Used by millions of people, Scottrade is one of the best-known investment platforms on the internet. One of the reasons for this is that Scottrade offers casual investors an
easy and relatively low-cost way to start an IRA. The company offers many different types of investment accounts, but this article will be
reviewing why Scottrade is one of the best online brokers for an IRA.
Scottrade IRA Accounts
- Traditional IRA
- ROTH IRA
- Simple IRA
- SEP IRA
- 401K Plans
- Defined Benefit
- Money Purchase
- Keogh DVP
- Rollover IRA
Scottrade IRA Fees
- IRA setup fee: $0
- Annual (maintenance, custodial) IRA fee: $0
- IRA termination fee: $0
- Account inactivity fee: $0
- Outbound Full Account Transfer: $75
- Outbound Partial Account Transfer: $75
Best IRA Brokerage Pricing
|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)|
|Promotion and login links||Scottrade login, Scottrade promotions
Education and Learning Options
For the beginning investor, figuring out the differences between a Traditional and Roth IRA can be very daunting; and that doesn’t even get
in to complex situations like withdrawing early and different tax treatments. Scottrade’s brick and mortar offices make situations like these
much less stressful. Researching all the details of IRAs on the internet can be confusing for many reasons, such as ensuring the information
they’re using is up to date and handling conflicting information. Scottrade’s offices have registered professionals that can answer many
different financial questions, free of charge.
On top of their great in person learning opportunities, Scottrade also offers many online learning tools too. They have a great webinar series
where experts talk about financial topics and answer questions, as well as podcasts and an extensive online library. Scottrade also offers a
fantastic series of IRA specific learning materials. These show users around the firm’s IRA offerings and inform them on various aspects of
having an IRA at Scottrade.
All of this information makes Scottrade a fantastic place for anyone looking to open an IRA and learn more about their investments in the
Picking the Right Investments
Scottrade’s trend in providing a wealth of information doesn’t end with their learning options. The firm gives customers access to an
incredibly detailed fund screener that allows customers to search for investments using dozens of different criteria. This helps help investors
pick the right mutual funds out of thousands available.
Scottrade analysts also offer daily market commentary reports and their own “State of the Nation” type article series called “Market Pulse”.
Customers at the company also gain access to full detail third-party fund reports form industry leader - Morningstar. Investors are given
easy access to all of a fund’s required documentation and prospectus in case they want to dive in.
Managing A Scottrade IRA
One of the major restrictions of an IRA is the yearly contribution limit which for 2015 is $5,500. Scottrade makes managing this limit easy
by showing customers their total yearly contributions and the amount they have left to contribute for the year. They also make prior year
contributions a breeze. Between January 1st and April 15th there is a dropdown box that allows users to designate their contribution as a
current or prior year contribution.
Scottrade’s website is their most important asset. Through this website customers can access tons of information about their portfolio’s performance, research funds, and learn almost anything they want about finance.
The website, as seen in the screenshot above, is fairly cluttered and a little out of date. There are a total of six different tabs a user
can go to, each with their own navigation bar. Each page has a wealth of information on it, which may be a little daunting to new users.
Once users get a feel for the site, navigation will become much easier and they will be able to take full advantage of this feature rich site.
Scottrade offers low fees when compared to many other online brokerages. At $7 for most trades ($17 for some mutual funds), they come in as one of the cheapest
large brokerages in the business. Aside from those, Scottrade has very few fees that an average investor will have to worry about. Their
mutual fund commission is also excellent: only $17 per trade.
In summary, investors will have a hard time going wrong opening a Scottrade account. The firm offers great value for almost any level of
investor: their learning options are top notch and will help out beginners, while their advanced research tools and market analyses will
be a boon for more experienced clients.
Get up to $2000 when you open new account or add funds to existing account.
Updated on 9/28/2015.