Does anybody use Scott Trade as their online broker and what
do you think about them?

Debra...

One of my clubs uses Scottrade and while they are inexpensive, they are
not without problems. Scottrade does not offer us a money market account
with check writing so any withdrawals must be specifically requested and
are sent to the partner on record for the account. They are made payable
to the partnership only and must be deposited into a separate checking
account in the name of the partnership. This is a real hassle and delays
a partner’s payout because it requires a check be sent from Scottrade to
one of the partners who then must deposit it into a bank checking
account and then we need to wait for the funds to clear before we can
write a check against the deposit. While the new check21 clears checks
drawn against our account more quickly (the deposit), our bank still
places a 5 day hold on availability of funds. This delays the whole
process of cashing out a partner.

A second issue: I don't recall, but I think funds transferred into the
Scottrade account must also be drawn on the partnership's bank account
and not paid by checks drawn on partner's personal accounts. I may be
wrong on this though and perhaps someone can verify this.

Scottrade also has a rule that requires us to notify them of any changes
in partnership. When partners withdraw and join, we are expected to file
new paperwork with them that includes all the partners. This is
difficult since we never have a meeting where all partners attend.

Finally, were we to withdraw stock, they expect all partners to approve
the transfer by signing the paperwork. And the paperwork's checked
against the signatures on record. We are so far behind in following
their paperwork requirements that I don't think we'll ever be able to
cleanly transfer stock since this process can't be done via the web.

Other than these particular quirks, we have no problems with Scottrade.

John Munn
Capitol Investors

Debra Prior Rodgers wrote:

>Does anybody use Scott Trade as their online broker and what
>do you think about them?
>
>
>
>

Thanks John,

That's enough info for me. I'll stick with TD Waterhouse.

John R. Munn wrote:
> Debra...
>
> One of my clubs uses Scottrade and while they are inexpensive, they are
> not without problems. Scottrade does not offer us a money market account
> with check writing so any withdrawals must be specifically requested and
> are sent to the partner on record for the account. They are made payable
> to the partnership only and must be deposited into a separate checking
> account in the name of the partnership. This is a real hassle and delays
> a partner’s payout because it requires a check be sent from Scottrade to
> one of the partners who then must deposit it into a bank checking
> account and then we need to wait for the funds to clear before we can
> write a check against the deposit. While the new check21 clears checks
> drawn against our account more quickly (the deposit), our bank still
> places a 5 day hold on availability of funds. This delays the whole
> process of cashing out a partner.
>
> A second issue: I don't recall, but I think funds transferred into the
> Scottrade account must also be drawn on the partnership's bank account
> and not paid by checks drawn on partner's personal accounts. I may be
> wrong on this though and perhaps someone can verify this.
>
> Scottrade also has a rule that requires us to notify them of any changes
> in partnership. When partners withdraw and join, we are expected to file
> new paperwork with them that includes all the partners. This is
> difficult since we never have a meeting where all partners attend.
>
> Finally, were we to withdraw stock, they expect all partners to approve
> the transfer by signing the paperwork. And the paperwork's checked
> against the signatures on record. We are so far behind in following
> their paperwork requirements that I don't think we'll ever be able to
> cleanly transfer stock since this process can't be done via the web.
>
> Other than these particular quirks, we have no problems with Scottrade.
>
> John Munn
> Capitol Investors
>
> Debra Prior Rodgers wrote:
>
> >Does anybody use Scott Trade as their online broker and what
> >do you think about them?
> >
> >
> >
> >

Our club, Stock Pirates Investment Club, uses Scottrade and
we have been very happy with them. They have a local office
close by, access to S&P reports for research is very
beneficial, the web site is user friendly and the fees are
among the cheapest. We have not had the situations occur
that John described so the paperwork hassle has not been an
issue.

I do think a check from a member can be deposited into the
account at Scottrade but like John don't know that for sure.

David Rathke

Debra Prior Rodgers wrote:
> Does anybody use Scott Trade as their online broker and what
> do you think about them?

We use them. We have pretty simple investments but I like
there 7.00 commissions. If I do have questions, I have
always received good/quick answers when I have called in.


Debra Prior Rodgers wrote:
> Does anybody use Scott Trade as their online broker and what
> do you think about them?