Scottrade
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Formerly called
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Scottsdale Securities |
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| Private | |
| Industry | Discount brokerage |
| Founded | Scottsdale, Arizona (1980) |
| Headquarters | Town and Country, Missouri, United States |
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Key people
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Rodger O. Riney (CEO) |
| Revenue | $1.1B (2016) |
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Number of employees
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3,803 (2016) |
| Website | www |
Scottrade is a privately owned American discount brokerage firm that operates both online and at retail locations. The company was founded in 1980 by Rodger O. Riney, its CEO.
In 1980, Rodger Riney founded Scottsdale Securities as a retail discount brokerage; the company moved to St. Louis in 1981. The company offered no investing advice or analysis and took orders over the phone or in person.
In 1996, Scottsdale Securities began offering brokerage services online; the new service increased the volume of trades the company managed by an average of 15% per month.
By 2000, more than 90% of the company’s trades were made online and the company name had been changed to Scottrade to reflect its website name. The company's annual revenue reached $212 million at the height of the dot-com bubble in 2000 and slumped in the following two years. Scottrade remained committed to expanding both its online and retail offerings. It began offering Chinese-language services in its retail locations in 2001 and in 2003 made its online offerings available in Chinese. It also continued setting up new retail operations, usually simple, small offices in strip malls; from 2000 to 2004 it doubled its retail branches, reaching 211 in 2004. It also invested in marketing, spending $30M in 2003 and around $40M in 2004. By 2003 its revenue had recovered and was $224M, and 98% of its customers trades were made online. In 2004, Scottrade bought an office building outside of St Louis next to its call center to house its corporate offices.
In 2006, Scottrade purchased the naming rights for the St. Louis Blues' stadium, which was renamed the Scottrade Center.
In 2008, the Securities and Exchange Commission charged the company with making fraudulent misrepresentations to clients about their Nasdaq pre-open orders in violation of the Exchange act. Scottrade consented to the entry of an Order by the SEC that censured Scottrade, agreed to stop committing or causing any violations of the act; and paid a civil penalty of $950,000.
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Wikipedia