How Is Scott Trade?

[Advice Pro]

I think I'll start out with these guys because they allow an account with a minimum of $500.

1. They advertise $7 trades, is this accurate?
2. Are there any hidden fees?
3. Are there any Candlestick charts?
4. Any advantages or disadvantages would be appriciated!

[LemonButt]

I use Scottrade. They are great all the way around in my opinion. $7 is online trades, if you call the broker to trade it's like $17 if you do it touchtone phone and $27 for broker assisted, so pretty much any trade you'll ever do is $7. No hidden fees and they do have great stock data including candlestick charts. The charting features are as good if not better than yahoo's interactive charts. You need $2000 minimum to have a margin account, which is key if you're going to be trading frequently, otherwise you have to wait 3 days for settlement dates on cash accounts.

[IIC]

I think I'll start out with these guys because they allow an account with a minimum of $500.

1. They advertise $7 trades, is this accurate?
2. Are there any hidden fees?
3. Are there any Candlestick charts?
4. Any advantages or disadvantages would be appriciated!

I have 4 accounts at Scottrade and accounts at IB and AMTD.

The advantage at Scottrade is that you will have access to their forum and the guy who has the most points and most friends and all his wonderful market takes...Now who is that guy?....Oh...It's me. (Sharptraders.com)

[yoyomama]

Penny Stock Trades at Scottrade cost more than 7 dollars. I don't remember how much but the first time I did it I became enlightened quickly.

[LemonButt]

Penny stocks are $7 + 0.5% of principle total. $1000 into a penny stock = $7 + $5 = $12

[IIC]

Commissions at any broker are negotiable...Doug

[Peter Hansen]

Trades a Problem at Scott

Sometimes when I wish to by an AMEX low priced stock at Scott .I get a MESSAGE Which Says To Place Trade Please Call Broker ,,,,,what nonsense ....I simply buy it at Ameritrade on line with no problem!

[steelman]

Sometimes when I wish to by an AMEX low priced stock at Scott .I get a MESSAGE Which Says To Place Trade Please Call Broker ,,,,,what nonsense ....I simply buy it at Ameritrade on line with no problem!

Peter, I agree that it's a little inconvenient at times. If you ever do want to call in those trades, pink sheet, otcbb, etc, you just have to let them know that you were trying to do it online. Then they place the trade for you and give you the online trade rate. They can also do it at market price on these instead of having to do a limit.

[Larry]

If you want to trade penny stocks Choice trade is $ 5.00 a trade. No min. balance and no maintance fees which is also important if you not trading alot.

[Advice Pro]

Larry, Choice Trade's FAQ reads contrary to what you wrote:

How will I know when my ChoiceTrade account has been approved?
When we receive your completed application and the required initial minimum, and we approve your account, we will send you an email letting you know that your account has been approved.

If I understand correctly, cash accounts don't require a minimum, but margin trades require $2000 if not daytrading which does require $25,000 by the SEC!

[IIC]

Larry, Choice Trade's FAQ reads contrary to what you wrote:



If I understand correctly, cash accounts don't require a minimum, but margin trades require $2000 if not daytrading which does require $25,000 by the SEC!

You do not need $25,000 to day trade. Having $25,000 in a "Margin" account will allow you to become a Pattern Day Trader but in a "NON-Margin" cash account including IRA's you can day trade as many times as you want as long as you always use settled funds.

In a "Margin" account under $25,000 you can only day trade 3 times every 5 days the market is open...Doug

[LemonButt]

You do not need $25,000 to day trade. Having $25,000 in a "Margin" account will allow you to become a Pattern Day Trader but in a "NON-Margin" cash account including IRA's you can day trade as many times as you want as long as you always use settled funds.

In a "Margin" account under $25,000 you can only day trade 3 times every 5 days the market is open...Doug

I think its 4 times in the trailing 5 days of trading, but I could be wrong. Funds settle 3 days after a trade, so you're money is essentially locked up for 3 days and you can't use it to buy a different stock until it settles, which is a pain If you buy at 3:55pm and sell the next day at 9:35am, it doesn't count as a same day trade, even though you've held it less than a day.

[yoyomama]

You do not need $25,000 to day trade. Having $25,000 in a "Margin" account will allow you to become a Pattern Day Trader but in a "NON-Margin" cash account including IRA's you can day trade as many times as you want as long as you always use settled funds.

In a "Margin" account under $25,000 you can only day trade 3 times every 5 days the market is open...Doug

Realistically though in a cash account...you're gonna run out of settled funds soon enough and get hit with a free ride or two. I mean if you're "day trading" that is...as in several trades a day. Don't you think?

[Larry]

You do not need $25,000 to day trade. Having $25,000 in a "Margin" account will allow you to become a Pattern Day Trader but in a "NON-Margin" cash account including IRA's you can day trade as many times as you want as long as you always use settled funds.

In a "Margin" account under $25,000 you can only day trade 3 times every 5 days the market is open...Doug

Correct sir, but then again Iam not a advice pro just a plain ole knucklehead.

[IIC]

I think its 4 times in the trailing 5 days of trading, but I could be wrong. Funds settle 3 days after a trade, so you're money is essentially locked up for 3 days and you can't use it to buy a different stock until it settles, which is a pain If you buy at 3:55pm and sell the next day at 9:35am, it doesn't count as a same day trade, even though you've held it less than a day.

Pattern Day Trader is 4 or more in a 5 day period...which is the same thing as "More than 3" http://en.wikipedia.org/wiki/Pattern_day_trader

Doug