How much money do i need to open a scottrade brokerage account
How much money do I need to begin investing? Setting Up an Investing Account If you're a new investor with limited funds, an online, no-frills brokerage account might be just the thing you need. Many large banks also offer brokerage services.
But the opening amount is just the beginning of the investment you'll make in your brokerage. Other Fees Funding the account is the first step. Once you start investing, you will have to pay other fees, including the various trading commissions to buy stocks, mutual funds, and options, as well as maintenance fees and potential low-balance penalties. The online brokerages vary widely in terms of trading fees, self-service and broker-assisted trades, and the types of tools and research available to customers.
Don't be fooled -- many online brokers will promise low trading fees or special promotions, but then hit you with an annual or maintenance fee. You may also get money back as interest earned on the cash you hold in your account. Often that cash is automatically swept into a money market mutual fund or account.
While the interest rates are paltry right now, at least your idle cash earns something while you wait to make a trade. Many are incorporating mobile access and even smartphone apps into their basic service lineups. As with any service, the level of sophistication varies depending on the broker.
If you're constantly glued to your smartphone, go ahead and download a few of the apps from brokers you're considering. You won't get account access, but you should be able to see several of the tools available and whether or not they'll meet your needs. Barring that, check out online videos of how the apps work, either on the broker's site or on YouTube, where someone, somewhere, has posted a how-to video of just about everything.
If you think you'll need a little extra help to get started, put a brokerage's customer service to the test. Some have excellent customer service, available via phone, email or chat; others have extended wait times to receive a response even to basic questions or chats that sound overly scripted and robotic.
If you want to know that you can get a real, live person when you need help, call the broker's toll-free number and say you have questions about opening an account. In , the U. Securities and Exchange Commission charged the company with making fraudulent misrepresentations to clients about their Nasdaq pre-open orders in violation of the Securities Exchange Act of In January , the company admitted to violating the record keeping requirements of federal security laws.
Securities and Exchange Commission submitted a request for data describing its trades as part of an investigation into whether an account had been hacked and unauthorized trades made for a customer. Every brokerage firm is required to keep trading records under the law.
The company was missing data over a six-year period. In October , Scottrade revealed that, in late and early , hackers accessed an encrypted database containing the personal records of more than 4. Scottrade did not admit to or deny these charges, but consented to an entry of FINRA's findings and agreed to pay the fine. From Wikipedia, the free encyclopedia.
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