Scottrade

by · June 9, 2012

Scottrade is a veteran in the discount broker niche after more than 30 years in business. They’ve gained a consistent reputation for having high level of customer satisfaction. They offer a wide range of investment vehicles and personal support at 496 branches across the U.S.

What they offer: $7 trades, fast executions, low margin rates, mobile trading tools, and the highest level of customer satisfaction we’ve seen. Especially good for their no fee IRA accounts.

  • High investor satisfaction.
  • Scottrade Mobile for mobile research & trading access.
  • $500 minimum to join.
  • Access to wide variety of international investments.
  • Low margin rates.

Fees/Commissions:

  • Stocks: $7 per trade (non-tiered).
  • Options: $7 + $1.25 per contract.
  • For stocks priced under $1 add 0.5% to principal value.
  • Broker assisted trades are $27.
  • Margin rates: (Base – 0.25%) – (Base -2.75%)
  • No ACAT fee.
  • No hidden maintenance or inactivity fees.

Investments Offered:

Stocks, options, no-fee IRAs, mutual funds, fixed-income (CDs, treasury & municipal bonds), ETFs and education savings plans. Access to international stocks.

Ease Of Use:

Scottrade is easy to use whether you’re a beginner, novice or experienced trader. Video tutorials are offered to hold your hand at the beginning, but the basic platform is very intuitive. Scottrader and ScottradeELITE offer streaming quotes and allow you to customize your trading experience with the tools you need.

Trading/Investment Tools:

  • Mobile trading.
  • Fast execution.
  • Level I & II quotes.
  • Automated trading, watch lists.
  • Great charting and graphing tools.
  • Real time updates and streaming quotes (w/ Scottrader & ScottradeELITE).
  • Solid research & screening tools.
  • Dow Jones news & research analysis is free.
  • Interactive learning resources.

Customer Service/Support:

No LiveChat feature
Phone, email and face-to-face support in one of their 496 branches.
Scottrade also offers service and support in Chinese.

Awards:

  • #1 for Investor Satisfaction with online investing services by J.D. Power & Associates Online Investor Satisfaction Study (2008-2009) – Scottrade has placed
  • #1 eight times since 2001.
  • #2 in CEOWorld Magazines rankings of “Best Online Stock Brokers” (April 2010)

Timeline

  • 1980 – Scottsdale Securities Opens for Business

Rodger Riney drives his 1970 Chevy Corvette 1,500 miles from St. Louis to Scottsdale, Ariz., where Rodger and a partner form Scottsdale Securities. After receiving clearance from the government, they open for business on May 1 – five years after May Day.

  • 1981 – Branch Expansion Begins

Rodger Riney moves back to St. Louis and opens the second Scottsdale Securities branch. After the move, Rodger and his partner realize they have differing business approaches.

  • 1985 – New Commission Structure Established

Rodger Riney buys out his partner and maintains the company name, Scottsdale Securities, now headquartered in West St. Louis County. He reduces commissions to prices unheard of at the time.

  • 1989 – Associate and Branch Growth Continues

Scottsdale Securities now employs 16 associates in six branch offices in St. Louis; Phoenix; Pittsburgh; Dayton, Ohio; Springfield, Mo.; and Southfield, Mich.

  • 1991 – Branch Network Expands

Scottsdale Securities’ revenue steadily climbs. There are now 15 branch offices across the country.

  • 1994 – Continued Growth Is Recognized

Scottsdale Securities is named on Inc. magazine’s list of the 500 Fastest Growing Private Companies in America.

  • 1996 – New Website Launches

Scottrade.com is launched, making Scottsdale Securities one of the first investment companies to offer online trading. The name Scottrade is chosen, because Scottsdale.com was already taken, and Scottrade seemed like the perfect combination.

  • 1998 – Online Trading Takes Off

The Internet enables investors to be less reliant on full-service brokers. The volume allows Scottsdale Securities to set a new $7 price for online trades – making it one of the lowest trade commissions in the industry.

  • 2000 – Name Changed to Scottrade

The company’s name is changed from Scottsdale Securities to Scottrade, Inc., to reflect the name of its website. Also this year, Scottrade® begins its internship program.

  • 2001 & 2002 – J.D. Power Award Winner

Scottrade is named “Highest in Investor Satisfaction with Online Trading Services” by J.D. Power and Associates. This award helps boost the growth of the company.

  • 2003 – Chinese Trading Website Launches

Scottrade launches a Chinese-language online trading site and is acknowledged again by J.D. Power and Associates. Scottrade’s associate count exceeds 1,000.

  • 2004 – New Corporate Headquarters

Scottrade’s 200th branch office opens, and the investment company receives its fifth consecutive honor from J.D. Power and Associates. The Corporate Headquarters is relocated to a new building, called Corporate Hill, in West St. Louis County.

  • 2005 – 25th Anniversary Celebration

For the company’s 25th anniversary, Scottrade associates restore Rodger Riney’s treasured Corvette, which he drove to Scottsdale, Ariz., in 1980. The company receives its sixth honor from J.D. Power and Associates and begins opening accounts for registered investment advisors through Scottrade® Advisor Services.

  • 2006 – Scottrade Secures Naming Rights

Scottrade becomes the primary sponsor of the National Hockey League’s (NHL) St. Louis Blues and their home arena, which is renamed “Scottrade Center.” Rodger Riney rings the NASDAQ closing bell in recognition of a partnership to offer NASDAQ TotalView® quotes to Scottrade clients.

  • 2007 – Branch Network Reaches Milestone

With 306 branch offices, Scottrade becomes the online investing firm with the largest branch network. Scottrade Financial Services, Inc. is formed, and J.D. Power and Associates acknowledges the company once again.

  • 2008 – Scottrade Bank® Is Established

Scottrade opens 75 branch offices and hires nearly 1,000 associates, bringing its total to more than 2,700 employees. The growth is one of the reasons Scottrade is named one of FORTUNE magazine’s “100 Best Companies to Work For.” Scottrade Bank® is established and the Bank Deposit Program is implemented.

  • 2009 – Scottrade Mobile Launches

Scottrade Mobile (m.scottrade.com) launches, and Scottrade opens its 400th branch office. Scottrade is again named one of FORTUNE magazine’s “100 Best Companies to Work For.”

  • 2010 – 30th Anniversary Celebration

Celebrating its 30th anniversary, Scottrade® reaches another milestone: 500 branch offices. For the third consecutive year, Scottrade is named one of FORTUNE magazine’s “100 Best Companies to Work For.”

  • 2011 – ETF Suite and Mobile App Launch

Scottrade’s FocusShares® launches a new suite of 15 low-cost ETFs. Scottrade also releases the Scottrade® Mobile app, allowing traders to research, trade and manage their accounts on their smartphone and offers retail banking services through Scottrade Bank®.

  • 2012 – Named to FORTUNE’s “100 Best Companies to Work For” List

Scottrade is named one of FORTUNE® magazine’s “100 Best Companies to Work For.”