Top Roth IRA providers for 2013

I have looked any many brokerage houses to select some of the best Roth IRA account providers for you to use in 2013. In this article we will cover the top Roth IRA providers where you

Roth IRA is a powerful retirement saving tool for everyone who can use it. You invest money in the Roth IRA account on an after tax basis but all eligible withdrawal are tax free, so your money grows tax free until you retire and start withdrawing your money. If you are eligible to open a Roth IRA account  to open a Roth IRA, you should not wait any longer.

How to Select a Roth IRA account?

In order to select the best Roth IRA account, you should first review your requirements. Do you want to trade stocks in the account, do you want to invest in index funds and ETF, do you want to invest money in CDs? Roth IRA provided by various institutions will differ in the instruments you are allowed to invest in. For instance, a Roth IRA offered by bank may only offer the ability to invest in CDs (which are currently giving very low rate of returns), a Mutual fund provider can also act as a custodian for your Roth IRA account. Brokerage houses and discount brokerage houses also provide Roth IRA accounts. So which one should you go with?

After reviewing many account, I have concluded, discount brokerages offer the most flexibility in terms of the instruments you can invest in and also offer the lowest fees. Some mutual fund providers also offer very competitive accounts.

ETrade: ETrade is one of the nations leading online brokerage firms. They also have offices in many cities across USA. They are also a bank and offer good checking and savings account. ETrade is one of the companies which can help you have all your financial accounts under one roof. They are also economical when it comes to trading cost and other fees. Trades start at $9.99 and go down with volume.

TradeKing: TradeKing is one of the biggest discount brokerage houses that offer a Roth IRA account. There are no fees to open the account or no annual custodian fees. TradeKing also offers $150 as reimbursement for transfer charges when you transfer your assets to TradeKing from another brokerage firm. Stock trades are prices at $4.95 and is among the lowest in the industry for retail customers.

Vanguard: Vanguard is the default option when it comes to mutual fund providers and they also have a very good offering for Roth IRAs. If you know that you will primarily be dealing in mutual funds then Vanguard may be the place to go. Vanguard has some of the lowest expense ratio funds in the industry and pass on all profits to their consumers. Accounts at vanguard are free of charge if you meet some minimum balance requirements and opt for online statements.

Fidelity: Fidelity offer a competitive Roth IRA account among mutual fund companies. You need a minimum of $2,500 to get started with a free account or you must invest $200 per month (or else you may be charged a maintenance fee). You can trade free of commission in funds offered by Fidelity but you will have to pay a commission if you want to invest in funds operated by third party. One main drawback with Fidelity is the minimum $10,000 requirement to invest in index funds, however over time you can accumulate money in your Roth IRA account and then invest in Index funds, if you so desire.

What about the big bank? In my search I found that most of the big banks are charging either a high fee for trading, have minimum balance requirements and an unhappy customer base for Roth IRA accounts, so none of them made it to the top four we selected.

Do you already have a Roth IRA account at another place? It is never too late to switch to a better provider. In your experience, which Roth IRA provider has been the best for you?

4 thoughts on “Top Roth IRA providers for 2013

  1. Grayson @ Debt Roundup April 18, 2013 at 6:27 pm

    I have my Roth opened with Betterment. I plan on switching it over to Vanguard once I get pasted a certain amount because I want to invest in certain funds with Vanguard.

  2. Daniel April 19, 2013 at 4:08 am

    I use Vanguard. When I started, I was worried about the high minimums, but that quickly became a non-issue. Looking back, I’m very happy with the decision because it’s easy to manage everything in one place and their fees are extremely low for mutual funds.

    • The Money Mail April 22, 2013 at 7:01 am

      Low cost operations are a big plus for vanguard. Good choice

  3. zimmy@moneyandpotatoes.com May 29, 2013 at 5:23 am

    I have a Roth IRA with etrade and have been generally satisfied with it. I opened it up a few years ago with only a couple of bucks (no minimum deposit) and have found several mutual funds that allow you to buy shares with no transaction fees. They have decent market tools at your disposal and the customer service is at least above average. I know there might be better companies out there for my Roth IRA account but I am satisfied with etrade.

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