Comments on: TradeKing vs Scottrade – Online Stock Trading Comparison

By: Jimmy

Jimmy — Tue, 17 Apr 2012 07:29:47 +0000

I have had a wonderful experience with Scottrade. They have a terrific signup and referral programs where you get three free trades when you signup using a referral code. You also get free trades when someone else signs up using your referral code. The normal trade fee is $7.00. Their online tools are great. Use this code in scottrade for free trade: SJME8554.

By: S Brooks

S Brooks — Fri, 06 Apr 2012 17:19:40 +0000

I don’t really understand your negative t0ne. You are the one who does not understand what’s being discussed. The problem is Scottrade does not fill you when your price goes *through* your limit price. That would be a violation except for the way they have specifically crafted a work-around to protect themselves and their kickbacks from their market-makers. Other brokerages do not do this practice. I have traded institutionally, professionally, and privately for over 35 years. I have spoke specifically to the SEC about this practice, as well as to Scottrade.

Everyone with any experience knows that if a price hits your limit price, you may not get filled. The point is: when you are buying and it goes below, or when you are selling and it goes above, the more disreputable brokers put procedures in place to use your order as insurance and make excessive profits at your expense.

Scottrade is one of them. TDA is not. Nor is IB.

We put on approximately 1,000 trades a day. We see this practice regularly at Scottrade, so much so that we adjust around the open for them. We only keep using them because of certain inventory they have. TDA and IB always honor a trade through a price, imperfect as those brokerages are, and have given us fills in the extremely rare case where fast markets were a legitimate (barely) excuse. But neither even has in place this bizarre not-until-primary-market-opens rule. It completely locks you out of some great opportunities during various liquid, opening sessions.

It is not about limit orders being touched. It’s about execution when the markets go through your price. Listen and read better.

By: S Brooks

S Brooks — Fri, 06 Apr 2012 17:06:00 +0000

Thank God someone on this blog understands the point and is not blind to this malfeasance and borderline SEC violation. Believe me, you will have no support from FINRA, just their recommendation to go to another brokerage.

By: S Brooks

S Brooks — Fri, 06 Apr 2012 17:04:09 +0000

You are not quite getting it. Scottrade has its *own* rule that protects profits for its market makers who, *quite legally*, kick-back money to Scottrade for the order flow. There is no requirement to hold an order until the primary market opens, it just is a rule that protects the market-maker’s profits and lets Scottrade off the hook from otherwise violating the “best-execution” clause of the SEC. It is *only* a disadvantage to the customer, and no amount of website-inspired anonymous brio (I am speaking of others on this blog) will be able to contradict this. Prices go through your price to your disadvantage, but you have no sure-fire legal recourse except going to a broker who does not have this blatantly negative policy.

TDA is one. You can specify your market as NASD during regular or after hours, and there it goes and there it fills. You can specify their “regular way,” and it will fill also if the market goes through your price. Only Scottrade that I know of, has this bizarre policy. And I’ve traded with E-Trade, Scottrade, TDA, J.P. Morgan, Merrill, Sogotrade, Interactive Brokers, TradeStation, Schwab.

By: greg

greg — Thu, 05 Apr 2012 14:09:14 +0000

When you enter a limit order do you really think you are the only person that has picked that price for a limit execution? You place your order and basically stand in line with other orders in front of you. Just because your limit is reached doesn’t mean everyone at that limit is executed. There are only certain shares available at a given price when a quote appears on the tape. So if your order doesn’t fill its more then likely the price changed before your order was executable. Learn the market before you get on a blog site and complain about trade execution when you have no clue how it works.

By: kingkong trader

kingkong trader — Thu, 28 Apr 2011 15:07:40 +0000

I like the Scottrade Elite, but Scottrade has a 10 cents rule on the Stop Limit order and Slow execution that made me move my Account to TradeKing. So far TradeKing order execution is very good. If the price hit your limit order, it will be filled. I’ll update TradeKing experience next year. I’m still looking at LightSpeed Trading, Interactive Brokers, and MB Trading. Their commisions are very low .

By: pedro martinez

pedro martinez — Sat, 09 Apr 2011 04:52:00 +0000

do scottrade make me rich wit 50 dollor? help me thank you.. yes i want stock to buy for my family be rich

By: Lee Bodine

Lee Bodine — Fri, 07 Jan 2011 20:09:23 +0000

This very thing happened to me yesterday on Scottrade. I put a limit sell order in 30 minutes before market open. Shortly after the market opened, the stock reached and exceeded my limit but then very quickly declined. My trade was not executed. When I called to asked why I got the same explanation: they do not trade a stock until it has first traded on its “primary” exchange. On top of that, the person I was talking to advised me not to modify the order while he investigated why it wasn’t executed. Meanwhile the price continued to slide. By the time I got the explanation, realized that they weren’t going to hold themselves responsible, and modified the order I had lost almost 8%. Saying that they all do it doesn’t make it right. Neither does the catch-all warning “your order may not execute”.

By: G Robinson

G Robinson — Thu, 30 Dec 2010 11:59:23 +0000

Gotta love Scottrade Hater

By: Matt B

Matt B — Fri, 29 Oct 2010 06:03:27 +0000

ELTC4930 FREE 3 trades on Scottrade (maximum promotional code)