Best brokerage firm for mutual funds investing in 2014
- Stocks/ETFs: $7 per trade
- Options: $7 + $1.25 per contract
- Mutual Funds: $17 per transaction for no-load mutual funds
- Listed Corporate Bonds: $35 fee + $3 per Bond (minimum investment $1,000)
- Unit Investment Trusts: $50 liquidation fee
Scottrade Important Fees and Surcharges
- Extended hours surcharge: $0
- Large order surcharge: $0
- Penny stocks surcharge: 0.5% of the principal value
- IRA setup fee: $0
- Annual IRA fee: $0
- Maintenance fee: $0
- Inactivity fee: $0
- Hidden fees: $0
- Excellent customer service
- Over 500 local branches
- Free real-time streaming quotes
- Online community
- Easy to use for beginner investors
- Great Trade Ideas tool
- No IRA fees (setup, annual, termination)
- Low minimum to open account
- Surcharge of 0.5% of the principal value on penny stock trades
- Website could be improved
- Advanced trading platform, Scottrade Elite, is only available to $25,000 and larger accounts
- Cannot short sell stocks under $5
Scottrade brokerage is excellent for beginner investors, those who invest in mutual funds, and
long-term, "buy and hold" investors - company has no account inactivity fees. There are 3,000+ NTF (no-transaction fee), free to buy and sell mutual funds
available to the firm's customers. No-load mutual funds not in NTF program are just $17 per transaction.
Customers having a Scottrade IRA account enjoy several benefits and features that Scottrade has to offer, including free live
streaming quotes and charts, free mutual fund, stock, and ETF monitoring tools, fast transfer of ACH money from a bank account to a brokerage account.
Scottrade’s customer service is another very important feature that makes this a popular online brokerage firm. Indeed, customer service should be one of the deciding
factors that you must consider when selecting an online discount broker. At Scottrade, customers do not have to wait on hold for more than 30 seconds before they can
talk to a representative. The firm provides high level investor satisfaction for which it won the JD Power and Associates awards.
Scottrade also has over 500 branches nationwide through which customers who are not comfortable with trading online can avail all the services that it offers on the
internet. Most branches are in major metropolitan areas, though every state except Wyoming and North Dakota has at least one.
No Fee for IRA Accounts
Scottrade charges no fee for all IRA accounts, including a regular IRA, Roth IRA, Rollover IRA, and SEP IRA. There are no opening, closing, annual or custodian fees for
the retirement accounts that Scottrade offers. Further, there is no minimum contribution requirement.
Overall, Scottrade provides a lot of benefits to the investors. The most important - no fees. It is our recommended, top rated firm for mutual funds investors.
This article was updated on 1/6/2014.