Industry: Financial Services, Discount Brokerage, Self-Directed Investing
Founded: Palo Alto, Scottsdale, United States
Revenue: 838.10 million
Scottrade was founded in 1980 by a Rodger, Riney, and an entrepreneur who had recently moved from St. Louise where he and his business partner incorporated Scottsdale Securities. A year later Riney would return to St. Louis to open a second branch but after he and his partner spit over contradictory business models he would return to his securities company. This time Riney would take a new approach by lowering the price of his commissions in order to attract a wider variety of clientele. His approach was met with great success and by 1991 his company had opened 15 branches throughout the United States. With the emergence of technological trading innovations in the early 90s Riney was able to launch Scottrade.com and allow it to flourish within the dot.com bubble of the mid-90s.
By keeping with his original axiom of low commission prices Riney was able to continue to grow and the staple $7 per trade commission allowed them to maintain a large book of clients. The 2000s would mark the beginning of an even bigger growth for the Scottrade brand starting in 2000 when Scottsdale Securities was officially renamed to Scottrade due to the success of their online firm. They would also begin catering to international customers in 2003 with their brand new Chinese trading site. In 2006 Scottrade would formally partner with the St. Louis Blues NHL team initially purchasing the naming rights to only a small section of seats but eventually renaming the entire arena the “Scottrade Center.”
Recent Company Awards and Highlights:
- Information Week ranks Scottrade as one of the most innovative companies for fourth consecutive year.
- Fortune Magazine ranks Scottrade as one of the best companies to work for fourth year in a row.
- Top Online Brokerage for Customer Loyalty for six years in a row.
- Has served self-directed investors for 30 years, opening its 500th branch location and hiring their 3,000th employee.
- Nation’s largest branch network for an online investment firm.
Scottrade offers investors both online and branch offices around the world in addition to many other services. Some of the other services offered include:
- Brokerage services
- Advisement services
- Investment education
Scottrade’s trading website also allows users to screen stocks, and research quotes all with the most useful analysis and charts. Scottrade also provides real-time market data and news that is all easily accessed from their main website making it exceptionally easy for users to access data on the go. In addition to the above services Scottrade also allows premium users access to an advanced trading platform that includes up to date news articles from both Dow Jones and Comtex as well as multiple views of quotes and stock screeners.
In summary, Scottrade is one of the United States’ largest online brokerage firms who offer low-cost trading in options, stocks, and exchange-traded funds. All of Scottrade’s transactions are handled in real time and are offered in three different platforms, (i.e. Scottrade, Scottrade, and ScottradeELITE) in addition to being offered on the phone or wireless device. In addition to this extensive network of online brokers they also employ 500 branch offices in all of the 50 states, concentrating on the coastal cities. Scottrade also offers IRA’s, bonds, and CDs as well as a large variety of mutual funds.
Scottrade’s major competitors include: