Living in a world which has advanced to the point of offering online stock trading can be intimidating when looking at the various options available. Needless to say, choosing the right brokerage site can be just as important to your bank account and assets as getting lucky (or smart!) with the right stocks.
We are going to break down the competition of Scottrade vs Etrade in order for you to make the best choice for your situation and individual needs.
Online Trading Options
Before even getting into the monetary difference in Etrade or Scottrade, the first thing to consider making your decision on is what you can actually do on those platforms. If you are interested in trading something, you must first see if the platform you are looking at supports the type of trading you are doing.
Etrade lets you trade stocks, bonds, futures, options, mutual funds, and exchange-traded funds. On the other hand, Scottrade allows you to exchange stocks, options, CDs, mutual funds, municipal bonds, exchange-traded funds, and Canadian stocks.
Ultimately, the trade options for both contain no real winner. It is entirely dependent on what you are personally looking to do. For instance, Scottrade will let you exchange Canadian stocks where Etrade will not. However, Etrade lets you trade futures where Scottrade does not.
This is where getting down to the nitty gritty between the two stock trading sites is going to matter. Your priority when choosing a site that will work best for you should consist of finding features which benefit you the greatest. When it comes down to features, Scottrade seems to trump Etrade.
Scottrade is the best option for casual or new investors. In putting Etrade vs Scottrade, the later has a larger user community and a variety of resources. Scottrade offers you an unprecedented amount of more information than Etrade does, ranging from a real time streaming of quotes to charts which show a greater aggregation of useful statistics.
Not everything is perfect with Scottrade, although it does try to make up for its mishaps. Without electronic withdraws offered by Scottrade, fund transfers can oftentimes be time consuming. However, this means that your transactions and personal information are going to be more secure.
High Power Investors
Due to the available features and fluidity of the user interface, Etrade vs Scottrade offers a winner up for those that are casual or new in their investing. That being said, Etrade does trump the competition for some – high-powered users who make their living off of trading or want to exchange extensively. If you are a person who is investing a good chunk of their time or assets into the stock exchange, definitely consider going with Etrade. Chances are, you will be able to afford the higher initial starting cost and inflated cost per transaction.
With over 200 billion in customer assets, Etrade knows what it’s doing when it plays with the big dogs. While it may not have the features Scottrade boasts, it is the best for doing research on your stocks. All of your decisions can be better weighted by taking advantage of the powerful research tools Etrade offers its power users.
Ultimately, the competition of Etrade vs. Scottrade comes down to what type of user you feel you are going to be. Scottrade is the safest and cheapest option for casual and new investors, whereas Etrade will work best for those who make a living off of the stock market. If you are still unsure after this information, consider opening an account with both and testing out the differences for yourself. This will give you a good feel of which one to continue with during the future.