As of September 2017, Scottrade clients have moved to TD Ameritrade
Many companies offer cheap online stock trading. Etrade.com, sharebuilder.com, and Zecco.com are three options. However, before diving headfirst into the stock market online, make sure to fully research at least several online brokers. All offer different pricing and features for registered users.
Try the Stock Market Online with Scottrade
This article focuses on one discount stock broker that offers inexpensive online stock trades for a good value – Scottrade. Founded in 1980, the company has offered online trading since 1996. The company boasts over 400 local branch offices where individuals can get in-person service (or convenient local help by phone).
Cheap Online Stock Trading
Since 2005, Scottrade has charged a reasonable $7 flat-rate commissions for online stock trades. This cheap online stock trading brokerage currently offers this pricing on the online market and limit orders.
This means that the average person can sign up and trade regular stocks for the price of $7 per transaction. Anyone interested in using Scottrade to trade stock should note that the $7 price applies to stocks worth over $1 per share.
Stock options and securities worth $1 or less may be traded on this site, but different pricing structures apply to those transactions. No trading frequency or account balance requirements are necessary to receive the $7 pricing; neither is a minimum number of shares per transaction.
Scottrade.com Offers Bargain Stock Fees
Because the $7 flat fee applies to each transaction, that means individuals can trade an unlimited number of shares in a single transaction for only $7; however, this also means that a single share transaction will also cost $7.
Overall, the proposition works out for investors who want to get into the stock market online, but keep trading costs to a reasonable level.
One of the most attractive things about using Scottrade as an online broker is limited extra fees. Currently, account inactivity doesn’t result in fees, and there is no charge for closing a brokerage account. This discount stock broker also doesn’t charge quarterly or annual account maintenance fees.
The minimum deposit required to open a Scottrade.com account is $500 ($2,500 for margin accounts). Once the initial funding has cleared, users are immediately eligible to buy stocks on the internet.
Free Stock Trades With Scottrade Referral Program
Scottrade.com users can earn free stock trades for getting others to sign up. Existing registered users must refer someone through the site’s referral program, and both parties will receive three free stock trades when the referred individual opens a qualifying account.
Scottrade.com is an excellent choice for the average investor with limited technical knowledge. Although the site offers advanced screen views for more experienced traders, the site also features a basic screen that any computer-savvy individual can understand.
This plain viewing, everyday language option is highly attractive to less experienced investors who want to trade stocks but don’t want to bother with complicated investment screens.
The simple-to-use basic view of the login page gives each user an account snapshot – funds available for trading and total account value. Below that, users will find a list of investment positions, including the stock symbol, quantity of shares, share price, and market value of each investment owned.
The login page also lists shows recently opened or completed orders to buy or sell the stock. Upon login, users will also see a “watch list” (if one was created) of stocks not owned, but being tracked.
Access the Market with a Discount Stock Broker
For the low online stock trading price of $7 per transaction, individual investors should be comfortable placing orders alone online. Broker-assisted orders cost much more (currently $27 per transaction). Scottrade advertises that it can trade stocks on the NYSE, NASDAQ, OTC, and NYSE Amex stock exchanges.