Scottrade Review

Scottrade ReviewsMy Scottrade Review

Scottrade offers three separate trading platforms for their clients including, Scottrade, Scottrader, and Scottrade Elite.

Scottrade Elite is the most extensive platform designed for the most sophisticated trader. It includes news columns from both Comtex and Dow Jones, advanced charts, level two quotes, and stock screeners.

Scottrader is lacking level-two software, but it does come complete with the same streaming stock quotes and news provided on Elite. For the most basic trader, Scottrade Standard will provide basic quotes and research tools.

This online brokerage also displays a multitude of investment calculators on their site and holds online trading seminars for their clients.

These educational experiences are free to Scottrade customers and can be a great help on understanding complex markets.

Scottrade makes available impressive charts to its clients. They are nearly as good as some of the more expensive brokers such as E*Trade and TD Ameritrade.

Like E*Trade and TD Ameritrade, Scottrade allows the trader to save chart settings, and they offer fundamental and technical indicators to be incorporated within charts. However, Scottrade does not supply the PE history indicator within their charts.

This online brokerage also provides standard research tools, but they are not extraordinary. Their stock screener online allows for the screening of thirty-two different categories. For example, it will not allow you to screen for a specific market cap.

Scottrade reviews the market on their stock market update page thoroughly, and it updates it as news rolls in throughout the day. They have links to Reuter, MarketEdge, and Standards & Poor’s available to clients.

Commissions: A

The commissions schedule presented by this discount broker is all about discounts. They charge only $7 for an online trade over $1. Scottrade also tends to be very straightforward with their fees without resorting to hidden charges. At a straightforward price of only $7, day traders can save a lot of money in with this brokerage in the long run.

Finally, it only takes $500 to open an online account, an offer appealing to many inexperienced traders. Scottrade’s margin rate is 0.25 if your balance is below ten-thousand dollars.

Below is a detailed commissions schedule for this online discount broker:

Stock Commissions

Order Method Cost per Trade
Internet $7.00
Touchtone (IVR) Phone System $17.00
Broker Assisted $27.00

Options Commissions

Order Method Cost per Trade plus cost per contract
Internet $7.00 plus $1.25 / contract
Touchtone (IVR) Phone System $17.00 plus $1.25 / contract
Broker Assisted $27.00 plus $1.25 / contract
Option Exercises and Assignments $17.00

Customer Service: A

You can contact Scottrade by telephone or email. They also have over 400 branch offices throughout the United States open for consultation and assistance.

Unfortunately, Scottrade is one of the few large discount brokerages that do not offer 24-hour customer service. They also prefer to talk on the telephone when there is a problem rather than by email, a quality in our opinion.

This stock brokerage is dedicated to providing customers with outstanding service, both from its many branch offices and its headquarters in St. Louis. Scottrade claims to diligently train its customer service representatives on all levels of the business.

Trade speed and reliability: A

If you are looking to make standard stock and options trades, then Scottrade has excellent execution. They tend to get the best price possible and they don’t waste time. Their site is typically quick and reliable. We have not had any negative experiences or failed trade executions with this discount broker during our eight years of business with them.

Registration: A

There was a time in which Scottrade did not accept electronic funding or wire transfers, but recently they have updated their system. It is no longer difficult to fund an account with this online brokerage.
In general this discount broker has an easy to follow registration procedure. Scottrade reviews you account information filled out online and sends you an account opening email. Their new electronic funding capability, called Money Direct, will allow your account to be instantly funded the moment you finish reading your email.

Scottrade Brokerage Special Features:

***Scottrade has recently updated their platform to include a tool called Smart Text. Smart Text will accompany a chart such as this chart of GOOG and it will explain briefly what that chart means to investors. It provides insight useful in trading decisions.

scottrade smart text

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