Using data from the StockBrokers.com 2017 Broker Review which tested 16 different online brokers
over six months, we can compare Charles Schwab vs Scottrade to determine which broker is best. Let's dive in.
First, we will break down the commission charges of both brokers for placing stock and options trades. Scottrade charges $6.95 per stock trade which is $2.00 more than Charles Schwab which charges customers $4.95 per trade. Looking at trading options, Charles Schwab's base fee is $4.95 while Scottrade's is $6.95. Option contracts are pricier at Scottrade, costing $0.70 versus $0.65 at Charles Schwab. Instead of flat rate fees, several brokers charge a per-share fee instead. For a complete review of trading charges, read our full online broker reviews
Next, investors want to make sure they can trade the investment vehicle they want. Scottrade provides its clients with Stock Trading, Options Trading and Mutual Funds while Charles Schwab provides clients access to Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Scottrade boasts an offering of 13599 mutual funds compared to Charles Schwab's 5165 available funds. And, commission free ETFs deserve a comparison, with Scottrade falling behind Charles Schwab, offering 0 commission free ETFs compared to Charles Schwab's 229.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Scottrade makes virtual trading available to clients, while Charles Schwab does not. For mobile trading, Charles Schwab along with Scottrade both support the iPhone App, iPad App and Android App. Online banking is also used by many customers, and multiple full-service brokerages provide these services. Clients can have Checking Accounts, Savings Accounts and Debit Cards at Scottrade while customers at Charles Schwab can have Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans. All factors considered, when it comes to platform tools, research, and mobile trading, Charles Schwab was rated Best in Class - Platforms & Tools and Best in Class - Research in 2017, while Scottrade was rated none of these.
Overall, Charles Schwab comes out on top with 4.50 stars over Scottrade's 4.00 stars.