Choosing the right online brokerage can feel like navigating a labyrinth. With so many options, each touting unique features and benefits, where do you even begin? This is especially true when comparing two established players in the investment arena.
We’re diving deep into a head-to-head comparison: Sharebuilder versus Scottrade. Whether you’re a seasoned investor seeking advanced tools or a beginner taking your first steps into the market, understanding the nuances of each platform is crucial for making informed decisions.
This analysis will break down their offerings, from trading fees and investment options to user experience and customer support. By the end, you’ll have a clearer picture of which brokerage aligns best with your financial goals and trading style.
Specs at a Glance
| Feature | Sharebuilder | Scottrade |
|---|---|---|
| Account Minimums | None | None |
| Investment Options | Stocks, ETFs, Mutual Funds, Options | Stocks, ETFs, Mutual Funds, Options, Bonds |
| Trading Platform | Web-based, Mobile App | Web-based, Desktop Platform, Mobile App |
| Research Tools | Basic research, analyst reports | Advanced research, screeners, analyst reports, third-party research |
| Educational Resources | Articles, webinars, tutorials | Articles, webinars, courses, live events |
| Customer Service | Phone, Email, Chat | Phone, Email, Chat, Branch Offices |
| Fractional Shares | No | No |
| DRIP (Dividend Reinvestment Plan) | Yes | Yes |
| Account Types | Individual, Joint, IRA, Roth IRA, Trust | Individual, Joint, IRA, Roth IRA, Trust, Custodial |
| International Trading | No | No |
| Managed Portfolios | No | Yes |
| API Access | No | No |
Feature-by-Feature Breakdown
Platform & User Experience
- Sharebuilder: Offers a web-based platform and a mobile app. The interface is generally considered straightforward and user-friendly, though some find it a bit dated compared to newer competitors. It’s suitable for beginners.
- Scottrade: Provides a robust web platform, a desktop trading platform (ScottradeELITE), and a mobile app. ScottradeELITE is highly regarded for its advanced charting and customization, appealing to active traders, while the web and mobile versions are more accessible.
- Winner: Scottrade
Account Types
- Sharebuilder: Offers standard brokerage accounts, IRAs (Traditional, Roth, Rollover), and custodial accounts. The range is sufficient for most individual investors.
- Scottrade: Supports a wide array of account types including individual and joint taxable accounts, IRAs, Roth IRAs, SEP IRAs, 401(k)s, 529 plans, and trusts. This comprehensive offering caters to diverse financial planning needs.
- Winner: Scottrade
Investment Options
- Sharebuilder: Provides access to stocks, ETFs, options, mutual funds, and bonds. The selection of mutual funds is extensive.
- Scottrade: Offers a broad selection including stocks, ETFs, options, mutual funds, bonds, CDs, and futures. The inclusion of futures and CDs provides more advanced and fixed-income options.
- Winner: Scottrade
Trading Costs & Fees
- Sharebuilder: Known for its commission-free online stock and ETF trades. Mutual fund trades may incur a commission, and there are fees for broker-assisted trades.
- Scottrade: Offers commission-free online trading for stocks and ETFs. Options trades have a per-contract fee, and mutual fund trades also incur commissions.
- Winner: Sharebuilder
Research & Education
- Sharebuilder: Provides basic research tools, including stock screeners and market news. Educational resources are available but are not as in-depth as some competitors.
- Scottrade: Boasts extensive research capabilities with third-party analyst reports, proprietary research, advanced screeners, and a wealth of educational articles, webinars, and tutorials. This makes it a strong choice for investors looking to learn and analyze.
- Winner: Scottrade
Order Types
- Sharebuilder: Supports standard order types like market, limit, and stop orders. It also offers “recurring investments” which is a unique automated feature for dollar-cost averaging.
- Scottrade: Offers a comprehensive suite of order types, including market, limit, stop-loss, stop-limit, trailing stop, and more sophisticated options for active traders.
- Winner: Scottrade
Customer Service
- Sharebuilder: Offers customer support via phone, email, and chat. Historically, their service has been generally well-regarded for responsiveness.
- Scottrade: Known for its strong customer service, with extensive branch networks for in-person support, in addition to phone, email, and online chat. This multi-channel approach is a significant advantage.
- Winner: Scottrade
Mobile Trading App
- Sharebuilder: The mobile app is functional and allows for basic trading and account management. It’s intuitive for simple transactions but may lack the advanced features of more sophisticated apps.
- Scottrade: The mobile app is well-designed and offers a good balance of functionality, allowing for trading, research, and account monitoring on the go. It’s generally considered more robust than Sharebuilder’s app.
- Winner: Scottrade
Winner by Category
| Category | Winner |
|---|---|
| Beginner Friendliness | Sharebuilder |
| Advanced Trading Tools | Scottrade |
| Investment Selection | Scottrade |
| Research Capabilities | Scottrade |
| Educational Resources | Scottrade |
| Mobile Trading | Tie |
| Customer Support | Tie |
What They Have in Common
- Account Minimums: Both Sharebuilder and Scottrade do not require a minimum deposit to open an investment account, making them accessible to a wide range of investors.
- Investment Options: Investors can trade a variety of assets with both platforms, including stocks, exchange-traded funds (ETFs), and mutual funds. Options trading is also available on both.
- Trading Platforms: Both offer user-friendly web-based trading platforms and mobile applications, allowing for convenient trading on the go.
- Dividend Reinvestment Plans (drips): Both platforms support DRIPs, enabling investors to automatically reinvest their dividends to purchase more shares of the same stock.
- Account Types: A comprehensive selection of account types is available with both brokers, including individual, joint, and various retirement accounts like IRAs and Roth IRAs.
- Customer Service: Both Sharebuilder and Scottrade provide multiple channels for customer support, including phone, email, and online chat.
Sharebuilder Vs. Scottrade Buying Guide
Ease of Use and Platform Interface
Sharebuilder is generally lauded for its beginner-friendly interface, making it an excellent choice for those new to investing. Its straightforward design and intuitive navigation simplify the process of placing trades and managing portfolios. This focus on accessibility can significantly reduce the learning curve for novice investors, allowing them to get started with confidence.
Scottrade, while also offering a solid platform, presents a slightly steeper learning curve. Its advanced charting tools and more comprehensive research resources are appealing to experienced traders. However, for absolute beginners, Sharebuilder’s simplicity might offer a more comfortable entry point into the world of stock trading. (See Also: Maybelline Exhilarator Vs Pioneer )
Investment Options and Account Types
Both Sharebuilder and Scottrade provide a wide array of investment options, including stocks, ETFs, mutual funds, and options. Sharebuilder’s strength lies in its fractional share trading, which allows investors to buy portions of expensive stocks, making diversification more accessible with smaller capital. This is a significant advantage for budget-conscious investors.
Scottrade offers a robust selection of investment products and a variety of account types, including IRAs, joint accounts, and custodial accounts. While they also support fractional shares, Sharebuilder’s emphasis on this feature often makes it the preferred platform for those looking to build a diversified portfolio with limited funds. Both platforms cater to a broad range of investment needs.
Research and Educational Resources
Sharebuilder provides a decent set of research tools and educational content, suitable for beginners looking to learn the basics. They offer articles, tutorials, and basic market insights to help users make informed decisions. While helpful, these resources are not as in-depth as those found on more advanced platforms, which might limit experienced investors.
Scottrade excels in its research and educational offerings. They provide extensive market commentary, analyst reports, webinars, and a comprehensive library of articles and videos. This wealth of information is invaluable for investors who want to deepen their understanding of market trends and sophisticated trading strategies. For those seeking detailed analysis, Scottrade is the clear leader. (See Also: Omron Bp5450 Vs Bp7450 )
Fees and Commissions
Sharebuilder is known for its competitive fee structure, particularly its commission-free trades on stocks and ETFs when certain conditions are met, such as placing trades during extended hours. This can lead to significant cost savings for active traders. Their pricing model is generally transparent and easy to understand, appealing to cost-conscious investors.
Scottrade also offers competitive commission rates, often matching or closely aligning with industry standards. They generally have a straightforward commission schedule for various investment types. While both platforms strive to offer value, Sharebuilder’s potential for commission-free trading under specific circumstances can give it an edge for certain trading styles, especially for those who can leverage their extended trading hours.
Who Should Buy What?
Buy sharebuilder If…
- You are a beginner investor looking for a straightforward platform to learn and start investing.
- You prioritize ease of use and a simplified trading experience.
- You are comfortable with basic research tools and don’t require extensive advanced analytics.
- You are looking for a commission-free trading experience on stocks and ETFs.
Buy scottrade If…
- You are an experienced trader who needs advanced research tools and charting capabilities.
- You want access to a wider range of investment products, including bonds.
- You appreciate the option of a downloadable desktop trading platform for more power.
- You value access to physical branch locations for in-person assistance.
Frequently Asked Questions
What are the primary differences in trading platforms?
Sharebuilder’s platform is designed with simplicity and ease of use in mind, making it ideal for beginners. Its interface is intuitive and straightforward. Scottrade, on the other hand, offers a more robust and feature-rich platform that caters to experienced traders with advanced charting tools, extensive research capabilities, and more customization options. While both are functional, their primary target audience differs.
Which platform offers better educational resources for new investors?
Sharebuilder provides a good starting point for new investors with its basic tutorials and articles explaining fundamental investing concepts. Scottrade, however, significantly outshines Sharebuilder in this regard. Scottrade offers a comprehensive suite of educational materials, including in-depth market analysis, webinars, expert commentary, and detailed guides that cater to investors at all levels, from novice to advanced. (See Also: Furnace Rental Vs Purchase )
Are there any significant differences in account fees and commissions?
Both platforms offer competitive commission structures. Sharebuilder sometimes offers commission-free trades on stocks and ETFs under specific circumstances, such as trading during extended market hours, which can be appealing to cost-conscious traders. Scottrade’s fees are generally in line with industry standards and are transparent. The “best” in terms of fees often depends on individual trading frequency and strategy.
Which platform is better for fractional share investing?
Sharebuilder is particularly well-known for its strong fractional share trading capabilities. This feature allows investors to buy portions of shares, making it easier to invest in high-priced stocks and build a diversified portfolio even with a smaller amount of capital. While Scottrade also offers fractional shares, Sharebuilder’s platform often emphasizes and simplifies this aspect for its users.
What types of investment products are available on each platform?
Both Sharebuilder and Scottrade offer a comprehensive range of investment products. This includes individual stocks, exchange-traded funds (ETFs), mutual funds, and options trading. Investors can find a wide variety of choices on both platforms to suit their investment goals. The core offerings are similar, ensuring most investors can find what they need on either.
Final Verdict
Sharebuilder stands out for its exceptional ease of use and fractional share trading, making it a prime choice for beginners and those looking to diversify with smaller capital. Scottrade offers more advanced research and educational tools, appealing to experienced investors. For those prioritizing a simple entry into the market and cost-effective diversification, Sharebuilder has a slight edge.
Winner: Sharebuilder