Price Improvement

Commitment to Price Improvement

At Scottrade, we aren’t content with providing executions at the quote. Rather, we strive to provide executions better than the quote. Scottrade’s commitment to execution quality creates the opportunity for a high percentage of trades to be executed at better prices than the National Best Bid and Offer (NBBO).

What Is Price Improvement?

Price improvement refers to getting a price better than expected, or in other words getting a better price than the National Best Bid and Offer (NBBO) at the time your trade is executed. As part of Scottrade's commitment to quality executions, we seek opportunities for an execution of your order at a price better than the NBBO.

The following charts represent the percentage of orders at Scottrade that were executed at prices better than the NBBO as compared to Industry Price Improvement percentages:

S&P 500 Price Improvement

100%

80%

60%

40%

20%

0%

03/13

04/13

5/13

6/13

7/13

8/13

9/13

10/13

11/13

12/13

01/14

02/14


NASDAQ 100 Price Improvement

100%

80%

60%

40%

20%

0%

03/13

04/13

5/13

6/13

7/13

8/13

9/13

10/13

11/13

12/13

01/14

02/14


Trade execution statistics are provided by VistaOne Solutions, which is not affiliated with Scottrade. Statistics are based on trades in NASDAQ 100 and S&P 500 stocks for market orders of 100 to 499 shares in size. Statistics exclude trades outside of the regular trading session, orders received during locked or crossed markets and trades that, in Scottrade's discretion, occur in extreme market conditions or other unusual circumstances. Market volatility, volume, and system availability may impact trade execution quality. This information is updated monthly.

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 VistaOne Solutions and by reviewing the output of our patented algorithm, the Scottrade Best-Execution Index or SBI™.

* defined in SEC rule 605