www.optionsxpress.com – Comparison Between OptionsXpress and Scottrade OnlineFinance
Overview OptionsXpress vs Scottrade :
If you are looking for an online brokerage, which offers plenty of investment ability, then you should check this comparison between OptionsXpress and Scottrade. We will mainly focus on the fees and tools, and some other considerations.
There are several online brokerages, who offer competitive pricing for the stock trades. But the fees for the options trading might make a serious problem in your earnings. For the low interesting fees, OptionsXpress is the clear leader here. You will get the stock trading at $8.95 per trade. The option trading stars from $1.25 per contract, with a $12.95 minimum. Here, you don’t have to pay any maintenance fees or inactivity fees. Mutual fund trading runs $9.95 plus the load fee per trade.
Scottrade has been serving for around 35 years, even before the online investing was a possibility. They provide the stock trading at $7 per trade and options trading starts at $7 plus 1.25 per contract. Mutual fund trading cost $17 per trade for no-load funds. The load funds are free to buy, but for sale or exchange, they will cost $17.
OptionsXpress and Scottrade do not charge an account maintenance fee or any inactivity fees. But Scottrade has a minimum deposit to open an account of $2,500. However, to open an IRA account, there will be no minimum balance requirements. For the beginning investors, Scottrade a good option. Both brokerage OptionsXpress and Scottrade has the minimum maintenance requirement of $2,000.
If you want to make a phone trades or broker-assisted trades, with the Scottrade charges $32 per trade. OptionsXpress does not charge any broker-assisted trades, that is what most account holders like to take the advantage.
Investment Products and Account Types:
In 2011, Charles Schwab purchased the OptionsXpress to get in on the online brokerage game. In the online brokerage game, OptionsXpress is considered to the pioneer and they started their website in 2000. As the name suggests, they are specializing in the options trading. Along with the options, they also trade bonds, stocks, mutual funds, forex, and futures. As it is linked with the Charles Schwab, they provide over 200 commission-free ETFs, including Schwab Fundamental Index ETFs and Schwab Market-Cap Index ETFs.
With the OptionsXpress, you will get the joint taxable accounts and individual accounts; Rollover, SEP, Traditional, Roth and Simple IRAs; trust and business accounts; and custodial account for minors.
Scottrade provides the trading of stocks, bonds, and mutual funds in addition to forex. They don’t offer any futures trading or commission-free ETFs, that is a serious drawback for the investors.
With the Scottrade, you will get to open Traditional, Roth, Rollover, SEP and Simple IRAs; individual and joint taxable account; trusts and business accounts.
Unlike the OptionsXpress, Scottrade offers the banking service to its service consumer. As long as you have $500 on your brokerage account, you can use the free checking and online bill paying option. You will also get an interest in checking account if you maintain the minimum balance of $100 in your account.
Research and Tools:
For every level of investor, OptionsXpress offers the research and tools through its on-demand video library. From there, the users can learn everything from the basics to investment strategies.
OptionsXpress offers live seminars where they introduce some different trading strategies, investment options, and market outlook at Schwab branch locations throughout the country. In those seminars, the investors get the chance to meet with financial professionals and ask them any questions. But in case, you can’t go there, you can simply joint the free interactive webinar to get the professional investment guide.
Before putting your money on the market, if you want to practice, then OptionsXpress has the Virtual Trading platform for you. Here, you will get $25,000 of fake cash for trading at forex and other investors. But Scottrade does not offer any virtual trading option for trading in the risky forex market.
Like the OptionsXpress, Scottrade offers live seminars and interactive webinars, podcasts, video tutorials, some education tools, etc. Investors will also get the chance to customers their homepage, which will allow them to choose the symbols, research, chart, market data, and other tools that interest them.
The investors who place at least nine trades per quarter and have at least $25,000 will get access to the ScottradeElite. In this customized trading platform, investors can research the market, interface, and identify. With the ScottradeElite, you will get the streaming news, advanced charting capabilities, and other research tools.
Also Read : Overview of TradeKing vs TD Ameritrade
Like most of the online brokerages, OptionsXpress also has mobile apps for iPhone and iPad and Android devices. Through the app, you can access the market news in article form, some charting, stock indexes, and watch list.
Whereas, Scottrade offers a well-designed website for their investors. They also have apps for the iPhone, iPad, and Android users. With the Scottrade mobile app, you will get the mobile check deposit, and some other advanced features. They don’t offer the live streaming of financial news and offers very little charting.
OptionsXpress customer service can be contacted by phone. Service is available Monday through Friday from 9 a.m. to 8 p.m. Eastern Time. Here you will also get the live chat and email support. For any queries, customers can visit the Charles Schwab branch locations.
Scottrade’s customer service hours are a little broader. The phone supported customer service is available on weekdays from 6 a.m. to 1 a.m. and on weekends from 9 a.m. to 7 p.m. Eastern. The phone system will automatically redirect you to the nearest branch during the business hours. Here, you will also get the email supported live chat. For any other quarries, you can visit the nearest Scottrade locations. There are nearly 500 branch locations where you can find a local representative to help you.
Both of the brokers is the member of SIPC (Securities Investor Protection Corporation). They protect against the losses caused by the financial failure of their brokerage. But you will not get the protection against the losses from decreases in a security’s value.
With the great educational resources and interactive website, OptionsXpress is a great option for those who want a lot of resources and inexpensive options trading. If you want to take advantage of the broker-assisted trades, then you can simply go for the OptionsXpress.
For those who are looking for one-stop investing and banking services, Scottrade will be a better option for them. If anyone interested in the strictly in stocks, then they can simply go for the Scottrade.