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Scottrade Account Opening

Updated Monday, May 4, 2009

Account Opening Grade: B

CLICK HERE to open an account at Scottrade.com

Overview:

Scottrade has a very good account registration process. The account opening emails are top notch. The Money Direct feature is great for funding your account instantly but unfortunately it cannot be used to withdraw funds. The pop-up window interface can be annoying but thankfully it is only present during registration and not during regular site usage.

Details:

Minimum initial account deposit: $500

I opened a general brokerage account.

The Scottrade welcome screen (click on images for larger views):


The registration process is done through a pop-up window. I would really prefer that websites get away from using unnecessary pop-up windows.

Scottrade allows users to select a physical location as their home branch office. Even though there is no real reason for online investors to require a physical branch office, this is a nice feature to have. I chose a branch near my work location in midtown Manhattan:


Requesting margin and options trading was quick and easy:


I used Scottrade's Money Direct feature to transfer funds electronically from my Bank of America checking account. There is an instant verification option where I was able to enter my online banking login information. I don't know if this feature works for all banks but it works flawlessly with Bank of America. Once I setup Money Direct, Scottrade even shows my updated checking account value. This is an awesome feature that I did not find provided by any other online broker:


Unfortunately, Money Direct cannot be used to withdraw funds in the same manner. To withdraw funds from Scottrade, customers have to call customer service and request a withdraw. A check is then mailed out and arrives within five business days. Scottrade needs to fix this issue and allow electronic funds withdrawals.

The registration process is complete:


I received two welcome emails from Scottrade. The first email contains my previously selected branch address and the contact information for that location. The second email contains lots of useful information, including a map to my branch:


These were the best account opening emails among all of the tested brokers.

I also received two physical mailings from Scottrade. The first has a booklet with special offers and advertisements. The second, strangely enough, is a nearly identical booklet to the one found in the first mailing.


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