Orlando Harmon
Scottrade was a brokerage firm founded by Rodger O. Riney in Scottsdale, Arizona, with over 3 million American accounts and over $170 billion in assets when it closed in 2017. In 2016, Scottrade offered a Cash Bonus Offer of up to $2,500 in bonus cash or 700 free trades for new customers. The firm was known for its low fees, extensive client education resources, and advanced tools for investors. While it is known that Scottrade customers earned interest on uninvested deposits, it is unclear whether Scottrade accounts were insured. Scottrade was acquired by TD Ameritrade in 2017, and by 2018, Scottrade customers had their accounts transferred to TD Ameritrade, with access to their old Scottrade account information.
| Characteristics | Values |
|---|---|
| Scottrade accounts insured | No explicit mention of insurance for Scottrade accounts was found. However, Scottrade was purchased by TD Ameritrade in 2017, and there is mention of an "Insured Deposit Account Agreement" involving TD Ameritrade and Scottrade Financial Services, Inc. |
| Scottrade's current status | Scottrade was purchased by TD Ameritrade in 2017, and by 2018, Scottrade accounts were fully converted to TD Ameritrade accounts. Scottrade's banking accounts were closed, with customers receiving checks for their balances or the option to transfer funds to brokerage accounts. |
| Scottrade's offerings | Scottrade offered low fees, excellent customer service, and both in-person and online trading options. They also provided a Cash Bonus Offer for new customers and ScottradeELITE for advanced traders. |
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What You'll Learn
- Scottrade accounts were converted to TD Ameritrade accounts
- Scottrade customers received access to TD Ameritrade's investment advice and guidance
- Scottrade customers received low interest rates on uninvested deposits
- Scottrade customers were allowed to retain account numbers, passwords, and other information
- Online savings accounts are FDIC-insured
Scottrade accounts were converted to TD Ameritrade accounts
Scottrade was a popular stock brokerage firm founded by Rodger O. Riney in Scottsdale, Arizona, in 1980. The firm offered both in-person and online trading, with most transactions taking place online. Scottrade had over 3 million American accounts and $170 billion in assets when it closed its doors in 2017.
In 2016, many other online brokerage firms shut down or were sold, and Scottrade suffered a database hack and a violation of federal security laws. In 2017, Scottrade was purchased by TD Ameritrade, and Toronto-Dominion Bank acquired its banking services. The deal was worth approximately $4 billion, and TD Ameritrade gained a combined 10 million customer accounts and $944 billion in assets.
By 2018, Scottrade and TD Ameritrade were fully merged, and all Scottrade customers had their accounts converted to TD Ameritrade accounts. Customers were allowed to keep their original account numbers, passwords, and other information, and they were given access to old statements, tax information, and other documents. Scottrade customers also gained access to TD Ameritrade's investment advice, trading products, and larger branch network.
To access their new accounts, Scottrade clients could log in using their existing Scottrade credentials. An online tutorial was provided to help clients learn the new platform, and 24/7 support was available through various channels, including Facebook Messenger, Twitter Direct Messages, and phone services.
The acquisition of Scottrade by TD Ameritrade was a significant milestone, and the integration process involved transferring data and client information, addressing technology gaps, and keeping Scottrade clients informed throughout the transition.
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Scottrade customers received access to TD Ameritrade's investment advice and guidance
In 2017, TD Ameritrade purchased Scottrade, and Toronto-Dominion Bank purchased Scottrade’s banking services. The deal was worth about $4 billion. At the time of the acquisition, TD Ameritrade gained access to Scottrade's 3 million American accounts, $170 billion in assets, and 500 physical locations.
By 2018, the two companies were fully merged, and all customers who had Scottrade accounts had their own accounts with TD Ameritrade. Scottrade customers received access to TD Ameritrade's extensive offerings, including investment advice and guidance, and more trading products. They were also given access to old documents, such as statements and tax information.
Scottrade customers who transitioned to TD Ameritrade were given access to TD Ameritrade's platforms, including the TD Ameritrade website, the pro-level Thinkorswim platform, TD Ameritrade Mobile, and TD Ameritrade Mobile Trader. They also gained access to more trading products, including complex options, futures, and foreign exchange.
In addition, Scottrade customers could now benefit from more investment advice and guidance, including managed portfolios, robo-advisors, and free goal-planning services. TD Ameritrade remained committed to making the transition as seamless as possible and provided clients with an outstanding investing experience throughout the integration and beyond.
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Scottrade customers received low interest rates on uninvested deposits
Scottrade was a brokerage firm founded by Rodger O. Riney in Scottsdale, Arizona, in 1980. The firm offered both in-person and online trading, with most transactions taking place online during the 2000s and 2010s. In 2017, Scottrade was acquired by TD Ameritrade and Toronto-Dominion Bank for a combined sum of around $4 billion. At the time of the acquisition, Scottrade had over 3 million American accounts and over $170 billion in assets.
Following the acquisition, Scottrade customers had their accounts transferred to TD Ameritrade, with access to their old Scottrade account information and documents. Scottrade customers also gained access to TD Ameritrade's extensive offerings, including investment advice and additional trading products. Scottrade's banking accounts were closed, and customers received checks for their balances or could opt to have the money deposited into brokerage accounts.
Scottrade was known for its low fees and strong customer service, making it an attractive option for both new and seasoned investors. The firm offered a $7 fee for unlimited online trades, as well as a Cash Bonus Offer of up to $2,500 in bonus cash for qualifying deposits. Scottrade also provided a product called ScottradeELITE, targeted at advanced traders with a minimum primary account balance of $25,000.
Regarding interest rates on uninvested deposits, Scottrade did offer a nominal cash interest rate, but it was very low. One customer reported earning an interest rate of 0.01% APYR on their Scottrade account, significantly lower than the rates offered by average savings accounts. Scottrade customers could, however, purchase CDs/bonds/T-bills through the platform if they sought safer cash investments with potentially higher returns.
While Scottrade offered low-interest rates on uninvested deposits, its overall appeal lay in its low fees, extensive branch network, and robust client education resources. The firm's strengths in these areas, combined with its strong customer service, contributed to its popularity among investors before its acquisition by TD Ameritrade.
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Scottrade customers were allowed to retain account numbers, passwords, and other information
Scottrade was a brokerage firm founded by Rodger O. Riney in Scottsdale, Arizona, in 1980. The firm offered both in-person and online trading, with most transactions taking place online during the 2000s and 2010s. With over 3 million American accounts and more than $170 billion in assets, Scottrade was a prominent player in the industry.
In 2017, TD Ameritrade purchased Scottrade, acquiring its customer accounts and assets. Following the acquisition, TD Ameritrade worked to integrate Scottrade customers into its system seamlessly. As a result, Scottrade customers were allowed to retain their account numbers, passwords, and other information when their accounts were transitioned to TD Ameritrade. This continuity made the transition smoother and less disruptive for customers.
To further ease the transition, Scottrade customers were provided access to their old documents, such as statements and tax information. Additionally, they gained access to TD Ameritrade's extensive offerings, including investment advice and a broader range of trading products. Scottrade's banking accounts were closed, and customers received checks for their balances or could opt to have the funds deposited into brokerage accounts.
By 2018, the merger between Scottrade and TD Ameritrade was complete, and all Scottrade customers had their accounts transitioned to TD Ameritrade. This integration process aimed to minimise inconvenience for customers and provide them with enhanced investment services and opportunities.
While the specific insurance details of Scottrade accounts during its operation are unclear, there are references to an Insured Deposit Account Agreement involving TD Ameritrade, Scottrade Financial Services, and other entities. This agreement appears to be related to the merger and the treatment of Scottrade brokerage accounts. However, it is not explicit whether this agreement directly insured Scottrade customer accounts.
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Online savings accounts are FDIC-insured
Scottrade was a brokerage firm founded by Rodger O. Riney in Scottsdale, Arizona, in 1980. It offered both in-person and online trading, with most transactions conducted online during the 2000s and 2010s. In 2017, Scottrade was acquired by TD Ameritrade, and its banking services were purchased by the Toronto-Dominion Bank. The deal was valued at approximately $4 billion, and by 2018, the two companies had fully merged.
Following the acquisition, Scottrade customers had their accounts transitioned to TD Ameritrade, retaining their account numbers, passwords, and access to historical documents. They also gained access to TD Ameritrade's extensive offerings, including investment advice and additional trading products. Scottrade's physical locations were either closed or rebranded as Ameritrade branches.
Scottrade offered low fees and was recognised for its excellent customer service. It provided a $7 price for unlimited online trades, attracting many self-directed investors. While Scottrade customers earned interest on uninvested deposits, the rates were very low. For example, a customer with an average credit cash balance of $729.36 earned only $0.01 in interest over a month.
While there is no explicit mention of Scottrade accounts being FDIC-insured, online savings accounts, in general, are FDIC-insured. FDIC insurance provides depositors with protection against financial loss in the event of a bank failure. It is important to note that FDIC insurance coverage has specific limits and requirements that account holders should understand.
To summarise, Scottrade, now integrated into TD Ameritrade, offered competitive rates and services in the online brokerage market. While the interest rates on uninvested deposits were low, the security of FDIC insurance on savings accounts provides an added layer of protection for depositors.
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Frequently asked questions
Scottrade accounts are FDIC insured. However, Scottrade was purchased by TD Ameritrade in 2017, and by 2018, Scottrade customers had their accounts with TD Ameritrade.
After TD Ameritrade acquired Scottrade, customers with Scottrade accounts had their accounts transferred to TD Ameritrade. Scottrade customers were allowed to keep their account numbers, passwords, and other information. They also received access to old documents, such as statements and tax information.
Scottrade's banking services were purchased by the Toronto-Dominion Bank. Scottrade banking accounts were closed, and customers received checks for their balances or could opt to have the money deposited into brokerage accounts.
TD Ameritrade closed many Scottrade branches, but some were converted into Ameritrade-branded branches.
Scottrade's online platform, Scottrade.com, was integrated into TD Ameritrade's platform.
