Before you begin buying investment for your Roth IRA, you must spend a decent amount of time comparing and contrasting the different Roth IRA companies around the country. As a general rule, there are 3 different types of Roth IRA investments: mutual funds, stocks, and options.
Top 5 Best Roth IRA Account Companies
If you plan to trade stocks in your Roth IRA, then it makes sense to pay attention to commissions and transactions fees since they eat away at your investment returns. Here’s a list of highly recommend Roth IRA companies.
Our #1 Pick – TradeKing Roth IRA
TradeKing is an online discount brokerage firm, based out of Boca Raton, FL, that specializes in options trading, stock investments, mutual fund investing, and retirement accounts as well. I have personally used TradeKing for almost 4 years for my stock trading needs along with Fidelity. TradeKing has low commissions, great customer service, and is a well-rounded online discount broker.
- Stock and ETF Trades : $4.95
- Stock Options Trades: $4.95 + $0.65 per options contract
- Margin Rates: 6.50%
- Mutual Funds: $14.95 per trade
- Bonds: $4.95 per transaction
Pros and Cons
- Pros: Great Customer Service, Fast Trade Execution, Retirement Education, Active investing community and Top level security.
- Cons: Slow site speed, Difficult to Transfer Money
Click Here to Apply for TradeKing Now
#2 – Scottrade Roth IRA
For more than 25 years, Scottrade has been a leader in the stock brokerage industry. A leader in technology, a leader in customer service and a leader in value.
- Minimum Deposit: $500
- Stock Trades Commission: $7
- Options Trades Commission: $7 + $1.25 per contract
- Bond Commission: $3 per bond
- Margin Rates: 7.75%
- Inactivity Fees: None
- IRA Annual Fees: None
Pros and Cons
- Pros: Great registration process, Low $7 commissions, $0 inactivity fees, $0 IRA fees, low bond commissions, good customer service
- Cons: Average trading tools, Lack of research tool, Expensive options per contract fee
Click Here to Apply for Scottrade Now
#3 -Etrade Roth IRA
E*TRADE is a well known online discount brokerage, probably most known for its infamous Super bowl baby commercials. They also offer a wide range of investment products such as equities, currencies, futures, options, exchange-traded funds, mutual funds, and bonds, as well as offers quick transfer, wireless account access, extended hours trading, quotes, and research and advanced planning tools.
In terms of cost and size, You will receive the greatest benefits by starting a Roth IRA account with Etrade if you care about complex investment solutions at a very attractive price.
- Minimum Deposit: $1,000
- Stock Trades Commission: $7.99
- Options Trades Commission: $7.99 + $0.75 per contract
- Bond Commission: $1 per bond
- Margin Rates: 7.14%
- Inactivity Fees: None
- IRA Annual Fees: None
Pros and Cons
- Pros: Excellent financial charts, powerful trading engine, easy to use trading interface, reasonable commission, $0 maintenance fees
- Cons: $1,000 account minimum, geared for more intermediate/advanced traders
Click Here to Apply for Etrade Now
#4 – Sharebuilder Roth IRA
ShareBuilder makes investing easy, affordable, and accessible for new and experienced investors. Customers can take advantage of our wide range of brokerage services like automatic investing, real-time trading, options trading and margin borrowing.
I held my 2nd ever investment account with Sharebuilder for about 1 year. I switched because I disliked the limited investment options since I prefer advanced trades like Stop loss, limit, etc.
- Minimum Deposit: $1,000
- Stock Trades Commission: $4
- Real Time Trades: $9.95 per trade
- Options Trades Commission: $9.95 + $1.50 per contract
- Bond Commission: $1 per bond
- Mutual Funds: $0 to $19.95 depending on load
- Margin Rates: 6.50%
- Inactivity Fees: None
- IRA Annual Fees: None
Pros and Cons
- Pros: Automatic investing options, $0 minimums, low stock trading commissions
- Cons: No Limit trades, terrible charts, high minimum account balance, only for beginners
I highly recommend Sharebuilder for beginner investors who want to put their investing on autopilot though. You can invest a specific amount every week or month to take advantage of dollar cost averaging, one of the simpliest ways to invest for retirement.
Click Here to Apply for Sharebuilder Now!
#5 – OptionsHouse Roth IRA
OptionsHouse, which was voted as #1 in trade experience and #1 for stock options traders in the 2009 Barron’s Online Broker Survey, is one of the hottest new brokers on the scene. They are very comparable to TradeKing in terms of price, offerings, and customer service. However, TradeKing has been already a bit longer so I have more trust in TradeKing’s longevity.
- Minimum Deposit: None
- Stock Trades Commission: $2.95
- Options Trades Commission: $8.50 + $0.15 per contract
- Mutual Funds: $9.95
- Margin Rates: 4.45%
- Inactivity Fees: None
Pros and Cons
- Pros: Low commission fees, $0 minimum deposit, $0 inactivity fees, clean interface
- Cons: Relatively new broker, Too simple trading tools, Average customer service
OptionsHouse attracts a ton of attention with its low commission fees and optimized options trading platforms. It’s best geared for Roth IRA investors who plan to trade options.
Click Here to Apply for OptionsHouse Now
Conclusion
For most people, opening an brokerage account with a general investment firm gives you access to all 3 types of investments. If you’re a seasoned investor, then you may favor one investment vehicle over the other two. It’s best to select a online brokerage firm that offers a solid array of investment options in case you choose to diversify your portfolio in the future.
Because of this, we recommend TradeKing #1. TradeKing offers stocks, bonds, mutual funds, ETFs, and most complex trading strategies including limit, trailing stops, and advanced order types. Click here to apply for TradeKing now!
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