Best 401(K) Rollover Company
Investors frequently look to Scottrade for brokerage services with low commissions and good customer service. Founded in 1980, this broker has been providing investment services to
millions of customers for more than 35 years. With billions of dollars in client assets, this broker is a safe bet. Let's check it out what makes Scottrade one of the best
401k rollover brokerage firms in the industry.
Commissions and Account Requirements
Trading stocks and ETF’s at Scottrade carries a very low $7 charge. This commission is quite a bit less than many of Scottrade's rivals. For example, Fidelity charges $7.95 for the same trade, Schwab is at $8.95, and TD Ameritrade customers pay $9.99.
Derivative traders at Scottrade pay an extra $0.70 per option contract in addition to the $7 base charge. Traders can use a human broker over the phone to execute a trade. Using this service is an additional $25.
Securities accounts with Scottrade come with no account maintenance fees or inactivity fees. The broker does require at least $2,500 to open a brokerage account.
Retirement savers can open an IRA with Scottrade. There are several to choose from, including Roth, Traditional, Rollover, SEP, and SIMPLE. A Scottrade IRA has no setup fee, no inactivity fee, and no annual fee. Unlike a regular trading account, a retirement account has no initial deposit requirement. It's a perfect commission schedule for retirees on a budget. Within a Scottrade IRA, traders can buy and sell a wide selection of products, including mutual funds, stocks, bonds, ETF’s, and CD's. Unlike Merrill Edge, Scottrade has no fee for closing an IRA.
Trading on margin is also available with Scottrade. Currently, margin debits under $10,000 cost 8.00%. This is lower than Schwab (8.50%) and TD Ameritrade (9.25%).
Investors at Scottrade can buy and sell more than 14,000 mutual funds. Of these, nearly 3,000 have no load and no transaction fee. This is one of the largest selection of NTF mutual funds in the industry. For example, Merrill Edge has less than 900, Fidelity offers less than 1,800, and OptionsHouse has none.
No-load mutual funds at Scottrade that do have a transaction fee cost $17 to buy, sell, and exchange. Mutual funds with loads are always free to buy, although they are $17 on the sell side.
Scottrade representatives can be reached by phone, fax, e-mail, or an on-line chat system. The phone service is open from 5 am to midnight (CST) during the week, and 8 am to 6 pm on Saturdays and Sundays.
Investors can also reach Scottrade on Facebook and Twitter. The firm has live reps there 8 am to 8 pm (CST) during the week.
The firm has one of the largest nationwide network of branch locations. Currently, the broker has over 500 locations. This is more than E*Trade, TD Ameritrade, Charles Schwab, Firstrade, OptionsHouse, Vanguard, and Fidelity. Scottrade hosts in-person seminars at their branch locations for investors who want some personal guidance.
The standard trading platform at Scottrade is the website. Users can place orders for all security types. The site has a useful tool that can search for preferred stock and other fixed-income securities, in addition to the normal range of stocks, ETF's, and mutual funds.
Traders who want a more advanced trading system can use Scottrader Streaming Quotes, which is free for all customers. This platform is Java-based and is launched from the website. It has several important trading features, such as charting, market news, and order entry. The platform is easy to navigate. An equity search function displays the day's market movers, sorted by criteria such as percent gain and volume.
A desktop program is also available. ScottradeELITE is the broker's most advanced platform. It is available for traders who have $25,000 in Scottrade bank and brokerage accounts, or who place at least 9 stock, ETF, or option trades in a 90-day period.
Mobile traders haven't been left out here, either. Scottrade provides platforms for iPhone, iPad, Android, and mobile web. Available features include order placement, options search, market news, and account information. The mobile app is free for all traders.
Flexible Reinvestment Program
Scottrade has an exclusive dividend reinvestment system called the Flexible Reinvestment Program®, or FRIP® for short. Instead of the customary DRIP, this structure has some important differences. With Scottrade's system, investors pick dividend-paying stocks and ETF's in their account that deposit distributions into a FRIP pool. Investors then decide which stocks and ETF's the pool buys. The pool can purchase several stocks and ETF's at one time. For instance, one pool purchase can be structured so that 40% of the amount is for stock A, 35% for stock B, and 25% for ETF A. When the pool is large enough to purchase at least one share of each security, the FRIP pool submits an order for one share of each stock or ETF. If traders don't expect their pool to have a large balance, they can assign the pool to buy just one security with a low market price.
Whether on a desktop or on the go, traders can turn to Scottrade for attractive investment services. Especially good is the firm's selection of NTF mutual funds and $7
stock trades, which along with no IRA fees and other advantages makes it the best 401k rollover brokerage company in 2016.
Updated on 8/16/2016.