How To Withdraw Money From Scottrade Account

Review of: Scottrade
Discount Stock Broker:
Scottrade
Price:
$7 per trade

Reviewed by:
Rating:
4
On April 26, 2010
Last modified:November 14, 2012

Summary:

Withdraw money from Scottrade brokerage account is easy and there are many ways to do that. Among them, the fastest way is using the Scottrade check card or the writing a check to yourself, which are free if you have at least $5,000 in your account.

I just realized that I have never taken any money out of my Scottrade account, in nearly 9 years since becoming a customer in 2001. All I did in the past was adding more and more funds into the account and buying more and more stocks.

As I mentioned before Scottrade is my primary stock broker. Among all the discount brokers I am using, the Scottrade account is the largest, in both number of holdings and market value. In early 2009, I bought some stocks through Scottrade when the market was near multi-year low (now we can safely say that the stock market bottomed on March 9, 2009). Back then, I didn’t just buy stocks. I did some selling as well. However, the proceeds never left the account. Instead, the money was used to buy more shares because I wanted to take advantage of the opportunity that didn’t come around very often.

Unlike other stocks I acquired before, I didn’t have a long term plan for most, if not all, of the stocks purchased at that time. I wanted to make some quick money instead, for our next house we were planing to buy (ending up in Virginia was never in the plan though). After the 30% house down payment and a big tax bill that have already been paid and the house upgrade and furniture purchases on the way, our savings accounts will soon be very thin. The time to tap into the brokerage account to boost our savings accounts for other planned spending has finally come.

Related Article: Scottrade OptionsFirst Options Trading Review

Late last week, I sold some stocks in my Scottrade account and withdrew the proceeds for the first time. The process is a little different than funding Scottrade account, which can be done with Money Direct, a tool that’s similar to ACH transfer. Scottrade does offer a few ways to move money out of the account, but direct account transfer, i.e., from broker account to bank account, is not one of them. To withdraw money, I can

  • Request a check;
  • Wire the money to bank account;
  • Use a Scottrade check card or check.

The first method is free but takes the longest time, while the second method is the fastest, but there’s an extra fee ($20 outgoing wire) involved. The last method, which I wasn’t aware of until now, seems to be quite convenient, but it doesn’t come automatically. To use check writing or check card (free) to transfer money (account minimum of $5,000 is required), I has to apply to set it up by submitting an application form to Scottrade local office first. Once the application is approved, Scottrade will provide the first 50 checks for free. The process will take some time to complete, but it’s a one-time task.

I have submitted the form, now just wait for the check to come. Next time when I want to transfer money out of Scottrade account, I can just write a check to myself :)

Related Article: Review of Scottrade Bank

BTW, if you are interested in getting a Scottrade brokerage account, here’s how you can get 3 commission free trades to begin with:

  1. Go to Scottrade.com
  2. Use the promotion code KGKP0724 to open an account (a minimum of $500 is required)
  3. Enjoy your commission free trades.
Withdraw money from Scottrade brokerage account is easy and there are many ways to do that. Among them, the fastest way is using the Scottrade check card or the writing a check to yourself, which are free if you have at least $5,000 in your account.

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This post was written by Sun You can find out more about Sun and his activities on Facebook , or follow him on Twitter .

7 Responses to “How To Withdraw Money From Scottrade Account”

  1. bb |  Apr 26, 2010 at 10:47 am

    Can you use the routing + account number on the check to set up an ACH in any online savings banks?

    • Sun |  Apr 26, 2010 at 6:52 pm

      Probably not. Yes, maybe you can set up the link from an external bank, but I don’t Scottrade will let you pull the money out from the bank. It can simply block such transaction if it doesn’t allow ACH transfer as what it does now.

  2. SavingEverything |  Apr 26, 2010 at 10:44 pm

    That’s the major disadvantage of scottrade, and why so many people I’ve heard do not give them business. I’m suprised you gave them business with such a big disadvantage and time consuming event to get your funds when you need them! Even if you write a check, you then have to deal with your own bank’s schedule of availability of funds for checks that are usually considered non-local. Other brokers online have allow etf and usually the money is in your bank account 2 days after.

  3. yummi |  May 05, 2010 at 12:41 pm

    Really great and simple tip this one. I feel like with a lot of these things it’s a very simple thing to do its just difficult emotionally.

  4. Sam |  Dec 24, 2010 at 11:49 pm

    You can use Routing+Account for ACH setup with other banks. I do that. Scottrade gave me a UMB check book. So the routing mapped to UMB. Since login to scottrade is not same as UMB login, online credentials do not work. So, we need to use trial deposit method.

    • Sun |  Feb 28, 2011 at 3:05 pm

      Good to know. I haven’t tried that yet, but it seems quite simple. Some banks, however, may charge a fee when initiating transfer through them.

  5. David |  Nov 07, 2012 at 4:55 pm

    With Scottrade, you can transfer money from your Brokerage account to an external bank account (like Bank of America, Wells Fargo, Chase, etc) via ACH if you open a Scottrade Bank account. A bank account with Scottrade is free, has no maintenance fees, and is easy to set up. The Scottrade Bank account serves as a middle man, helping transfer money from your Brokerage account to your external bank account. Once the Scottrade Bank account is set up, it will then be linked to the Brokerage account, and it will allow you to instantly transfer settled funds from your Brokerage account to the Bank account, and then to your external account. Transferring funds from your Scottrade Bank account to your external account is free and should post to your external account within 3 business days. With a Scottrade Bank account, you also have the option of obtaining a free ATM card, which would then allow you to have access to the funds in your Scottrade Bank account, right away, via a local ATM. Although I have yet to try an ATM withdrawal (I just ordered my card, it should be here in 2 weeks), I’ve read that Scottrade reimburses some of the ATM fees one might run into.