Scottrade Review – Exclusive Review of Scottrade Investment Brokerage 7 Comments
Hey everyone, thanks for joining me for this week’s review! This week, we’ll be going over Scottrade. When we think of online brokers, many names come to mind. However, it’s almost guaranteed that you will name Scottrade in that list. This mega-online broker has turned itself into a household name for investors, but why? Do they just have a lot of money to spend on branding and advertising, or is there really something to this platform? Find out in my upfront and honest review below!
Scottrade Short Review
Scottrade Pros – One of the first things that caught my eye with Scottrade is the streaming quotes feature. Because this information can be invaluable to an investor, several online brokers charge for this feature, but not this broker. Also, they have a great, user friendly interface. Many online brokers have had a hard time coming up with an interface that looks good and provides all the information investors need to know. Scottrade seems to have hit this nail on the head! There are also more perks like low costs, options first trading and more. We’ll go over those in the long review!
Scottrade Cons – Investors that like more advanced trades like straddle or spread trades will have to apply for a special platform to do that. Also, if you are approved for the special platform, you will be given a separate login. This may lead to your money being divided into two different accounts making it harder to manage.
Scottrade Overall – This is a great company with the strength to make you feel comfortable with the fact that they will be around for years to come. Their pricing structures are great, online trading platforms easy to use and other reasons you would want to work with them. The only reason you’d want to give Scottrade a second thought is if you want to make advanced trades, as this seems to be a hassle currently. Maybe they’ll change that in the long run. None the less, I’m incredibly impressed with them and would recommend them to anyone who isn’t looking for advanced trades!
Scottrade Long Review
Because cost is going to play a major factor in any investment, or purchase for that matter, it’s important that I start there. The pricing is fairly straight forward. With Scottrade you pay $7 per trade with no hidden fees that you’ll find yourself paying a couple of weeks down the road. If you’re looking for broker assisted trades, you’ll pay $32. And, that’s about it. Really, their fee structure is that simple! You will have to meet a minimum balance requirement to open the account, but that’s not too high, weighing in at only $500.
One of the things that I absolutely love about Scottrade is that you don’t have to pay extra fees for streaming quotes. Lets face it, we all know time is money. So, watching the changes in the market on a real time basis can save you tons in a loss and make you tons in a gain. I’ve seen a lot of other online brokerages that offer streaming quotes, but the vast majority of them charge extra fees for the option.
Another thing that Scottrade offers that is pretty impressive is a wide range of investment options. We see a lot different brokers offering stocks, bonds, ect… Most of these companies have a specific set of investment options that they offer which don’t vary much. This makes it so that investors who really want to diversify have to do that through multiple sources, increasing difficulty in tracking. However, Scottrade offers mutual funds, fixed income investment offers, even standard bank accounts in addition to stocks!
Next, when thinking about which online brokerage you want to use, it’s important to look at research and training tools. After all, if you’re a beginner, you’ve got quite a bit to learn. If you’re an expert, you know the importance of research. Their research and training tools are right of there with the best of the best online. Scottrade makes it easy to understand your investments and the potential risk or reward associated with them.
Now, lets talk a bit about customer service. When you’re investing, you put a lot of trust in your brokerage. This company helps you to make money or makes losing money all too easy! A lot of that depends on the customer service that the company offers. Scottrade knows the importance of customer service and it shows in any review I’ve read about them. They’ve got hundreds of locations that you can walk into and speak with a live human being. If you’re busy and don’t have time to call or go in, they have a chat right on their website. All you’ve got to do is ask your questions.
Finally, I want to go over what they call Options First. This is the only thing that I don’t like about Scottrade. If you want to make advanced moves with your stocks like straddle or spread, you’re going to have to apply for, and use an Options First account. Unfortunately, this means that if you like to make advanced trades, you may find yourself working in two different platforms.
My Final Thoughts On Scottrade
Scottrade is a very good company and a great option for beginning investors, and even experts. However, there is some added headache associated with advanced trades that I think most people can do without. None the less, they’ve got great customer service, tons of options, some of the best training and research tools, and more! They’re definitely an option to consider!
Scottrade Reviewed by Clarkgym on .