Using data from our latest annual broker review which tested more than a dozen different online brokers
over six months, we can compare Interactive Brokers 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 more than Interactive Brokers for placing regular stock trades ($6.95 and $0 (the broker charges a per share rate instead), respectively). Looking at trading options, Interactive Brokers's base fee is $0 while Scottrade's is $6.95. Option contracts at both of the brokerages are the same at $0.70 each. 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 supports Stock Trading, Options Trading and Mutual Funds while Interactive Brokers supports Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Interactive Brokers trails Scottrade by 3,548 total mutual funds, with Scottrade offering 13599 and Interactive Brokers offering 10051. And, commission free ETFs deserve a comparison, Interactive Brokers offers 45 commission free ETFs versus Scottrade's total of 0.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Interactive Brokers and Scottrade both offer virtual trading. For mobile trading, Interactive Brokers 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. Checking Accounts, Savings Accounts and Debit Cards are offered by Scottrade while Interactive Brokers offers Debit Cards. All factors considered, when it comes to platform tools, research, and mobile trading, Interactive Brokers was rated Best in Class - Platforms & Tools and Best in Class - Mobile Trading, while Scottrade was rated none of these.
Overall, both Interactive Brokers and Scottrade hold a 4.00 star rating.