Scottrade Trade Quality and Execution

Trading Execution

Scottrade monitors the execution quality of all the trading centers to assess whether the trading center is providing our customers best execution*. Scottrade uses various monitoring methods. These methods include a daily order-by-order exception report analysis. They also include a post trade date regular and rigorous review of execution quality. We perform this regular and rigorous review by analyzing statistics from Thomson Transaction Analytics and by reviewing the output of our proprietary patent-pending algorithm, the Scottrade Best-Execution Index or SBI™.

* defined in SEC rule 605

Execution Price (also known as "At or Better")

The following chart represents the percentage of orders at Scottrade that were executed at or within the NBBO.

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The Execution Price percentage reflects the number of trades that were executed at or within the National Best Bid or Offer (NBBO). As part of Scottrade's commitment to quality executions, we strive to get the best price for all your executions. The Execution Price percentage is an important component of overall execution quality because it measures how often you get the price you are expecting, or a better price than you are expecting.

The Execution Price analysis is based on At or Better Percentage statistics provided by Thomson Transaction Analytics. Thomson Transaction Analytics is an independent company and is not affiliated with Scottrade, Inc. This analysis measures the percentage of orders executed at the NBBO or better for market orders in NASDAQ 100 and S&P 500 stocks with an order size of 100 to 499 shares. The data does not include pre-market or after-hours orders or orders received during locked or crossed market. It does include orders received during fast market conditions.

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Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this web site should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.

Investors should consider the investment objectives, risks, charges, and expenses of an Exchange-Traded Fund (ETF) carefully before investing. A prospectus contains this and other information about the ETF can be obtained from the issuer. The prospectus should be read carefully before investing.

Margin trading involves interest charges and risks, including the potential to lose more than deposited or the need to deposit additional collateral in a falling market. The Margin Disclosure Statement and Agreement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.

Options are not appropriate for all investors. Detailed information on our policies and the risks associated with options can be found in Scottrade's Options Application and Agreement, Brokerage Account Agreement, and Characteristics and Risks of Standardized Options (also available at one of our branch offices). All option accounts require prior approval by Scottrade.

Online market and limit equity orders are just $7 for stocks over $1.

Market volatility, volume, and system availability may impact account access and trade execution.

Testimonials may not be representative of the experience of other clients and are no guarantee of future performance or success.