrade

  • 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)
  • 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 account maintenance or inactivity fees
  • Large and well established company
  • Powerful trading tools
  • No IRA account fees, and no minimums with electronic statements and confirmations
  • Low minimums to open accounts: $500 for cash account, $0 for retirement cash account, $2,000 for margin account
  • Banking products available: checking, savings, money market accounts, CDs, and credit cards
  • No surcharges on large orders or penny stocks
  • Great research amenities from S&P, MorningStar, Thompson Reuters, Credit Suisse, and Smart Consensus
  • Access to trading on 40 foreign exchanges
  • Free streaming quotes
  • Very broad selection of products: 8,000 mutual funds, every ETF sold, over 30,000 bonds, securities from 77 international markets, 1,300 no-load, no-transaction fee mutual funds, and 90+ commission-free ETFs




Scottrade vs Etrade: Cons




Scottrade


Etrade

  • 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

  • High commissions on stocks and ETFs
  • High margin rates
  • $0.005 per share surcharge on extended hours trades (ECN fee) and on trades executed through E*TRADE Pro at an ECN during both regular market and extended hours sessions
  • E*TRADE Pro platform is available at no charge only to customers who execute at least 30 stock or options trades during a calendar quarter




Etrade vs Scottrade: Comparison Summary



Scottrade (Scottrade Review) and E*trade (E*trade Review) are some of the best-known and largest brokerage houses in the country. Scottrade is definitely better priced: $7 for stock and ETF trades and $17 for mutual fund transactions versus Etrade's $10 for stock and ETF trades and $20 for mutual fund transactions.

Both firms don't have IRA fees. Unlike almost all other brokers, Scottrade doesn't even charge an IRA closing fee. These two companies in 2014 were included into our list of Recommended Firms for an IRA.

Etrade and Scottrade provide their customers with intuitive trading tools, and the latter in 2013 got the highest customer satisfaction rating in the industry according to J.D. Power and Associates. Scottrade also offers over 500 local branches where clients can visit and talk with a representative face-to-face. The firm's biggest disadvantage is the additional commission on penny stock trades (Etrade has a surcharge on extended hours trades).

Thanks to helpful online community, where users can 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.

Both of these firms are excellent and will definitely please majority of investors. Based on much lower commissions (which means huge savings over the years), and wider array of free services, we recommend Scottrade to most customers. Etrade is one of the best online brokers for an IRA account as well as for "buy-and-hold" and bond investors.


Scottrade Promotion - $100 in transfer fees
reimbursed:

Scottrade Review



E*trade Promotion - 60 days free
trading + up to $600 bonus:

Etrade Review


This article was updated on 8/19/2014.



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Review discount online brokerage firms comparison: Scottrade or Etrade? Differences between investment companies. Recommendation for stocks, options, ETFs, mutual funds, bonds investors. Etrade 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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