If you’re looking for a discount broker that offers low-cost trades and excellent customer service, Scottrade is one of the best options out there. Not only do they offer a standard fee of $7 for every transaction you make, but they are also headquartered in my favorite baseball town of St. Louis. Go Cardinals!
In addition to top notch and efficient stock trades for just $7, Scottrade also offers the ability to trade options for $7 per trade, plus $1.25 per contract. If cost is a concern or you prefer to trade frequently, this low-cost fee schedule can only benefit you as time marches on. In the meantime, an unprecedented wealth of investment options and access to an array of upgraded investment tools also help Scottrade stand out among its competitors.
If you’re thinking about opening a new account, this in-depth Scottrade review will tell you almost everything you need to know about this established online investing firm.
Scottrade: What You Should Know
Scottrade’s customer-oriented approach to investing makes it the perfect online home for both novice and experienced investors. Their easy-to-use website offers several different platforms and tools that drastically improve the investing experience while offering utmost support.
Built from the ground up in 1980, Scottrade has since expanded into a branch network with over 500 locations nationwide. In addition to being recognized as a top investment firm with brick and mortar locations, Scottrade is frequently recognized by J.D. Power as one of the best online brokerages to do business with as well.
This dual recognition has helped the firm stand out. With exceptional in-person client interaction and investment outcomes plus an award-winning online investing platform, many see Scottrade as a firm that offers the best of both worlds.
At the end of the day, this means Scottrade is used by a diverse population of investors from all types of backgrounds. With features to benefit investors at any stage of their game, Scottrade has built a solid reputation with both critics and its fans.
Scottrade Features
Before we get into Scottrade’s myriad benefits, I wanted to outline the basic components that keep pushing Scottrade to the top of its class. The follow features help Scottrade stand out:
Scottrade’s Trading Platform
Scottrade’s online trading platform is both user-friendly and straightforward. With help of a computer or mobile app, nearly any could navigate this platform and execute $7 trades at the touch of a button. If you opt to make trades through a broker, you’ll pay a flat fee of $32. So whether you’re comfortable trading on your own or need help, Scottrade offers an exceptional value.
ScottradeELITE
Created for investors with at least $25,000 to fund their accounts, ScottradeElite offers a customizable trading platform with more screens, tools, and charts than ever before. If you’re an active trader who is constantly on the move, these extra benefits could help bring your trading to the next level.
Scottrade OptionsFirst
Investors who want access to advanced options trading should look no further than Scottrade OptionsFirst. Through this exceptional program, options traders can place contract orders for $7 per trade, but with an additional $1.25 for each option contract. While options trading isn’t for everyone, having a platform to make these trades is a huge plus in my book.
Scottrade Streaming Quotes
If you want access to live, streaming quotes, Scottrade is the place to be. Simply open a new Scottrade account and you’ll get access to streaming quotes from day one. While many brokers charge a fee for real-time quotes, Scottrade includes this service as a perk for their customers. This is a huge benefit since live streaming quotes can keep you in touch with market movements and stock performance throughout the day.
Scottrade Mobile
As if the rest of these perks weren’t enough, Scottrade offers a mobile plan which allows you to make trades with the use of a smartphone. With more and more consumers using their phones for business or leisure travel, this mobile app is an extremely smart idea. Being able to make trades from your phone also means that you’ll never miss out on an investment opportunity just because you weren’t sitting in front of your computer all day.
How to Open an Account with Scottrade
Opening an account is extremely simple – even if this is the first online brokerage account you have ever owned. Here’s exactly what you’ll need to get started:
- Ten minutes of your time
- Social Security Number or Individual Taxpayer ID Number
- Your employer’s name, address, phone number
- Beneficiary’s social security number, date or birth, and address
By gathering this small sampling of information and opening a new account with Scottrade today, you can be on your way to $7 trades in no time.
Benefits of Scottrade
Before you pull the trigger, here are a few of the key benefits that help Scottrade stand out from the pack:
Exceptional Tools for Growth
Scottrade goes the extra mile to help its clients improve their investment strategies over time. With thousands of articles and interactive tools accessible online, you’ll have access to the same type of information and tools the professionals use. Scottrade also offers hundreds of free informative sessions across the United States. The sessions are run by professionals with the goal of introducing complex investing techniques to their clients.
Customer Service You Can Count On
With 500 brick and mortar branches all over the United States, Scottrade is an online broker with a real-life presence that reinforces its high standards for accountability. These brick and mortar locations can help answer questions and introduce you to advanced trading techniques you may not learn about otherwise.
In my experience, the professionals who work at Scottrade are both friendly and helpful. Whether you’re learning the ropes or simply trying to execute your complex investing strategy, these workers are there to help with both technical considerations and advice. They can take you through the trading process step-by-step if you want, which can help you feel more secure about where and how you’re investing your funds.
Diverse Investment Options and Opportunities
Scottrade offers the opportunity to invest in more than just stocks. By accessing its online trading platform, you’ll be able to invest in mutual funds, treasuries, banking products, and more. The firm’s mutual fund offering has more than 14,000 options to choose from on its own, 3,000 of which don’t carry a transaction fee.
Flexible Reinvestment Program
Stating in 2013, Scottrade began offering a flexible reinvestment program that pools cash from dividends to buy additional shares on your behalf. There is no charge for this service, and they allow you to pick specific stocks for your reinvestment funds. The addition of this reinvestment program in 2013 truly brought Scottrade up to the next level.
$7 Online Trades and Transparent Fees
With $7 trades, Scottrade offers one of the lowest cost-per-trade fees on the market. If you’re someone who trades frequently and wants to minimize trading costs, this is a perk you simply cannot ignore. The number of trades you can make is limitless, yet you will never be charged for inactivity, either. You will also have the safety of $25,000,000 worth of protection from the Securities investor protection corporation (SIPC).
Scottrade Disadvantages
While Scottrade is at the top of its class among online brokers, there are a few small disadvantages to be aware of before you get started:
Minimum Initial Deposit
Opening an account with Scottrade is a simple and painless process, but you will need at least $500 to get started – or $2,500 for a traditional brokerage account. While this should be easy for an experienced investor, newbies might need a while to build up the $500 or $2,500 they need to open an account.
Minimum Account Balance for ScottradeElite
Unlike some other online brokers, Scottrade expects you to have at least $25,000 invested to gain access to their advanced trading tools and platform, ScottradeElite. This puts Scottrade as a small disadvantage when comparing it to other big players that don’t have that requirement.
Who Scottrade is Good For:
- Experienced and novice investors who want access to superior customer service both in-person and online
- Investors with at least $25,000 in their account who hope to gain access to Scottrade’s premium platform and tools
- Anyone who wants to make unlimited trades at just $7 each
Who Scottrade Isn’t Good For:
- Investors who want a traditional brokerage account but don’t have $2,500 to get started
- Buy-and-hold investors who make infrequent trades
- Investors who need the help of a broker for each trade they make
Final Thoughts
Scottrade may not be the lowest per trade cost on the market, but its many benefits provide ample reason to sign up. With a reputation for excellent customer service, innovative online tools, and a wide range of investment options to choose from, anyone who trades stocks would be wise to give Scottrade a second look.
Most online investors want exactly what Scottrade has to offer – an updated and easy-to-use online investing platform coupled with innovative and useful online tools and in-person branches for additional support. With perks and support of this caliber behind them, Scottrade is one of the best options for investors from all walks of life.
Ready to Get Started? Sign up for your free Scottrade account today.
