| 25 January 2010

We're normally not big on reporting about the back-end machinations of broker-dealers. As exciting as wire-room transactions and cubicle expansions can be, they're often more about process than strategy and, well, we're strategy guys at heart.

We did, however, report with wanderlust the news that Charles Schwab (SCHW) was closing its landmark San Francisco branch. That was exciting, until they opened another landmark branch office right next door. E*TRADE Financial (ETFC) also has a branch-office network but they've been more in the shutting-down mood lately.

Today, however, we learn that Scottrade is preparing to open up a 204,000 square, foot four-story facility in Westminister, Colorado. This, we figure, is a good time to comment on Scottrade's growth of late -- which has been stellar. The company is private, so details are sketchy, but the firm generated a reported $838 million in revenue in 2008 (according to Inc. Magazine), has been on a tear with new branch openings, and recently launched a new TV marketing campaign to woo self-directed investors away from their broker. (Which also, we must admit, introduced us to our favorite line-of-the-minute: "Thanks! You're a huckleberry." Shankapatamous: you're out!)

We also like the way the firm has experimented with new media. We reported on that fact when we noticed Scottrade was one of the first brokers to jump on the Twitter bandwagon.

The new office is expected to open up 285 new jobs in Colorado, mostly in service and support functions. Execs are currently negotiating incentives with the City of Westminster. Scottrade currently employs more than 1,000 people in four different St. Louis-area locations; plus, they support a data center in Phoenix, Arizona. This is all in addition to 425 branch offices nationwide bringing the total number of workers to over 3,000.

This move, while relatively small in the scheme of things, is a strong signal to us that Scottrade is doing very well. We plan to keep a close eye on their expansion efforts.

In a statement, Scottrade's CEO, Rodger Riney, expressed enthusiasm for the expansion. "As we expand our national branch office network and the number of customers we serve continues to grow, it is necessary for Scottrade to grow outside of the St. Louis area. We are excited to be a part of the greater Denver community," he said.

We should also note that the new office is located right next to a small, private airport and is surrounded by a swanky golf course. We're just sayin'.





Full disclosure: we work with Scottrade to develop content from Learning Markets for some of their education initiatives.