Fidelity vs Scottrade

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birdec
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Joined: Fri Jul 11, 2014 10:44 am

Fidelity vs Scottrade

Post by birdec »

I know these threads are super annoying but I'm trying to decide between Fidelity and Scottrade to do my non-Vanguard investing. I'm planning on having the bulk of my investments at Vanguard and potentially make partial account transfers between the 2 brokerages when I need to.

There seems to be a lot of Fidelity fans on this forum but is Scottrade really that much different?
I've done some research on here but some of the information seems out of date.

- I'm mostly concerned about solvency and waking up to see my money gone.
- They both have chat options (which is great for my introvert self)
- Pretty sure neither has partial account transfer fees (important for me)
- Fidelity does seem to have more low cost index funds but I'm guessing it's nothing I can't get at Vanguard

Is there anything that should sway me one way or the other?
normaldude
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Re: Fidelity vs Scottrade

Post by normaldude »

One reason I won't use Scottrade is that they have ridiculously restrictive limits on ACH/EFT withdrawals.

ACH Withdrawal Limits:

- Per day: $5,000

- Per week: $10,000

- Per month: $25,000

https://research.scottrade.com/knowledg ... 036345956b

For large accounts, these ACH/EFT withdrawal limits make Scottrade nearly unusable. Liquidity is very important to me.
sport
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Location: Cleveland, OH

Re: Fidelity vs Scottrade

Post by sport »

You do know that you can make non-Vanguard investments at Vanguard too, yes?
normaldude
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Re: Fidelity vs Scottrade

Post by normaldude »

jsl11 wrote:You do know that you can make non-Vanguard investments at Vanguard too, yes?
Personally, I like diversification, and I don't like putting all my eggs in one basket. So I deliberately have two investment accounts (Vanguard, Schwab) because..

1) In case one account gets frozen (hacking, legal dispute, Enron/Madoff-style implosion, etc), I still want liquid assets available.

2) Different investment firms offer different benefits. For example, my Schwab account comes with a really good online checking account, with a great debit card that can be used at any ATM machine in the world for free, and Schwab will reimburse me for any fees that the other bank might charge. Plus, no foreign currency transaction fees.
IPer
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Re: Fidelity vs Scottrade

Post by IPer »

Fidelity just updated their interface a bit and it looks nicer though I have not used Scotrade before.
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bondsr4me
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Re: Fidelity vs Scottrade

Post by bondsr4me »

I guess it depends on what you want from your online broker.

Between Fidelity, Schwab, and VBS, of which I have had accounts at all 3 of these, I prefer Fidelity.
I think their research is very good.
I also think that Fidelity's bond interface is much better that the others as is updates when changes are made to the bond screen you select.
Also, unlike Schwab ( whom I do like) and VBS, you won't get bumped off after periods of inactivity which is very annoying to me.
Fidelity and Schwab both have very very good customer service and I like the real-time chat availability (which VBS does not offer).

I don't kno much about Scottrade and have never had an account with them.

Again, I guess it's all in what you want from your online broker.

Good Luck with whichever you choose!
livesoft
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Re: Fidelity vs Scottrade

Post by livesoft »

As far as I am concerned, for the things I want to buy Scottrade charges money and Fidelity does not. Right there, that's the end of the discussion. I am not even sure why Scottrade even exists anymore. Fidelity has the Spartan Index funds and no-commission iShares ETFs. Its got some nice software tools like Reitirement Income Planner and Guided Portfolio Summary. It has a nice checking account with bill pay and affiliated cash-back credit cards. What does Scottrade have? Nothing.

Here's my order of brokerages that I like (I have accounts and use them): WellsTrade, TDAmeritrade, Fidelity, Vanguard.
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hicabob
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Re: Fidelity vs Scottrade

Post by hicabob »

livesoft wrote:As far as I am concerned, for the things I want to buy Scottrade charges money and Fidelity does not. Right there, that's the end of the discussion. I am not even sure why Scottrade even exists anymore. Fidelity has the Spartan Index funds and no-commission iShares ETFs. Its got some nice software tools like Reitirement Income Planner and Guided Portfolio Summary. It has a nice checking account with bill pay and affiliated cash-back credit cards. What does Scottrade have? Nothing.

Here's my order of brokerages that I like (I have accounts and use them): WellsTrade, TDAmeritrade, Fidelity, Vanguard.

Those are the same 4 I use too - Wells Trade is probably only best for those of us with the free trading grandfathered in. I've had unpleasant experiences with Scottrade - they made me whole but it left a bad taste in my mouth.
Last edited by hicabob on Mon Nov 24, 2014 6:48 am, edited 1 time in total.
normaldude
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Re: Fidelity vs Scottrade

Post by normaldude »

livesoft wrote:What does Scottrade have? Nothing
I'm not a Scottrade fan (see my post above, about their ACH/EFT withdrawal limits), but let me play devil's advocate here.

- Scottrade has lower trading costs ($7 per trade, versus $8 for Fidelity, $9 for Schwab, $10 for TDAmeritrade).

- Scottrade has more branch offices than Fidelity, Schwab, or TDAmeritrade.

- Scottrade seems to score high on customer service, especially with newbies.

http://ratings.jdpower.com/finance/rati ... /index.htm

Again, I'm not a Scottrade fan, and those above factors don't really matter to me. But different people look for different things.
livesoft
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Re: Fidelity vs Scottrade

Post by livesoft »

For the things I want to buy (index funds and ETFs), all the other brokers I listed do NOT charge commissions, so
- Scottrade has higher trading costs ($7 per trade, versus $0 for Fidelity, $0 for Schwab, $0 for TDAmeritrade, $0 for Vanguard, and $0 for grandfathered WellsTrade customers).

- Scottrade has more branch offices than Fidelity, Schwab, or TDAmeritrade.
Who cares! I am not interested in branch offices unless they are within 5 miles of my home. Everybody but Vanguard fulfills that qualification.

- Scottrade seems to score high on customer service, especially with newbies.
OK, but I am not sure I would trust the opinions of newbies. Plus I think that JDPower ranking is inconsistent based on my own experiences.
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normaldude
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Re: Fidelity vs Scottrade

Post by normaldude »

livesoft wrote:For the things I want to buy..
My comments weren't about your specific needs. They were about why other people out there might like Scottrade.

You said "I am not even sure why Scottrade even exists anymore", so I was trying to explain why Scottrade still has customers.
livesoft wrote:- Scottrade has more branch offices than Fidelity, Schwab, or TDAmeritrade.
Who cares!
Many people like to do business face-to-face.
livesoft wrote:- Scottrade seems to score high on customer service, especially with newbies.
OK, but I am not sure I would trust the opinions of newbies.
Again, I'm not saying that you should open a Scottrade account. I'm merely explaining why other people out there might like Scottrade.
placeholder
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Re: Fidelity vs Scottrade

Post by placeholder »

If they made me pick one be all in forever it would probably be TD Ameritrade but they don't so I move about wherever the refreshing breezes of transfer bonus programs take me so I have some at Scottrade currently where I hold ETFs but don't buy anything however that will probably be moving soon to another custodian.
LeeMKE
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Re: Fidelity vs Scottrade

Post by LeeMKE »

+1 for Fidelity

I split my investments just to have a second place when cybersecurity issues strike. 90% is with Fidelity and 10% is with Schwab.

I would have a Fidelity account just to get access to their tools and papers. The advice I've gotten from their staff has almost always been way better than I could find elsewhere.
The mightiest Oak is just a nut who stayed the course.
evilityb
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Re: Fidelity vs Scottrade

Post by evilityb »

I recently transferred all of my investments out of Scottrade and was charged $75 to do so. I wasn't too happy with this. Also, the $7 per trade fees add up. I would go elsewhere.
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placeholder
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Re: Fidelity vs Scottrade

Post by placeholder »

evilityb wrote:I recently transferred all of my investments out of Scottrade and was charged $75 to do so.
Just make sure you transfer to a custodian that reimburses fees then there's no worry.
fed123
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Joined: Sun Nov 02, 2014 6:11 pm

Re: Fidelity vs Scottrade

Post by fed123 »

I started with Scottrade and eventually moved to Fidelity. Ultimately it came down to having more choices with Fidelity and being to make better use of their website. I say this as a long term investor. A trader might think differently.
goblue100
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Re: Fidelity vs Scottrade

Post by goblue100 »

I have a Scottrade account that I opened many years ago, during the infancy of online trading. I still hold individual stocks in that account, trading ~ 4 times a year. I like their website. If you are interested in trading stocks, I could see using Scottrade. If you are only interested in trading ETF's or mutual funds you should stick with Fidelity, Schwab or Vanguard and take advantage of their free trades on select ETFs.

Things I like about Scottrade(which is not to say other brokers don't offer these items):
1. They allow automatic dividend re-investment. I can pool my dividends and buy any security of my choice with the proceeds, commission free. A do it yourself DRIP account.
2. They do have a branch office less than 5 miles from my house. It used to come in handy when I got company stock options. It was easier to go in there and exercise the options than try to do it over the phone. I haven't been in there in a few years, though.
3. Low commissions. There are places with lower commissions, but the one I tried, Interactive Brokers, had all kinds of other fees to make up the difference. $10 a month quote fee, $10 minimum trades, etc. I eventually moved all my business back to Scottrade once I got over my active trader phase, as it was cheaper to pay more per trade and not have so many other fees.
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