TABLE OF CONTENTS

TABLE
OF CONTENTS
Scottrade Corporate Headquarters, St. Louis, Mo.
30
Table of Contents
30 Years of Service
01 – 10
The Scottrade Family
11 – 20
Serving Our Customers
21 – 28
Future of Customer Care
29 – 34
Scottrade is a leading online investing firm that
provides individuals with the latest tools, resources
and education they need to take control of their
investments. Our success comes from our dedication
to customers, associates, innovation and growth.
30 Years
of Service
Scottrade Stock Broker Chris Paasch meets with a customer in a local branch office.
30
Section 01
Each year throughout our 30-year history,
Scottrade associates have worked together to
meet – and exceed – the needs of the do-it-yourself
investor by developing new resources to help them
trade with more confidence.
2010 Annual Report
Section 01 30 Years of Service
$7 online trades .
500 branches.
30 years.
1
The Value of a Deal:
The Story of Scottrade
Rodger Riney learned very early on that whether people
are looking to invest in a new shirt, a car or the stock
market, there is one thing everyone wants: a good deal. It
is Rodger’s long-held commitment to offering a good value
that has vaulted Scottrade from an idea to a national brand.
Rodger’s 40-year tenure working in the financial industry is
rooted in his childhood fascination with the stock market.
It all started when his grandparents gave him a few shares
of Bethlehem Steel stock as a gift, and as you might
recall in the 1950s and 1960s, the steel stocks did pretty
well. Rodger began reading the financial section of the
newspaper, charting the ups and downs of his very first
Scottrade is a financial services company, but numbers alone can’t tell the Scottrade story.
Our story is told through the dedication of our Founder, President and Chief Executive
Officer Rodger Riney, who built a business that gives investors a good deal. His enthusiasm
permeates the company and is perpetuated through our 30-year legacy of committed
associates working together to meet—and exceed—the needs of the do-it-yourself investor.
investment. Those few shares sparked an interest in him
that would last a lifetime.
As he grew, so did his interest in the financial industry. In
the mid-1960s, Rodger spent his Christmas and summer
vacations home from college marking the front quote
board at Edward D. Jones & Co. After graduating from
the University of Missouri-Columbia with a degree in
civil engineering and an MBA in finance, he turned down
We’re ready to continue our story for another 30 years
and beyond, and we’re eager to invite our customers
along for the ride. Welcome to Scottrade.
pg. 01
higher-paying jobs working as a civil engineer to work
full-time for Jones, where he spent the next 10 years and
became a general partner.
During this time, Rodger learned the ins and outs of the
stock brokerage business and took a keen interest in the
2010 Annual Report
administrative and service side of the financial world. He
Rodger continued to grow the company’s branch network,
strongly believed that low commissions coupled with
believing strongly in the importance of in-person customer
exceptional customer service would result in sales, but
support. Although industry analysts balked at the idea of
rarely would the reverse hold true.
the branch concept being profitable in the online brokerage
industry, Rodger remained steadfast in his commitment to
His service philosophy propelling him, Rodger and a
providing local customer service to people who wanted to
partner started Scottsdale Securities in Scottsdale, Ariz.
make their own investment decisions.
in 1980, just as the discount brokerage concept gained
In 2010, a decade after changing our
momentum in the industry. No advice, just good service
and low commission rates. Rodger’s commitment to
name from Scottsdale Securities
“service above sales” proved successful, and in 1981
to Scottrade, we opened our 500th
Scottsdale Securities opened a second branch office in
nationwide branch office in New
St. Louis, Mo. – Rodger’s hometown and the eventual
York City, solidifying our position of
Corporate Headquarters of Scottrade.
having the largest branch network of
any online brokerage firm.
During the mid 1980s, Rodger bought out his partner and
focused on driving commissions even lower. Lower
Scottrade continues to offer our
commissions soon led to higher trading volume, which
trademark $7 online stock trades1,
helped to keep the business successful. Rodger
with no account maintenance or
quickly realized that by processing trades for his
inactivity fees. We also continue to
own clients, rather than relying on a clearing broker,
build new online trading tools and
he could keep the business nimble and avoid
investment education resources to
charging his customers additional fees that his
help customers make better trading
competitors were charging. True to form, he was
decisions. The founding principal of
always looking to offer his customers a better deal –
providing customers with the best value
and it worked.
and service in the industry remains at
In 1996, as the Internet began to be more widely used
commercially, Rodger invested in a new technology that
allowed his customers to trade online from anywhere using
Scottrade.com. Despite migrating the business online,
the core of Scottrade’s success.
Rodger Riney
Founder, PRESIDENT
and CHIEF EXECUTIVE OFFICER
Today, millions of self-directed investors
who are looking for a good deal have found
one at Scottrade.
pg. 02
2010 Annual Report
Section 01 30 Years of Service
The History
of Scottrade
1991
Scottsdale Securities’ revenues steadily climb. There are
now 15 branch offices across the country.
Scottsdale Securities, 1995
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 Riney, 1980
1980
Rodger Riney and a partner form Scottsdale Securities.
After receiving clearance from the government, they
open for business on May 1 – five years after May Day.
pg. 03
Rodger buys out his partner and maintains the company
name, Scottsdale Securities, now headquartered in West
St. Louis County. He reduces commissions to prices
unheard of at the time.
1989
Rodger employs 16 associates across six offices in St.
Louis, Phoenix, Pittsburgh, Dayton, Ohio, Springfield,
Mo., and Southfield, Mich.
1994 & 1995
Scottsdale Securities is named on Inc. magazine’s list
of the 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.
1998
The Internet enables investors to be less reliant on full
service brokers. The volume allows Scottsdale Securities
to set a new $7 price for online trades1 – the best value in
online investing.
2010 Annual Report
2000
2009
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.
2001 & 2002
Scottrade is named three times in two years, “Highest in
Investor Satisfaction with Online Trading Services” by J.D.
Power and Associates. Recognition through these awards
attracts more customers.
2003
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 associate 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 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.
Rodger Riney and Scottrade associates at NASDAQ
Scottrade Mobile (m.scottrade.com) launches, and
Scottrade opens its 400th branch office, opens a
new data center, and purchases three additional
headquarter buildings. Scottrade is again named
one of FORTUNE magazine’s “100 Best Companies
to Work For.”
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, Inc. was formed,
and J.D. Power and Associates acknowledge the
company once again.
2008
Scottrade opens 75 branch offices, and hires nearly 1,000
associates, bringing its total to more than 2,700. The
growth is one of the 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.
Rodger Riney celebrates Scottrade’s 30-year
anniversary at the 2010 annual associate meeting.
2010
Celebrating its 30th anniversary, Scottrade reaches
another milestone: 500 branch offices. Scottrade
also opens a secondary trading operations center
in Chicago, and a secondary business operations
center in Denver. For the third consecutive year,
Scottrade is named one of FORTUNE magazine’s
“100 Best Companies to Work For.”
2011
Continuing its tradition of providing customers the best
service at the best value, Scottrade Bank will begin offering
retail deposit products to Scottrade account holders.
pg. 04
2010 Annual Report
Section 01 30 Years of Service
Highlights from 2010 –
Growth and Stability
Each year throughout our
30-year history, Scottrade
has continued to help
customers invest better.
Our company has grown steadily in all
facets of the business, from growing and
nurturing our customer base to maintaining
a culture for associates that revolves
around Rodger’s founding principles and
belief in treating people right.
pg. 05
During the past year, Scottrade’s
unwavering commitment to both
value and service has resulted in the
growth of our branch network, new
resources for our customers and
improved recognition of our brand. And
during a volatile economy when many
companies were forced to pull back,
Rodger and the senior leadership team
steered a nimble operation allowing for
our company to not only develop, but
grow our talent base.
Bricks and Clicks:
Celebrating
500 Branches
Our company was founded on customer service
and value, and it is these commitments that drive
the continued growth of our branch network.
The face-to-face customer service that Scottrade
associates provide in our branch network is
something that many of our competitors don’t
offer – and it is one of the things in which we are
most proud. Although Scottrade does not provide
advice, our associates are available to answer
account-related questions, provide customer
service and give tutorials on Scottrade’s online
trading tools.
After 30 years of steadily opening branch offices
in communities across the country, we opened
our 500 th branch office in December. This is a
milestone that is unmatched by any other online
investing firm.
“Opening our 500 th nationwide branch office shows
Scottrade’s commitment to serving customers in
the communities where they live and work,” said
Rodger Riney. “Our branch offices complement our
online services by providing in-person support and
education to help investors take control of their
investments and become better investors.”
2010 Annual Report
real-time tools:
Scottrader
Streaming Quotes
®
In 2010 Scottrader® Streaming Quotes – our real-time trading
tool – was redesigned to give customers a better way to stay
up-to-the-second with quotes, news and charting. Free of
charge, and a part of our trading website, the improvements
make it easier for customers to search and find new trading
opportunities. Included in the enhancements are:
Ease of use
• Immediately access stocks by creating double the
number of watch list symbols as before (now 40)
• Receive help at all times with quick reference points on
all screens
• Research and execute trades more quickly with intuitive
navigation
• Use fewer clicks to update all windows with the linker
feature
• Simply enter any type of trade from tabbed browsing
options from a basic order to a more advanced one
• Access all linked accounts from a drop-down menu
Rodger Riney cuts the ribbon to open Scottrade’s 500th
branch office in New York City. From left, Jane Wulf,
Rodger Riney, John Healy and Mary Koomar.
More research
• Charting has also been enhanced by added growing
trend lines and increased indicators providing more
in-depth research
• Dow Jones News can be searched by entering symbol,
category or keyword
Opportunity finder
• See the daily high and low performing market movers
in real-time
• Continuously monitor accounts with the active ticker,
which scrolls the symbols from watch lists at a
customizable speed, allowing for it to be sped up or
slowed down depending on personal preference
• Find the top 10 gainers, losers and most active
symbols in one place across the various exchanges
• Create custom alerts to track the symbols of interest
“I use Scottrader® Streaming Quotes
every day. The Scottrade team had
me – and all the other traders
who choose to self-direct their
investments – in mind when they
rebuilt the tool. It is important
for Scottrade to be able to provide
the latest tools, resources and
education to investors so they can
trade with more confidence.”
– Rodger Riney
FOUNDER, PRESIDENT and CHIEF EXECUTIVE OFFICER
pg. 06
2010 Annual Report
Section 01 30 Years of Service
Upgrades & features:
Scottrade Mobile
Scottrade Mobile, accessible at m.scottrade.com,
underwent significant upgrades to now include
added features and functionality that advance
customers’ ability to access positions, execute
trades and monitor and react to changes in the
market from any Internet-enabled phone. The
enhancements to Scottrade Mobile are a part of the
firm’s larger mobile trading strategy.
In comparison to other online trading firms,
Scottrade Mobile is the only mobile trading site
to offer:
• Stock and ETF screeners
“Scottrade customers’ feedback
was the direct inspiration behind
the redesign of Scottrade Mobile.
The redesigned Scottrade Mobile
is easier and quicker to use, and
continues to offer more research to
help our customers make informed
investment decisions on-the-go.”
– Chris Carril
senior mobile channel analyst
• Dedicated ETF2 section featuring detailed
quotes and research, which include: news and
commentary, charts, options, performance,
portfolio allocation, expenses and Lipper
Leader Rankings
• Recent research displaying the last five stocks
and ETFs viewed
• GPS-enabled branch locator
• Scottrade SmartText™, which summarizes
complex charts and information into plain English
that is easy to understand
Scottrade SmartText™
*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.
pg. 07
2010 Annual Report
driving awareness:
The Scottrade Brand
At its core, the Scottrade brand stands for value.
This past year, we updated our brand strategy to
ensure that we not only communicate the value we
offer our customers through low commissions and
fees, but also the support we provide to empower
the self-directed investor.
In order to broaden our advertising and marketing
reach, we implemented a new media strategy in 2010
that includes sports networks and print publications.
This, coupled with a new creative strategy and
integrated marketing efforts, led to a double-digit
increase in Scottrade’s brand awareness among
self-directed investors, according to brand-tracking
studies conducted to monitor the health of Scottrade’s
brand. Building awareness and consideration among
this investor segment is integral to the growth of our
customer base.
Scottrade continued to feature the Chad A. Ridgeway
character in television ads and social media sites.
Rodger Riney is filmed for a “Welcome to Scottrade” television commercial.
pg. 08
2010 Annual Report
Section 01 30 Years of Service
Awards
from 2010
May
Joanne Wilken Receives
CIO Ones to Watch Award
Recognized for her leadership, innovation and value to the
organization, the process managing director oversees all of
Scottrade’s project management, quality assurance, change
and release management and business architecture.
January
For the Third Consecutive Year,
Scottrade Named to FORTUNE’s “100
Best Companies to Work For” List
The firm ranked 27th on the list in 2010. Scottrade
impressed FORTUNE by promoting almost all managers
from lower ranks, laying off no one due to the recession,
hiring more than 1,000 new associates and opening 58
new branches.
pg. 09
February
Scottrade Honored as Top Online
Brokerage for Customer Loyalty for
Fifth Consecutive Year
Scottrade was named the winner in the Online
Brokerage category of the 2010 Brand Keys Customer
Loyalty Engagement Index. For the fifth consecutive
year, Scottrade ranked higher than any other online
brokerage firm in the index.
2010 Bronze Quill Award Winner
Scottrade Awarded Bronze Quill for
Excellence in Communication
The firm was recognized for its internal video contest,
which invited associates to submit videos of what a
“day in the life” of their position or team looked like.
2010 Annual Report
June
Scottrade Named a Best Place to
Work for Recent Grads
Jennifer Long Named
Meeting Planner of the Year
Experience, Inc. recognized Scottrade for adapting to
the evolving workforce, committing to cross-functional
training programs and embracing social causes that
matter to young professionals.
Recognized for her ability to elevate the awareness of
Scottrade by organizing investment education events
across the country, the meetings and events manager
was named 2010 Planner of the Year by Meeting
Professional International’s St. Louis Chapter.
Scottrade Chosen as One of the Best
Places to Work in IT by Computerworld
The magazine honored Scottrade for the third year in a row
due to its job security, training and recognition program.
September
November
Scottrade Named to St. Louis
Regional Chamber & Growth
Association’s Greater St. Louis Top 50
For the sixth time, the St. Louis Regional Chamber & Growth
Association named Scottrade to the Greater St. Louis Top
50 for positively affecting the business community’s future.
Scottrade Makes InformationWeek
500 List of Top Technology Innovators
Kelly Doria Recognized as a PR Corporate
Professional of the Year Finalist
Expanding its mutual fund3 offering to one of the
widest selections available, while streamlining
operations and implementing controls that
safeguard customers, earned Scottrade a spot on
the list for the fourth consecutive year.
Nominated for her strong abilities and leadership in
elevating the Public Relations Department’s influence
across the company, Kelly Doria, Scottrade’s director
of public relations, is recognized as a PR Corporate
Professional of the Year finalist by PRNews.
pg. 10
The
Scottrade
Family
Branch Administration Manager Jay Hanagan attends a training class at Scottrade’s Corporate Headquarters.
30
Section 02
Scottrade associates help customers discover
a better way to trade and invest by working to
provide innovative products, tools and resources
that deliver the best value and customer service
in the industry.
2010 Annual Report
Section 02 The Scottrade Family
Our
Corporate
Culture
commitment to investors:
The Brand Promise
Scottrade strives to provide our customers with
innovative products, tools and resources that deliver
the best value and customer service in the industry.
Our brand is how we bring our commitment to the
individual investor to life. It is the culmination of every
interaction, experience and communication that
people have with Scottrade, and it is what separates
us from our competitors.
We help customers discover a better way to trade
and invest. This is our brand promise and our
commitment to our customers.
Scottrade has built its success on a 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 the best service and
value to not only our customers, but our associates as well.
Scottrade has built its success on a foundation of
doing what’s right.
pg. 11
Senior Branch Stock Broker Mary Ferry assists a
customer over the phone.
2010 Annual Report
Teamwork
Employee Poll
Jan 25, 2010
Total participants: 1,888
We rely on a strong commitment to teamwork to meet
our common goal of providing the best value and best
service to our customers.
Trust & Integrity
We stand for honesty in every aspect of our business
and empower our associates to do their jobs in an
IT Training Specialist Kraig Tenge collaborates with
Technical Writing Specialist Heather Bodendieck.
ethical manner. By doing this, we gain the confidence of
our customers.
Open Communication
Dedication & approach:
Our Core Values
We encourage the honest and frequent sharing of
ideas, opinions and information across all levels of
the organization.
Which of these qualities
from the Great Place to Work
Institute is most important
to you in a workplace?
32%
Respect
26%
Fairness
18%
Camaraderie
17%
Credibility
6%
Pride
These five core values exemplify our dedication to our
associates and our approach to business:
Customer Service
Satisfying our customers 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.
Service Center Manager Jeremy Kearns meets
with colleagues.
pg. 12
2010 Annual Report
Section 02 The Scottrade Family
Leadership
Scottrade’s leadership team strives
to deliver the best experience
for our customers 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.
Chief Administrative Officer,
Assistant Secretary
Jane Wulf
Jane has 28 years of industry experience and has spent
24 years at Scottrade. She is responsible for the hiring
of all employees, benefit administration, compensation,
employee relations, human resources, training, branch
Founder, President and Chief Executive Officer
Rodger Riney
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 D. 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.
pg. 13
development, facilities management and the National
Service Center. Jane is a Certified Senior Professional
in Human Resources and maintains Series 7 and
24 registrations.
2010 Annual Report
Chief Financial Officer, Treasurer
Ronald Wiese
Ron has 29 years of industry experience and has been
with Scottrade for 20 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,
Executive Director of Branch Administration
and Corporate Communication
Mary Koomar
Finance, Payroll 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.
Executive Director of Operations
Catherine Maher
Cathy has been with Scottrade for 15 years and is
Mary has 30 years of securities industry experience and
responsible for managing all back office operations,
has spent 24 years at Scottrade. She is responsible for
including margin, new accounts, stock records,
Scottrade’s branch network, corporate communication
cashiering and account transfers. She holds a Bachelor
and travel and relocation. Mary received a Bachelor of
of Science in Business Administration from Saint Louis
Science from Western Illinois University. She currently
University, is a Certified IRA Services Professional and
maintains Series 4, 7 and 24 registrations.
maintains a Series 27 registration.
pg. 14
2010 Annual Report
Section 02 The Scottrade Family
Executive Director of Business and
Product Development
Steve Walkenbach
Steve has spent 12 years at Scottrade and is responsible
for managing the firm’s customer-facing trading tools
and websites. Departments reporting to Steve include
Advisor Services, Asia Pacific Services, OptionsFirst
and Active Trader Services. Additionally, he supervises
initial product development and enhancements to
existing products and services. Steve holds a Master of
Business Administration from St. Louis University and a
Bachelor of Arts in Communication from the University
of Missouri-St. Louis. He currently maintains Series 7
and 24 registrations.
General Counsel, Executive Director
of Legal, Compliance, Fraud & Loss
Prevention and Trading Services
Executive Director – Special Projects,
Special Assistant to the President
Michael Jung
Mike has been with Scottrade for 10 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 Missouri-Columbia and is a Certified
Public Accountant.
pg. 15
Andrew Small
Andy has 18 years of industry experience and has
spent eight years at Scottrade. He oversees the Legal,
Compliance, Fraud & Loss Prevention and Trading
Services 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.
2010 Annual Report
President, Scottrade Bank
Joseph Pope
Chief Information Officer, Executive
Director of Information Technology
Ian Patterson
Ian joined Scottrade in 2005, bringing with him 20
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
Joe has more than 20 years of banking experience and
joined Scottrade at the beginning of 2007. He oversees
all aspects of Scottrade Bank, 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.
Chief Marketing Officer
Kim Wells
Named CMO in 2010, Wells has more than 22 years
of business development and marketing experience,
including more than 10 years of leading online marketing
strategies in the financial services industry. Wells leads
the firm’s overall strategy in advertising, branding, public
relations, marketing research and direct marketing. She
supports their data centers and internal branch network.
most recently served as Scottrade’s director of branding
All voice, data, security, development, desktop support
and website marketing. Wells holds a bachelor’s degree
and computer technology is supervised by Ian.
in Business Administration and Marketing from Miami
University in Oxford, Ohio.
pg. 16
2010 Annual Report
Section 02 The Scottrade Family
Community
Involvement
Scottrade enthusiastically provides assistance to organizations in the areas where our
associates and customers live and work. Our philosophy is to support the organizations
that our associates support so that we can enable them to serve their communities
better and to be connected to organizations that are important to them.
Scottrade’s philanthropy is a dual effort – our company and our associates work
together to support the community. Through the Charitable Giving program, Scottrade
matches associate contributions to the organizations they choose to support. We also
donate $20 for every hour an associate volunteers his or her time to a charity.
We are dedicated to this philanthropic mission
because we value our associates’ personal
connections to local charities.
pg. 17
Scottrade and our associates:
voluntarily-supported
organizations of 2010
The organizations Scottrade and our associates have
voluntarily supported with their time, talent and resources in
2010 include:
2010 Miracle Ride Benefitting Riley Hospital
ALZ Golf Classic
Alzheimer’s Association Memory Walk
Alzheimer’s Association of STL
American Cancer Society
American Diabetes Association
American Forest for the Global ReLeaf Campaign
American Heart Association
American Parkinson Disease Association
American Red Cross
Angels’ Arms
Anti-Defamation League
ASTD Conference
Autism Speaks
Backstoppers & Blues Alumni Hockey
Bob Emig Foundation
Boy Scouts of America
Boys Hope Girls Hope
Cardinal Glennon Children’s Hospital
Cardinal Ritter College Prep
CASA of St. Louis County
Celebrate St. Louis
Character Plus
Clear Channel Radio
Confluence Wheelchair Sports Foundation
Crew/Safe Connections
Dana-Farber Cancer Institute
Edgewood Children’s Center
Epilepsy Foundation of New Jersey
Families United
FOCUS St. Louis
Food Outreach
2010 Annual Report
Forest Park Forever
GASA (Guardian Angel Settlement Association)
Girl Scouts
Global Brigades
GPACAC Annual Conference
Grand Center, Inc.
Greg Stewart Trivia Night
Habitat for Humanity
Humane Society of Missouri
Huntington’s Disease Society of America
James D. Ball
Junior Achievement – Mississippi Valley
Juvenile Diabetes Research Foundation International
KidSmart-Tools for Learning
Komen Foundation
Legal Advocates for Abused Women
Leukemia & Lymphoma Society
Lucky Lane School Auction
Lydia’s House
MADD
March of Dimes – March for Babies
Marian Middle School
Mary Kendrick-Buckner, Sonja Bradley-Wadley and Nickole Carr-Norman
take part in the Alzheimer’s Association Memory Walk.
Marine Corps League
Maryland Heights Police Department Officers Association
Meds & Foods for Kids
Mental Health of America Eastern Missouri
MercyHealthClinic
Missouri Baptist University
Missouri Botanical Garden
Missouri Colleges Fund Inc.
Mizzou Hydrogen Car Team
Mizzou Soiree in Stripes
MPI Fundraising
Multiple Sclerosis (Arcturis)
NAMI St. Louis
National Multiple Sclerosis Society
National Right to Work Committee
Olin Business School Awards
Operation Brightside
Operation Food Search
Organization Rome Haiti
Paralyzed Vets of America Gateway Chapter
Parents As Teachers (National Center)
Professional Women’s Alliance (Lydia’s House)
Project ARK/Washington University
Ready Readers
Rebuilding Together
Ronald McDonald House
Shakespeare Festival
Sherwood Forest Camp
SLAMPI
Society of St. Vincent DePaul, Inc.
Special Olympics
St. Louis Military Officers Support Group
St. Louis RCGA “Try St. Louis” Golf Tourney
St. Baldrick’s Foundation
St. John’s Mercy Foundation
Benefit4theKids
St. Louis Arc
St. Louis Art Museum
St. Louis Blues
St. Louis Business Travel Association
St. Louis County Economic Council
St. Louis Help
St. Louis Learning Disabilities Association
St. Louis Police Foundation
St. Louis RCGA
St. Louis Zoo
St. Xavier University
Stray Rescue of St. Louis
Sunrise Assisted Living
The Magic House
The Salvation Army
Thompson Foundation for Autism
United Services
United Way
University of Missouri
USO of Missouri
Vianney High School
Villa Auction
Wee Love Day Care/School
West County Family YMCA
When Abby Smiles
Winning Women (YWCA)
World Series of Bocce
Youth Reach International
Scottrade associates participate in
National Rebuilding Day.
pg. 18
2010 Annual Report
Section 02 The Scottrade Family
Diversity &
Sustainability
Understanding diversity:
Our goal is to create a company culture that not only
The Value of an
Individual’s Perspective
includes, but also inspires. We proactively seek to
We understand that diversity goes beyond race
a variety of diversity media outlets.
build a diverse workforce, and our recruitment
efforts include attending diversity job fairs, using
diversity-focused websites and advertising through
Risk Specialist James Kroner and Cashiering
Associate ShaTanya Rodgers
and includes gender, disability, age, faith, sexual
orientation and financial status. Scottrade values the
Our efforts are embodied in those who work in
Scottrade’s relationship with Asia Pacific groups has
unique perspective each individual brings to the firm
our offices and branches across the country. In
continued to grow. Currently, we have the largest
and provides a professional work environment that
the metro Miami suburb of Kendall, Fla., one
market share in the Chinese community when
promotes consideration and integrity.
Scottrade branch office includes a first generation
compared to other discount brokerages. Since
Columbian-American, an associate from Puerto
the Asia Pacific Services’ inception in 2001, our
Our associates come from more than 50 countries,
Rico of Chinese and Vietnamese descent, a
Chinese-speaking staff has grown to more than
and in order to create a positive work environment,
first generation Cuban-American and a
100 associates, including about 60 who work in
every associate completes diversity training.
Cuban-born associate.
branch offices.
pg. 19
2010 Annual Report
Sustainable Practices:
Preparing for
Future Growth
To prepare for 30 more years of growth and beyond,
Scottrade recognizes the responsibility to ingrain
sustainable practices into our growth plans.
While Scottrade has always had a commitment
to the environment, in 2010, we formed an official
Sustainability Committee. This team establishes
sustainable elements to existing facilities, such as
installing recyclable carpet, programmable thermostats
and light sensors. Also, the Committee tracks energy
consumption and water use to create benchmarks for
future changes. For the holiday season, the committee
partnered with Operation Food Search to recycle
holiday lights, with the program’s proceeds assisting
the area’s food needs.
Margin Associate Jessica Dybala
Scottrade Advisor Services Relationship Supervisor Ursula Leath
pg. 20
SERVING
OUR
CUSTOMERS
Scottrade Branch Manager Crystal Diaz-Granados assists a customer over the phone.
30
Section 03
Low commissions are only the beginning of the value we
provide to our customers. In everything we do – from our
500 nationwide branch offices to advanced technology
and innovation – Scottrade is continually focused in
improving customers’ investing experiences.
2010 Annual Report
Section 03 SERVING OUR CUSTOMERS
Support &
Resources
personal service:
500 Local Branches
We’ve been asked many times why an online business
needs local branch offices. Sure, we know the Internet
is the most cost-effective method of delivering
investing services to individual investors. But, we also
know that investing is still a service-oriented business.
We believe that there are many investors who value
receiving that service locally, from a broker with whom
they have some rapport, instead of a distant call
center. Sometimes there’s no substitute for talking with
Low commissions and fees are only the beginning of the value we provide to our
customers. In everything we do – from our extensive branch network and award-winning
customer service to investor education and our easy-to-use trading tools – Scottrade is
continually focused on improving our customers’ investing experiences.
someone in person. We think it sets our business apart.
“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 customers on the things that are important to
them. In our branches, we are not selling anything, and
Each component of Scottrade’s operations works
toward a common goal: helping customers discover a
better way to trade and invest.
we’re not advising on what or when to buy. We’re just
there to help.”
As we have said for years, we are all about value. Today,
Scottrade still represents the value of $7 online trades1,
plus the added benefit of educational resources, trading
tools and services, and the personal customer service
available at branch offices nationwide.
pg. 21
2010 Annual Report
Scottrade opened our 500th branch office in 2010,
and we are the only online investing firm with such an
extensive branch network.
Extended support:
National Service Center
When a customer has a service need, they don’t want to be
transferred to an outside organization for help – they want
help from knowledgeable people from the organization they
work with. Because of this, none of Scottrade’s service
centers are outsourced. Every Service Center associate is
employed directly with Scottrade, creating a true sense of
ownership for assisting clients.
The Service Center associates who currently
communicate with customers through Scottrade’s
online chat feature now also respond to inquiries
that come through Scottrade’s Facebook and
Twitter pages. In addition, the Public Relations team
continues to monitor and post the latest Scottrade
news, updates and special event information.
Our online chat feature has also been expanded
across the Scottrade website. Each of these changes
reflect our passion to meet our customer’s needs
wherever they are. Whether it’s on Scottrade.com or
In 2010, job duties in our secondary Service Center in
through social media – we’re here to help.
Denver expanded, creating additional flexibility with hours
of operation for supporting clients across the United States.
In October, Sunday hours were added at our associates’
request. Scottrade anticipates extending our National
Service Center hours even further in 2011, expanding our
ability to help customers whenever it is most convenient
for them.
Since 2007, Scottrade has answered questions and
provided information on blogs, message boards, Facebook
and Twitter. Since then, these efforts have grown
tremendously. To accommodate the increasing online
dialogue and to continue to address customer and prospect
needs through these channels in the most effective ways
possible, the Public Relations Department teamed up
Scottrade’s 500th nationwide branch office
opened in New York City.
with associates from the Service Center to begin a
unified effort.
Scottrade’s Service Center associates respond
to customer comments on Facebook.
pg. 22
2010 Annual Report
Section 03 SERVING OUR CUSTOMERS
Becoming BETTER INVESTORS:
Customer Education
Online trading may be quick and easy, but online
investing takes time.
Strengthening Scottrade’s position as an information
Scottrade continued to add more webcasts to our
resource for current and potential investors, we
library, including topics on ScottradeELITE upgrades,
introduced in 2010 a redesigned media center to
how individuals can use the Knowledge Center and an
provide customers with more than 60 educational
overview of the Scottrade Online Community. Podcasts
webcasts and approximately 75 new education and
are also offered in Spanish and Chinese.
Scottrade sends regular e-mail newsletters to
Although online trading saves investors time and
customers. Active traders receive monthly newsletters
money, it does not take the homework out of making
that highlight features of ScottradeELITE® and teach
investment decisions. Before making a trade, investors
customers how to use them. Scottrade’s entire
need to understand why they are buying and selling,
customer base receives a quarterly newsletter that
as well as the risk of each investment. Scottrade’s
covers investment basics, frequently asked questions,
aim is to help our customers become better investors,
industry terms and trading techniques.
and this aim is illustrated in Scottrade’s continual
development of our in-person and online customer
The Scottrade Online Community was launched in April
education offerings.
2008 to provide customers with a way to interact and
learn from fellow investors as well as Scottrade product
Scottrade’s branch seminars assist customers with
navigating our trading tools and provide education
about investing. Nearly 4,800 branch seminars were
specialists. The Community uses group discussions,
Assistant Director of Customer Education Kristin
Grupas films a podcast.
held during the year across the country.
blogs and educational videos to engage and educate
customers on how to use Scottrade’s tools, products
and services and to understand more about the
“Branch seminars are great off-line resources for our
help articles. Additionally, we launched Live Webinars
markets. In 2010, more than 45,000 active investors
customers who have questions about the ins and outs of
in April 2010, conducting 128 webinars on topics such
have already joined the Community, and it continues to
using Scottrade’s trading tools or investing in general,”
as active trading and order types. We also introduced
grow daily.
said Kristen Grupas, assistant director of customer
KnowHow News, an educational newsletter, producing
education for Scottrade. “These seminars provide an
approximately 130 new articles to further Scottrade
As a firm committed to personal service, Scottrade
opportunity for customers to get to know their local
customers’ investment education on areas such
recognizes the importance of customer education, and
branch managers and to get a better understanding of
as investing strategies, market analysis and
we are dedicated to looking for new opportunities to
the valuable resources they can find in the branch.”
expert perspectives.
expand resources for self-directed investors.
pg. 23
2010 Annual Report
Number one core value:
Customer Relationship
Management
in building relationships. Whether through
improving account funding or capturing critical
information about future opportunities with specific
Scottrade services, Scottrade’s CRM system
At Scottrade, customer service is number one on
assists our associates in capitalizing on the many
our list of our five core values. To build upon this
opportunities to enhance customers’ experiences
core value, Scottrade has implemented a customer
with us.
relationship management (CRM) system to serve as
a toolkit to help associates deliver the best service
Bringing together information from many different
to each customer every time it is needed.
sources, CRM’s ultimate aim is to help our
employees understand each customer’s total
In 2010, Scottrade launched this new system, called
relationship with Scottrade in order to deliver the
Compass, to our entire network of branch offices
exceptional service and support our customers
and the National Service Center. More than 1,500
expect from us.
employees are using the system each day to better
serve our customers and improve our effectiveness
E-mail Marketing Analyst April Mullen
Customer Poll
AUG 20-OCT 13, 2010
Total participants: 4,954
coordinating a smooth lead management process,
Which of the following
describes you best in terms
of your experience or skill
level with making your
own investment decisions
without the help of a broker
or financial advisor?
18%
Beginner
58%
Intermediate
24%
Advanced
Mary Koomar, Michael Ngo, Chrisan Nisio, and Nate Denig
gather together at a Branch Manager meeting in Arizona.
pg. 24
2010 Annual Report
Section 03 SERVING OUR CUSTOMERS
Meeting diverse needs:
Online Trading Tools
To meet the unique needs of each customer,
Scottrade has multiple easy-to-use trading tools,
beginning with Scottrade’s main trading website.
Designed for self-directed investors who want a
convenient, affordable way to invest, our site allows
customers to trade their investment products and
provides immediate access to real-time balance
information, streaming quotes and news.
Additional features include personalized watch lists
and stock alerts, as well as integrated page-level help.
Also a part of the main trading website, Scottrader®
Streaming Quotes offers charts and news, as well as
single-click trading access. Scottrader® Streaming
Quotes allows investors to track their portfolios
in real time and gives them the power to take
advantage of market momentum.
account information, including balances, order status
For investors who are active traders and want to
maximize their trading experience, ScottradeELITE ,
and positions; react to real-time market changes by
our advanced trading tool, includes extended hours
trading stocks and exchange-traded funds (ETFs)
charting, three-minute intraday charts, Quote Grid
with market, limit, stop limit and trailing stop orders;
columns, customizable screens, integrated tools and
and access extensive research tools, including stock
personalized support. The tool’s $25,000 minimum
and ETF screeners, and in-depth, real-time market
account balance requirement is also among the
research and news.
®
lowest in the industry.
Customers who want an advanced options trading
tool will find Scottrade’s OptionsFirst™ a perfect fit.
OptionsFirst™ offers the latest in options functionality,
and its users are supported by a dedicated team of
specialists at Scottrade’s Corporate Headquarters.
Highlights of the trading tool include risk analysis,
virtual trading, watch lists, intuitive navigation, oneclick trading and complex options strategies.4
To meet the on-the-go demands our customers face
each day, Scottrade Mobile keeps them connected
to their investments no matter where they are.
Scottrade Mobile empowers investors to react to
the latest changes in the market, giving customers
the freedom to manage accounts and trade online
from any Internet-enabled mobile device with no
application to download. Customers can monitor
their account, research information, place trades and
make informed investment decisions on-the-go. At
Scottrader® Streaming Quotes
pg. 25
m.scottrade.com, Scottrade Mobile users can view
ScottradeELITE®
2010 Annual Report
financial services needs:
Scottrade Bank
The same philosophy that has made Scottrade
successful as a brokerage – outstanding customer
service, products and services that exceed our
customers’ expectations, and advanced technology
and innovation – will carry over into Scottrade Bank,
which will offer retail banking products and services.
The availability of banking products will be just
another reason why more investors will consider
Scottrade for their financial services needs.
Scottrade Bank completed its second full year of
operations in 2010. As the largest participant in the
Scottrade Bank Deposit Program, the Bank was
able to substantially increase its balance sheet
during the past fiscal year. Scottrade Bank now
ranks as the 28th largest thrift in the United States.
Risk mitigation during difficult economic times is
imperative, which is why more than 97 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.
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
pg. 26
2010 Annual Report
Section 03 SERVING OUR CUSTOMERS
Chinese-language services:
Asia Pacific
Scottrade’s Asia Pacific Department was established
in 2001 with the launch of the Chinese-language
version of Scottrade.com. In August 2010, Scottrade
launched the Chinese-language Online Community,
and in October debuted ScottradeELITE’s Chinese
platform to further serve Scottrade’s Chinese-language
customers. Now, Chinese-language investors can
Jonathan Yao, director of Scottrade’s Asia Pacific
Service Center said, “In order to express our gratitude
to the continuous support and trust from our
Chinese-speaking customers in the past years, the
only thing left for us to do in return is to increase our
Scottrade Advisor Services:
Independent Registered
Investment Advisors
efforts even more to improve our service capabilities.
Since 2005, Scottrade Advisor Services has offered
With the smooth rollout of ScottradeELITE Chinese
a low-cost institutional trading and custodial
and our Chinese-language Online Community, we’ve
services platform to independent registered
formed a comprehensive Chinese-speaking customer
investment advisors (RIAs). Through an easy-to-use
service and investment education network.”
website, advisors can manage multiple accounts
through one master account, place block trades
benefit from the platform’s integrated order entry,
account management and market research, as well
Asia Pacific Services launched live online support
as account linking and customized templates and
in 2005 to provide improved service for customers.
layouts. December 2010 also saw the first
Today, Asia Pacific Service Center associates are
Chinese-language webinar.
available 24/7 to provide support at any time.
with real-time allocation to client accounts and
conveniently bill advisory fees.
Unlike many other investment custodians, Scottrade
does not provide in-house financial advice or
investment recommendations as any part of its
business model, enabling Scottrade to serve as a
business partner, not a competitor, to the advisors
it serves. In addition to providing online trading
services and tools, Scottrade Advisor Services
assists advisors with their business and trading
needs by providing an individualized, dedicated
relationship team to each advisor.
In 2010, Scottrade Advisor Services expanded
research offerings to advisors by providing access
to Morningstar and Dow Jones Advisor. In addition,
Jonathan Yao, Director of Asia Pacific Services, Jennie Liu, Asia Pacific Online
Community Specialist and George Su, Asia Pacific Call Center Manager
pg. 27
it focused on advisor education by providing content
on practice management, compliance, technology
2010 Annual Report
and ongoing education of Scottrade systems. Also,
tool, ScottradePro. The tool offers resources to help
have a minimum asset fee because we do not have a
Scottrade Advisor Services launched an advertising
RIAs easily manage and organize accounts, trade
minimum asset requirement. This cost savings allows
campaign in select print media while exhibiting at key
more efficiently, track gains and losses5, and quickly
advisors to reallocate their finances to other business
industry tradeshows. Scottrade Advisor Services’
produce client reports.
needs such as compliance, technology or other start-up
customer base includes 750 advisory firms, and in 2010
assets grew by 50 percent.
costs,” said Brian Davis, director of Scottrade Advisor
For flexibility in accessing, storing and reporting
Services.
customized client data and performance, RIAs
Input from advisors has helped improve our trading
can use Scottrade’s Portfolio Director® portfolio
Scottrade Advisors Services’ low commissions coupled
platform, expand product availability and develop
management tools. They can screen and evaluate
with personalized customer service through dedicated
features to meet the needs of RIAs. Scottrade Advisor
stocks, mutual funds and ETFs, as well as use
relationship teams makes Scottrade Advisor Services
Services’ trading and account management platform,
Scottrade’s block trading system to streamline
an exceptional value for advisors looking to grow
advisor.scottrade.com, includes institutional block
entering clients’ trades. RIAs can also use Scottrade
their practices. With no advisor enrollment fee and
trading, advanced cost basis reporting and client
Advisor Services’ Online Community and Twitter page
no minimum asset requirement, Scottrade Advisor
management tools. Recently, Scottrade Advisor
to exchange business information and ideas.
Services has the account management tools for advisor
Services introduced upgrades to our Web trading
“Unlike many of our competitors, Scottrade does not
practices of 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.”
Brian Davis, Director of Scottrade Advisor Services
– Brian Davis
DIRECTOR OF scottrade advisor services
Scottrade Advisor Services Relationship Manager Pat
Johnson and Scottrade Advisor Services Relationship
Supervisor Joe Monteleone
pg. 28
FUTURE
OF CUSTOMER
CARE
Financial Office Assistant Marian Koehrer assists a customer at a branch office.
30
Section 04
We look forward to a future in which we continue
to assist investors in reaching their goals by
growing our business, expanding our reach and
continuing to innovate.
2010 Annual Report
Section 04 FUTURE OF CUSTOMER CARE
Growing,
Expanding &
Innovating
Accommodating overall growth:
Expanded Headquarters
Throughout 2010, Scottrade prepared for the
expansion of our Corporate Headquarters to the
Maryville Centre area in West St. Louis County. In
2009, Scottrade purchased the addresses of 500-510
Maryville Centre, a four-story, 165,000-square-foot
office building, and 700 Maryville Centre Drive, a
five-story, 215,000 square-foot office building. The
Maryville Centre locations will accommodate the
growing needs of the firm while keeping new and
existing jobs in the St. Louis area.
Scottrade also purchased a 204,000 square-foot
office building in Westminster, Colo. The four-story
In our 30th year in business, we celebrate the
commitment to our customers that has brought us
this far, and we look forward to a future in which
we continue to aid investors in reaching their goals
by growing our business, expanding our reach and
continuing to innovate.
facility serves as a secondary business operations
center housing additional operations, information
technology and National Service Center associates.
“These buildings are an important step in Scottrade’s
short and long-term growth plans,” said Scottrade
Founder, President and Chief Executive Officer
Rodger Riney. “As we worked to expand our
national branch office network to 500 branches,
and the number of customers we serve continues
to grow, the number of associates at our Corporate
Headquarters here in St. Louis must grow,
necessitating the need for additional office space.”
pg. 29
2010 Annual Report
Scottrade associates at 500 Maryville Centre, one of three new
headquarter buildings purchased in 2010.
Scottrade’s Corporate Headquarters in St. Louis, Mo.
pg. 30
2010 Annual Report
Section 04 FUTURE OF CUSTOMER CARE
Media plans:
Attracting New
Customers
and “Welcome To Scottrade.” We broadened our
Launched in September, “Welcome to Scottrade”
advertising strategy and media mix by extending
is a fully-integrated advertising and marketing
our presence beyond financial and news media to
campaign that goes beyond showcasing
include lifestyle, entertainment and leisure media
Scottrade’s longstanding $7 online trades1 to
placements in both television and print media.
highlight the multitude of available resources and
support we provide to help investors make better
To aid in reaching more investors who want to
find a better way to invest, Scottrade continued
Launched in January, “Don’t Go” introduced Chad
to leverage its updated branding and advertising
A. Ridgeway, a recurring character whose actions
approach, which launched in November 2009.
and attitudes serve as a humorous example of what
“We build relationships with investors and offer
It included an updated logo, a new tagline that
Scottrade is not. He’s never where he’s supposed
the resources, education and support to help
encourages people to take control and “Get
to be or working on what he should be working
them along their journey,” said Rodger Riney. “We
Invested,” and new print and national television
on; instead he’s on a yacht, playing squash, eating
have attracted do-it-yourself investors through our
broadcast creative designed to appeal to the
at a fancy restaurant or riding in a limousine –
trademark $7 online stock trades1. Now, we are
empowered, independent investor.
not paying attention to his customers. Beyond
working to showcase our many strengths beyond
appearing in advertisements, Ridgeway brings
our low commissions.”
This year, we introduced two new television,
his thoughts to life through his Twitter profile and
online and social media campaigns: “Don’t Go”
Facebook Page.
investing decisions.
Additionally, Scottrade remained one of the largest
advertisers on leading websites for investors
“These new ads showcase investors
making their own trading and
investing decisions and the
support Scottrade provides them
on that journey.”
A new ad campaign, “Welcome to Scottrade,”
premiered in September.
pg. 31
– Kim Wells
Chief marketing OFFICER
seeking stock quotes, research and news. Our ads
are frequently seen on sites such as Yahoo!, MSN.com,
CNBC.com, TheStreet.com and CNNMoney.
Scottrade has become a well-recognized name
in the financial services and investment industry
by growing our customer base, branch network
and multimedia advertising campaigns. Among
traditional media, Scottrade is one of the most
prominent investing firms on networks such as
CNBC, FOX News and MSNBC.
2010 Annual Report
Public Relations initiatives for 2010 included
American Investor Survey
jul 22-aug 02, 2010
Total participants: 1,058
showcasing the results of two proprietary studies:
the American Investor Survey and the American
Retirement Survey. These surveys gauged investors’
confidence levels and revealed specific trends about
their attitudes and behaviors, including movements
among specific demographic groups, such as Gen
Y and Baby Boomers. The Public Relations team
secured stories about these results in leading media
outlets, and these initiatives continued to strengthen
Scottrade’s position as a thought leader in the
financial services industry.
In 2010, how do you think
your financial portfolio
(excluding real estate) will
perform versus 2009?
The Public Relations team also reached out to
local media in cities with branch offices to further
Scottrade’s Facebook page
welcomes new visitors.
recruit new Scottrade customers and enhance
It will be up significantly
25%
It will be up a little
36%
It will be flat
12%
It will be down a little
5%
It will be down significantly
Scottrade’s reputation as a leading firm. Via
social media sites such as Twitter, Facebook and
YouTube, we build the Scottrade brand through
During 2010, Scottrade remained visible at Busch
industry-leading initiatives. Through Public
Stadium, home of Major League Baseball’s St.
Relations’ efforts, Scottrade’s message of improving
Louis Cardinals. In addition, Scottrade continued
investors’ experience has been seen in leading
to sponsor the National Hockey League’s St. Louis
media outlets throughout the country. Scottrade’s
Blues and their arena, “Scottrade Center.” The
positive press coverage from 2010 includes AARP
arena showcases the Scottrade name on national
Bulletin, Barron’s, CNBC, Forbes.com, FORTUNE,
television, as well as to nearly two million visitors
Kiplinger’s, TIME.com, USA Today and U.S. News &
who attend its 175 annual entertainment, sports and
World Report, to name a few.
family events.
22%
pg. 32
2010 Annual Report
Section 04 FUTURE OF CUSTOMER CARE
SECURITY UPGRADES:
Strategy for
Technological
Improvements
Scottrade’s information technology projects in 2010
ranged from improving customer login security to
updating its trading websites. In May, the IT team
created new security standards for customer login using
VeriSign multi-layer authentication. These standards are
compliant with Federal Financial Institutions Examination
Council guidelines and ensure Scottrade customers are
able to securely access their accounts. Also in May, the
team enhanced technology in the Service Center and
Branch Trading in order to better manage and recover
from possible trading outages. The trading website was
updated in June to include a day trade counter on the
home page and a full quote on the trade page, among
Server Administration Support Intern Roman Turnbow
other improvements.
The Security Center on Scottrade.com educates
customers on how to protect themselves from
features integrated anti-virus, anti-spyware and
rating system that displays next to search results or
fraudulent activity by using safe online habits,
firewall technologies. The software also includes
while browsing.
understanding common identity theft methods and
SiteAdvisor , which tests and rates nearly every
installing security software.
trafficked site on the Internet for web safety issues
Scottrade provides protection and reimbursement
such as spyware, adware, excessive pop-ups,
through our Online Security Guarantee. Protecting our
Scottrade offers all customers a free one-year
spam and phishing scams. SiteAdvisor™ uses these
customers’ personal information—and helping them to
subscription to McAfee VirusScan® Plus, which
results to warn customers of risky websites using a
do the same—is one of Scottrade’s highest priorities.
pg. 33
™
2010 Annual Report
the switch, we have now achieved completed
systems redundancy to deliver a seamless customer
experience through any unplanned events like
natural disasters or other unforeseen circumstances.
DISCLOSURES
1. Online market and limit stock trades are just $7 for stocks priced
$1 and above.
2. Investors should consider the investment objectives, charges,
expense, and unique risk profile of an Exchange Traded Fund (ETF),
John Spitznagel, Scottrade’s director of Data Center
or Closed End Fund (CEF), carefully before investing. Leveraged
Planning Services, described the project as a “leap
and Inverse ETFs, and CEFs, may not be suitable for all investors
into the future” that involved testing every IT service
at Scottrade.
and may increase exposure to volatility through the use of leverage,
short sales of securities, derivatives and other complex investment
strategies. These funds’ performance will likely be significantly
different than their benchmark over periods of more than one day,
“It was a huge effort,” said Susan Davis, business
analysis manager, whose team oversaw headquarter’s
and their performance over time may in fact trend opposite of their
benchmark. Investors should monitor these holdings, consistent
with their strategies, as frequently as daily. A prospectus contains
departmental testing for the project. “I’m impressed
this and other information about the ETF, or CEF, and should be
with how well all of the areas involved worked together
obtained from the issuer. The prospectus should be read carefully
as a team to achieve this important goal.”
before investing.
3. Investors should consider the investment objectives, risks,
“Everyone’s effort allows Scottrade to enter a new
technology era,” Spitznagel said.
Scottrade’s Chief Information Officer Ian Patterson
STATE-OF-THE-ART DATA CENTERS:
Leaping Into the Future
charges, and expenses of mutual fund carefully before investing.
Mutual funds are subject to market fluctuation including the potential
for loss of principal. A prospectus contains this and other information
about the fund and is available through www.scottrade.com or
“We’ll now be running our IT
operations in two state-of-the-art
data centers, ensuring our customers
the highest levels of services,
security and availability.”
through a Scottrade branch office. The prospectus should be read
carefully before investing.
4. 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).
Two years and 30,000 hours of IT prep work led
to the switch of IT operations from Scottrade’s St.
Louis data center to Phoenix in June 2010. With
– John Spitznagel
director of data center planning services
5. 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.
pg. 34
2010
ANNUAL report
Margin Associate James Valenti
30
Serving Self-Directed Investors Since 1980.
(800) 619-SAVE (7283)
Member FINRA/SIPC.
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www.scottrade.com