|Founded||Scottsdale, Arizona (1980)|
|Headquarters||Saint Louis, Missouri|
|Rodger O. Riney
|Revenue||$1.1 billion (2016)|
Number of employees
Scottrade is a discount brokerage firm that operates both online and at branches. The company offers an electronic trading platform for the purchase and sale of financial securities including common stocks, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments. It also provides margin lending, and cash management services.
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.
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 to 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 2008, the company launched Scottrade Bank.
In 2008, the U.S. 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 1934. The company 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.
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.
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 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.