Scottrade Scottrade  

Scottrade is a privately owned American financial firm headquartered in Town and Country, Missouri. Its founder, former President and the current CEO is Rodger O. Riney. Scottrade has 503 branch offices around the U.S. It also offers services to Asian-Pacific customers with a service center staffing Chinese-speaking stockbrokers.

History

In 1980, Rodger Riney, founder, moved from St. Louis to Scottsdale, Arizona where he and a partner incorporated Scottsdale Securities.

In 1981, Riney returned to St. Louis to open a second branch, but ultimately split apart from his partner in the year 1985 due to conflicting business models. Riney kept the company name, Scottsdale Securities, and lowered the price of commissions to attract more clients. Riney's approach was successful and by 1991 Scottsdale Securities had a total of 15 branches throughout the US.

Scottrade.com was launched in 1996 (along with Scottrader.com to supply streaming online quotes to clients). Scottrade.com was successful and grew rapidly amidst the dot-com bubble of the '90s.

By 1998, Scottrade.com commissions were as low as $7 per trade (the same price as of November 2011) increasing their customer base.

In 2000, Scottsdale Securities officially renamed to Scottrade due to the success of their online firm.

In 2003, Scottrade launched their Chinese trading site, Chinese.scottrade.com.

In 2004, Scottrade's corporate headquarters were relocated to a new building called Corporate Hill in West St. Louis County.

Scottrade saw substantial growth throughout the 2000s, expanding from 200 branch offices in 2004 to 500 by 2010.

In 2006, Scottrade formed a partnership with the St. Louis Blues NHL team, purchasing the naming rights to the 19,150-seat arena in downtown St. Louis. The arena was renamed the Scottrade Center.

During the late-2000s recession Scottrade did not lay off any of its associates. In 2008 alone, Scottrade hired 1,000 new associates and opened 75 new branches despite the economic turmoil.

Scottrade has won numerous awards, most prominently those of J.D. Power and Associates. See awards section below.

In December 2010, Scottrade opened its 500th branch office – located in the West Side of Manhattan.

On December 18, 2013, Scottrade announced to its customers that Scottrade (Hong Kong) Limited will cease operations by December 31, 2013, and that customers have the options of transferring to another brokerage at no cost or Scottrade US will liquidate the accounts and refund its customers by January 31, 2014 by check or wire transfer at no cost to the customers.

Services offered

Scottrade renders both online and branch office services including brokerage services, banking services, investment education, and it offers online trading platforms, including the Scottrade Trading Web Site, ScottradeELITE Advanced Trading Platform, Scottrader Streaming Quotes, Scottrade OptionsFirst, Scottrade Mobile Application, and Scottrade Mobile Website.

Awards

In 2013, Scottrade was ranked No. 53 on Fortune's annual "100 Best Companies to Work For" List, a drop of 22 from the previous year. This was the firm's sixth consecutive appearance on the list.

In 2012, Scottrade was ranked No. 31 on Fortune's annual "100 Best Companies to Work For" List, a drop of 19 from the previous year. This was the firm’s fifth consecutive appearance on the list.

In 2011, the firm was ranked No. 12 on Fortune's 14th annual "100 Best Companies to Work For" List, a jump of 15 from 2010. This was the firm’s fourth consecutive appearance on the list. "[Scottrade] thrives by going against the grain: Its brokers offer no advice to customers and do not work on commission. Its workplace bucks trends too — no one has ever been laid off, and no office has ever been closed.”

In 2010, the firm was ranked No. 27 on Fortune's 13th annual "100 Best Companies to Work For" List. This was the firm’s third consecutive appearance on the list. "Almost all managers are promoted from the lower ranks, bucked the recession, laying off no one, hiring more than 1,000 new associates, and opening 58 new branches. Benefits include an onsite fitness center and subsidized gym memberships.”

In 2009, Scottrade placed 60th in Fortune's Top "100 Best Companies to Work For" List. According to Fortune, the major contributor to making the 2009 list was Scottrade's ability to shake the turmoil on Wall Street and achieve its 20-year milestone on October 10 of paying quarterly bonuses and never having a layoff. Other factors were a 25% job growth (390 new jobs) and zero employees outside of the U.S.

In 2008–2009, "Scottrade was ranked No. 1 in investor satisfaction with online investing services for the eighth time since 2001, according to J. D. Power and Associates' 2008 Online Investor Satisfaction Study."

In 2008, Fortune announced "that Scottrade, a leading online investment firm, has been ranked 58th on the 11th annual '100 Best Companies to Work For' list." One of the primary reasons for the ranking, according to the Business Wire article, was job growth. Scottrade hired 46% more people in 2007 than 2006, promoted over 500 employees in 2007, and disclosed that over 20% of Scottrade branch managers "began their Scottrade careers as interns."

Recently Scottrade was also selected by Computerworld magazine's 2008 16th best place to work in IT. Many things were considered when rating the work environment for technology professionals such as benefits, diversity, career development, training and retention. In addition to a comprehensive questionnaire regarding company offerings, Computerworld conducted an extensive survey of Scottrade’s IT workers.

Scottrade ranks highest in the industry in J. D. Power and Associates 2013 Investor Satisfaction Survey with an overall score of 810 which is 58 points above the industry average.

SEC complaint and settlement

In 2008, the Securities and Exchange Commission charged the company with making fraudulent misrepresentations to clients. The company settled the dispute by paying a $950,000 fine.

Cybertheft of personal records

In October 2015 Scottrade revealed that hackers breached a database that contained more than 4.6 million personal records of their clients, including names, Social Security numbers, email and street addresses, as well as account numbers in late 2013 and early 2014. The company believes that the focus of the breach was contact information.[

Start Trading

Details

Status
Foundation Year 1980
License
Trading Platforms Scottrade Trading Web Site, ScottradeELITE Advanced Trading Platform, Scottrader Streaming Quotes, Scottrade OptionsFirst, Scottrade Mobile Application, Scottrade Mobile Website
Reliability Rate BBB
Authorised Capital
Brocker Fee
Exchange Fee 7
Withdrawal Fee
Minimum Deposit 2500
Mobile Trading
Daily Analytics
Bonuses & Discounts
Seminars, Education
Manager Support
Assets Management
Phone 800 619 7283
Address Town and Country, Missouri, United States
Website https://www.scottrade.com

User Reviews

   sam    2016/9/26 12:10   

I find Scottrade to be an adequate broker. I was looking for a reputable online broker I could trust with my life savings, low commissions, and physical stores. The $7 commission is very reasonable. This business has been around for decades which allows me to sleep better compared to the many fly by night $5 brokers. I visited the local Scottrade office in my area to fill out some paperwork. It's sure nice to be able to put a face to an online account. I also really like the FRIP program for reinvesting dividends. The biggest downside to me is that it is difficult to withdraw money electronically compared to other brokers.


zola1936    2016/9/26 12:10
I agree, as you want o be able to make a deposit in person and not rely on the USPS to deliver it. Besides that, it is good to be able to visit a brokerage house in person and check on things rather than rely on something over the net....Maurice H

   Van    2016/9/26 12:10   

I wish they would bring back the FRIP program. I thought it was a feature they still had because it's mentioned on a lot of websites but its for members from a year ago. Every time I ask when its coming back they give vague replies like we can't give you a date but it will return or we are working out some features so we don't have a date set. Then I ask if they have an idea of what the time frame may be but they say they don't which leads me to believe its not coming back. They don't have DRIP and without the FRIP program there isn't much scottrade offers over other competitors who give cheaper commissions or 500 free trades. If they don't bring the FRIP back im probably gonna transfer my account to another online broker.


BRC    2016/9/26 12:10
Their FRIP program is back now.

gmaniv    2016/9/26 12:10
its back now!

   Dallin    2016/9/26 12:10   

One of the best trading sites I have ever used! If you have not opened an account yet i highly suggest that you do. Trades are only $7 bucks and to open a new account all they ask is $500 They have some of the best tools for researching and staying up to date with stocks, and their local branches are available and willing to help with any questions you might have.


gmaniv    2016/9/26 12:16
why do they have all these local branches? They give very vague information when you call, seems a very high overhead for the company, all this can be done through one call center.

AdamMohr    2016/9/26 12:16
If all you have is 500 you should not be investing

   Nomo_Scottrade    2016/9/26 12:16   

Quick follow up - Just tried to call my branch an hour into the trading day, to try and sort out why they hosed my limit trade. They won't be 'open' for another 30 minutes. That's just pathetic - particularly considering they used to be available at 630 pacific time when the market opens. My guess is that they are bleeding so badly they need to cut costs and have reduced office staff to bare minimums. One more reason to go elsewhere for trading services.


   george    2016/9/26 12:16   

Can some one answer me a to a few questions please. 1. Some one mentioned that no electronic withdraw, what does that mean, what happens when I want to cash out?? 2. What happens to the divedents, since they can not be re invested.


Robert_Maxwell    2016/9/26 12:16
A few months ago Scott initiated something they call FRIP, which allows for automatic reinvestment of dividends in certain kinds of investments. Not stocks (I don't think) but maybe mutual funds. I forget which but you can check it out at their site. Go to knowledge base.

Peter    2016/9/26 12:16
1) they mail you a check which I like because I can't do something stupid with the money. I can see how some might like using it for debit purposes but this is money for me that I don't want to touch anyways. 2) dividends just show up as cash and sit in your st account until you invest them I like it for when you want to chose what and when to invest your dividends. I would like the option to drip though

Tom    2016/9/26 12:16
Do you pay a fee when you reinvest the dividends?

Adam_Mohr    2016/9/26 12:16
Drips automataically reinvest in the company allowing fractional ownership of a stock where as if you do not use drip you get the cash in account to invest where you choose. You have to keep lots of records and is somewhat tedious. Main benefit is you do not have to pay commissions on purchase towards new stock.

Todd    2016/9/26 12:16
I know this going to sound like a stupid question but what is the difference between DRIP and reinvesting your gains on your own, perhaps manually? has it any tax implication? thx!

   don    2016/9/26 12:16   

Been with Scottrade for over 15 years now. Great company and great things are in the pipeline I hear. Probably because of irs reporting of option trades I hear they are going to merge Options First with the regular Scottrade. Anyway very professional company not like my other broker who makes fun of clients. I have two accounts just in case one goes down I can trade with the other online or on the phone. Ever try to get thru when web trading is down with one of your brokers and the market is moving. Use the other online or on the phone. Thinking about trying Scottade bank. I hope this Wilson guy that came over from TD doesnt make the party atmosphere they got there. I like professionalism the way Scottrade has been for the 15 years I been there. Also would like to see the 4 main futures available to trade. S&P, Nas, Russell and Dow.


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