Sharebuilder Review

Sharebuilder vs Scottrade

Scottrade vs Sharebuilder in 2015: Account Pricing, Commissions, Fees


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: $2,500 ($0 for IRA accounts)
  • All Scottrade fees

  • Stocks and ETFs: $6.95
  • Stocks and ETFs phone trades: $19.95
  • Options: $6.95 per online trade + $0.75 per contract
  • Mutual funds: $19.95
  • Automatic Investments (stocks, mutual funds and ETFs): $3.95
  • Investment products: stocks, options, mutual funds, ETFs
  • Sharebuilder minimum deposit to open account: $0
  • All Sharebuilder fees

Scottrade vs Sharebuilder/Capital One Investing: Pros


Capital One ShareBuilder

  • No inactivity, account maintenance or hidden fees
  • No-fee IRAs
  • 500+ local branches for in-person assistance
  • Great support for beginner investors with a massive number of educational resources
  • 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
  • Large number of mutual funds available - over 14,500

  • Low-cost automatic investing plan
  • Free dividend and capital gains reinvestment
  • No-fee IRA accounts
  • No inactivity or maintenance fees
  • Ability to buy fractions of a stock
  • $0 to open cash account, $2,000 for margin account
  • Good banking services provided by parent company Capital One (Capital One 360 promotions)

Scottrade vs Sharebuilder/Capital One Investing: Cons


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
  • Outdated, cluttered website design

  • $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: Comparison Summary

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

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.

Both firms don't charge account maintenance and inactivity fees as well as 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 in 2015 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, many local branches for in-person visit, 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 - up to $2000

ShareBuilder Promotion - none
right now:

Sharebuilder Review

This article was updated on 8/5/2015.

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