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 Interactive Brokers vs Scottrade. Is Interactive Brokers 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, with its regular stock trades costing $6.95, is more expensive than Interactive Brokers's rate of $0 (the broker charges a per share rate instead) per trade. With options, the base fees charged are $6.95 (Scottrade) and $0 (Interactive Brokers). Option contracts at both of the brokerages are the same at $0.70 each. 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 Interactive Brokers provides clients access to Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, Interactive Brokers trails Scottrade by 3,548 total mutual funds, with Scottrade offering 13599 and Interactive Brokers offering 10051. Commission free ETFs can also be a nice plus, Interactive Brokers offers 45 commission free ETFs versus Scottrade's total 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. Interactive Brokers and Scottrade both offer virtual trading. For mobile trading, Interactive Brokers and Scottrade both have a 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 Interactive Brokers offers Debit Cards. On the whole, when it comes to tools, research, and mobile trading, both Interactive Brokers and Scottrade found themselves without awards for Best in Class - Platforms & Tools, Best in Class - Research and Best in Class - Mobile Trading.
Overall, Interactive Brokers boasts 4.50 stars versus Scottrade's 4.00 stars.