Scottrade Review

The Good:

scottrade logoScottrade FAQ Snippet

Q: Is there a fee for account inactivity?
A: No, at Scottrade there are no fees for inactive accounts.

Q: What options are available for withdrawals?
A: Checks may be sent using standard mail delivery for no charge. Checks may be sent in...continue reading.

Scottrade boasts some of the most client-friendly no-fee policies of all the online brokers. There is no fee for account inactivity or transferring your account to another institution, and they also offer no-fee realtime stock quotes which is a really nice feature (most quotes are on a 15-minute delay unless you have a high account balance). Click here for a complete rundown of Scottrade's fee structure.

Scottrade’s website is about as educational and helpful as I’ve seen anywhere on the Internet. They boast not only an extensive knowledge center that covers virtually everything you’ll ever need to know about investing, but also an online community as well. Between the educational information in the knowledge center, and the opportunity to connect with fellow traders and share strategies and tips, you will be well on your way to becoming a successful trader.

Stability is another key feature of Scottrade. They have been in business for over 30 years and have never had a layoff or closed a branch office. This offers essential piece-of-mind for the cautious investor—they offer the largest branch network in the country with over 500 offices. If you live in or near a relatively big city, chances are there’s an office close by. Click here to locate a branch near you.



The Could-Be-Better:

Like some other online brokers, Scottrade reserves its better online trading platforms for those with higher account balances ($25,000+). The upside is that if you qualify for this platform, you will be able to experience online trading at its finest, as this platform is one of the best I’ve ever seen. Their “basic” platform is obviously not quite as feature-laden, however it’s still very functional and easy to use, and should easily get the job done for anyone who is just starting out. See screenshot below.


scottrade platform


It pains me to put this in the “not-so-good” category--because it’s still a fantastic rate--but at $7 commission per trade, Scottrade is in the middle of the pack. There is an additional fee of 0.5% of the principle value for orders on stocks that are $1 per share and lower. It is worth noting, however, that this is a much better rate for penny stocks than Trade King or Options House, so if you plan to play the pennies, Scottrade is definitely a viable option. Click here for a complete breakdown of Scottrade's commissions structure.


Summary:

For those who are looking for an online brokerage to grow with, Scottrade is perhaps your finest option. They don’t nickel and dime their clients with petty fees, and the commission rates are very competitive—especially if you’re trading penny stocks. If you see yourself gradually building up a nice account balance over time while you learn the finer points of the stock market, Scottrade is worth strong consideration.


Not sure if Scottrade is right for you?
   Check out more BestOnlineTrader reviewed sites:
                   OptionsHouse
                   TradeKing
                   E*Trade
                   Questrade




Getting Started in the Stock Market: