Broker Summary: Scottrade Online Trading Platform: Commission And Fee Structure
Scottrade's commission and fee structure includes:
- $7 online stock trades, regardless of trade size, for stocks priced $1 and above
- Commission-free online ETFs (certain ETFs only)
- No-transaction fee IRAs
- No account maintenance or inactivity fees
Scottrade's 500+ offices across the United States are staffed with brokers who transact investors' business over the phone or in person. Traditional commissions for stock and ETF orders are two cents per share in addition to the broker-assisted and touchtone rates. Rates for Focus Morningstar ETFs are $20 for broker-assisted transactions and $10 for touchtone transactions. The broker-assisted commissions for other types of transactions, including stocks priced under $1, also apply to traditional customers. Traders and investors who do not transact their business over the Internet receive mailed confirmations and statements at no additional charge. (For related reading, see Broker Or Trader: Which Career Is Right For You?)
Trading accounts often include the use of margin. Margin is borrowed money that is used to purchase securities. Essentially, the broker extends credit to the investor, and interest is charged for that service. Scottrade margin rates are shown in the following figure:
Additional fees may be charges for specific services, such as mailed confirmation for Internet accounts. A list of services and fees appears in the following figure:
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