Ameritrade Vs Scottrade

by Jane Meggitt ; Updated July 27, 2017
Choosing the best brokerage for your needs might depend on how much money you can initially invest.

If you want to open an online brokerage account, TD Ameritrade and Scottrade are among the best-known companies, offering similar products and services. While fees and commissions for TD Ameritrade and Scottrade differ significantly, they aren't the only consideration. There's a notable difference in the amount of money the two companies require to open an account.

Fees and Commissions

As of 2014, Scottrade charges $7 for each online stock or exchange-traded fund transaction, while TD Ameritrade charges $9.99. If you use a broker for a transaction, Scottrade charges $32, while TD Ameritrade charges $49.99. You can purchase or sell no-load mutual fund shares through Scottrade at no charge, while load funds cost $17. At TD Ameritrade, all mutual fund transactions cost $49.99. Neither company charges account activity or maintenance fees. If you trade in microcap stocks, often referred to as "penny stocks," you'll pay an additional .5 percent of principal value at Scottrade for any stock worth less than $1. TD Ameritrade charges the same amount for penny stock transactions as for any other type of stock transaction.

Minimum Deposits

The minimum necessary to open a non-individual retirement account with Scottrade is $2,500. There is no minimum for IRAs. TD Ameritrade does not require a minimum to open a cash account, but the minimum for opening a margin account is $2,000.

About the Author

Jane Meggitt has been a writer for more than 20 years. In addition to reporting for a major newspaper chain, she has been published in "Horse News," "Suburban Classic," "Hoof Beats," "Equine Journal" and other publications. She has a Bachelor of Arts in English from New York University and an Associate of Arts from the American Academy of Dramatics Arts, New York City.

Photo Credits

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