Best Brokers for IRA Retirement Accounts in 2018

Where to open an IRA can be an intimidating question. Options range from online discount brokers to robo advisors to mutual fund companies. With all of these choices, it can be difficult to know which is best. Whether you are looking to open a traditional IRA, Roth IRA, rollover or even a SEP IRA, in this article we’ll cover the best IRA accounts based on how you want to invest.

The key to choosing where to house your retirement account is your investing style. If you want to invest in a single family of mutual funds, an account at the mutual fund company is sensible. If you want somebody else to handle your investments, including rebalancing, a robo advisor is an ideal choice. And if you want to trade stocks and ETFs, an online discount broker is the way to go.

I’ve personally used all of the above options, which are covered below. We’ll first look at the top choices for IRA accounts, and then cover a longer list of options in more detail.

The Best Options by Investing Style

Best IRA Account Brokers in 2018

• Betterment: The best IRA option for first-time investors. Very easy to use and extremely low fees.
• Ally Invest: Best hybrid approach. You get access to Ally Invest Managed Portfolios, an automated investment service, as well as its award-winning, low-cost brokerage services.

Betterment

Betterment is the easiest way to get started with an IRA and an excellent choice for first-time investors. Simply select how much you want to invest in stocks and bonds, and Betterment does the rest. It re-balances your investments and reinvests your dividends automatically.

• IRA’s available: Traditional / Roth / Rollover / SEP
• Fees associated with the account: None (No opening, maintenance, custodial or closeout fees of any kind). Betterment does charge a fee based on account balance that ranges from 0.25% to 0.40%.
• Account minimums: None (No initial minimums and/or account requirements)
• Takeaway: Betterment is ideal for those who want low cost passively managed investments, but don’t want the hassle of picking mutual funds and rebalancing. For more information check out our Betterment review or visit Betterment.

Visit Betterment

Vanguard

Vanguard is the king among low cost index mutual funds. Because the firm is not seeking to make a profit, it passes the savings on to investors. I’ve had multiple accounts at Vanguard for years, including Individual Retirement Arrangements and other retirement accounts. In addition to mutual funds, Vanguard offers ETFs and brokerage services.

• IRA’s available: Traditional / Roth / Rollover / SEP
• Fees associated with account: None (No opening, maintenance, custodial or closeout fees of any kind)
• Account minimums: $1,000
• Takeaway: An excellent choice for those who want to invest in Vanguard funds and have a minimum of $1,000 to invest.

WealthSimple

WealthSimple is a sophisticated robo advisor that is very easy to use, low cost, and with excellent features. Much like Betterment, all you need do is select the allocation you want between stocks and bonds. From there, Wealthfront invests your IRA in several low cost well diversified ETFs. It rebalances your investments and reinvests your dividends automatically.

• IRA’s available: Traditional / Roth / Rollover / SEP
• Fees associated with account: None (No opening, maintenance, custodial or closeout fees of any kind). WealthSimple does charge a 0.50% fee based on account balance and a 0.4% fee for balances over $100,000. The first $5,000 is managed for free.
• Account minimums: None
• Takeaway: WealthSimple is ideal for those who want sophisticated asset allocation at a low cost and with minimal effort. For more information visit WealthSimple.

Visit WealthSimple

Ally Invest

Ally Invest is unique among IRA accounts. It offers both traditional online brokerage services with trades as low as $4.95. It also offers what it calls Ally Invest Managed Portfolios, an automated investment service. It’s like getting Betterment and E*Trade in one.

• IRA’s available: Traditional / Roth / Rollover / SEP / SIMPLE
• Fees associated with account: None (No opening, maintenance, custodial or closeout fees of any kind). Ally Invest Managed Portfolios, like all robo advisors, charges a small fee. This fee is 0.30% annually.
• Account minimums: None for brokerage services. $2,500 for Ally Invest Managed Portfolios
• Takeaway: Ally Invest offers both brokerage and automated investment services. Ideal for those wanted a wide range of IRA account types and investment options. For more information check out our Ally Invest review or visit Ally Invest to open an IRA.

Visit Ally Invest

E*Trade

E*Trade was the very first online broker I signed up with after graduating college. With their recent purchase of OptionsHouse, their trading platform is my personal favorite. E*Trade offers a wide variety of account opens and IRA’s, and also offers small bonuses for moving over an IRA to E*Trade.

• IRA’s available: Traditional / Roth / Rollover / SEP / SIMPLE / IRA for Minors /Beneficiary / Roth IRA CD / Traditional IRA CD
• Fees associated with account: No annual fees
• Account minimums: None
• Takeaway: If you can avoid some of the fees with high balances, E*Trade is a full-service brokerage option. For more information check out our E*Trade review or visit E*Trade.

Visit E*Trade

TD Ameritrade

TD Ameritrade is a trusted brokerage house with excellent IRA options. Its research tools are unparalleled, and it even offers up to $600 when you rollover a 401k to an IRA. You can open an account online in just minutes.

• IRA’s available – Traditional / Roth / Rollover / SEP
• Fees associated with account – No set-up, maintenance or annual fees.
• Account minimums – None (No initial minimums and/or account requirements)
• Takeway: Well known for its trading tools and research, TD Ameritrade was ranked #1 for IRA accounts by Kiplinger. For more information check out our TD Ameritrade review or visit TD Ameritrade.

Visit TD Ameritrade

Final Thoughts

When deciding which online discount broker is the best place to transfer an existing IRA, or start investing in a new one, there are a few important factors to consider. First, you should make sure that the broker offers the specific type of IRA you are interested in. While most online discount brokers carry the same IRA accounts, there are a few unique options available.

The next and most important question you need to ask is “What are the fees associated with opening, maintaining and closing my IRA?” If you are paying a high premium, then the tax benefits may not be worth it in the long-run. Finally, when you factor in account minimums and customer service, you should find the online discount broker that’s right for you.

Topics: Investing

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