Many people asked for more of these online stock trading comparisons so here’s one on TradeKing and Scottrade. Personally, I feel all these stock brokers are becoming more and more alike so it’s becoming harder and harder to compete without price. Here are some of the difference I found with the two brokers.
Trading Commissions Comparison
- – $4.95 a trade, broker assisted trade is also $4.95.
- Scottrade – $7 a trade, $17 for touch tone phone system and $27 for broker assisted trades.
- TradeKing – $4.95 + $0.65 per contract
- Scottrade – $7 + $1.25 per contract
Clearly, TradeKing is lower priced for trading.
- TradeKing vs Scottrade – $14.95 vs $17
Margin Fees Schedule
Scottrade and TradeKing margin interest respectively
- $0 – $9,999 – 7.75% vs 6.50%
- $10,000 – $24,999 – 6.50% vs 7.50%
- $25,000 – $49,999 – 6.50% vs 7.25%
- $50,000 – $99,999 – 5.50% vs 6.75%
The list goes on but across the board, TradeKing is much cheaper to trade with.
So Is TradeKing Just Better in Every Way?
On the surface, is cheaper and offers pretty much the same product as Scottrade. However, the latter offers what it calls the Scottrader and the Scottrade Elite programs. These programs are for high volume traders who are used to the proprietary trading platforms of the old days before the web. As far as I can tell, the great part about using those platforms are:
- that you can save the environment you are on so all the screens are at the same place every time you log in.
- information is pushed to you. In other words, the prices, news are updated automatically since of you needing to push the refresh button on your browser.
For those that will only trade with those platforms, then by all means but for the rest of us, the online versions are good enough. In that regard, I would go with TradeKing.
Update: A reader alerted me that TradeKing is offering to reimbursed you for up to $150 in termination fees for anyone that switches over to them.
Update #2: Another reader is quick to point out that Scottrade also offers something similar as well, only that it’s up to $100.