Online Trading and Investing

Scottrade understands the needs of the do-it-yourself investor and trader. The company was founded and is still run by a do-it-yourself investor – CEO Rodger Riney. Rodger’s fascination with the stock market started during his childhood when he received a few shares of stock as a gift from his grandparents. His interest grew throughout his life and in 1980 he opened a discount brokerage firm.

The company has evolved into Scottrade Financial Services, giving self-directed investors and traders the ability to research market opportunities and invest on their own.Throughout the past three decades, Scottrade has remained committed to offering its services at a lower price than what full-service brokerages offer while delivering new products and tools investors and traders need.

Recognizing that there is no substitute for face-to-face customer service, Scottrade has invested in creating the largest branch network among online brokerage firms. Today, the company operates more than 500 branch offices throughout the country, providing in-person support and small-group educational seminars in the communities where its millions of self-directed clients live and work.

Scottrade provides clear information to clients and works to remove barriers so that they can achieve their financial goals. The company has consistently been recognized by industry authorities for its straightforward, clear pricing structure and low trading charges. SmartMoney magazine’s 2012 annual broker survey recognized Scottrade with five out of five stars in its commissions and fees categories. Scottrade does not charge account maintenance or inactivity fees, and continues to offer its trademark $7 online stock trades for stocks priced $1 and above.

The founding principal of providing clients with the best value and service in the industry remains at the core of Scottrade’s success.

Evolution of trading – Wall Street to Main Street

Two main drivers paved the way for online stock trading and investing: regulation and technology. Scottrade Founder and CEO Rodger Riney recognized these industry changes as opportunities that leveled the playing field for self-directed investors and traders.

Before online investing was available, traders who wanted to buy or sell a stock had to call on their financial advisor or broker, pay a high commission and place their order. The broker would then enter the order in their system, which was linked to trading floors and exchanges.

Online trading technology removed at least three constraints imposed on markets: physical space, the number of participants and geography.

The barriers of entry into the investment process have radically lowered: commission prices have dropped to affordable levels; the ability to transfer money has become easier; and the access to technical analysis and market research (once only available to stockbrokers) is now obtainable for self-directed investors and traders. In turn, barriers have been torn down empowering investors and traders to take the reins of their personal investment planning.

Investors and traders have welcomed the Internet as an investment tool and used it to their advantage; changing the entire structure of Wall Street in the process. First, the cost of making a trade plummeted, which only amplified the number of individuals participating. With this increased direct participation has come a decrease in the average trade size, but an increase in the amount of message traffic per trade. Today, the United States’ financial system accommodates the trading of one billion shares each day.

Celebrating the Do-It-Yourself Investor

People have many reasons to prefer buying and selling stocks online. Many find investing fun, are confident in their own decisions, and appreciate the ease and comfort of trading from their home or work computers, or their mobile devices.

The Internet makes information about the markets, rules and guidelines more accessible and easy to find. With online trading, investors and traders can make a trade instantly and monitor their accounts’ performance. The fees for trading online are usually substantially less than when using a financial advisor.

So why does Scottrade have the branch network? Scottrade’s stock brokers, branch managers and service specialists are trained to assist clients and provide them with them education and resources they need to reach their investment goals. With more than 500 locations nationwide, Scottrade has the largest branch network among online investing firms in the United States.

How to Invest Online

Online trading may be quick and easy, but online investing takes time.

Although online trading saves investors time and money, it does not take the homework out of making investment decisions. Before making a trade, investors need to understand why they are buying and selling and the risk of each investment.

Scottrade offers clients some of the latest tools and resources to help them trade online at a low cost. They can use one of the multiple trading tools, interact with other investors in the online community, learn at a free local Scottrade^® Branch Seminar or national Scottrade^® Client Education Conferences, and trade from any Internet-enabled mobile device.

Scottrade has multiple online trading tools:

Scottrade Bank^®

Scottrade offers solutions to help its self-directed investor and trader clients achieve financial success.

Scottrade Financial Services, Inc., a leading, independent financial services firm, is the holding company for Scottrade, Inc., the online investing services company that was founded in 1980. Scottrade Bank, formed in 2008, began offering retail banking products and services to Scottrade clients in 2011. As one of the fastest growing banks, Scottrade Bank ranks as the 75th largest bank in the nation and is No. 1 among banks headquartered in St. Louis based on total asset size. The bank’s Equipment Finance division, established in 2013, offers a full range of equipment finance options, and specializes in originating and syndicating commercial equipment leases for U.S. companies.

Scottrade’s suite of online banking products, including checking and savings accounts, and certificates of deposit (CDs), can be accessed through a single login on Scottrade.com.

Scottrade Bank provides clients with the convenience of online banking and does not charge monthly maintenance, withdrawal or transfer fees. The bank also reimburses clients for most ATM fees.

Scottrade Bank^® accounts offer:

• $100 minimum deposit to open a checking, savings*, or money market*
• $500 minimum deposit to open a certificate of deposit
• Free funds transfers between brokerage and bank accounts
• Free ACH funds transfers
• Free direct deposit
• Free online bill pay
• Free standard checks and ATM/debit card
• Free account linking for overdraft protection
• ATM fee reimbursement program
• Security of FDIC insurance

To find out more about Scottrade Bank^® visit the Scottrade Bank^® Fact Sheet, and for service charges see the Scottrade Bank^® Fee Schedule.

^{*Federal law limits the number of certain withdrawals on any savings or money market account to six per month. ATM withdrawals are not subject to federal limits. See Scottrade Bank Account Agreement for details.}

^{To open a Scottrade Bank® account, clients must have $500 in equity in an Individual, Joint, Trust, Traditional IRA or Roth IRA account with Scottrade. In this instance, equity is defined as Cash Available for Withdrawal (excluding any margin loans) plus Total Positions Market Value.}

Mobile Trading

As technology keeps everyone connected and makes lives easier, people are on the go more than ever. To empower investors to react to up-to-the-second changes in the market, Scottrade developed a smartphone application and mobile trading website.

Scottrade^® Mobile encompasses the firm’s robust stock market research and trading application as well as its enhanced mobile investment trading site (m.scottrade.com). Both web-enabled trading mediums offer self-directed investors the real-time research and news they need to make informed trading decisions and react to changes in the market.

Both platforms give users the freedom to manage accounts and trade on-the-go. Clients can monitor their account, research information, place trades and make informed investment decisions.

Key features of Scottrade^® Mobile:

• Robust charting capabilities
• Real-time streaming watch lists and quotes
  
• Synched watch lists and alerts
  
• Option chains with filters
  
• News and commentary
  
• Pre-market and after-hours trading
  
• Transaction history

The mobile trading site can be accessed from any Internet-enabled device. The mobile app is available on Android™, BlackBerry^®, iPhone^® (iPad^® in iPhone^® display mode) and Kindle Fire devices. Graphics for the mobile app were created with a higher resolution to optimize viewing on tablets, including the iPad^®. The firm plans to expand the app’s compatibility to additional devices.

For more information about the mobile trading service offered by Scottrade, please visit the Mobile Fact Sheet.

More Than Trading, It’s Investing

Scottrade recognizes that every investor and trader has goals that evolve over time. To meet the needs of its clients, the company offers a variety of account types and investment products.

Account Types:

• Brokerage Accounts: Individual and Joint
  
• Banking Accounts: Checking, Savings, Money Market and CDs
  
• Retirement Accounts: Traditional IRA, Roth IRA, Rollover IRA, SIMPLE IRA and Self-employed (SEP) IRA
  
• Custodial/Guardian Accounts: Coverdell Education Savings Account (ESA), Guardianship, Custodial and Conservatorship
  
• Specialty Accounts: Trust Account (Testamentary), Trust Account (Non-Testamentary), Keogh, 401(k), Money Purchase, Profit Sharing and Pension Plan
  
• Business Accounts: Investment Club, Corporate, Partnership/Limited Partnership, Sole Proprietorship, Limited Liability Company (LLC) and Association or Non-Corporate Organization

Investment Products:

• Stocks
  
• Exchange-Traded Funds (ETFs)
  
• Options
  
• Mutual Funds
  
• Bonds
  
• Certificates of Deposit (CDs)
  
• Treasuries
  
• International Investing

Real-time stock news and research gives clients the tools they need to be informed. Scottrader^® Streaming Quotes delivers live streaming stock quotes, market news and top ten lists right to a trader’s fingertips. Other research is powered by Dow Jones Real-Time News for Investors, Learning Markets, Standard & Poor’s and Thomson Reuters.

An extensive mix of free resources and in-person and online investment education is designed to accommodate different learning styles and preferences. Small-group Scottrade^® Branch Seminars are offered at all of the more than 500 branch offices nationwide, and Scottrade^® Client Education Conferences are held in metropolitan areas. Online tools include articles, interactive financial planning calculators, on-demand videos, Scottrade^® Live Webinars, quizzes, the Scottrade^® Online Community and newsletters.

Scottrade is committed to providing personalized support, continuous technology upgrades to its advanced online trading tools, numerous educational tools and resources that work together to help self-directed investors and traders make better investing decisions.