Best Brokerage Firm For IRA Account in 2017
Best IRA Broker Overview
Scottrade is a low-cost broker advertising $6.95 trades for stocks and ETF’s. The brokerage firm also offers investors the ability to trade bonds,
mutual funds, and CD’s. With competitive retirement and banking products, Scottrade is an excellent brokerage company to consider for IRA account.
Pricing, Fees, and Account Minimums
Scottrade’s charge for trading stocks and ETF’s is $6.95, placing the broker squarely in the low-cost category. Options are an extra
$0.70 per contract. Placing a trade over an automated phone system, or with a living, breathing broker tacks on an extra $25.
The minimum initial deposit to open a regular brokerage account is $2,500.
Scottrade does offer margin accounts. Currently, margin debits of less than $10,000 cost 7.75%.
Scottrade offers more than 14,000 mutual funds, almost 2,600 of which come with no load and no transaction fee. No-load mutual funds that do carry a transaction fee
are $17 on both the sell and buy ends, when traded on-line. Load funds are free to buy, but cost $17 to sell.
Customer Service And Education
Scottrade has a variety of educational tools, including in-person seminars at their many local branches. The firm is famous for having numerous
brick-and-mortar branches across the United States. The broker currently has more than 500 nationwide, much more than E*Trade, TD Ameritrade, Charles
Schwab, and Fidelity.
Scottrade's customer service is rated as one of the best in the industry. Customer service representatives use proactive approach, calling
and offering help when customers just open account or if there is a problem with the account.
For the most part, using Scottrade is easy. However, beginers or new online users might find the website difficult to navigate at first due
to all of the information and possibilities available. After becoming accustomed to the website, Scottrade’s Knowledge Center will be very
helpful in learning about investing for retirement. It is accessible within your online account and you will find a dictionary, how-to guides, videos,
and calculators to get you started down the path of online investing.
With all of their online capabilities, some transactions still need to be done at a Scottrade office. You can instantly transfer funds online
from your personal bank account to your Scottrade account. However, if you want to withdraw money from your Scottrade brokerage account, it is not as
easy. The free option is to call your local office and request a check be issued to you. For a $25 fee you can request a wire. Or you can order checks
and a Visa check card to more easily withdraw funds.
Scottrade’s standard commission of $6.95 is the same or less than the majority of on-line brokers, such as Wellstrade ($8.95), and
TD Ameritrade ($6.95). Furthermore, having a local branch near most urban areas in the United States will appeal to many old school investors
who want guided investment advice.
No fee IRA accounts, free dividend reinvestment plans, great customer service, and huge selection of mutual funds are also major pluses for most
The lack of 24/7 customer service is a real disadvantage for round-the-clock investors who can find non-stop service at other brokers, such
as Fidelity and TD Ameritrade.
Scottrade offers no ETF’s that are commission-free, which might disappoint some active investors who expect their broker to offer at least a
handful of ETF’s commission free.
Additional products such as forex and futures are not available at Scottrade, although they are available at
The Scottrade checking account currently pays only 0.01%, and the savings account pays only 0.03%. By comparison, the Schwab checking account
The safety of one of the largest brokerage houses in the country that never took a bailout along with the lowest commissions and fees among big
brokerage firms as well as excellent customer service make Scottrade one of the best brokerage firms for IRA account.
Open Account: Start Saving With Scottrade Today
This article was updated on 2/6/2017.