Scottrade Review


Best brokerage firm for mutual funds investing in 2014




Scottrade Pricing


  • 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


Scottrade Advantages


  • 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


Scottrade Disadvantages


  • 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 Mutual Funds Review

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.


Customer Satisfaction

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.


Conclusion

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.


Open Scottrade Account

Scottrade Review

This article was updated on 1/6/2014.





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