I`m wIth scottRAde.

I’m with scottrade.
2011 Annual Report
table of
contents
table of contents
01-12
I’m With Scottrade
13-20
The Scottrade Family
21-28
Serving Our Clients
29-36
Future of Client Care
Scottrade, Inc. is a leading online
investing company offering a full line
of investment products, and online
trading and market research tools to
help investors take control of their
financial futures. Our success comes
from our dedication to our associates,
clients, innovation and growth.
Scottrade Corporate Headquarters, St. Louis, Mo.
Helping People
Overcome barriers
to Financial Success
01
SECTION 1: I’M WITH SCOTTRADE
Throughout our 31-year history, Scottrade
has continued to grow during economic
downturns, better positioning us for
success when the markets and economy
did turn around.
While our competitors have resorted to laying off employees, closing offices or raising fees, Scottrade has
continued to grow and evolve, often accepting lower profits in the short term to continue to build for the
long term.
2011 was no different. In the last year, we have analyzed ourselves from the inside out to identify
opportunities to better serve self-directed traders, investors and registered investment advisors (RIAs).
While the economic conditions and competitive pressures are unlike anything we have seen in our history,
Scottrade’s focus on our path for the future is very familiar.
With a vision of offering exceptional value, engaging experiences and evolving solutions, Scottrade has
continued to be profitable and has still never laid off an associate or closed an office. In fact, the volatility
we’ve seen in the markets in 2011, coupled with the growing number of how-to tools available, has
motivated investors to play a larger role in managing their own finances – and many more are doing this
at Scottrade. This trend helped us identify an opportunity to deepen our relationships with our clients to
truly delight them at every turn.
President and Chief Executive Officer Rodger Riney founded the company in 1980, strongly believing
that low commissions tied with exceptional customer service would result in success. True to form, Rodger
continued looking to offer his clients a better and better deal through the years.
Opposite page: Rodger Riney, 1980
02
SECTION 1: I’M WITH SCOTTRADE
Today, with Rodger still at the helm, it is this vision that has
propelled Scottrade, the one-time discount brokerage firm, into
Scottrade Financial Services, Inc. – a leading, independent
financial services firm with the proud mission to improve lives by
helping people overcome barriers to financial success.
Scottrade Financial Services is the holding company for Scottrade,
Inc., the growing online investing firm with the largest branch
network, whose education gives millions a better way to invest and
make their own trading decisions. Scottrade Bank, formed in 2008,
began offering retail banking products and services to Scottrade
clients in 2011. Also in 2011, FocusShares, LLC, a registered
investment advisor and exchange-traded funds (ETFs) sponsor
acquired by Scottrade Financial Services in 2010, launched 15
new Focus™ Morningstar ETFs.
Each of these ventures, driven by Scottrade’s dedicated associates,
enables us to deliver compelling solutions and experiences to
our clients every day. The people we hire, the locations we offer,
the products and services we build, and the performance of our
company are all centered on making our clients’ lives better.
That’s why today, more than 3,600 associates, more than 950
registered investment advisors and millions of self-directed investors
and traders are proud to say “I’m with Scottrade.”
Rodger Riney
Founder, President and Chief Executive Officer
Consider the investment objectives, charges, expenses, and risks of an ETF or mutual
fund carefully before investing. A prospectus containing this and other information
should be obtained from the issuer. The prospectus should be read carefully before
investing. Focus™ Morningstar ETFs are commission free for those using Scottrade’s
online platforms. Investors not affiliated with Scottrade are subject to commission
costs. Morningstar is a service mark of Morningstar, Inc. and has been licensed
for use for certain purposes by FocusShares, LLC (an affiliate of Scottrade, Inc.).
The Focus™ Morningstar ETFs are not sponsored, endorsed, sold or promoted by
Morningstar, and Morningstar makes no representation regarding the advisability of
investing in Focus™ Morningstar ETFs. An investment in the Funds is subject to risk,
including the possible loss of principal amount invested. Foreside Fund Services, LLC
is the Distributor for FocusShares.
03
the history
of scottrade
1975
May 1 “May Day” marks the deregulation of the brokerage
industry; the U.S. Securities and Exchange Commission (SEC)
deregulates fixed brokerage trading fees.
1981
Rodger moves back to St. Louis and opens the second branch.
After the move, Rodger and his partner realize they have
differing business approaches.
1985
Rodger splits with his partner and maintains the company
name, Scottsdale Securities, now headquartered in
St. Louis County. He reduces commissions to attract a
larger client base.
1989
Rodger employs 16 associates across six offices in St. Louis;
Phoenix; Pittsburgh; Dayton, Ohio; Springfield, Mo., and
Southfield, Mich.
1980
Rodger Riney drives his 1970 Chevrolet Corvette 1,500 miles
from St. Louis to Scottsdale, Ariz., where he and a partner
form Scottsdale Securities. After receiving clearance from the
government, they open for business on May 1 – five years after
May Day.
1991
Scottsdale Securities’ revenue steadily climbs. There are now
15 branch offices across the country.
04
SECTION 1: I’M WITH SCOTTRADE
2001 & 2002
Scottrade is named three times in two years Highest in Investor
Satisfaction with Online Trading Services by J.D. Power and
Associates. Showcasing these awards attracts more clients.
2003
1994 & 1995
Scottsdale Securities is named on Inc. magazine’s list of 500
Fastest Growing Private Companies in America.
1996
Scottrade.com is launched, making Scottsdale Securities one of
the first investment companies to offer online trading. The name
Scottrade is chosen because Scottsdale.com was already taken,
and Scottrade seemed like the perfect combination.
1998
The Internet enables investors to be less reliant on full-service
brokers by providing a way for them to execute their trades online.
The volume allows Scottsdale Securities to set a new $7 price for
online trades – one of the best values in online investing.
2000
The company’s name is changed from Scottsdale Securities
to Scottrade, Inc., realizing it was far from ideal to have the
name of the company be different from its URL. Also this year,
Scottrade begins its internship program.
Online market and limit stock trades are just $7 for stocks priced $1 and above.
05
The company establishes a backup data center in Denver,
launches a Chinese-language trading site, and is acknowledged
again by J.D. Power and Associates. Scottrade’s employee count
exceeds 1,000.
2004
Scottrade’s 200th branch office opens, and the company receives
its fifth consecutive honor from J.D. Power and Associates. The
corporate headquarters expands into a second building.
2005
For the company’s 25th anniversary, Scottrade associates restore
Rodger’s treasured Corvette, which he drove to Scottsdale, Ariz.
in 1980. The company receives its sixth honor from J.D. Power
and Associates, and begins opening accounts for registered
investment advisors through Scottrade Advisor Services.
the history
of scottrade
2006
Scottrade becomes the primary sponsor of the National
Hockey League’s St. Louis Blues and their home arena,
named “Scottrade Center.” Rodger rings the NASDAQ bell
in recognition of a partnership to offer NASDAQ TotalView®
quotes. Construction is completed on a new data center in
St. Louis County.
2007
With 306 branch offices, Scottrade becomes the online
investing firm with the largest branch network; Scottrade
Financial Services is formed; and J.D. Power and Associates
acknowledge the company once again.
2010
Celebrating its 30th anniversary, Scottrade reaches another
milestone: 500 branch offices. For the third consecutive year,
Scottrade is named one of FORTUNE magazine’s “100 Best
Companies to Work For.”
2008
2011
2009
Scottrade’s newly acquired subsidiary FocusShares® launches a
new suite of 15 low-cost exchange-traded funds, called
FocusTM Morningstar ETFs. Scottrade also releases a comprehensive
Scottrade® Mobile app and introduces retail online banking services
to brokerage clients through Scottrade Bank. In addition, Scottrade
expands its headquarters, moving its business departments to
the newest campus in St. Louis County. For the fourth consecutive
year, Scottrade is named one of FORTUNE magazine’s “100 Best
Companies to Work For.”
Scottrade opens 75 branch offices, and hires nearly 1,000
associates, bringing its total to more than 2,700. The growth
is one of many reasons Scottrade is named one of FORTUNE
magazine’s “100 Best Companies to Work For.” The firm is
also honored by J.D. Power and Associates for an eighth time.
Scottrade Bank is established and the Bank Deposit Program
is implemented.
Scottrade Mobile (m.scottrade.com) launches, and Scottrade
opens its 400th branch office, opens a new data center, and
purchases three additional headquarters buildings. Scottrade
is again named one of FORTUNE magazine’s “100 Best
Companies to Work For.”
2012
Continuing its tradition of providing clients with exceptional
trading solutions, Scottrade will be working on a client trading
enhancement program throughout 2012 and into 2013. The
program will include updates to our trading tools and will
ultimately result in a completely redesigned ScottradeELITE®, due
for release after 2012.
06
HIGHLIGHTS
FROM 2011
“We wanted to provide
funds that we believe
investors could find great
value in and that haven’t
been available before.”
Diversifying Our Offerings:
Focus™ Morningstar® ETFs
To meet the growing demand for exchange-traded funds (ETFs)
among individual and institutional investors and financial
advisors, we began offering Focus™ Morningstar® ETFs in
March 2011. The offering includes 15 new domestic equity
ETFs benchmarked to indexes licensed from Morningstar, Inc.
Online trading of these ETFs is commission-free for Scottrade
clients and registered investment advisors who use Scottrade®
Advisor Services as their custodian. The ETFs trade on NYSE
Arca and are the first investment products from the ETF sponsor
FocusShares since we acquired the company in June 2010.
07
ScottradeELITE®
With their transparency, liquidity, tax efficiency and cost
efficiency, ETFs can help investors create a diversified portfolio.
Unlike traditional open-end mutual funds, which investors can
purchase only at the fund’s closing price or net asset value each
day, ETFs can be bought or sold on exchanges throughout the
trading day at prevailing market prices.
“We are committed to providing better ways for clients to trade and
invest, and these new ETFs are a logical extension of the products
and services we’ve been providing for 30 years,” said Rodger
Riney. “We wanted to provide funds that we believe investors could
find great value in and that haven’t been available before.”
Diversification does not assure a profit, or protect against loss, in a down market.
Scottrade does not provide tax advice. The material provided is for informational
purposes only. Please consult your tax, or legal, advisor for questions concerning
your personal tax or financial situation.
SECTION 1: I’M WITH SCOTTRADE
Making Investing Easier:
Scottrade Bank
We opened Scottrade Bank’s virtual doors to clients this year,
inviting them to integrate their banking and brokerage needs
into one easy-to-manage platform where money is accessible
for trading, spending day to day, or investing for the future. The
new suite of online banking products includes checking and
savings accounts and CDs.
Scottrade Bank Executive Vice President and Chief Financial Officer Rodney Stanley; Senior Vice President of Scottrade Bank Operations George Horn; Scottrade
Bank Executive Vice President and Chief Legal Counsel Patty Milon; and Scottrade Bank President Joe Pope
08
SECTION 1: I’M WITH SCOTTRADE
•
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•
•
•
•
•
Free ACH funds transfers
Free direct deposit
Free online bill pay
Free standard checks and ATM/debit card
ATM fee reimbursement program
Free account linking for overdraft protection
Security of FDIC insurance
“Clients have a high expectation of receiving outstanding products,
service and value from Scottrade. Scottrade Bank is no different. This
is why we have taken a lot of care in building our banking products
and introducing them to our clients, with an emphasis on ease of
use, fairness and value” said Joe Pope, Scottrade Bank president. “I
am proud that we were able to do this while many banks across the
country are implementing a variety of new fees and service charges.”
Scottrade Bank President Joe Pope
Working under the same philosophy of fairness that has made
us a successful trading and investing firm, Scottrade Bank
accounts offer:
• $100 minimum deposit to open a bank account
• No monthly service fees
• Free funds transfers between brokerage and
bank accounts
09
Scottrade Bank completed its third full year of operations
in 2011. Our bank operations began in July 2008 with
Scottrade’s Bank Deposit Program, where eligible brokerage
clients’ cash balances are transferred into FDIC-insured deposit
accounts held by Scottrade Bank and other program banks. As
the largest participant in the Scottrade Bank Deposit Program,
our bank was able to substantially increase its balance sheet
during the past fiscal year. With its recent growth, Scottrade
Bank now ranks as one of the top 100 banks in the nation,
even though the bank has only been offering retail banking
accounts and services to clients since mid-2011.
highlights
from 2011
Trading on the Go:
Scottrade® Mobile App
As technology continues to evolve, so do the products our investors
use to trade on the go. The Scottrade® Mobile App launched
in August 2011, offering clients real-time research, news and
analyst views. Features of the app include the ability to monitor
investments, generate investment ideas, research opportunities and
execute trades, including stocks, exchange-traded funds (ETFs) and
options through Scottrade brokerage accounts.
“Scottrade Mobile raises the bar for mobile apps across the
financial services industry and allows for a better way to stay
up-to-the-second with quotes, news and charting,” said Derrick
Brooks, assistant director of retail web services. “It empowers
investors, from thought to trade, with the information they need to
react to changes in the market.”
Scottrade® Mobile App allows users to:
• Research ETFs and filter results, including top
year-to-date performers
• Read analyst views from Standard & Poor’s and Briefing.com
• Stay current on insider transactions with built-in content,
providing quicker access to information
• Conduct in-depth earnings research with detailed charts
on quarterly earnings and future estimates from Reuters
Multex® database
• Assess potential investments with Standard & Poor’s
ratings and commentary
• Access fundamental statistics and profiles on public companies
Options involve risk and are not suitable 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 at your
local Scottrade branch office or from the Options Clearing Corporation at
1-888-OPTIONS or by visiting www.optionsclearing.com). Market volatility,
volume, and system availability may impact account access and trade execution.
Supporting documentation for any claims will be supplied upon request.
*BlackBerry®, RIM®, Research In Motion®, SureType®, SurePress™ and
related trademarks, names and logos are the property of Research
In Motion Limited and are registered and/or used in the U.S. and
countries around the world.
Speed and reliability of system response and account access time
may be affected by factors such as trading volume, market conditions,
system performance, or other factors.
10
SECTION 1: I’M WITH SCOTTRADE
Scottrade Named to FORTUNE’s 100
Best Companies to Work For List
Scottrade Identified as a Top Online
Brokerage for Customer Loyalty
Scottrade Makes Training
Top 125 for Workforce Training
and Development Excellence
Anne Coleman Named a 2011
Premier 100 IT Leader
Scottrade ranked No. 12 on FORTUNE’s 100 Best Companies
to Work For List, making it for the fourth consecutive year.
FORTUNE cited job growth and never having a layoff or
closing any of our 500 branch offices as reasons why we’re a
great place to work.
Training magazine recognized Scottrade’s training and
development program among the Top 125 for a fourth time.
11
The Brand Keys Customer Loyalty Engagement Index ranked
Scottrade as a top online brokerage firm for the seventh
consecutive time. Clients ranked our firm, along with seven
other online brokerage firms, according to how they perceive
the brand, compare offerings and make buying decisions.
Anne Coleman, director of trading application development,
was recognized as a Computerworld Premier 100 IT Leader for
enhancing clients’ online trading experiences and growing her
team from 23 associates to more than 160 associates in just
five years.
AWARDS
FROM 2011
Kim Wells Recognized as a Most
Influential Business Woman
Recognized for advancing Scottrade’s reputation as a financial
services firm, Kim Wells, chief marketing officer and executive
director of Product Development, was named one of the Most
Influential Business Women by the St. Louis Business Journal.
Scottrade Listed as One of the
Best Places to Work in IT
For the fourth consecutive year, Computerworld magazine
ranked Scottrade as one of the Best Places to Work in IT.
Scottrade was recognized for its dedication to associates and
growth as it seeks to fill more than 125 IT positions during the
next year.
Scottrade Honored as Innovative,
Ranked 54th on 2011
InformationWeek 500 List
Our innovative online bank deposit program offers brokerage
clients FDIC insurance for their uninvested cash, earning the
company the 54th spot on the InformationWeek 500 list.
Scottrade Named to the Greater
St. Louis Top 50 List
For the seventh time, the St. Louis Regional Chamber & Growth
Association names Scottrade to the Greater St. Louis Top 50 for
positively affecting the business community’s future.
12
The Scottrade
Approach: Our
Corporate Culture
13
SECTION 2: THE SCOTTRADE FAMILY
We have built our success on the
foundation of doing what’s right.
We are dedicated to providing associates opportunities to grow professionally while maintaining a healthy
balance of work and home life. This is done by fostering a culture of growth, honesty and diversity, where
team members can communicate openly across all levels of the organization. It is because of this culture that
we are able to provide some of the best service and value to not only our clients, but our associates as well.
Mission
Our mission is to improve lives by helping people overcome barriers to financial success.
Vision
Our vision is to be the leading independent financial services firm, providing clients with an engaging
experience, evolving solutions and exceptional value.
Core Values
These five core values exemplify our dedication to our associates and our approach to business:
• Client Service: Satisfying our clients is the foundation of everything we do. Whether working with
each other or communicating with a client, we continually focus on our commitment to excellence.
• Individual Development: Our people are our most valuable resource. As we continue to grow,
we remain dedicated to developing individual talents through innovative training and career
growth opportunities.
• Teamwork: We rely on a strong commitment to teamwork to meet our common goal of providing
the best value and some of the best service to our clients.
• Trust & Integrity: We stand for honesty in every aspect of our business and empower our
associates to do their jobs in an ethical manner. By doing this, we gain the confidence of our clients.
• Open Communication: We encourage the honest and frequent sharing of ideas, opinions and
information across all levels of the organization.
Opposite page: Margin Associate Jessica Dybala
14
LEADERSHIP
Scottrade’s leadership
team strives to deliver the
best experience for our
clients by drawing upon its
considerable experience
and unwavering
commitment to
exemplifying the company
values. Scottrade’s leaders
are industry veterans,
and more than half of our
executive team has been
with the company for 10
or more years.
15
Rodger Riney
Founder, President and Chief Executive Officer
Rodger founded Scottrade in 1980 and remains active
in the firm’s day-to-day management. Prior to establishing
Scottrade, Rodger was a general partner with Edward
Jones & Co. He holds a Master of Business Administration
and a Bachelor of Science in civil engineering from the
University of Missouri-Columbia. Rodger currently maintains
Series 4, 7, 24, 27 and 53 registrations.
SECTION 2: THE SCOTTRADE FAMILY
Jane Wulf
Chief Administrative Officer, Assistant Secretary
Jane has 29 years of industry experience and has spent 25 years at Scottrade. She is
responsible for human resources, training & development, branch development, branch &
corporate facilities, and the National Service Center. Jane is a Certified Senior Professional
in Human Resources and maintains Series 7 and 24 registrations.
Mary Koomar
Executive Director of Branch Administration and Corporate Communication
Mary has 31 years of securities industry experience and has spent 25 years at
Scottrade. She is responsible for Scottrade’s branch network, corporate communication
and travel and relocation. Mary received a Bachelor of Science from Western Illinois
University. She currently maintains Series 4, 7 and 24 registrations.
Ronald Wiese
Chief Financial Officer, Treasurer
Ron has 30 years of industry experience and has been with Scottrade for 21 years.
He oversees all aspects of financial and related regulatory reporting, including reserve
and capital computations and FOCUS filings, and is also responsible for managing the
Accounting, Finance, Vendor Management and Internal Audit departments. Ron holds
a Bachelor of Science in accountancy from the University of Missouri-Columbia. He is a
Certified Public Accountant and maintains Series 7 and 27 registrations.
16
SECTION 2: THE SCOTTRADE FAMILY
Catherine Maher
Executive Director of Operations
Cathy has been with Scottrade for 16 years and is responsible for managing all back
office operations, including margin, new accounts, stock records, cashiering and
account transfers. She holds a Bachelor of Science in business administration from
Saint Louis University, is a Certified IRA Services Professional and maintains a Series
27 registration.
Michael Jung
Executive Director – Special Projects, Special Assistant to the President
Mike has been with Scottrade for 11 years; he is responsible for managing the
corporate ownership structure, assisting in strategic planning, managing the corporate
real estate portfolio, financial and managerial oversight of corporate investments and
overseeing the corporate tax department. Prior to joining Scottrade, Mike spent 10
years with Deloitte & Touche USA LLP, where he was a senior tax manager. He holds
both a Master and Bachelor of Science in accountancy from the University of MissouriColumbia and is a Certified Public Accountant.
Andrew Small
General Counsel, Executive Director of Legal, Compliance, Fraud & Loss Prevention
and Trading Services
Andy has 19 years of industry experience and has spent nine years at Scottrade. He
oversees the Legal, Compliance, Fraud & Loss Prevention and Trading departments.
Andy currently serves on two FINRA committees: eBrokerage and the District 4
Nominating Committee. He holds a Juris Doctor from DePaul University College
of Law in Chicago and a Bachelor of Arts from Michigan State University. He also
maintains Series 7, 8, 24 and 66 registrations.
17
Leadership
Ian Patterson
Chief Information Officer, Executive Director of Information Technology
Ian joined Scottrade in 2005, bringing with him 19 years of IT experience. His
responsibilities include the supervision of all customer application development,
systems books and records operations, internal enterprise applications and a
24/7 operations staff that supports Scottrade’ client-facing products and internal
branch network.
Joseph Pope
President, Scottrade Bank
Joe has more than 21 years of banking experience and joined Scottrade at the
beginning of 2007. He oversees all aspects of bank operations, including investment
portfolio management, asset/liability management, product development, regulatory
compliance and risk management. Joe holds a Bachelor of Science in business
administration with a double major in accounting and finance from Southeast
Missouri State University and is a Certified Public Accountant.
Kim Wells
Chief Marketing Officer and Executive Director of Product Development
Kim has more than 23 years of business development and marketing experience,
including more than 11 years of leading online marketing strategies in the financial
services industry. Kim is responsible for managing the firm’s client-facing trading
platforms and websites and leads its overall strategy in advertising, branding, public
relations, marketing research and direct marketing. She holds a bachelor’s degree in
business administration and marketing from Miami University in Oxford, Ohio.
18
COMMUNITY
INVOLVEMENT
Social Responsibility:
Our Community Involvement
Scottrade’s community outreach and involvement program
focuses on our belief in doing the right thing. When associates
show a special interest in a charitable organization,
Scottrade supports them by matching monetary donations
and contributing $20 for every hour they volunteer their time.
Through our Day of Caring program, Scottrade also provides
associates one paid day off each year to volunteer at an
organization of their choice.
Since our associates live and work throughout the United
States, we’re able to impact a variety of organizations. In
addition to the many organizations Scottrade has helped in
Scottrade associates participate in National Rebuilding Day.
19
Mary Kendrick-Buckner, Sonja Bradley-Wadley and Nickole Carr-Norman
take part in the Alzheimer’s Association Memory Walk.
2011 through matching associates’ donations and supporting
their volunteer efforts, some of our annual corporate charitable
efforts include:
• Alzheimer’s Association, the leading voluntary health
organization in Alzheimer care, support and research.
• American Red Cross, a U.S. humanitarian organization
providing emergency assistance, disaster relief
and education.
• Humane Society of the United States, the nation’s
largest and most effective animal protection organization.
• Rebuilding Together, a national nonprofit whose mission
is to rehabilitate homes for low-income homeowners,
particularly the elderly and those with disabilities.
• Susan G. Komen for the Cure® Foundation, the
global leader of the breast cancer movement, working to
save lives, empower people, ensure quality care for all and
energize science to find the cures.
• United Way, a worldwide network creating opportunities
for a better life for all by focusing on education, income
and health.
Branch Administration Manager Jay Hanagan attends a training class at Scottrade’s Corporate Headquarters.
Understanding Diversity:
The Value of an Individual’s
Perspective
To open the conversation with our current and prospective
clients, we began blogging about client service, products and
services, industry news and behind-the-scenes stories on the
About Scottrade section of our company website.
When Scottrade introduced blogging internally, it was
an opportunity for associates from various locations and
departments to interact with one another in a new, dynamic way.
Topics such as “What’s Your Investing Edge?”, “Five
Questions with Scottrade’s CIO” and “Winning Your Business
Every Day” help to spread the word on our values, culture
and business – and because they’re told through the voices of
our associates, their unique perspectives become as important
as the topics themselves.
Open communication is one way we learn about our diverse
population of associates, and we encourage all associates to
share their thoughts, experiences and opinions.
Sailing the Asia Pacific (written by the Asia Pacific team),
Helping Hands (written by community volunteers), Up in the Air
(written by traveling brokers) and From the Trenches (written by
branch office associates) are a few examples of blogs that are
regularly updated with fresh content, organically demonstrating
diversity throughout our company with each online conversation.
Connecting our associates directly with the public through
the Scottrade blog also helps us get to know our clients.
Comments help deepen our relationships with them and allow
us to learn more about their views on Scottrade.
We value these perspectives – both our associates’ and our
clients’ – as they cultivate a professional work environment
that promotes consideration, integrity and innovation.
20
Personal Service:
500 Local Branches
21
SECTION 3: SERVING OUR CLIENTS
Sometimes there’s no substitute for talking
with someone in person. We think it sets
our business apart. With more than 500
local branches nationwide, Scottrade
has the most extensive branch network
among online investing firms.
We’re often asked why an online business needs local branch offices. Sure, we know the Internet is the
most cost-effective method of delivering investment services to individual investors. But we also know true
value is about the personalized service and dedicated support that clients receive with Scottrade.
We believe many investors prefer receiving that service locally, from a broker with whom they have
some rapport, instead of a distant call center. We also believe in helping investors overcome barriers by
educating them in person as well as online, and our branch offices provide an outlet for clients to learn
how to make better investing decisions through local seminars.
“You trust a company based on the experience you have with them,” said Mary Koomar, Scottrade’s
executive director of branch administration and corporate communication. “The branch offices connect
with clients on the things that are important to them. In our branches, we are not selling to clients. We
listen to them, support them, and provide education to help them become more knowledgeable investors.”
Scottrade is all about providing clients with the solutions and experiences that create value for them-$7 trades are just the start. By providing educational resources and personal service, our convenient
nationwide network of branch offices helps traders and investors make the most of their relationship
with Scottrade.
Opposite page: Scottrade Branch Manager Crystal Diaz-Granados assists a client over the phone.
Online market and limit stock trades are just $7 for stocks priced $1 and above.
22
SUPPORT &
RESOURCES
Extended Support:
National Service Centers
When clients need help, they want to speak with friendly,
knowledgeable people from the company they work with—
not an outside organization. That’s why Scottrade’s service
centers are not outsourced; instead, they are extensions
of our personal service. Every Service Center associate is
employed directly with Scottrade, creating a true sense of
ownership for assisting clients.
Scottrade now has two service centers—one in St. Louis and
one in Westminster, Colo., near Denver—providing flexible
hours of operation for supporting clients across the United
States seven days a week. Clients can contact Scottrade
by phone, email or online chat, communicating through
whichever channel is most comfortable for them.
In addition to supporting brokerage clients in both English
and Spanish, our service centers also provide client support
for Scottrade Bank.
Scottrade Service Center, Westminster, Colo.
23
SECTION 3: SERVING OUR CLIENTS
Scottrade Service Center associates respond to client comments on Facebook.
Connecting Online:
Social Media and Chat
Providing exceptional service means being where our clients are,
and for many clients, that’s online. Scottrade’s Social Media team
monitors blogs, message boards, Facebook and Twitter, jumping
into the dialogue to answer questions from clients and prospects.
They have also teamed up with associates from the service
centers to begin a unified effort.
Our Service Center associates who communicate with clients
through Scottrade’s online chat feature now also respond to
inquiries through Scottrade’s Facebook and Twitter pages.
In addition, the Social Media team continues to monitor and
post the latest Scottrade news, updates and special event
information in these venues.
Each of these service outlets reflects our passion to provide
solutions for our clients wherever they are.
Becoming Better Investors:
Client Education
As we live out our mission to improve lives by helping people
overcome barriers to financial success, we realize those barriers
are always changing. While cost was once the biggest barrier
for investors, today a more common one is lack of education.
Scottrade’s aim is to help our clients become better investors,
and we are continually developing our in-person and online
education offerings:
• Scottrade Branch Seminars provide local, in-person
education about investing and help clients navigate our
trading tools. In 2011, more than 150 seminars per week,
on average, were held in branch offices across the country.
“Our clients take advantage of Branch Seminars to
learn more about trading strategies, how to best use our
online tools or gain more knowledge about investing
in general,” said Kristin Grupas, assistant director of
customer education. “By drawing on our dedicated
support teams at the branches, our clients can become
more knowledgeable and confident about trading and
investing for themselves.”
• Scottrade’s Media Center provides dynamic, on-the-go
training to help investors react quickly to market events
and make more informed decisions. With more than 80
webcasts in English, Spanish and Chinese, the Media
Center offers everything from tutorials on Scottrade tools
to helpful educational resources.
• Live Webinars are held several times each week, enabling
investors to stream live, interactive presentations to their
computers. Topics include market analysis, basic &
advanced orders, research tools and more. Following each
webinar, participants have the opportunity to ask questions,
combining the experience of live education with the
convenience of being able to attend from anywhere.
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SECTION 3: SERVING OUR CLIENTS
• KnowHow News is Scottrade’s monthly client newsletter,
offering timely articles including expert perspectives,
strategy insights, tips for using our trading tools, and
sneak peeks at upgrades around the corner.
• The Scottrade Online Community enables clients to
interact with and learn from fellow investors and Scottrade
product specialists. The community uses group discussions,
blogs and educational videos to engage and educate
clients on how to use Scottrade’s tools, products and
services and to understand more about the markets. The
community now has more than 54,000 members and
continues to grow daily.
• Client Summits are held several times a year in major
cities nationwide. At these all-day events, hundreds
of Scottrade clients gather to meet and learn from
Scottrade product specialists and brokers and industry
experts. With three separate tracks—Investor, Trader
and Options—clients can expand their knowledge in the
areas most relevant to them.
In our commitment to personal service and helping clients
overcome barriers, we recognize the importance of client
education and are dedicated to looking for new opportunities to
expand resources for self-directed investors.
Assistant Director of Customer Education Kristin Grupas films a podcast.
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Meeting Diverse Needs:
Online Trading Tools
We offer a comprehensive array of products, services and
solutions, including multiple easy-to-use and ever-evolving trading
tools designed to fit the needs of investors and traders at every
experience and activity level.
• The Scottrade Trading Website is an easy-to-use online
destination for our clients to manage their accounts, access
comprehensive research, take online seminars and spend
time enhancing their investing knowledge through our
Knowledge Center. Our online banking services are also
available through the same login, making it easy for clients
to manage both brokerage and bank holdings in one view.
• Scottrader® Streaming Quotes, accessed via the
Trading Website, is designed for the trader who wants
real-time streaming quotes, charts and news to help inform
their trading strategies. Investors can track their portfolios in
real time and use the powerful streaming tools and market
data to help them take advantage of market opportunities.
• ScottradeELITE®, our advanced trading tool, is a
downloadable desktop platform designed for advanced
traders. This platform carries powerful, advanced tools like
NASDAQ’s Velocity® and Forces®, Trade-Ideas™ and Level
II quotes to give our advanced trader clients the tools they
need to design and maximize their trading experiences.
The platform is free to clients with a minimum account
balance of $25,000.
• OptionsFirst™ is designed for clients who trade complex
options. With virtual trading and a variety of advanced
tools, this platform gives our options trading clients a
comprehensive tool set to design and manage their complex
options strategies.
• The Scottrade® Mobile App, released in 2011, is an
intuitive smartphone app with robust mobile stock market
research and trading capabilities, including real-time
research, news and analyst views. The same powerful
app is available on the iPhone®, BlackBerry® or Android™
to take investors from idea to trade, enabling them to
monitor their investments, generate investment ideas,
research trading opportunities, and execute stock,
exchange-traded fund (ETF) and options trades in their
brokerage accounts. Non-clients can take advantage
of the app by accessing market research and delayed
streaming quotes, while Scottrade clients have access to
secured login account management features, real-time
streaming quotes and premium content.
• Our Scottrade Mobile Website (m.scottrade.com)
provides on-the-go trading and account access. The
mobile website empowers investors to react quickly
to changes in the market and gives them freedom to
manage their accounts and trade online from any
Internet-enabled mobile device—without downloading
an app. Scottrade Mobile provides account information;
trading of stocks and exchange-traded funds (ETFs)
through market, limit, stop limit and trailing stop orders;
extensive research tools, including stock and ETF
screeners; and real-time, in-depth research and news.
Scottrader® Streaming Quotes
Chinese-Language
Services: Education
This year, Scottrade’s Asia Pacific department continued to
equip clients with more tools and online resources to help them
overcome one financial barrier to success: lack of education.
In July, Scottrade enhanced the Chinese-language website and
launched a new Chinese Knowledge Center, a comprehensive
online trading and learning resource for Chinese-speaking
investors. Features of the website include:
• Educational resources through the Knowledge Center
• Access to Scottrade’s Chinese-language Scottrade
Online Community
• Quick search capability to find Chinese-speaking
branch offices
• Information on investment products, services and trading tools
“With this redesign we will be able to better communicate and
continue to build lasting relationships with our Chinese-speaking
clients, whom we’ve served for the past 10 years,” said Rodger
Riney, founder and chief executive officer. “We have seen
steady increases in demand from our clients for more Chineselanguage services and will continue to provide new resources
and tools to better serve them.”
We also offered regular weekly Chinese webinars and multiple
day-long client summits in New York and California to teach clients
about various trading topics and how to effectively use the functions
and features of Scottrade’s online trading tools. These events are
broken into several workshops, offering learning opportunities to all
types of investors, from the novice to the experienced.
Asia Pacific Services launched live online support in 2005
to provide improved service for international clients, and its
Service Center associates are available 24/7.
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SECTION 3: SERVING OUR CLIENTS
Scottrade Advisor Services:
Independent Registered
Investment Advisors
For independent registered investment advisors (RIAs) who use
our custodial services platform, low-cost institutional trading is
just the beginning. Because Scottrade does not provide in-house
financial advice or investment recommendations, we can serve as
a business partner—not a competitor—to the advisors we serve.
Each RIA who uses Scottrade Advisor Services is assigned a
dedicated relationship team to help with their business and
investing needs. Then, through an easy-to-use website (advisor.
scottrade.com), advisors can manage multiple accounts through
one master account, place block trades with real-time allocation
to client accounts, conveniently bill advisory fees, produce client
reports, and access advanced cost basis reporting and client
management tools.
Asia Pacific Stockbroker Trainee Emily Liu, Asia Pacific Quality Specialist
Joy Chen, Asia Pacific Maintenance Associate Nanying Zhang and Asia
Pacific Account Manager Weimin Zhang
Our Expansion East:
Scottrade Hong Kong
In April 2010, Scottrade formed a Hong Kong affiliate,
Scottrade (Hong Kong) Limited (“Scottrade HK”), with a view to
opening an office in Hong Kong and increasing our Asia Pacific
client base. We are in the process of seeking appropriate
business licenses from the Hong Kong regulator to operate
Scottrade HK as a broker dealer.
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Scottrade Advisor Services Relationship Manager Pat Johnson and Scottrade
Advisor Services Relationship Supervisor Joe Monteleone
SUPPORT &
RESOURCES
does not have a minimum asset fee because we do not have a
minimum asset requirement. This cost savings allows advisors
to reallocate their finances to other business needs.”
Brian Davis, Director of Scottrade Advisor Services
As we continually focus on deepening our financial
relationships with clients beyond trading, we seek their input
to set the strategies for our products and services. In the case
of Scottrade Advisor Services, advisor feedback has helped
improve our advisor trading and account management
platform, expand product availability and develop features to
meet RIAs’ needs.
Our client education philosophy extends to advisors as well.
Through webinars, webcasts, the Advisor Advocate client
newsletter and the Scottrade Advisor Online Community,
we now provide advisor education regarding practice
management, compliance, technology and Scottrade systems.
Scottrade Advisor Services’ client base includes more than 900
advisory firms, and in 2011 assets grew by 45 percent.
With no advisor enrollment fee and no minimum asset
requirement, Scottrade Advisor Services has the account
management tools for advisor practices at any size.
“Scottrade is committed to offering advisors in any stage of
their careers the same great tools, personalized customer
service and real-time business support, regardless of their assets
under management,” said Brian Davis, director of Scottrade
Advisor Services. “Unlike many of our competitors, Scottrade
As we focus on providing engaging experiences, evolving
solutions and exceptional value to all of our clients, we continue
to position Scottrade Advisor Services as a way for RIAs to
access the client management tools and trustworthy service that
give them freedom to independently serve their clients.
Meeting Clients’ Financial Services
Needs: Scottrade Bank
Scottrade Bank rolled out to clients across the country in phases
this year, beginning in Missouri, Oklahoma, Kansas, Nebraska,
Iowa, and southern Illinois. By focusing our attention on one region
at a time, we were able to provide the best possible service to
clients throughout the launch.
Scottrade Bank brings added convenience, easier account funding,
and low banking fees to our brokerage clients, who can access
their bank accounts online through their brokerage accounts.
The availability of these new online banking products, including
checking and savings accounts and CDs, is just another reason
why more investors consider us for their financial services needs.
In addition to meeting our clients’ financial needs, we also
believe investing conservatively in quality assets is important to
our long-term success. Risk mitigation during difficult economic
times is imperative, which is why more than 93 percent of
the assets on the bank’s balance sheet are either directly or
indirectly guaranteed by the United States government or
backed by collateral with the same direct or indirect guarantee.
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PREPARING FOR
GROWTH: EXPANDING
OUR HEADQUARTERS
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SECTION 4: FUTURE OF CLIENT CARE
Scottrade completed our headquarters
expansion in January 2011, after
purchasing two new office buildings on the
Maryville Centre campus in west St. Louis
County in 2009 and moving our operations
departments to the campus in 2010.
The final phase of the expansion moved the executive committee and most business departments into our
newest building at 700 Maryville Centre and brought the total number of St. Louis headquarters locations to
six, including four information technology locations, one operations building and one administrative building.
Our headquarters expansion leaves ample room for growth: By moving business departments to the
Maryville Centre campus, Scottrade created additional office space in our IT locations, where much of our
hiring needs continue to lie.
We also continued to expand our secondary business operations center (SBOC) in Westminster, Colo.
throughout 2011, adding associates to our operations and information technology departments and our
national service center. Increased staffing in these areas positions them to provide full support to our branch
network during their own hours of operation and makes client support available seven days a week.
Number One Core Value: Customer Relationship Management
Client service is Scottrade’s number one core value, and the customer relationship management (CRM)
system we implemented in 2010 has served as a toolkit to help our associates deliver engaging
experiences to our clients in every interaction.
Scottrade’s Corporate Headquarters in St. Louis, Mo.
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SECTION 4: FUTURE OF CLIENT CARE
In 2011 Scottrade added service requests to the CRM to
streamline communication among branches, operations
departments and the national service centers when fulfilling
client requests. Using service requests, these groups can
work together to meet several common, critical client needs,
including trade requests, check and wire requests, and
technical support.
The addition of service requests has helped create a more
seamless client experience. For example, when a client calls
with a technical issue, the branch can troubleshoot it using a
short questionnaire. If the branch is unable to resolve the issue,
they can transfer both the call and the questionnaire to the
Tech Support team, and the client doesn’t have to repeat the
information already provided to the branch.
Service requests enable branches to identify the stage of the
client’s request and who is currently working on it. After the
request is met, it becomes part of the history maintained in
the client’s CRM record, which remains available for future
reference to provide a 360-degree view of the client.
In 2011 Scottrade also developed a Voice of the Customer
initiative to use information clients are sharing with us to
prioritize our key programs based on our clients’ perspectives.
As clients communicate with us through surveys, social media,
email and online chat, Scottrade will be implementing new
technology to collect, analyze and categorize their feedback.
The Voice of the Customer will provide an objective “big
picture” of the major issues our clients face, giving us the
information we need to make decisions that reflect their voices.
Media Plans:
Building the Scottrade Brand
Across all types of media, Scottrade has become a recognized
leader in the financial services industry for our client-focused
advertising, marketing and public relations. Through our efforts
in these areas, we continue to build the Scottrade brand and
strengthen our corporate reputation.
We’re as passionate about trading as our investors are. Much
of our work is centered on furthering the emotional belief that
Scottrade has the same joy and fervor for trading and long-term
investment success that our clients have.
Senior Branch Stock Broker Mary Ferry assists a client over the phone.
31
“Ongoing webinars, interactive learning, in-branch seminars
at more than 500 locations” and “Dedicated support teams.”
New Ad Campaign, “$7 Trades Are Just The Start.”
To this end, we launched, a series of new commercials and
a variety of other communications in fall 2011, inspired
by a client-centric brand identity of “I’m With Scottrade,”
emphasizing that “$7 Trades Are Just The Start.”
We realize we must continue to be known for reasons beyond
our trademark $7 online stock trades. In order to grow,
Scottrade is drawing on our past and current reputation while
becoming even more relevant to today’s investment consumer –
who wants more. We’re going beyond the $7 value message to
include communication of the products, tools and support that
empower investors on their path to financial success.
The strategy embraces and reinforces the three pillars of the
Scottrade brand attributes:
• Value ($7 trades are just the start)
• Support (online and in-person)
• Empowerment (everything you need from thought to trade)
The branch office network and award-winning customer service
centers are a large component of the story.
The educational focus of our new advertising includes key
phrases such as “The more you know, the better you trade;”
The personal service focus includes key phrases such as
“You’ll find us online – AND in person;” “Dedicated support
teams at more than 500 branch offices nationwide;” “When
you call or visit, you can ask for a name you know” and
“Personal service starts with a real person.”
Our goal is to change the statement often heard in Scottrade
research from “I was not aware you had that” to “That’s
another reason why I’m with Scottrade.”
Without changing who Scottrade is, we must demonstrate
why Scottrade has so much to offer beyond the highly
successful $7 trade message – online, on your smartphone
and in person.
To spread this message, Scottrade continues to be one of the
largest advertisers on leading websites for investors seeking
stock quotes, research and news. Scottrade advertisements
frequently appear on sites such as Yahoo!, MSN, CNBC.com,
TheStreet.com and CNNMoney. Among traditional media,
Scottrade is one of the most prominent investment firms on
networks such as CNBC, CNN, FOX Business and MSNBC.
Throughout 2011, Scottrade advertisements remained visible
at Busch Stadium, home of Major League Baseball’s St. Louis
Cardinals. In addition, Scottrade continued to sponsor the
National Hockey League’s St. Louis Blues and their arena,
Online market and limit stock trades are just $7 for stocks priced $1 and above.
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SECTION 4: FUTURE OF CLIENT CARE
Scottrade Center. The arena showcases the Scottrade name on
national television, as well as to nearly 2 million visitors who
attend its 175 annual entertainment, sports and family events.
movement among various demographic groups such as
Gen Y and Baby Boomers. Our Public Relations team secured
stories about these results in leading media outlets, and these
initiatives continued to strengthen Scottrade’s position as one
of the primary thought leaders in the financial industry.
The team also reached out to local media where branch offices
exist to further recruit new Scottrade clients and enhance our
reputation as a leading employer. Via social media sites such
as Twitter, Facebook and YouTube, as well as Scottrade’s own
About Us website, we solidified the Scottrade brand through
industry-leading storytelling initiatives.
As a privately held firm that truly puts clients first, we have
earned the respect of the media, the marketplace, and most
importantly, our clients.
Scottrade Center, St. Louis, Mo.
Through a variety of public relations efforts, Scottrade’s
message of great value, support and empowerment has
been seen in leading editorial outlets throughout the country.
Scottrade’s positive media coverage throughout 2011 includes
Barron’s, FORTUNE, Reuters, The Wall Street Journal, USA
Today and CNBC, to name a few.
Public relations initiatives in 2011 included showcasing the
results of two proprietary studies: the American Investor Study
and the American Retirement Study. These studies gauged
investors’ confidence levels amid the recent market volatility and
revealed trends in their attitudes and behaviors, including
33
Strategic Improvements:
Propelling Our Technology Forward
Scottrade’s information technology efforts in 2011 focused
largely on building systems that support our new offerings,
such as Scottrade Bank, and adding functionality to our
websites and trading tools to provide a more user-friendly and
customizable client experience.
In the spring of 2011, our IT team finished building the
integration of Scottrade Bank into the Scottrade Trading Website,
creating a seamless experience for clients to access both their
brokerage and bank accounts through the same website.
SECTION 4: FUTURE OF CLIENT CARE
Another major IT initiative for 2011 was integrating new Web
content management (WCM) software into our current systems.
The WCM became the foundation for our new websites:
Scottrade.com and the About Scottrade site (both the English
and Chinese versions), the careers website and the Scottrade
Mobile website.
Our new websites were designed with a user-centered
approach in mind: “We involve clients in the design
process so we’re truly meeting their needs and wants,” said
Gina Bhawalkar, user experience manager, whose team
collaborated with our IT team on the redesign. “While the
visual and interactive aspects of a website play into the user
experience, the chief goal is for the site to meet our users’
‘mental model,’ or how they expect a process to work.”
Through client focus groups and usability testing, Scottrade
seeks to incorporate our clients’ and prospective clients’ wants
and expectations to create an engaging online experience for
them, whether they’re considering opening their first Scottrade
account or using our trading tools such as ScottradeELITE®.
Scottrade’s Chief Information Officer Ian Patterson
Storage Engineer Roman Turnbow
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SECTION 4: FUTURE OF CLIENT CARE
“Making our products intuitive and personalized is critical to
creating a positive online experience for both prospective and
current clients,” said Ryan Miano, director of digital marketing.
priorities is in the IT area: We are a technology firm that
provides a great online experience for our clients, so we want
to continue to grow our technology.”
Scottrade began applying agile project management
methods for the first time in 2011 as well, starting with the
customization of the Trading Website Home tab. In agile
projects, small, co-located teams of IT professionals across
various functions work together to roll out a product in phases,
instead of releasing it as a bundle after all technology work is
complete. As was the case with the Home tab’s customization,
agile projects deliver new functionality intermittently, giving
clients the benefit of using new features along the way—and
ensuring they are happy with those features.
Our job opportunities include IT positions in both St. Louis and
Denver, as well as openings at our St. Louis headquarters and
in our branch offices nationwide.
Future Company Growth:
Hiring New Talent
Scottrade has more than doubled our workforce in the past five
years, and in 2011 we continued our legacy of never having
had a layoff in our 31-year history. In an economic environment
that has led many companies to reduce their workforces,
Scottrade’s growth continues to fuel our need to add jobs.
“We have added more self-directed investors in the last
few years as the markets have changed, and we are now
offering online banking and commission-free ETFs. All of
these additions have created a need for talent,” said Jane
Wulf, chief administrative officer. “One of our highest hiring
35
As we continue to grow organically—and independently of
market conditions—our need to retain talented associates with
a variety of skills remains top of mind, and we meet this need
by sharing profits through discretionary quarterly bonuses,
providing training opportunities and promoting from within.
More than 58 percent of our job openings in 2010 and 2011
were filled by internal candidates, creating satisfying growth
opportunities for our existing associates. However, our constant
growth generates a need to recruit external candidates as well.
In the spring of 2011, Scottrade launched a redesigned career
website that provides applicants with a more user-friendly
experience and showcases what a career at Scottrade is all
about. Visitors to our career site at careers.scottrade.com can
search our job openings, explore career paths in various areas
of the organization, and watch video testimonials showcasing
why our associates are proud to say,
“I’m with scottrade.”
SECTION 4: FUTURE OF CLIENT CARE
Scottrade’s redesigned career website
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SECTION 4: FUTURE OF CLIENT CARE
Brokerage Products and Services offered by Scottrade, Inc, - Member FINRA/SIPC.
©Copyright 2011 Scottrade, Inc. All rights reserved. Scottrade®, the Scottrade® logo and Focus™ are the registered and
unregistered trademarks of Scottrade Inc. and its affiliates.
37
700 MARYVILLE CENTRE DRIVE
SAINT LOUIS, MO 63141
(800) 619-SAVE (7283)
www.scottrade.com
Member FINRA/SIPC.