4.5-star brokerage firm rating

Scottrade Review

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Sharebuilder Review

Sharebuilder vs Scottrade



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






Scottrade




Capital One ShareBuilder

  • 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: $6.95
  • Stocks and ETFs phone trades: $19.95
  • Stocks and ETFs Basic plan: $4 per automatic investment
  • Stocks and ETFs Advantage plan: 12 per month included; $1.00 each additional; $12 monthly fee
  • Options: $6.95 per online trade + $0.75 per contract
  • Mutual funds: $19.95
  • Investment products: stocks, options, mutual funds, ETFs
  • Sharebuilder minimum deposit to open account: $0
  • All Sharebuilder fees




Scottrade vs Sharebuilder/Capital One Investing: Pros




Scottrade


Capital One ShareBuilder

  • 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

  • Low-cost automatic investing plans
  • Free dividend and capital gains reinvestment
  • Ability to buy fractions of a stock
  • $0 to open cash account, $2,000 for margin account
  • Good banking services (but no reimbursed foreign ATM fees) provided by parent company Capital One (Capital One 360 promotions)




Scottrade vs Sharebuilder/Capital One Investing: Cons



Scottrade


Capital One ShareBuilder

  • 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

  • $0.007 per share surcharge on real-time trades on penny stocks (subject to a maximum of 15% of the principal amount of the trade, but no less than the base commission)
  • Customers can't specify at what price investments with Automatic Investing plan are bought or sold
  • Poor research choices
  • No extended hours trading
  • Very basic trading tools
  • Customer service complaints (and no chat feature)
  • Terrible trade executions
  • $49.95 fee on any no-load, no-transaction fee mutual fund held less than 90 days




Scottrade vs Sharebuilder (ING Direct): Comparison Summary



Capital One ShareBuilder (Capital One ShareBuilder Review) is one of the few brokerage firms offering cheap automatic investing plans. This is ideal for people that don't believe in timing the market or don't have time to follow it, and are looking to dollar-cost-average their investments by arranging to have a set amount invested daily, weekly, biweekly or monthly. If customers want to buy stocks real-time, Capital One ShareBuilder charges $6.95 per trade commission and the firm's trading tools are basic.

Scottrade (Scottrade Review) offers the same commissions on stocks and ETFs: $7 per trade. The firm charges additional 0.5% of the principal value on stocks below $1 - penny stocks (ShareBuilder has a $0.007 per share surcharge on the same stocks). Unlike ShareBuilder, Scottrade offers over 500 local branches where customers could step by and talk with a representative face-to-face. The company is rated #1 in the industry in customer satisfaction according to J.D. Power and Associates.

Both firms don't have account maintenance and inactivity fees, as well as no surcharges on large-size orders. There are no IRA fees at either company. Scottrade doesn't even impose IRA termination fee, which almost all other online brokers charge, and it is rated one of the Best Companies for IRA. The firm is also one of the Top Brokerages for Beginner Investors, offering lots of learning materials, helpful online investor community, and easy-to-learn and use trading tools.

Because of more free services, more advanced trading tools and higher rated level of customer satisfaction, we strongly recommend Scottrade over Sharebuilder to all clients.

Scottrade Promotion - $100 in transfer
fees reimbursed:

Scottrade Review
ShareBuilder Promotion - $100
bonus:

Sharebuilder Review


This article was updated on 2/12/2014.



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Review discount online brokerage firms comparison: Scottrade or ShareBuilder/ING Direct? Differences between investment companies. Recommendation for stocks, options, ETFs, mutual funds, bonds investors. Capital One 360 ShareBuilder/ING Direct 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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