Scottrade, Inc. originated in Scottsdale, Arizona in 1980 where it was founded by Rodger Riney.(1) The Scott in Scottrade comes from the original name of Scottsdale Securities according to the company's history, and not the Scottish culture as some might presume. However, the name change from Scottsdale Securities to Scottrade, Inc. may have taken the double meaning into consideration. Scottrade, Inc. is a private corporation based in St. Louis, Missouri, the location of one of its original offices.(1) As of July 2010, Riney was the CEO and President of Scottrade, Inc.(2)
One aspect of Scottrade that stands out is its customer service. The company seems to have a good reputation for being attentive to its clients despite being a discount broker. It may be a good idea to keep in mind Scottrade broker assisted orders cost $27.00 as of July 2010, which is somewhat higher than several of its competitors but still cheaper than TD Ameritrade and E-Trade.
Scottrade offers its members a wide range of services which for $7.00 per trade is quite good. These services including market research from leading financial analysis companies, numerous account options, trading tools and quality trade executions. These things are offered by other discount brokers so distinguishing between discount brokers becomes a matter of fine tuning.
In the case of Scottrade, Automated Clearing House (ACH) outbound transfers are not permitted through its ACH service. The amount of user tools Scottrade, Inc. may also be fewer than other brokerages. However, the pluses are its cheaper commission which for frequent traders is important, but not necessarily for investors with more premium services and longer-term financial interests. Margin and options trading is available through Scottrade at competitive rates, and the application process for such may be different given that Scottrade, Inc. is a privately owned company and thus not subject to the same requirements as a public company may be.
Just in case anyone wants to use Scottrade in Chinese, Scottrade has a platform almost entirely in Chinese. The brokerage firm also allows intra-account movement of funds and educational material for investors and financial neophytes. If a Scottrade account is not used for an extended period of time, no inactivity fees are claimed to be charged. Check writing privileges and money wiring services are also possible via a Scottrade account.
Scottrade Inc. comes across as a reliable, reputable and functional discount brokerage firm for the active trader, hobby investor and those with accounts valued under $100,000. For accounts larger than this, the extra fees might be worth paying for a premium brokerage account simply for the services they offer, or a more detailed professional attention to money management and services of one's assets.
Scottrade is a member of both the Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority (FINRA). Such being the case, Scottrade is subject to the rules and standards implemented by these organizations which also reflect regulations of the Securities and Exchange Commission (SEC). Scottrade, Inc. is also the recipient of several awards, notably as being one of the best companies to work for by Fortune magazine and Computerworld.
Sources:
1. http://bit.ly/92RnpT (Scottrade)
2. http://bit.ly/aAATet (Yahoo Business)
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