You probably don’t think of Scottrade in the same way as a Schwab (SCHW) or Pershing, but it might only be a matter of time. The St. Louis-based custodial and trading firm announced Tuesday that its Scottrade Advisor Services arm recently surpassed 1,000 advisory firms in its client base.
The institutional division “has seen progressive growth year over year, with 2010 assets growing by 50% and 2011 assets growing by 45%,” Scottrade said in a statement.
“I think we’ve got a great value proposition,” Brian Davis, director of Scottrade Advisor Services (left) told AdvisorOne when asked about the reasons for the firm’s success. “We have no asset minimums, which offers a low barrier to entry for breakaway advisors, as well as existing firms. We don’t compete with our advisors for clients like many of our competitors. Most importantly, our customer service sets us apart. The advisor gets a dedicated team, regardless of asset size; we don’t have a call center-type structure.”
Davis said the source of the advisors with which Scottrade partners is “pretty evenly split” between wirehouses and independent broker-dealers.