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{{Short description|Defunct American stockbrokerage firm}} | |||
'''Scottrade''' is a privately-owned discount ]age firm headquartered in ]. It is known for its online trading features, low commissions (it advertises that most orders – ]s or ]s – can be traded for a flat $7.00 commission), and commercials featuring its founder and president, ]. | |||
{{Infobox company | |||
| name = Scottrade | |||
| former_name = Scottsdale Securities | |||
| logo = Scottrade-Logo-2011.png | |||
| industry = ] | |||
| fate = Acquired by ]<ref name=":3" /><ref name="closes" /> (later merged into ])<ref name=":1">{{Cite web |title=Charles Schwab completes acquisition of TD Ameritrade |url=https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/charles-schwab-completes-acquisition-of-td-ameritrade-60619300 |access-date=2023-05-02 |website=www.spglobal.com |language=en-us}}</ref><ref name=":0">{{Cite web |agency=Associated Press |date=2020-10-06 |title=Charles Schwab completes its $26B purchase of TD Ameritrade |url=https://nebraska.tv/news/local/charles-schwab-completes-its-26b-purchase-of-td-ameritrade |access-date=2023-05-02 |website=KHGI |language=en}}</ref> | |||
| foundation = {{start date and age|1980}} | |||
| defunct = {{end date and age|2017|09|18}} | |||
| location = 12800 Corporate Hill Drive | |||
| hq_location_city = ], ] | |||
| hq_location_country = ] | |||
| key_people = ] (]) | |||
| services = ]<br>]<br>] | |||
| revenue = $1.1 billion (2016) | |||
| num_employees = 3,700 (2016) | |||
| parent = ]<ref name=":3" /><ref name="closes" /> | |||
| website = | |||
| footnotes = <ref>{{cite news | url=https://www.bizjournals.com/stlouis/news/2017/03/24/top-150-2017-no-22-scottrade-financial-services.html | title=Top 150 2017: No. 22 Scottrade Financial Services Inc. | work=] | date=March 24, 2017 | url-access=subscription}}</ref> | |||
}} | |||
]]] | |||
]]] | |||
'''Scottrade''' was a ] and ] that operated via mobile, on the web, and at ]. In September 2017, the stock brokerage division of the company was acquired by ] (later merged into ]) and absorbed by that company; the banking division, Scottrade Bank, was acquired by ] and folded into ] | |||
Scottrade has 279 local branch offices, and has been given the top "investor satisfaction" award by ] six consecutive times. | |||
==History== | ==History== | ||
In 1980, Rodger O. Riney founded Scottsdale Securities as a retail ] in ].<ref name=closes>{{cite news | url=https://www.bizjournals.com/stlouis/news/2017/09/18/td-ameritrade-closes-on-acquisition-of-scottrade.html | title=TD Ameritrade closes on acquisition of Scottrade | first=Greg | last=Edwards | work=] | date=September 18, 2017 | url-access=subscription}}</ref><ref name=interview>{{cite news | url=https://www.bizjournals.com/stlouis/stories/2000/06/19/focus9.html | title=Rodger Riney, Scottrade Inc. | first=Gil | last=Stuenkel | work=] | date=June 18, 2000 | url-access=subscription}}</ref> In 1981, Riney moved to ] and opened a second branch.<ref name=SLBJ2004/><ref name=closes/> | |||
In 1985, the company moved its headquarters to ].<ref name=closes/> | |||
Scottrade was founded in 1980 by Riney as Scottsdale Securities in ], with two offices, one in Scottsdale and the other in St. Louis. One year later, Scottsdale Securities relocated its headquarters to St. Louis. | |||
By 1989, the company had 6 branches, and by 1991, the company had 15 branches.<ref name=closes/> | |||
In 1996 Scottsdale Securities offered online trading to its customers, under the domain name of . It adopted the Scottrade name as its corporate name in 2000. | |||
In 1996, the company launched its ] and ]. The number of trades increased by 15% per month, compounded monthly, for 39 months.<ref name=interview/> | |||
In 2003, Scottrade launched a new trading platform, called Scottrade Chinese [http://chinese.scottrade.com/}, available to customers in the United States, China, Hong Kong, and Taiwan. Also in August 2003, Scottrade opened its one-millionth customer account. In September, J.D. Power and Associates named Scottrade Highest in Investor Satisfaction With Online Trading Services for an unprecedented fourth consecutive time. | |||
By 2000, more than 90% of the company's trades were initiated online. The name of the company was changed to Scottrade because the domain Scottrade.com was available.<ref name=closes/><ref name=interview/><ref name=SLBJ2004/> | |||
October 2005 brought another J.D. Power and Associates award for Investor Satisfaction, the 6th in a row for Scottrade. <ref name="Scottrade Award"> — History (retrieved ] ])</ref> | |||
For 2 years after the ] burst in 2000, revenue declined, although it fully recovered by 2004.<ref name=SLBJ2004/> | |||
<ref name="Scottrade JD"> — JD Powers and Associates(retrieved ] ])</ref> | |||
The company began offering Chinese-language services in its retail locations in 2001 and in 2003 made its online offerings available in Chinese.<ref>{{cite news | url=https://www.bizjournals.com/stlouis/stories/2003/05/05/daily70.html | title=Scottrade increases services to Chinese Community | work=] | date=May 8, 2003 | url-access=subscription}}</ref> | |||
==Commercials== | |||
Scottrade is known for its commercials featuring Riney as a young man. | |||
Between 2000 and 2004, the company doubled the number of retail branch locations, reaching 211 in 2004.<ref name=SLBJ2004/> | |||
The first series featured Riney providing "a little bit extra" when performing lawn services and building a treehouse for his friends. | |||
By 2003, 98% of trades executed by the company were made online.<ref name=SLBJ2004/> | |||
The current series features Riney using technology to deliver newspapers and helping golfers select the right club. | |||
In 2004, Scottrade bought an office building outside of St. Louis next to its call center to use as its corporate offices.<ref name=SLBJ2004>{{cite news | url=https://www.bizjournals.com/stlouis/stories/2004/05/31/story2.html | title=Trading Up | first=Christopher | last=Tritto | work=] | date=May 30, 2004 | url-access=subscription}}</ref> | |||
==Community Involvement== | |||
In 2006, Scottrade purchased the naming rights for the stadium of the ], which was renamed the Scottrade Center (now the ]).<ref>{{cite news | url=https://www.bizjournals.com/stlouis/stories/2006/09/04/daily33.html | title=Scottrade wins Blues arena naming rights | first=Christopher | last=Tritto | work=] | date=September 7, 2006 | url-access=subscription}}</ref> | |||
Scottrade claims to attract and hire people who care about their customers, coworkers, and community. | |||
In 2008, the company launched Scottrade Bank.<ref name=closes/> | |||
Scottrade and its associates are active participants in the community through both charitable efforts and higher education. We are proud of our philanthropy because it is a testament to our employees' generosity and devotion to the community. We understand the importance of investing not just in our own associates' but in society as well. | |||
In 2009, the company launched a ].<ref name=closes/> | |||
Scottrade is a corporate sponsor of the Alzheimer's Association's annual Memory Walk in St. Louis, Mo., matching associate contributions and encouraging participation in this event. Additional corporate sponsorships include the Susan G. Komen Race for the Cure, the Humane Society's Bark in the Park and the Scottrade Gateway of Hope Ride & Festival, which raises funds for the Lance Armstrong Foundation. Scottrade also donates to the United Way and holds an annual pledge drive to encourage employee participation. | |||
In September 2017, the stock brokerage division of the company was acquired by ] (later merged into ]) and absorbed by that company; the banking division, Scottrade Bank, was acquired by ] and folded into ]<ref name=":3">{{cite press release | url=https://www.businesswire.com/news/home/20170918006375/en/TD-Ameritrade-Closes-Acquisition-Scottrade-Financial-Services | title=TD Ameritrade Closes Acquisition of Scottrade Financial Services, Inc. | publisher=] | date=September 18, 2017}}</ref><ref name=":2">{{cite press release | url=https://www.newswire.ca/news-releases/td-bank-group-completes-acquisition-of-scottrade-bank-645465053.html | title=TD Bank Group Completes Acquisition of Scottrade Bank | publisher=] | date=September 18, 2017}}</ref><ref name="closes" /> | |||
Following Hurricane Katrina, Scottrade and its associates donated to the American Red Cross and raised funds for those Scottrade associates who were affected by the disaster. Contributions were also made to Save the Children and International Relief Teams in the aftermath of the tsunami that devastated Asia in December of 2004. | |||
==Controversies== | |||
Additional organizations that Scottrade and its associates support include the American Cancer Society, American Stroke Association, Mothers Against Drunk Driving, National Kidney Foundation, National MS Society and Special Olympics. | |||
===Misrepresentations=== | |||
In 2008, the ] (SEC) charged the company with making fraudulent misrepresentations to clients about ] ] in violation of the ]. The company consented to the entry of an order by the SEC that included a censure of Scottrade. The company also agreed to stop committing or causing any violations of the act, and paid a civil penalty of $950,000.<ref>{{cite press release | url=https://www.sec.gov/news/press/2008/2008-120.htm | title=SEC Charges Scottrade for Misrepresentations to Customers | publisher=] | date=June 24, 2008}}</ref> | |||
===Violations of record-keeping requirements=== | |||
Headquartered in St. Louis, Mo., Scottrade supports several local organizations as well. The firm is a Patron Sponsor for the YWCA Special Leaders in the Workplace Program' in addition to participating in the "Circle of Women" event benefiting the YWCA St. Louis Regional Sexual Assault Center. | |||
In January 2014, the company admitted to violating the record keeping requirements of federal security laws. The U.S. 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. As part of the settlement, the company agreed to admit fault and pay a fine of $2.5 million.<ref>{{cite press release | url=https://www.sec.gov/news/press-release/2014-17 | title=Scottrade Agrees to Pay $2.5 Million and Admits Providing Flawed "Blue Sheet" Trading Data | publisher=] | date=January 29, 2014}}</ref> | |||
===Database hack=== | |||
Scottrade is a corporate sponsor of the St. Louis Art Museum and the Muny, America's oldest and largest outdoor musical theatre. The firm is also a Columnist Level Sponsor for the Suburban Journals Old Newsboys Day for Children's Charities, which provides much-needed funding to more than 250 children's charities in the great St. Louis community. | |||
In October 2015, Scottrade revealed that, in late 2013 and early 2014, ]s accessed an encrypted database containing the personal records of more than 4.6 million clients, including names, street addresses, email addresses, social security numbers, and other sensitive account data.<ref>{{cite news | url=https://www.wsj.com/articles/scottrade-discloses-data-breach-potentially-targeting-4-6-million-clients-1443815069 | title=Scottrade Discloses Data Breach Potentially Targeting 4.6 Million Clients | last=Huang | first=Daniel | work=] | issn=0099-9660 | date=October 2, 2015 |url-access=subscription }}</ref> The company became aware of the breach when it was approached by Federal authorities who were investigating similar thefts at other financial service companies.<ref name=fortunebreach>{{cite news | url=http://fortune.com/2015/10/02/scottrade-data-breach/ | title=Scottrade data breach affects millions of customers | first=Robert | last=Hackett | work=] | date=October 2, 2015}}</ref> As a precaution, Scottrade offered ] services to all affected customers.<ref name=fortunebreach/><ref>{{cite news | url=https://www.marketwatch.com/story/scottrade-hackers-had-access-to-brokerage-account-numbers-company-reveals-2015-10-08 | title=Scottrade hackers had access to brokerage account numbers, company reveals | first=PRIYA | last=ANAND | work=] | date=October 8, 2015}}</ref> | |||
In November 2015, after performing its own investigation of the breach, the ] fined Scottrade $2.6 million for failing to store financial records and emails completely and securely and for failing to have an organized process for doing so. The company had deleted and failed to save over 168 million outgoing emails with trading information. Scottrade did not admit to or deny these charges, but consented to an entry of FINRA's findings and agreed to pay the fine.<ref>{{cite press release | url=http://www.finra.org/newsroom/2015/finra-fines-scottrade-26-million-significant-failures-required-electronic-records-and | title=FINRA Fines Scottrade $2.6 Million for Significant Failures in Required Electronic Records and Email Retention | publisher=] | date=November 16, 2015}}</ref> | |||
Each year, Scottrade's corporate headquarters participates in the St. Louis Post-Dispatch's 100 Neediest Cases, where the company "adopts" families in need during the holiday season and provides them with gifts, food and money. In 2005, Scottrade adopted five families. In addition to monetary donations that were used to pay the families, utility bills, Scottrade associates conducted a pantry drive, and bought and wrapped Christmas gifts for each family member. | |||
==References== | |||
Another way Scottrade supports communities is through its relationships with 500 colleges and universities across the country. Scottrade's Internship Program provides college students with the opportunity to learn about the financial industry, and in some cases, transition into a full-time career. In 2005, 200 college students were involved in this program, and more than 20 percent of our branch managers joined Scottrade through the Internship Program. | |||
{{Reflist|1}} | |||
{{Online brokerages}} | |||
In addition, Scottrade has established the Scottrade IT Scholarship Fund for students at Webster University, an accredited institution with an international network of over 100 campuses. Scottrade provides financial assistance to Webster University Computer Science majors who have completed internships with the firm. | |||
] | |||
Scottrade's commitment to charitable organizations and higher education can be attributed to the firm's outstanding associates, who care about customers, coworkers and the community. | |||
] | |||
<ref name="Community Involvement"> — Community Involvement(retrieved ] ])</ref> | |||
] | |||
] | |||
==Current events== | |||
] | |||
] | |||
In an open letter to Scottrade customers<ref name="Open letter"> — | |||
Open letter from the President (retrieved ] ])</ref>, Riney discussed the recent activity of mergers and acquisitions in the discount brokerage sector. Riney stated that Scottrade is happy being an independent firm and that it has no plans to sell out to another company. | |||
On Wednesday, January 18, 2006 Riney, along with selected Scottrade staff, rang the ] Stock Market Closing Bell. | |||
In March 2006, Scottrade announced the hiring of ] as the ] (CMO) for the firm. Moloney, formerly Vice President of Corporate Marketing at ] in St. Louis, is a widely published author, strategist and keynote speaker on the subjects of customer satisfaction and loyalty. | |||
In April 2006, Scottrade announced that customer assets increased 45% for the first quarter 06 and client volumes rose 49%. According to a press release by Scottrade, it said that customer assets grew to over $51 billion, up from $32.5 billion from the same period last year. The firm's active accounts also grew to 1.48 million, up 28%. In addition, Scottrade opened 12 new branch offices in the United States, a solid 1 per week during the quarter. Since the press release, Scottrade has opened 9 additional locations, bringing their branch total to 271. <ref name="Q1 Press Release"> — Q1 News (retrieved ] ])</ref> | |||
==Footnotes and references== | |||
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==External links== | |||
* | |||
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Latest revision as of 04:09, 19 October 2024
Defunct American stockbrokerage firmFormerly | Scottsdale Securities |
---|---|
Industry | Financial services |
Founded | 1980; 44 years ago (1980) |
Defunct | September 18, 2017; 7 years ago (2017-09-18) |
Fate | Acquired by TD Ameritrade (later merged into Charles Schwab Corporation) |
Headquarters | 12800 Corporate Hill Drive, St. Louis, Missouri, United States |
Key people | Rodger O. Riney (CEO) |
Services | Stockbroker Electronic trading platform Personal banking |
Revenue | $1.1 billion (2016) |
Number of employees | 3,700 (2016) |
Parent | TD Ameritrade |
Footnotes / references |
Scottrade was a stockbroker and electronic trading platform that operated via mobile, on the web, and at branches. In September 2017, the stock brokerage division of the company was acquired by TD Ameritrade (later merged into Charles Schwab Corporation) and absorbed by that company; the banking division, Scottrade Bank, was acquired by Toronto-Dominion Bank and folded into TD Bank, N.A.
History
In 1980, Rodger O. Riney founded Scottsdale Securities as a retail stockbroker in Scottsdale, Arizona. In 1981, Riney moved to St. Louis and opened a second branch.
In 1985, the company moved its headquarters to St. Louis.
By 1989, the company had 6 branches, and by 1991, the company had 15 branches.
In 1996, the company launched its website and electronic trading platform. The number of trades increased by 15% per month, compounded monthly, for 39 months.
By 2000, more than 90% of the company's trades were initiated online. The name of the company was changed to Scottrade because the domain Scottrade.com was available.
For 2 years after the dot-com bubble burst in 2000, revenue declined, although it fully recovered by 2004.
The company began offering Chinese-language services in its retail locations in 2001 and in 2003 made its online offerings available in Chinese.
Between 2000 and 2004, the company doubled the number of retail branch locations, reaching 211 in 2004.
By 2003, 98% of trades executed by the company were made online.
In 2004, Scottrade bought an office building outside of St. Louis next to its call center to use as its corporate offices.
In 2006, Scottrade purchased the naming rights for the stadium of the St. Louis Blues, which was renamed the Scottrade Center (now the Enterprise Center).
In 2008, the company launched Scottrade Bank.
In 2009, the company launched a mobile app.
In September 2017, the stock brokerage division of the company was acquired by TD Ameritrade (later merged into Charles Schwab Corporation) and absorbed by that company; the banking division, Scottrade Bank, was acquired by TD Bank Group and folded into TD Bank, N.A.
Controversies
Misrepresentations
In 2008, the U.S. Securities and Exchange Commission (SEC) charged the company with making fraudulent misrepresentations to clients about Nasdaq pre-open orders in violation of the Securities Exchange Act of 1934. The company consented to the entry of an order by the SEC that included a censure of Scottrade. The company also agreed to stop committing or causing any violations of the act, and paid a civil penalty of $950,000.
Violations of record-keeping requirements
In January 2014, the company admitted to violating the record keeping requirements of federal security laws. The U.S. 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. As part of the settlement, the company agreed to admit fault and pay a fine of $2.5 million.
Database hack
In October 2015, Scottrade revealed that, in late 2013 and early 2014, hackers accessed an encrypted database containing the personal records of more than 4.6 million clients, including names, street addresses, email addresses, social security numbers, and other sensitive account data. The company became aware of the breach when it was approached by Federal authorities who were investigating similar thefts at other financial service companies. As a precaution, Scottrade offered identity protection services to all affected customers.
In November 2015, after performing its own investigation of the breach, the Financial Industry Regulatory Authority fined Scottrade $2.6 million for failing to store financial records and emails completely and securely and for failing to have an organized process for doing so. The company had deleted and failed to save over 168 million outgoing emails with trading information. Scottrade did not admit to or deny these charges, but consented to an entry of FINRA's findings and agreed to pay the fine.
References
- ^ "TD Ameritrade Closes Acquisition of Scottrade Financial Services, Inc" (Press release). Business Wire. September 18, 2017.
- ^ Edwards, Greg (September 18, 2017). "TD Ameritrade closes on acquisition of Scottrade". American City Business Journals.
- "Charles Schwab completes acquisition of TD Ameritrade". www.spglobal.com. Retrieved 2023-05-02.
- "Charles Schwab completes its $26B purchase of TD Ameritrade". KHGI. Associated Press. 2020-10-06. Retrieved 2023-05-02.
- "Top 150 2017: No. 22 Scottrade Financial Services Inc". American City Business Journals. March 24, 2017.
- ^ Stuenkel, Gil (June 18, 2000). "Rodger Riney, Scottrade Inc". American City Business Journals.
- ^ Tritto, Christopher (May 30, 2004). "Trading Up". American City Business Journals.
- "Scottrade increases services to Chinese Community". American City Business Journals. May 8, 2003.
- Tritto, Christopher (September 7, 2006). "Scottrade wins Blues arena naming rights". American City Business Journals.
- "TD Bank Group Completes Acquisition of Scottrade Bank" (Press release). CNW Group. September 18, 2017.
- "SEC Charges Scottrade for Misrepresentations to Customers" (Press release). U.S. Securities and Exchange Commission. June 24, 2008.
- "Scottrade Agrees to Pay $2.5 Million and Admits Providing Flawed "Blue Sheet" Trading Data" (Press release). U.S. Securities and Exchange Commission. January 29, 2014.
- Huang, Daniel (October 2, 2015). "Scottrade Discloses Data Breach Potentially Targeting 4.6 Million Clients". The Wall Street Journal. ISSN 0099-9660.
- ^ Hackett, Robert (October 2, 2015). "Scottrade data breach affects millions of customers". Fortune.
- ANAND, PRIYA (October 8, 2015). "Scottrade hackers had access to brokerage account numbers, company reveals". MarketWatch.
- "FINRA Fines Scottrade $2.6 Million for Significant Failures in Required Electronic Records and Email Retention" (Press release). Financial Industry Regulatory Authority. November 16, 2015.
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