|Key People||President and CEO Rodger O. Riney|
|Products||Online discount brokerage products and services|
Scottrade evolved from a small discount brokerage serving retail investors in Arizona to a powerful global online trading platform that usually ranks in the top 10 in Internet-brokerage surveys. Scottrade recently scored industry accolades for customer loyalty, employee training and workplace environment but was also fined almost $1 million by market regulator the SEC
Scottrade was launched by Rodger Riney as Scottsdale Securities in Scottsdale, AZ in 1980 and opened its first two branch offices in Phoenix, AZ and St. Loiuis, MO later that year. In 1981 Riney moved Scottsdale Securities' headquarters to St Louis and by 1990 the firm had grown to 14 branch offices around the USA and then to 57 by 1995 and 200 by 2004.
Today Scottrade has the largest branch network of any discount broker in the US, with 350 offices and 2,000 employees nationwide and offering over 9,500 mutual funds as well as securities, bonds and options trading. Scottrade's 1.7 million customers chalked up revenue in 2007 of just over $1 billion, up from $789 million the previous year.
Earlier this year, Scottrade won its third consecutive Brand Keys Customer Loyalty Engagement Index in the online brokerage category and its second successive Top-125 ranking for excellence in employee training and development by Training magazine. And in January 2008, Scottrade made Fortune magazine's 100 Best Place to Work in the US for the first time, with the magazine citing Riney's eye for young talent and Scottrade's policy of hiring 200 new college interns per year.
Scottrade's president and CEO Rodger O. Riney founded the brokerage in 1980 after a stint as general partner with St. Louis-based retail brokerage Edward Jones, with the idea of providing deep discounts on brokerage to retail investors. As an expert in financial technology, Riney quickly adopted the Internet to develop part of Scottrade's business into one of the first web-based discount brokers, launching the company's online trading platform now known as Scottrader in 1996.
Riney's Internet play paid off quickly by boosting monthly trade volumes 15 percent, and by 2000 90 percent of all Scottrade's client transactions were made online. Nonetheless, he has also stayed committed to expanding Scottrade's network of branch offices, believing the two channels complement each other. Riney has also become well-known to non-network television viewers for his folksy Scottrade commercials that tout his entrepreneurial youth in customer service.
In late June, 2008 Scottrade agreed to pay a fine of $950,000 to settle charges by the SEC that between 2001 and 2004 the firm misled customers trying to place NASDAQ pre-open orders. The SEC alleged Scottrade did not conduct enough research to back up claims the brokerage made about extra liquidity at market opening. Scottrade officials say they have since made adjustments for new NASDAQ market structures to rectify the claims.
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