Scottrade Review

Scottrade Review

Scottrade Promotion Code for 2016: Get up to $2000 when you open new account or add funds to existing account.

Scottrade Review: Commissions, Fees, and Minimum Deposit

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 $17
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

Investments 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)
FeesScottrade fees
Promotion and login linksScottrade login, Scottrade promotions

We start our 2016 Scottrade review with investing costs: the company offers flat rate, $7 per trade commission on stocks and ETFs priced over $1. The broker provides over 2,600 no transaction fee (NTF) mutual funds, which allows mutual fund investors to invest commission-free. Mutual funds not in NTF program are only $17 to buy or sell.

Scottrade New Account Setup

Scottrade made account opening process easy and painless. We clicked their promotion link - Get up to $2000 when you open new account or add funds to existing account. - and completed application forms in less than 10 minutes. Thanks to electronic signatures there are no forms to print and mail. After setting up security questions and consenting to few standard agreements, we were free to login and explore the website. The next day we got a phone call from customer service asking if we had any questions - this is always a nice touch.

The Scottrade Money Direct feature allows customers to instantly transfer cash directly from their bank. At the moment this is rare among brokers, where in some cases clients need to wait for weeks before deposited funds appear in their brokerage account. Minimum to open is $2,500 for a regular brokerage account and $0 for an IRA.

Scottrade Review: Website/Trading Platform/Tools

Scottrade review

Scottrade's customers can trade from the website, from the Scottrader Streaming Quotes (a Java-based trading system launched from the website) as well as from fully customizable, stand-alone downloadable application called ScottradeELITE. ScottradeELITE is an advanced trading platform available for users with account balance of at least $25,000 or those making nine or more stock or options trades in the last three months.

In ScottradeELITE the Market Overview page gives a snapshot of the performance of any given major market index over one or five days, six months, one or five years. It brings together current market news, analyst views, and details on specific industries and sectors, and international markets in one place.

The main research tool is the Screener which works for stocks, ETFs and mutual funds. With it users can set any combination of criteria for their investing strategy. Stocks can be selected based on market segment, fundamentals, price performance, earnings and dividends, or technical indicators. The platform also gives the option to save any particular set of screening criteria for routine use. Additionally, users can compare specific stocks, ETFs, or mutual funds side-by-side. As a shortcut, they can view stocks that meet criteria preselected by Scottrade: the five strongest and weakest stocks by 52-week change, the five largest and smallest stocks by market cap, and the strongest five stocks as ranked by S&P Capital IQ as of the last market close.

Scottrade review

If users need to research a specific stock, the ScottradeELITE's Summary page will give them the basics in one place: last closing price, change and percentage change, dividend yield, volume, and 10-day average volume. Below that are the basic chart and other fundamental data, such as the float, beta, P/E, volatility, EPS, spread, and 52-week highs and lows. Current analyst ratings and reports (S&P, Thomson Reuters, and Second Opinion) can also be found on the main page.

The Advanced Charting option enables clients to impose a wide range of technical indicators on the price chart, include a comparison index or stock, and mark events (splits, dividends, or earnings announcements) and relevant news to see how they affect the share price. Several chart styles including line (the default) and candlestick are available. A set of shortcuts lets users pick a chart appropriate for the long-term or medium-term investor or the medium-term, short-term, or intraday trader. Clients can also select specific time ranges for the chart ranging from one day to 20 years (or inception).

Scottrade users also have access to a comprehensive mobile application that works for iPhone, BlackBerry and Android. It allows users to monitor investments, generate investment ideas, research opportunities (analyst views from Standard & Poor’s and, and execute trades for stocks, exchange-traded funds (ETFs), and options (all with real-time streaming quotes and watch lists).

Scottrade review

Scottrade Review: Pros

  • 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 free first order of checks)
  • Free real-time streaming quotes
  • Flexible dividend reinvestment program (DRIP)
  • Large number of mutual funds available - over 14,500
  • Instant funds deposits

Scottrade Promotion

Scottrade Review: Cons

  • Outdated, cluttered website design
  • Additional 0.5% of the principal value commission for stocks under $1
  • No electronic withdrawals, but clients can use a debit card, checks, or ACH transfer from their bank
  • $25,000 account balance, or 9+ stock/option trades during the previous three months is required to use advanced trading platform (ScottradeELITE)
  • High $2,500 minimum to open regular brokerage account (but $0 for IRA)

Scottrade Review Summary

Scottrade is one of the veterans of the discount online investing - a solid, well-established company that has been around for over 30 years. The firm offers $7 flat rate online stock and ETF trades (with the exception of penny stocks) and $17 rate on mutual fund transactions - these are the lowest commissions among large brokerage houses. The broker keeps customers happy by charging very few fees: there are no fees for things like IRAs, large orders, extended-hours trading, account maintenance, or inactivity.

We would love to see Scottrade cancel conditions for using advanced trading platform, and improve its website design, options trading tools and options pricing. Also, the absence of electronic fund withdrawals is puzzling; though withdrawals can be done using a debit card, checks, and via ACH initiated from other financial institutions.

Scottrade created their unique version of dividend reinvestment program (DRIP). They call it FRIP (Flexible Reinvestment Program) and the difference with regular DRIP is that clients can reinvest dividends commission-free not just into stocks or ETFs that paid the dividends but into any stocks or ETFs. Users can change their FRIP selections and percentage allocation to each security at any time.

Scottrade has an FDIC-insured bank that offers checking and savings accounts with the standard insurance of $250,000. The checking account has no setup fee, no minimum balance, and no monthly account fee. It comes with free checks and a debit MasterCard. In order to open a Scottrade bank account, clients must have at least $500 in a Scottrade brokerage account.

Thanks to live webinars and events, tons of learning materials, and very helpful customer service, Scottrade is an excellent choice for beginners. Clients that invest in mutual funds get over 2,600 commission-free (NTF) mutual funds to choose from, while long-term, "buy and hold" investors have no account inactivity charges to worry about. Completely no fee retirement accounts make Scottrade one of the Best Companies for an IRA.

Scottrade is a stable, seasoned brokerage firm with a good reputation, which makes it very appealing to anyone who would not trust their money to newer companies, but also doesn't want to pay high commissions with other established brokerage houses. The ability to visit a local branch and talk with someone face-to-face can be very valuable, too. Because of everything mentioned above, we ranked Scottrade among the top brokerage firms in 2016.

Scottrade Promotion Offer

Get up to $2000 when you open new account or add funds to existing account.

Open Scottrade account

Scottrade Reviewed by on . Reviewed by Editor and 70+ Scottrade customers. Rating: 4.5

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