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 E*TRADE vs Scottrade. Is E*TRADE or Scottrade a better online broker?
First, we will make a comparison of the stock and option trading fees for trading with both brokers. E*TRADE and Scottrade charge the same amount for regular stock trades, $6.95. With options, the base fee is $6.95 for both E*TRADE and Scottrade. Each option contract then costs $0.75 at E*TRADE and $0.70 at Scottrade. 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 provides its clients with Stock Trading, Options Trading and Mutual Funds while E*TRADE provides clients access to Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, Scottrade boasts an offering of 13599 mutual funds compared to E*TRADE's 8998 available funds. Commission free ETFs can also be a nice plus, with E*TRADE having the upper hand thanks to its 225 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 E*TRADE does not. For mobile trading, E*TRADE along with Scottrade both support the iPhone App, iPad App and Android App. Furthermore, some investors like to bank online, and multiple brokerages provide these services to clients. Checking Accounts and Debit Cards are offered by E*TRADE while Scottrade offers Checking Accounts, Savings Accounts and Debit Cards. On the whole, when it comes to tools, research, and mobile trading, E*TRADE was rated Best in Class - Research, while Scottrade was rated none of these.
Overall, E*TRADE comes out on top with 4.50 stars over Scottrade's 4.00 stars.