By Sarah Pritzker
Scottrade is a privately owned online discount brokerage firm that was founded in 1980 by Rodger O. Riney. This broker offers an easy-to-use online trading platform as well as online and branch office services including banking, brokerage and investment education services. In both 2013 and 2014, Scottrade was named ‘Highest in Investor Satisfaction with Self-Directed Services’ by J.D. Power and Associates. Additionally, Scottrade has consistently been recognition for its quality with a 4 star rating from Barron’s for its branch services and 4.5 stars for its education, customer service and mobile platform. Scottrade was also rated as the Best Overall Client Experience in the Annual Online Broker Review from Stockbrokers.com.
|Minimum Contribution||Maximum Contribution|
25% of compensation
Scottrade offers IRA account options that are typical of most online brokers. Investors can also set up spousal IRAs and educational IRAs. ‘Catch-up’ contributions can be made on SIMPLE IRAs up to a maximum of $2,500 per year.
|Associated IRA Investment Fees|
$7.00 (for stocks priced $1.00 and above)
$7.00 (plus $1.25/contract)
The prices listed above are applicable for online trades only. There is an additional $25 fee for broker assisted trades.
Scottrade has a standard selection of investment options including mutual funds, options, ETFs and stocks. Additionally, clients can also invest in fixed income options such as bonds and CDs.
|Account Related Fees for Roth IRA|
Minimum Account Balance Required
Account Maintenance Fee
Outgoing Transfer Fee
None (if transfer is below $10,000)
*While there are no Account Maintenance Fees, there are other fees that do apply. For more information, consult a Scottrade website or a Scottrade Investment Consultant.
Scottrade offers low cost account and investment services so nearly an investor can open their own IRA account where there is direct access to a number of retirement and investment tools.
Scottrade has both a retirement calculator and an IRA calculator available to investors. These tools will help investors create a retirement plan and choose an IRA based on their goals and their current situation. In addition, Scottrade offers a variety of investment tools and an easy-to-use platform so investors can quickly and easily analyze and manage their investments. In addition, this online broker offers tools that are designed for beginners as well as tools designed for experienced investors.
Any client who has earned a taxable income in the last year is able to open a Roth IRA and there is no age restriction as there is with traditional IRAs. There are additional eligibility requirements set by the IRS that also must be met in order for investors to open a Roth IRA. Finally, investors will need to provide financial statements, their SSN and other personal information to open an IRA.
The powerful Scottrade mobile site and mobile apps allow investors to essentially enjoy the same functionality as their desktop investment platform. With the mobile app, investors can open and manage positions, research investments, manage their Scottrade bank account, access financial news updates and more.
Scottrade takes the security of clients’ accounts seriously and regularly check accounts for any signs of fraud. In addition, Scottrade encrypts all sensitive information with state-of-the-art encryption technology. Scottrade is also a member of the FINRA and SIPC which ensures securities in client accounts up to $500,000.
The customer service hours for email and live chat are Monday through Friday from 6AM to 12AM CST and Saturday through Sunday from 8AM to 8PM CST. Investors can also contact customer service via telephone Monday through Friday from 5AM to 12AM CST and Saturday through Sunday from 8AM to 6PM CST. There is also in-person support during normal business hours at a local branch and social media customer service via Facebook or Twitter.
There are not as many investment tools available at Scottrade but investors will enjoy powerful retirement planning tools to create an effective retirement and investment account. Customer service is also excellent and is available in a number of convenient methods.
About Sarah Pritzker
Sarah Pritzker is a freelance writer with a keen interest in the world of investing.