Etrade vs Scottrade?

Question

Im a low-key investor, looking at about 15 trades per quarter mostly for long-term. Which one should I go with?

Answer 1

There are a lot of good brokerages depending on what you like and how you trade. (These are important considerations, so I won't assume I know your preferences other than volume of trades)


Barron's has a great article on brokerages that they publish each year. (Latest one was in March 6, 2006). Kiplinger does one too.

Here’s the link to the Barron’s article.
http://webreprints.djreprints.com/1550280182488.html

Here’s the link to the Kiplinger’s July 2006 article which isn’t bad either.
http://www.kiplinger.com/magazine/archives/2006/07/brokers.html


For basic stuff, E*Trade, Ameritrade, and Scottrade are sufficient.

Based on what you put in your question, I'd recommend one of the first three, but all are very good. Cheapest probably is scottrade (of the larger online firms). Yes there are cheaper like interactivebrokers, but you'll have to get used to their software based platform (which is doable). They're only about $1/contract on options!

Brokerages like Fidelity are horrible for anyone with any decent experience.

So, decide what's important to you as a trader and compare the brokers! You can use the articles, or go to each website as they all seem to have comparison charts!

And if there are particular things that you want to mention as being most important to you (such as executions, cust svc, cheapest trade, flexibility on allowing you to do certain types of trades, stop and stop limit orders, contingent orders, great graphing, what if scenarios, training, etc), I'll be glad to help discuss this with you too!

If you have any questions, let me know.

Hope that helps!

Answer 2

Depends on how much you plan on keeping in the account.

Etrade
$1000 to open
<$50K AND 1-29 trades per quarter - $12.99
>$50K OR 30-149 trades per quarter - $9.99
Maintenance fees per quarter (waived @ >$50K) - $40

Scottrade
$500 to open
Trades - $7.00
Maintenance fees per quarter - $0

I use Etrade, but I have enough in there with IRAs and individual stocks I get the $9.99 trade rate and all other fees are waived. Scottrade didn't have as generous an offer when I started. Ameritrade and Etrade were the two I started with but transferred everything to Etrade because of customer service and web tools.

If I were starting now I'd give Scottrade a go. If you don't like it you could always transfer assets out at no cost (if you believe Scottrade's website).

Answer 3

I used to be a stockbroker... and when I left the business, I researched the discount brokers. Result? Scottrade. Like you, I'm low-key and a long-term investor. For $7 a trade and quick execution, I think they are a good value. I've been a customer for nearly ten years... no problems.

Answer 4

wow tough lets look at this site and compare

http://www.stockbrokerguide.com/usa_stockbrokers.php

etrade 9.99 a trade up to 5000 shares

scottrade $7 flat. no limit (scottrade website I wonder why they didn't make this review guide?)

This alone means a difference of $3 per trade thus scottrade is lower (and wins in my book) scottrade gets serious brownie points for having offices where you can actually talk to someone. their WORKING ach transferrs can be set up in less than 5 FIVE MINUTES! While it takes three days to process them i haven't had a problem with them yet.

I vote scottrade

Answer 5

Definitely scottrade

Answer 6

i have used scotttrade for 8 years with no complaints. i have a buddy at work that uses etrade, and he said that they charge a maintenance fee of $15 if he doesn't trade. scottrade has no hidden fees. i don't know if they still do that dirty lillte trick but, you could call them to find out for sure.

Answer 7

Yeah I agree with what's been said so far

Answer 8

E*Trade.

Answer 9

thx for the answers everyone <3