OptionsXpress vs Scottrade – Online Broker Comparison

by Investing School on October 10, 2009

Do you use OptionsXpress or Scottrade and wonder which one is better for your needs? If you are an investor, the best online broker is a topic that you are very interested in, yet there are so little information out there. Today, let’s try to uncover the cloud surrounding which broker is better in our featured post: OptionsXpress vs Scottrade.

Basic Fees Comparison

Stock Trades

Option Trades

  • OptionsXpress – $14.95 per 10 contracts
  • Scottrade – $7 + $1.25 per contract (10 contracts would cost $19.25)

Mutual Funds

  • OptionsXpress – $14.95
  • Scottrade – $17


  • OptionsXpress – $2.99 per contract
  • Scottrade – Unavailable

People who strictly invests in stocks are better served (at least cost wise) to go with Scottrade since it offers a flat $7 a trade for unlimited shares. OptionsXpress on the other hand has a tiered system, so for traders who at least trade 3 times a month, the cost difference seems minimal at $2.95 more a trade.

Once you step into more advanced trading vehicles though, and OptionsXpress starts to shine a bit more. Options and mutual funds both tip in the favor of OX, and it is the only way to trade futures (in case you ever want to get into that market).

Beyond the Basics

While almost impossible to prove, OptionsXpress is known for its incredibly efficient fill rate and trade execution. In fact, the company calls it XpressRouter, which guarantees its customers the best execution at the best price. The broker also claims that it saved its customer more than $1.3 million just in the last quarter alone, so short term traders should look beyond the per trade price and consider this broker.

Scottrade on the other hand is widely known for its awesome customer support. They also offer the most physical branches out of any discount brokers just in case anyone needs to see a representative face to face.

Another good benefit is their $27 broker assisted trades. With this, Scottrade will help you make a trade just in case you’d rather do it over the phone, or even in person.

Online Broker Comparison Conclusion

For beginners or people who just want to make simple stock trades, Scottrade seems to be a great option since their top notched customer service rep will help answer any questions you may have.

Click Here to Open a Free Scottrade Account

However, the more sophisticated investor who is after the absolutely best fill rate, easy to use options trading platform, and great pricing on more advanced trading vehicles, OptionsXpress seems to edge out in this comparison.

Click Here to Open a Free OptionsXpress Account

$0 Cost Transfers

Both Scottrade and OptionsXpress will reimburse the nasty transfer out fees that most brokers charge you for. In fact, both brokers set the dollar amount at $100, meaning that they will give you, up to $100, of the account transfer fee once you have your assets transferred over.


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