January 13, 2015

Scottrade vs. E*Trade: Which Online Investing Service is Better?

Simple. Thrifty. Living.

When you’re looking for an online broker, the best thing to look for is which one will benefit you the most. Finding one is not an easy task, as you have to list the pros and cons of each and take a broader look at its infrastructures and how consistent each site is. Two of the most reputable online brokers are Scottrade and E*Trade. Both have great features for both new and experienced investors and both give you a wide range of options and features when investing. So which one should you choose? Here’s a quick look at both sites to help you decide:

History: Scottrade has been around since 1980 and has lots of branches in the U.S, while E*Trade began in 1982, so they both have a long history in the trading world.

Price: Scottrade is definitely the more affordable of the two, since their trades only cost $7 per trade. E*Trade costs $9.99 per trade, and even more for other investments.

Deals: Scottrade is currently offering $100 back in transfer fees when you switch, while E*Trade will let you trade for free for 60 days when you sign up.

Best for Beginners: Both definitely work great, but if you’re a starter or just a casual investor, Scottrade would be more suitable for you since they offer more customer service than E*Trade. Which is also the reason why Scottrade does more trades than E*Trades, since they have more appeal to the beginners and are often more affordable.

Best for Experienced Investors: E*Trade is more of a sophisticated broker, as a majority of their investors have more depth of money and E*Trade handles more complex projects in their firm. E*Trade also offers more investing options and better tools overall than Scottrade.

Number of clients: Scottrade gets more clients daily because it is very friendly for casual investors and beginners, but E*Trade has more client assets than Scottrade.

Bottom line: If you’re an extensive trader, E*Trade suits you best, but if you’re investing in small amounts with E*Trade, you’ll lose most of your gains in tier fees. If you are a new investor looking to get into trading (or a casual investor), Scottrade would be better. Overall it all falls down to your preferences.

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