Scottrade Review

Scottrade Review

Scottrade Review and Rating for 2015. Investing Costs, Stock Trading Commissions, Brokerage Fees, Minimum Deposit, and Mutual Funds.

Scottrade Review 2015: 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 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

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

We start our 2015 Scottrade review with trading costs: the company offers flat rate, $7 per trade commission on stocks and ETFs priced over $1. It has over 3,000 no transaction fee (NTF) mutual funds, which allows mutual fund investors to invest commission-free.

Scottrade New Account Setup

Scottrade made the opening process for non-IRA account easy and painless. We opened an account in less than 10 minutes, and, 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 did get a phone call from customer service asking if we had any questions - always a nice touch.

The Scottrade Money Direct feature allows customers to instantly transfer cash directly from their bank. Bank account setup and instant account validation is implemented very well (you will have to supply your bank account user name and password). We were able to use an ACH deposit to transfer money instantly - at the moment this is not common among online brokers, where in some cases you need to wait for weeks before cash will appear in your brokerage account. The minimum to open a Scottrade account is $2,500 for a regular brokerage account and $0 for IRA account.

Scottrade Review: Website/Trading Platform/Tools

Scottrade review

Scottrade's customers can trade from the website as well as from fully customizable, stand-alone application called ScottradeELITE. ScottradeELITE is an advanced, professional trading platform for active traders with an account balance of at least $25,000.

In ScottradeELITE the Market Overview page gives you 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 stock tool is the Screener which also works for ETFs and mutual funds. With it you can set whatever combination of criteria you consider appropriate given your investing strategy. Stocks can be selected based on market segment, fundamentals, price performance, earnings and dividends, or technical indicators. The platform also gives you the option to save any particular set of screening criteria for routine use. Additionally, you can compare specific stocks, ETFs, or mutual funds side-by-side. As a shortcut, you 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. Alternate tabs on the page give you the same sets except by the top or bottom 20 instead of only five.

Scottrade review

If you need to research a specific stock, the Summary page will give you 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 you 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 you pick a chart appropriate for the long-term or medium-term investor or the medium-term, short-term, or intraday trader. You can also select specific time ranges for the chart ranging from one day to 20 years (or inception).

There is also a comprehensive mobile application that works for iPhone, BlackBerry and Android. It allows the user to monitor investments, generate investment ideas, research opportunities (analyst views from Standard & Poor’s and, and execute trades, including 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 first order of checks free)
  • Free real-time streaming quotes and charts
  • Free dividend reinvestment
  • Large number of mutual funds available - over 14,500

Scottrade Review: Cons

  • 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

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 commission on stock and ETF trades (with the exception of penny stocks). It keeps customers happy by not charging fees for things like IRAs, large orders, extended-hours trading, account maintenance, or inactivity.

We would love to see Scottrade cancel the surcharge on penny stocks, and improve its website design as well as options trading tools and pricing. Also, the absence of electronic fund withdrawals is puzzling (even though withdrawals can be done using a debit card or check).

Thanks to live webinars and events, tons of learning materials, and very helpful customer service, Scottrade is an excellent choice for beginners. Customers that invest in mutual funds get over 3,000 commission-free (NTF) mutual funds to choose from. Long-term, "buy and hold" investors will be happy with no account inactivity charges. Absolutely no-fee retirement accounts make Scottrade one of the Best Companies for IRA.

Because Scottrade is a stable, seasoned brokerage firm with a good reputation, it is a very appealing choice for anyone who would not trust their money with newer companies, but also doesn't want to pay $10 for trades with other established brokerage houses. The ability to visit a local branch and talk with someone face-to-face can be very valuable, too. We ranked Scottrade among the top brokerage firms in 2015 and highly recommend it to investors.

Scottrade Promotion Code

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

Open Scottrade account

Scottrade Reviewed by Brokerage Review on . Reviewed by Editor and 80+ Scottrade customers. Rating: 4.5

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