Is Ameritrade the Same as Scottrade? Key Differences Explained

Is Ameritrade the Same as Scottrade?

Ameritrade and Scottrade are both well-known online brokerage firms that offer a range of financial services to individual investors. While they may seem similar at first glance, there are key differences between the two platforms that can affect your trading experience and investment strategy.

Ameritrade is known for its robust trading platform and extensive research tools. It offers a wide range of investment options, including stocks, ETFs, options, futures, and mutual funds. The platform is user-friendly and offers real-time streaming quotes, customizable charts, and advanced order types. Ameritrade also provides access to a wealth of educational resources, including webinars, articles, and video tutorials, to help investors make informed decisions.

Table Of Contents

On the other hand, Scottrade is known for its personalized customer service and low commission fees. While the trading platform may not be as advanced as Ameritrade’s, it is still user-friendly and provides access to a wide range of investment options. Scottrade also offers a wide range of educational resources, including articles and videos, to help investors navigate the market.

In terms of fees, Ameritrade and Scottrade have different fee structures. Ameritrade charges a flat fee per trade, regardless of the size of the trade, while Scottrade charges a lower fee for smaller trades and a higher fee for larger trades. This can make a difference for investors who trade frequently or who make large trades.

Overall, both Ameritrade and Scottrade are reputable brokerage firms that cater to different types of investors. Ameritrade may appeal to more experienced traders who value advanced research tools, while Scottrade may appeal to beginners who prefer personalized customer service and lower fees. Ultimately, the choice between the two platforms depends on your individual investment goals and preferences.

Is Ameritrade the Same as Scottrade?

Many people may wonder if Ameritrade and Scottrade are the same. While both Ameritrade and Scottrade are online brokerage firms that offer investment services, there are several key differences between the two.

One major difference is their ownership. Ameritrade is owned by TD Ameritrade Holding Corporation, while Scottrade is owned by TD Ameritrade. This means that Scottrade is actually a subsidiary of Ameritrade.

Another difference is the range of services offered. Ameritrade offers a wide range of investment options, including stocks, bonds, mutual funds, and futures. In contrast, Scottrade primarily focuses on stock trading and does not offer as many investment options as Ameritrade.

Furthermore, Ameritrade and Scottrade have different fee structures. Ameritrade charges a flat fee per trade, while Scottrade offers a tiered fee structure based on the level of account activity. This means that the cost of trading can vary depending on the amount and frequency of trades.

Additionally, Ameritrade and Scottrade have slightly different trading platforms and tools. While both platforms offer features such as real-time quotes and charting tools, their layouts and functionality may vary. It is important for investors to consider which platform and tools best suit their trading needs.

Overall, while Ameritrade and Scottrade are similar in that they are online brokerage firms, there are significant differences between the two in terms of ownership, investment options, fee structure, and trading platforms. Investors should carefully consider these differences when choosing a broker that best fits their investment goals and trading preferences.

Key Differences Explained

While Ameritrade and Scottrade are both popular online brokerages, there are several key differences between the two platforms. These differences can have a significant impact on individuals’ investment strategies and overall trading experience.

1. Ownership

Ameritrade is owned by TD Ameritrade Holding Corporation, a subsidiary of Charles Schwab Corporation, which is one of the largest brokerage firms in the United States. On the other hand, Scottrade was acquired by TD Ameritrade in 2017, and as a result, Scottrade accounts were transferred to Ameritrade.

2. Trading Platforms

Ameritrade offers several trading platforms, including its proprietary thinkorswim platform, which is known for its advanced tools and features. Scottrade, on the other hand, had its own trading platform, but after the acquisition by Ameritrade, Scottrade clients were transitioned to Ameritrade’s trading platforms.

3. Commission and Fees

Both Ameritrade and Scottrade charged commissions for trades, but Ameritrade had slightly higher commission rates compared to Scottrade prior to the acquisition. However, after the acquisition, Scottrade clients were transitioned to Ameritrade’s commission structure. It’s important to note that commission and fee structures can change over time, so it’s always advisable to review the latest pricing information.

Read Also: How to Calculate Support and Resistance Levels in Forex Trading

4. Account Minimums

Scottrade had a lower minimum deposit requirement compared to Ameritrade before the acquisition. However, after the acquisition, the minimum deposit requirement was aligned with Ameritrade’s requirement.

Read Also: Step-by-step guide: How to create a binary account and start trading

5. Education and Research Tools

Ameritrade is widely recognized for its educational resources and research tools, providing clients with a wealth of information to help make informed investment decisions. Scottrade also offered educational materials, but Ameritrade’s resources are considered more extensive.

6. Branches

Before the acquisition, Scottrade had a larger presence in terms of physical branches compared to Ameritrade. However, after the acquisition, Ameritrade expanded its brick-and-mortar locations, providing more access to in-person customer support for former Scottrade clients.

In conclusion, while Ameritrade and Scottrade both offer online brokerage services, there are notable differences between the two platforms. These differences range from ownership and trading platforms to commissions and fees, account minimums, educational resources, and branch availability. It’s important for individuals to carefully consider these differences when choosing a brokerage that aligns with their investment goals and preferences.

Trading Platform and Tools

Both Ameritrade and Scottrade offer robust trading platforms and a variety of tools to help investors make informed decisions. Ameritrade’s trading platform, thinkorswim, is widely regarded as one of the best in the industry. It offers advanced charting tools, customizable dashboards, and a wide range of technical analysis indicators.

Scottrade, on the other hand, offers the ScottradeELITE platform, which is also highly regarded for its functionality and user-friendly interface. While it may not have as many advanced features as thinkorswim, ScottradeELITE still offers a solid set of tools for traders.

In terms of mobile trading, both brokers have apps that allow investors to trade on the go. Ameritrade’s thinkorswim mobile app is well-designed and offers a user-friendly experience, while Scottrade’s mobile app provides a straightforward and intuitive trading platform.

Overall, both Ameritrade and Scottrade offer excellent trading platforms and tools, but Ameritrade’s thinkorswim platform may be more appealing to advanced traders who require advanced features and capabilities.

FAQ:

What are the key differences between Ameritrade and Scottrade?

Ameritrade and Scottrade are both online brokerage firms, but they have some key differences. Ameritrade offers a wider range of investment options, including stocks, options, ETFs, mutual funds, bonds, and futures. Scottrade, on the other hand, has a more limited selection of investment options, focusing mainly on stocks and ETFs. Additionally, Ameritrade has a more advanced trading platform with more tools and features for active traders, while Scottrade has a simpler and more user-friendly platform.

Which is better, Ameritrade or Scottrade?

Whether Ameritrade or Scottrade is better depends on your individual needs and preferences. If you are an active trader who wants access to a wide range of investment options and advanced trading tools, Ameritrade may be the better choice for you. On the other hand, if you are a more casual investor who prefers a simpler and more user-friendly platform, Scottrade may be a better fit. It’s important to consider your investment goals, trading style, and the features that are most important to you when choosing between the two.

How much does it cost to trade with Ameritrade and Scottrade?

Ameritrade and Scottrade both charge fees for trades, although the specific costs may vary. Ameritrade charges a flat fee of $6.95 per online equity trade, while Scottrade charges a slightly lower fee of $6.95. However, it’s important to note that both brokerage firms offer a range of commission-free ETFs and no-load mutual funds, which can help reduce trading costs for certain investors.

Can I transfer my account from Scottrade to Ameritrade?

Yes, you can transfer your account from Scottrade to Ameritrade. When Scottrade was acquired by Ameritrade in 2017, Scottrade customers were given the option to transfer their accounts to Ameritrade. The transfer process is relatively straightforward and can be done online or by contacting customer service. It’s important to note that there may be fees associated with transferring your account, so be sure to review the terms and conditions of the transfer before proceeding.

What are the customer service options with Ameritrade and Scottrade?

Ameritrade and Scottrade both offer customer service options to assist investors with their accounts. Ameritrade provides 24/7 customer support via phone, email, and live chat. They also have a network of branch offices where customers can receive in-person assistance. Scottrade also offers phone and email support during normal business hours, as well as in-person assistance at their branch offices. Both brokerage firms strive to provide timely and knowledgeable customer service to help investors with their investment needs and questions.

What are the key differences between Ameritrade and Scottrade?

Ameritrade and Scottrade have some key differences. Ameritrade offers a wider range of investment options compared to Scottrade. Ameritrade also has a more advanced trading platform and offers more tools and resources for investors. Additionally, Ameritrade has a higher minimum deposit requirement compared to Scottrade.

Which one is better for beginners, Ameritrade or Scottrade?

For beginners, Ameritrade may be a better option. Ameritrade offers a more user-friendly interface and provides extensive educational resources for novice investors. It also has a virtual trading platform that allows beginners to practice trading without risking real money. Scottrade, on the other hand, may be more suitable for experienced traders who want more advanced tools and features.