Anyone using Scottrade as Custodian?

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Dec 2, 2009 10:20 am

I have a few questions.

If you are currently using them please contact me via PM with your email address.



If you are licensed in the following states I may be able to generate some leads for you for your time.

FL, SC, VA, and WV



Thanks in advance.



SM

Dec 2, 2009 11:27 am

LEAVE

Dec 2, 2009 11:49 am

You again huh?



Maybe one day you can become successful enough to not spend all day on the internet.

Best of luck.

Dec 2, 2009 11:57 am

I dont know who this person is... but I was actually thinking of scottrade yesterday.

while i love the fact they have a cheap platform.... their commercials piss me off.

Here they are trying to get people to their RIA platform, yet their own commercials on TV tell people, you dont need your advisor... just come to scottrade and trade for yourself.

Dec 2, 2009 12:08 pm

I certainly agree.



I have spoke to them about this and they spin it as not only do they not compete for accounts they have a refferal program if investors are looking for assistance outside of what they can offer. Which is nothing beyond the scope of order takers.



While I doubt much will come from that I do like the fact they have very low transaction cost which I intend to sell as us looking for out for the clients best interest.



I also like the fact they are privately held.



My brother will be the decision maker on which company to ultimately go with I am just trying to gather as much info as possible.



Dec 2, 2009 12:23 pm
Unrelated post, but pretty interesting: Rodger O. Riney started at Edward Jones and later founded Scottrade. Riney earned an engineering degree at the University of Missouri, but decided he preferred stocks to steel. He took an unpaid internship at brokerage Edward D. Jones& Co. in 1965 and climbed the corporate ladder, doing everything from revamping a branch in Pueblo, Colo., to starting the company's personnel department. After he broke out on his own, his former boss and the founder's son, Ted Jones, gave Riney a piece of advice just before he died: Watch your overhead.

 
Also looked into Scottrade vs eTrade's terms and conditions/cost per trade... Scottrade > eTrade by a huge margin
 
Edit - to receive the $7/trade from eTrade, you must place 15,000 trades per quarter, or $10,500 in commission per quarter lol
Dec 2, 2009 12:24 pm

Look at Think Or Swim, Inc.

Dec 2, 2009 1:28 pm

Will do some research on Think or swim.

At this point in the process its down to Schwab or Scottrade but always open to new ideas.



I have some questions regarding additional costs which is why I am hoping a scottrade ria chimes in.

I have gone through their technology provider list but have a few questions.

Dec 2, 2009 4:21 pm

Does think or swim have an ria platform? didnt know. I currently use TradePMR and have an active account at Interactive Brokers.

Dec 2, 2009 4:27 pm

Ci senior - as far as I know.

Dec 2, 2009 6:18 pm

You should definitely be looking at TradePMR if you are considering Scottrade.

Dec 2, 2009 6:29 pm
yield spread:

I certainly agree.

I have spoke to them about this and they spin it as not only do they not compete for accounts they have a refferal program if investors are looking for assistance outside of what they can offer. Which is nothing beyond the scope of order takers.

While I doubt much will come from that I do like the fact they have very low transaction cost which I intend to sell as us looking for out for the clients best interest.

I also like the fact they are privately held.

My brother will be the decision maker on which company to ultimately go with I am just trying to gather as much info as possible.

 
Too bad they are run by an ex-Jones GP...
Dec 2, 2009 8:14 pm

I like the idea of a client being able to walk into any of the retail locations and make deposits.   Some prefer to handle their business in person and its an added convenience if they can/t/prefer not to come to office.<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />


I like the idea of building a referral relationship with the local branches of ST.  The local branches can retain the ‘custodial account’


If its $7 per transaction I could care less if the home office or local branch gets it.


There will be accounts the will want trade their own or not worth the time and we can send them to the local shop.


 


The company is well branded.


 


There is a lower barrier to entry and like Ted Jones to O’Riney you need to watch your overhead.

Dec 2, 2009 11:33 pm
yield spread:

I like the idea of a client being able to walk into any of the retail locations and make deposits. Some prefer to handle their business in person and its an added convenience if they can/t/prefer not to come to office.


I like the idea of building a referral relationship with the local branches of ST. The local branches can retain the ‘custodial account’


If its $7 per transaction I could care less if the home office or local branch gets it.


There will be accounts the will want trade their own or not worth the time and we can send them to the local shop.



The company is well branded.



There is a lower barrier to entry and like Ted Jones to O’Riney you need to watch your overhead.

And one of your clients goes into a local office to make a deposit... and see there are advisors there in the local branch. What the heck do they need you for?

client then goes home, and see the commercial... and thinks... why is he paying you a fee if scottrade is willing to provide all the same services, and they have lots of local branches and great advisors in the branch that do not charge fees. and hey, since my advisor is using scottrade, it must be good. so I will just stop paying his fees.

Dec 3, 2009 10:09 am

Aeromaks- it is my understanding the local branches do not have advisors. Only order takers. I will need clarify this.

In the loan business I get low balled in nearly every transaction. I have to add significant value to the client in order to work with me. I have in the past and will again run into clients who have all the answers. Hopefully I can direct these traders to the local branch and help establish that relationship.

For some background I started at Scottsdale Securities out of college.

My former manager still runs the local branch and 2 of the brokers now have their own branches in neighboring counties.

I do not see this a significant pro, only an added convenience.

ST will also you to put the statements in the RIA's name.

Dec 3, 2009 4:16 pm

Do you honestly want to test your relationship with your client or if your clients knows the difference between order taker and you?

Dec 3, 2009 7:10 pm
aeromaks:

Do you honestly want to test your relationship with your client or if your clients knows the difference between order taker and you?

 
Boy I hope so.  If I can't add value he should go somewhere else.
For the guy who would rather do his own trading god bless em'.
 
When I worked there the vast majority of the accounts were under 150k.
We were a higher tier branch and I still only remember a handful of accounts over 500k.
 
The branches want the day trader as they get a split of the commision and the 12b-1 fees.
 
I only recall one guy who had 1MM account and its was a muni bond transfer from Ferris, Baker, Watts. 
 
 
 
 
Dec 3, 2009 8:31 pm
yield spread:
aeromaks:

Do you honestly want to test your relationship with your client or if your clients knows the difference between order taker and you?


Boy I hope so. If I can't add value he should go somewhere else.
For the guy who would rather do his own trading god bless em'.

When I worked there the vast majority of the accounts were under 150k.
We were a higher tier branch and I still only remember a handful of accounts over 500k.

The branches want the day trader as they get a split of the commision and the 12b-1 fees.

I only recall one guy who had 1MM account and its was a muni bond transfer from Ferris, Baker, Watts.



I was just having a discussion with someone else about this, but in any case... why would any RIA in their right mind want to support an institution that will take the profits earned from an RIA, to go open up more branch locations?!?!?!?!!?!?

If you are using Fidelity, Chuck or TD as your custodian... I would start being afraid. In all of those cases, they already have a big branch network, and pumping more money to expand it even more.

Dec 4, 2009 10:45 am
Yield spread – We understand that you may have questions about Scottrade Advisor Services. We would be happy to answer any questions you have. Feel free to contact us at 866-306-7135 or sasinfo (at) scottrade (dot) com. 
 
Kind Regards,
 
The Scottrade Advisor Services Team
Dec 4, 2009 10:46 am

In defense of those custodians, I don't think most RIA's are competing with the local TD Ameritrade clerk.  And most RIA's aren't advertising their custodian - they essentially position them as the "middle man".