Top company by employee – 53 – Scottrade – Missouri US
Industry: Financial Services & Insurance – Investments
Previous rank: 31
2011 revenue ($ millions): $816
What makes it so great?
The online brokerage has never had a layoff or closed an office and has continued to provide discretionary bonuses and merit increases every year.
St. Louis, MO
|Industry||Financial services, discount brokerage, self-directed investing|
|Founded||Scottsdale, Arizona (1980)|
|Headquarters||Town and Country, Missouri,USA|
|Key people||Rodger O. Riney
(President and CEO)
(Chief Administrative Officer)
(Chief Financial Officer)
(Chief Information Officer)
|Products||stock broker, investing online:Stocks, Options, Mutual Funds, IRAs, CDs, Fixed Income, Etc.|
|Revenue||$776 mil. (2012)|
Scottrade is a privately owned American discount retail brokerage firm headquartered in Town and Country, Missouri. Its founder, former President and the current CEO is Rodger O. Riney. Scottrade has 505 branch offices around the U.S. It also offers services to Asian-Pacific customers with a service center staffing Chinese-speaking stockbrokers. Scottrade does not offer access to the U.S. market to Australian citizens, which is in the Asian-Pacific region.
In 1981, Riney returned to St. Louis to open a second branch, but ultimately split apart from his partner in the year 1985 due to conflicting business models. Riney kept the company name, Scottsdale Securities, and lowered the price of commissions to attract more clients. Riney’s approach was successful and by 1991 Scottsdale Securities had a total of 15 branches throughout the US.
By 1998, Scottrade.com commissions were as low as $7 per trade (the same price as of November 2011) increasing their customer base.
In 2000, Scottsdale Securities officially renamed to Scottrade due to the success of their online firm.
In 2003, Scottrade launched their Chinese trading site, Chinese.scottrade.com.
In 2004, Scottrade’s corporate headquarters were relocated to a new building called Corporate Hill in West St. Louis County.
Scottrade saw substantial growth throughout the 2000s, expanding from 200 branch offices in 2004 to 500 by 2010.
Scottrade has won numerous awards, most prominently those of J.D. Power and Associates. See awards section below.
Scottrade renders both online and branch office services including brokerage services, banking services, investment education, and it offers award-winning online trading platforms, including the Scottrade Trading Web Site, ScottradeELITE Advanced Trading Platform, Scottrader Streaming Quotes, Scottrade OptionsFirst, Scottrade Mobile Application, and Scottrade Mobile Website.
The Scottrade Trading Web Site is Scottrade’s standard trading platform with stock screeners; quotes and research; real-time quotes and charting; account monitoring and a knowledge center.
Scottrader Streaming Quotes provides real-time market data and news within a trading platform accessible via the Scottrade Trading Web Site.
ScottradeELITE is an advanced trading platform including news columns from both Comtex and Dow Jones, advanced charts, level two and TotalView quotes, and stock screeners.
OptionsFirst, designed by OptionsHouse in 2008, is a platform allowing complex multi-leg options orders, margin accounts with low minimum deposits, and multiple accounts to the same user. All regular common stock and ETF orders are allowed excluding OTCBB and Pink Sheets.
Scottrade Mobile, launched in 2009, is a trading website accessible from any internet-enabled mobile device.
A Scottrade Mobile Application was released for iPhone, iPad, Android, and Blackberry devices on August 2, 2011.
In 2013, Scottrade was ranked No. 53 on Fortune’s annual “100 Best Companies to Work For" List, a drop of 22 from the previous year. This was the firm’s sixth consecutive appearance on the list.
In 2012, Scottrade was ranked No. 31 on Fortune’s annual “100 Best Companies to Work For" List, a drop of 19 from the previous year. This was the firm’s fifth consecutive appearance on the list.
In 2011, the firm was ranked No. 12 on Fortune’s 14th annual “100 Best Companies to Work For" List, a jump of 15 from 2010. This was the firm’s fourth consecutive appearance on the list. “[Scottrade] thrives by going against the grain: Its brokers offer no advice to customers and do not work on commission. Its workplace bucks trends too — no one has ever been laid off, and no office has ever been closed.”
In 2010, the firm was ranked No. 27 on Fortune’s 13th annual “100 Best Companies to Work For" List. This was the firm’s third consecutive appearance on the list. “Almost all managers are promoted from the lower ranks, bucked the recession, laying off no one, hiring more than 1,000 new associates, and opening 58 new branches. Benefits include an onsite fitness center and subsidized gym memberships.”
In 2009, Scottrade placed 60th in Fortune’s Top “100 Best Companies to Work For" List. According to Fortune, the major contributor to making the 2009 list was Scottrade’s ability to shake the turmoil on Wall Street and achieve its 20 year milestone on October 10 of paying quarterly bonuses and never having a layoff. Other factors were a 25% job growth (390 new jobs) and zero employees outside of the U.S.
In 2008–2009, “Scottrade was ranked No. 1 in investor satisfaction with online investing services for the eighth time since 2001, according to J. D. Power and Associates‘ 2008 Online Investor Satisfaction Study."
In 2008, Fortune announced “that Scottrade, a leading online investment firm, has been ranked 58th on the 11th annual ‘100 Best Companies to Work For’ list." One of the primary reasons for the ranking, according to the Business Wire article, was job growth. Scottrade hired 46% more people in 2007 than 2006, promoted over 500 employees in 2007, and disclosed that over 20% of Scottrade branch managers “began their Scottrade careers as interns."
Recently Scottrade was also selected by Computerworld magazine’s 2008 16th best place to work in IT. Many things were considered when rating the work environment for technology professionals such as benefits, diversity, career development, training and retention. In addition to a comprehensive questionnaire regarding company offerings,Computerworld conducted an extensive survey of Scottrade’s IT workers.
Scottrade earned three stars and finished ninth overall in the StockBrokers.com 2011 Online Broker Review. In 2012, they improved drastically and earned five stars along with a fourth place finish. In addition, they were awarded Best Overall Client Experience. For 2013, Scottrade remained in fourth place, earning four stars, and once again earning Best Overall Client Experience.
SEC complaint and settlement
In 2008, the Securities and Exchange Commission charged the company with making fraudulent misrepresentations to clients. The company settled the dispute by paying a $950,000 fine.