Scottrade: Finding the Right Online Stock Broker for You
Scottrade was one of the early pioneers of online trading. They have made their mark on the industry long ago allowing people the freedom and their own choice to trade as easily as possible. Scottrade has been around for over 30 years with rave reviews from their customers regarding stocks, EFTs, mutual funds and may other trading options making Scottrade one of the best stock accounts to open.
The account setup for Scottrade has been made very pain free and you can have an activated account in about 10 minutes. They have also done a very nice job on streamlining the registration with electronic signatures for important documents. This means you won’t have to fax or mail in any additional material to them. It is rather easy to fund your account as well through an ACH deposit or their Money Direct feature where you input your banks username and password to transfer the money. One thing you should note when opening a new Scottrade account, is that there will be a minimum deposit of $500.
Once you have funded your account, let the trading begin. With a very affordable $7 rate to trade your stocks and EFTs, Scottrade has been given great reviews for value. One exception is their penny stocks. If you trade anything under $1 an additional 0.5% of the principal value commission is applied. Scottrade does make up for this fee in other areas. They do not charge fees for IRAs, account maintenance, large orders, after hours trading, closing your account, IRA termination or even inactivity. This has boded very well with their clients.
Taking money out of Scottrade is a little screwy if you ask me. You are not able to do an electronic funds transfer to your bank. You must take money out of your account through a debit card or by checks, so keep this in mind if you are decided to cash in some of those equities.
Scottrade has also been rated very high for beginners with an over active online stock trading community and multiple learning tools including webinars. Additionally their mutual funds stand out, as they have over 2,500 of them FREE to get into. Investors that have the “buy and hold” mentality use Scottrade a lot since they do not have the inactive fees that most other companies have implemented. Also if you want to go into a branch and speak with someone directly, you are able to do that as well.
Scottrade Review: Sign Up Offers
Currently Scottrade will reimburse account transfer fees up to $100 that are charged by another broker if your account value is over $10,000.
Scottrade Review: By the Numbers
- Minimum Deposit: $500 on cash accounts, $2,000 on margin accounts
- Stock/EFT Trades: $7 (under $1, add .05% commission fee)
- Broker Assisted: $27
- Interactive Voice Response: $17
- Options: $7 plus $1.25 per contract
- Mutual Funds: Over 2,500 for free
- Corporate Bonds: $35 plus $3 per bond ($1,000 minimum investment required)
- Smart Phone App Available
Scottrade Review: Summary
From the above information you can see that Scottrade is one of the best stock accounts to open. They allow you to come into an office and visit if you need to. They have over 2,500 mutual funds with no charge to get in to. Scottrade offers a flat $7 trading fee, which is one of the lowest in the online broker community. Have fun with your upcoming trading days on Scottrade.