Scottrade Review

They’re one of the grandfathers of the online broker world, and they consistently sit at the top of the lists for investor satisfaction, but does Scottrade still have what it takes to compete with the plethora of new kids on the block?

In this Scottrade review, I’m going to take a stab at answering that question. First, I’ll cover the basics (pros/cons, etc.), then drill down into what’s on offer at Scottrade, and hopefully give you a better idea of whether or not they can handle your trading needs.

Pros - No garbage fees, outstanding customer service, mobile trading access, wide range of investments, no commission for no-load, no-fee mutual funds, lots of good education resources.

Cons - Separate platform for multi-leg options trades, no DRIP, relatively expensive when compared to the deep discount brokers.

Best For - Long term investors, mutual fund investors, traders wanting access to foreign investments. If you want a brokerage you can trust and build a long-term relationship with, Scottrade won’t disappoint. Their commitment to customer service is unparalleled.

Minimum To Open Account -  $500

Special Offer: Transfer your brokerage account to Scottrade today and get up to $100

Browser or Software/Mobile Apps - Browser, Software (ScottradeELITE), iPhone, Android, Blackberry

ScottradeELITE, Scottrade’s advanced software platform, is available for customers with a minimum account value of $25,000 or more. ScottradeELITE is designed for active traders, and provides advanced tracking, screeners, and other tools. Unfortunately, ScottradeELITE is not Mac compatible.

But don’t fret, because for average investors, the basic online platform provides more than enough tools to do the trick.

Fees & Commissions

Equities: $7
Options: $7 + $1.25 per contract
Mutual Funds: $17
Touchtone Phone Orders: $17
Broker Assisted: $27
Futures: N/A
Platform Fees: $0
Margin Rates: 7.5% – 5.25%

It’s important to note that for stocks under $1.00, Scottrade adds 0.5% of the principal value of the trade.

Compared to most brokers, Scottrade’s commission schedule is straightforward and dead easy to figure out. At $7 per trade, Scottrade is slightly more expensive than some of their close competitors.

The only other downside to their pricing is that there is no volume discount for options traders – options trades can get expensive compared to brokers who offer volume discounts like TradeKing and OptionsHouse.

On the other hand, one of the great things about Scottrade is there are no inactivity fees, account transfer fees, or closing fees, which most brokers can ding you on.

Investments Offered

Equities: YES
Options: YES
Mutual Funds: YES
ETFs: YES
FOREX: NO
Futures: NO
International Exchanges: NO

Open a Scottrade account now.

Research & Tools

Free Live Streaming Quotes: YES
Breaking News: YES
Market Commentary: YES
Research Reports: YES
Market Analysis: YES
Trader Community: YES

Scottrade Mobile is one of the best mobile trading apps in the industry, and allows you to monitor investments, find and research opportunities, and execute trades. You also get real-time streaming quotes and can trade pre-market and after-hours from within the app. Check out this short video (0:33) to get a glimpse of what the mobile app can do.

In-depth Analyst Views come from Standard & Poors and briefing.com, and all customers get free access to Dow Jones News.

Click here to try Scottrade mobile apps and open an account.

Education

Free Tutorials: YES
Free Webinars: YES
Live Workshops: YES
Options Trading: YES
Stock Trading: YES
Mutual Fund/ETFs: YES

Scottrade offers a solid body of beginner and advanced investment education, and lets you work through it at your own pace. They’re pretty good at keeping it fresh with monthly articles and regular weekly webinars for basic and advanced traders.

All customers also have the option of attending regular live seminars at local branch offices. Check out your local seminar dates at Scottrade’s website.

Customer Service

24/7 Support: NO
Live Chat: NO
Email: YES
Phone: YES
Branch Offices: 500+ throughout the USA (See a map of locations)

I know one of the reasons Scottrade is so popular is that lots of people like having the ability to see a customer service rep in person when they need help.

Scottrade is unmatched when it comes to personal service. If you want, a rep will even personally walk through the platform with you. They’ve got branch offices in nearly every state (as far as I know, North Dakota and Wyoming are the only states without a branch).

Apparently, Scottrade is one of the top 100 companies to work for (according to Forbes), which could have something to do with their great service. Happy employees = happy customers?

Click here to get a Scottrade account now.

Types Of Accounts

Virtual Trading: NO*
No Fee IRA: YES
Individual/Joint: YES

*Just to be clear, Scottrade does offer virtual trading (sort of) through their Scottrade Fantasy Portfolio Challenge. However, in order to join the competition you have to be a customer (meaning you have to make a deposit). Therefore, they don’t belong in the list of brokers that offer true virtual trading accounts (no deposit required).

Commentary In The News

#1 in Branch Customer Service, J.D. Power & Associates (2011)
#2 in Overall Investor Satisfaction, J.D. Power & Associates (2011)

Final Thoughts…

At the end of the day, you have to weigh your own priorities to figure out if Scottrade is right for you. If you’re looking for a straightforward broker where what you see is what you get, Scottrade is a good bet. No surprises, no headaches.

In the past year, they’ve made improvements to their education and released new and improved mobile trading apps. They’re in the middle of the pack when it comes to commissions, but they make up for it with superior service and a name you can trust. What matters most to you?

Special Promotions – Scottrade Promotion Codes

Click here to get a Scottrade account now.

Do you use Scottrade? What’s your opinion of them? Please feel free to add your own Scottrade review in the comments below and let everyone know what you think…