E*TRADE vs Scottrade

While both discount brokers are among the best firms in the industry, it’s important that investors compare Etrade vs Scottrade in terms of overall reviews and ratings, trading fees and commissions, platforms, research tools, customer support, and promotions to find the best online broker for their investing needs. Whether you pick E*TRADE or Scottrade as the better online broker for you just depends on your investment strategy and goals.

E*TRADE vs Scottrade: Trading and Account Fees

This breakdown of E*TRADE’s fees versus Scottrade’s fees demonstrates that the difference is almost negligible. Just note that, while a comparison of brokerage fees is essential, price or cost shouldn’t be the only reason you pick one broker over another.

E*TRADE:

  • Stocks and ETFs: $6.95
  • Options: $6.95 + $0.75 per contract
  • Mutual Funds: $19.99
  • Broker-Assisted Orders: $25.00
  • Account Minimum: $500
  • IRAs: No Fees
  • IRA Account Minimum: $0.00
  • No inactivity, account maintenance or hidden fees.

SCOTTRADE:

  • Stocks and ETFs: $7.00
  • Options: $7.00 + $1.25 per contract
  • Mutual Funds: $17.00
  • Broker-Assisted Orders: $32.00
  • Account Minimum: $2,500
  • IRAs: No Fees
  • IRA Account Minimum: $500
  • No inactivity, account maintenance or hidden fees.

E*TRADE vs Scottrade: Features

Although you can’t go wrong with either E*TRADE or Scottrade, each online discount broker has pros and cons worth reviewing.

E*TRADE:

  • One of the best trading platforms – flexible, user-friendly, intuitive, fast, and reliable.
  • Desktop and web-based platforms.
  • Access to over 8,000 mutual funds.
  • 110+ commission-free ETFs.
  • International investing in Europe, Asia, and Canada.
  • 24/7 customer service.
  • Managed accounts with at least $25,000 in deposits.
  • Extensive research, including 3rd-party reports and analysis (i.e. Morningstar).
  • Active traders get lower commissions.
  • Separate platforms for investors with higher balances.
  • Margin Rates: 8.44% to 3.89%

Trade Types

  • Stock Trading
  • Options Trading
  • Mutual Funds
  • FOREX Trading
  • Futures Trading

Mobile Trading

  • iPhone, iPad and Android Apps
  • Mobile Trading Platform and Tools

SCOTTRADE:

  • A robust, easy-to-use trading platform with charting and screening tools.
  • Desktop and web-based platforms.
  • Access to over 14,000 mutual funds.
  • No commission-free ETFs.
  • International investing in Europe, Asia, and Canada.
  • Excellent customer service.
  • 500 branch offices nationwide.
  • Solid research and trading tools, especially for beginners and DIY investors.
  • Dividend reinvestment program.
  • Separate platforms for investors with higher balances.
  • Margin Rates: 7.75% to 5.25%

Trade Types

  • Stock Trading
  • Options Trading
  • Mutual Funds

Mobile Trading

  • iPhone, iPad and Android Apps
  • Mobile Trading Platform and Tools

Promotions

If you decide to open an account with E*TRADE or Scottrade, be sure to take advantage of their current promotion.

E*TRADE:

  • Up to $2,500 Cash Bonus & 60 Days of Free Trades
  • Up to $2,500 with an E*Trade IRA Account

SCOTTRADE:

  • Up to $2,000 Cash Bonus
  • Up to $100 Reimbursement for Transfer Fees

Margin Rates

If you like to trade on margin at times, here’s a comparison that could make a big difference in your trading costs.

E*TRADE:

  • Under $25K: 8.44%
  • $25K-$49K: 7.94%
  • $50K-$99K: 7.44%
  • $100K-$249K: 6.14%
  • $250K-$499K: 5.14%
  • $500K-$999K: 4.14%
  • $1,000,000+: 3.89%

SCOTTRADE:

  • Under $25K: 7.75%
  • $25K-$49K: 7.25%
  • $50K-$99K: 6.75%
  • $100K-$249K: 6.50%
  • $250K-$499K: 6.25%
  • $500K-$999K: 5.75%
  • $1,000,000+: 5.25%

E*TRADE vs Scottrade: Comparison Summary

Scottrade and E*TRADE are two of the largest and best-known brokerage houses in the United States. While Scottrade charges lower fees at $7 for stock and ETFs or $17 for mutual fund transactions, E*TRADE offers a more powerful trading platform complemented by extensive research and trading tools. Both firms provide no-fee IRAs, and unlike some other online stock brokers, neither charges inactivity or maintenance fees. Ultimately, both of these discount brokers will more than satisfy your investment needs.