Scottrade has been assimilated into TD Ameritrade
which does run a new client incentive right now.
Promotions
Scottrade/TD Ameritrade: Open TD Ameritrade investment account.
E*trade:
At E*TRADE, get $0 trades + 65₵ per options contract.
Overview - Scottrade vs Etrade
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Scottrade
|
$0
|
$17
|
$0 + $0.70 per contract
|
$0
|
$0
|
|
Etrade
|
$0
|
$19.95
|
$0 + $0.65 per contract
|
$0
|
$0
|
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Scottrade
|
|
|
|
|
|
|
|
Etrade
|
|
|
|
|
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Scottrade and Etrade are two of America's better known low-cost brokerage firms who advertise heavily and offer investors numerous financial
products and services. So which is better - Etrade or Scottrade? Let's find out.
Compare Fees and Account Minimums
Scottrade’s standard charge for trading stocks and ETF’s is $0, and Etrade now charges the same rate.
Etrade has a discount of $2 per trade for investors who place more than 150 trades per quarter. Investors who trade options will pay an extra
$0.70 per contract at Scottrade, and $0.65 at Etrade.
Brokerage accounts at both Scottrade and Etrade carry no inactivity fees or account maintenance fees.
The minimum initial deposit to open a brokerage account at Scottrade is $2,500, and at Etrade it's $500 ($0 for IRA).
Overall, brokers are tied in this category.
Mutual Funds
Etrade offers more than 8,000 mutual funds, of which 1,300 carry no-load and no transaction fee. Mutual funds that carry a transaction fee are
$19.99.
Scottrade offers more than 14,000 mutual funds, almost 3,000 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.
Scottrade clearly wins in the mutual fund arena.
Research and Education
Etrade has a variety of educational resources for its customers, consisting of on-demand videos, articles, and in-person seminars at select cities.
An assortment of topics are covered, such as fixed-income, options, and IRA’s. Etrade also offers futures research, including a dedicated futures
customer service phone line.
Scottrade falls short in this category. Research tools are on the moderate side. There are no third-party reports available. Scottrade offers
investment education on a web page called Knowledge Center, where traders will find articles and videos on a variety of topics.
Etrade wins in this category.
Customer Service
Scottrade is famous for having numerous brick-and-mortar branches across the United States to help their customers personally. The broker currently
has more than 500 branches nationwide. Scottrade's customer service is rated as one of the best in the industry. Etrade has just 30 branches. However,
Etrade offers 24/7 telephone customer service, whereas Scottrade is only available 5:00 AM to midnight (CST), Monday through Friday, and 8:00 AM to
6:00 PM on the weekend.
Overall, Scottrade has an edge over Etrade in this category.
Trading Tools
Scottrade’s web site is fairly simple and not very sophisticated. A step up from the web site is Scottrader Streaming Quotes, a Java-based system
launched from the web site. For active traders, there is ScottradeELITE, the broker's flagship trading platform.
Etrade's web site is more sophisticated and user friendly. The broker's Total Trade Ticket can be used to place orders for stocks, options, and
ETF’s. Advanced platforms are available for frequent traders. Etrade Pro is a desktop application, and Etrade Marketrader is a browser platform.
This category goes to Etrade, primarily for their well-designed web site.
Mobile Trading
Etrade has applications for Windows phone, iPhone, iPad, Android phone and tablet, Amazon Fire phone, and Kindle Fire HD. The iPhone app has the
most features. The interface is easy to navigate. Users will find charts, a trade ticket, mobile check deposit, educational videos, and many other
useful features.
Scottrade has applications for Android, iPhone, iPad, and mobile web. The interface is intuitive and user friendly. Users can read market news,
place an order, search for options, and look over position and account data.
Etrade and Scottrade are tied in this category.
Cash Management Features
Both brokers have FDIC-insured banks that offer deposit accounts with the standard insurance of $250,000. Both firms offer free checks and a debit
card. In order to open a Scottrade bank account, clients must have at least $500 in a Scottrade brokerage account.
Scottrade does not allow its customers to transfer funds out of a Scottrade brokerage account to an external bank account via ACH (however, ACH originated
from a bank is allowed), although Etrade does.
Etrade has a slight edge in this category.
Additional Features
Etrade offers futures trading and research, including the ability to trade more than 200 futures products. The futures trading platform has no fee,
and there is a dedicated futures customer support team.
Scottrade does not offer any services on futures (not that many investors trade futures), however it has a unique and better than the competitor's
version of dividend reinvestment program that so much more people will find useful.
Scottrade gets this category.
Promotions
Scottrade/TD Ameritrade: Open TD Ameritrade investment account.
E*trade:
At E*TRADE, get $0 trades + 65₵ per options contract.
Results
As you see Scottrade and Etrade are pretty
evenly matched in this online broker comparison. Both firms provide their customers with intuitive trading tools. Scottrade also offers over 500 local branches
where clients can visit and talk with a representative face-to-face.
Thanks to easy to use trading tools, proactive and helpful customer service, largest network of local offices as well as plethora of
learning materials, Scottrade is one of the best brokerages for beginner investors.
Overall, both Scottrade and Etrade are excellent and will definitely be a good fit for a majority of investors. Based on lower commissions
on mutual funds, we recommend Scottrade to most customers, especially to beginners, retirement and mutual funds investors.
UPDATE:
Scottrade was acquired by TD Ameritrade last year. TD Ameritrade plans to fully integrate Scottrade by
September of this year. For this reason it makes more sense to open an account with TD Ameritrade directly and skip possible transition inconveniences.
New customers could take advantage of TD Ameritrade's promotion
that allows them to trade for free for two months.
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