Comparing Scottrade vs TD Ameritrade is a little like comparing a Honda Civic to a Toyota Corolla. They are both well-regarded Japanese sedans. So as both companies pretty much offer the same thing, the devil will be in the details.
For starters, both companies are online discount brokerage firms. What is an online brokerage firm? Simply put, it is a virtual brokerage firm that allows the customer or account holder to trade stocks and other instruments directly through an online trading platform.
In decades past, trades were left up to the brokers or order assistants, who would field calls from customers and then contact various floor brokers who would fulfill the order directly. Higher end investors still prefer to work with trained and savvy brokers and investment strategists to handle these trades for them.
These days, most average investors make the trades on their own and fairly instantaneously through an online brokerage firm app or platform. That means many trades are free or low cost and investors can put their savings toward more trades.
But there are differences when it comes to what Scottrade offers vs what TD Ameritrade offers to their customers.
For instance, consider the $2.99 difference it costs per stock at TD Ameritrade. TD Ameritrade's fee per stock trade is $9.99, while Scottrade's fee per trade is only $7.00. However, many customers rate TD Ameritrade customer service with more enthusiasm than they rate Scottrade customer service.
A quick at-a-glance table will illustrate most of the key differences and similarities between the two options.
Both Scottrade and TD Ameritrade have an iPhone App for mobile trading. An iPad app for mobile trading on Apple tablets is available for Scottrade and TD Ameritrade has an app to download on iTunes.
Services | ||
|---|---|---|
Stock trading fees | $7 per trade | $9.99 |
Options trades | $7 plus $1.25 per contract | $9.99 + 75-cents per contract. |
Account minimum | Zero for IRA accounts; $2500 for brokerage | $0 across board |
Account fees | No annual fee. No inactivity fees; Yes, $75 outgoing transfer fee | No annual fee. No inactivity fees; Yes, $75 outgoing transfer fee |
Trading platform | Browser trading and streaming quotes. | Two robust platform choices accessible by all customers. |
Mobile app | Reasonable in capabilities | Two apps mirror desktop structure |
Mutual funds | Access to 2,500+ mutual funds without incurring fees | Access to 2,000+ mutual funds without incurring fees |
Free Exchange Traded Funds | Access to 100+ commission-free ETFs | Access to 100+ commission-free ETFs |
Research & data | No Cost to Clients | No Cost and Extensive |
Tradable securities | • Stocks • Bonds • Mutual funds • ETFs • Options | • Stocks • Bonds • Mutual funds • ETFs • Options • Futures • Forex |
Customer Support | (800) 619-7283 | (800) 669-3900 24/7 |
Locations | Find 500 local Scottrade branches | Find 126 local TD Ameritrade branches. |
Overall, a Scottrade review forum will produce more complaints than TD Ameritrade according to a sweep of some consumer websites. One site produced complaints about the site’s security in recent years, and concerns about hacking and some very serious allegations of theft and fraud, with the complainer noting that his calls either fell on deaf ears or were never returned. TD Ameritrade also suffers complaints on certain sites, but mostly about customer service only.
Other details about Scottrade’s services include its costs for perks:
For instance, telephoned broker assisted trades are available for $32; a mutual fund fee is free to buy, but $17 to sell; a domestic wire withdrawal will be $20 as well a forced margin sell, and a bounced check (a stop-payment fee is $25). A full account transfer will cost the customer $75.
TD Ameritrade also runs some hidden costs. Broker assisted trades will run $44.99. Also, customers trading in ETFs must hold those funds for a month or be charged a short-term service fee of $19.99, possibly higher than those charged by other online brokers.
Thus, it is up to the reader or client to decide which online broker is best for them when opening an account. They may chose according to fees and commissions charged and want the best dollar value per trade. They may want a choice when it comes to best trading instruments and products and comfort level with those choices. They may want more hands-on help, more accessible customer service, the value of a human expert they trust and know. They may want none of that and prefer the ease of an online library of investment research and tools to explore.
Conclusion: The Winning Hand is Yours
In the end, there is risk and there is reward. And with near zero interest rates in savings and money market accounts, whichever online broker you choose, , either way you win.
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