Comparing brokers side by side is no easy task. For our annual broker review, we assess over a dozen brokers on hundreds of different variables to find the best online broker
. Yielding a database of over 5,000 data points, let's compare Interactive Brokers vs Scottrade.
To start this comparison, first, we will take a look at the online broker commission rates for placing regular 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 run $0.70 a piece at both brokerages. It's important to note that not all brokers charge a flat fee per trade. Thus, it is important to read the full commission notes for each broker, which we include with each online broker review
Next to commission rates, being able to trade what you want is important. 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. Looking at 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 valuable for customers, Interactive Brokers offers 45 commission free ETFs versus Scottrade's total of 0.
Trading access aside, by comparing popular features and functionality, we can break down relevant differences between both brokers. Interactive Brokers and Scottrade both offer virtual trading. Taking a look at mobile trading, Interactive Brokers and Scottrade both have a iPhone App, iPad App and Android App. Not to be left out, online banking is also a nice benefit for many investors, and some brokerages provide these services to clients. Clients can have Checking Accounts, Savings Accounts and Debit Cards at Scottrade while customers at Interactive Brokers can have Debit Cards. On the whole, when it comes to tools, research, and mobile trading, Interactive Brokers finished with awards Best in Class - Mobile Trading, while Scottrade came up with none of these.
Overall, Interactive Brokers boasts 4.50 stars versus Scottrade's 4.00 stars.