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 Speed¹

Trade execution speed is an important component of overall execution quality because the faster your order is executed, the greater the chance it will receive the price you were expecting or better. Execution speed is measured from the time Scottrade discount brokerage firm receives your order until the time your order is executed at the trading center. Execution speed does not include the time it takes for the order to be reported back to Scottrade and be displayed to you in the "Today's Completed Orders" section of our Web site or another Scottrade online trading platform².

Below is a diagram of how an order is completed at Scottrade online brokerage.

Online Trade Execution Chart

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¹Information is based on analysis from Thomson Transaction Analytics. Thomson Transaction Analytics is not affiliated with Scottrade. Execution Speed is for NASDAQ 100 and S&P 500 market orders of 100 to 500 shares in size. The information does not include pre-market or after-hours orders or orders received during locked, crossed or fast market conditions. Scottrade updates the information on a monthly basis.

²Scottrade may not always receive timely execution reports from a trading center. These situations are referred to as a receiving a "late report." Although you may not have received a execution report, you will receive the price at which your order was actually executed at the trading center even if the market moves substantially before you receive the late report.

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Brokerage Products and Services offered by Scottrade, Inc. – Member FINRA and SIPC.

No information on this web site should be considered a recommendation or solicitation to invest in a particular security or type of security.

Investors should consider the investment objectives, risks, and 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.

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. Scottrade's margin agreement is available on our web site and at our branch offices; and contains the Margin Disclosure Statement and 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 (available from your local branch office or here). All option accounts require prior approval by Scottrade.

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.