The StockBrokers.com annual broker review assesses more than a dozen different brokers over six months, surfacing the best online stock brokers
. This review compares Charles Schwab vs Scottrade. Is Charles Schwab or Scottrade a better online broker?
First, we will make a comparison of the stock and option trading fees for trading with both brokers. Scottrade charges $6.95 per stock trade which is $2.00 more than Charles Schwab which charges customers $4.95 per trade. With options, the base fees charged are $6.95 (Scottrade) and $4.95 (Charles Schwab). Option contracts are pricier at Scottrade, costing $0.70 versus $0.65 at Charles Schwab. Note that some brokers charge a per-share fee instead of a flat-fee commission. For a full breakdown of commissions, read our online broker reviews
For our next comparison of these two brokers, being able to trade the way you want is a must. Scottrade offers clients Stock Trading, Options Trading and Mutual Funds while Charles Schwab offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, Charles Schwab trails Scottrade by 8,090 total mutual funds, with Scottrade offering 13599 and Charles Schwab offering 5509. Commission free ETFs can also be a nice plus, with Charles Schwab having the upper hand thanks to its 244 available commission free ETFs compared to Scottrade's offering of 0.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. Scottrade makes virtual trading available to clients, while Charles Schwab does not. For mobile trading, Both Charles Schwab and Scottrade offer clients access to an iPhone App, iPad App and Android App. Furthermore, some investors like to bank online, and multiple brokerages provide these services to clients. Checking Accounts, Savings Accounts and Debit Cards are offered by Scottrade while Charles Schwab offers Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans. On the whole, when it comes to tools, research, and mobile trading, Charles Schwab was rated Best in Class - Platforms & Tools and Best in Class - Research, while Scottrade was rated none of these.
Overall, Charles Schwab boasts 4.50 stars versus Scottrade's 4.00 stars.