Scottrade Review

By Sarah Pritzker

Company Overview

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.

Visit Scottrade

Account Options

 Minimum ContributionMaximum Contribution

Roth IRA

No Minimum

$5,500/year

Traditional IRA

No Minimum

$5,500/year

SEP IRA

No Minimum

25% of compensation
(up to $52,000)

SIMPLE IRA

No Minimum

$11,500/year

Self-Directed IRA

--

--

Rollover IRA

No Minimum

No Limit

Inherited IRA

No Minimum

No Limit

 

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.

Investment Options

Associated IRA Investment Fees

Stocks

$7.00 (for stocks priced $1.00 and above)

Mutual Funds

$17.00

Options

$7.00 (plus $1.25/contract)

Exchange-Traded Funds

$7.00

Annuities

--

 

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.

Fees and Commissions

Account Related Fees for Roth IRA

Minimum Account Balance Required

$0

Account Maintenance Fee

None*

Termination Fee

None

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.

Retirement Planning

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.

Account Features

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.

Accessibility

Multi-Device Functionality

Mobile Site

check

iOS Accessible

check

Android Accessible

check

 

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.

Safety and Security

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.

Customer Support

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.

Bottom Line

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.

Visit Scottrade

 

  About Sarah Pritzker

 Sarah Pritzker is a freelance writer with a keen interest in the world of investing.
 She enjoys helping her readers make sense of investment topics like online trading, 
 debt consolidation, personal loans, and others, as well as helping them stay
 up-to-date with current money management tricks and trends.

 

Advertising Disclosure

This site is a free online resource that strives to offer helpful content and comparison features to its visitors. Please be advised that the operator of this site accepts advertising compensation from companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented, and in some cases may also impact the rating that is assigned to them. To the extent that ratings appear on this site, such rating is determined by our subjective opinion and based on a methodology that aggregates our analysis of brand market share and reputation, each brand's conversion rates, compensation paid to us and general consumer interest. Company listings on this page DO NOT imply endorsement. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information, including pricing, which appears on this site is subject to change at any time.

Top 5 IRA Providers