Best IRA providers in 2018

Best IRA providers

There are hundreds of brokerage firms and banks offering thousands of different IRA accounts. With so many pieces of information on retirement accounts available online, you can spend hours, days and even weeks piecing information together to choose the best IRA provider for you.

If you want to take the shortcut, below are the best IRA providers in 2018. With these providers, you can avoid spending too much of your hard-earned dollars on unnecessary fees and can expect to receive the best services.

Best overall IRA provider

TD Ameritrade is a great place to open an IRA account. It offers a vast range of IRAs, from Roth IRA and Traditional IRA to Rollover IRA, SEP IRA, SIMPLE IRA and a bunch of other accounts with annual or opening fees. What I like most about this trusted brokerage is that you can expect to receive the best services, one of the industry's best investment tools and the widest selection of investments- stocks, ETFs, options, futures, mutual funds and a range of fixed-income instruments.

The biggest-selling point is that TD Ameritrade provides a selection of perks not offered by many other well-known brokerage firms in the country. That is why TD Ameritrade has slightly high trading commissions. For instance, it charges $6.95 for stocks and ETFs in contrast to $4.95 charged by its lowest-cost rivals. It is not a reason to brush it off though.

TD Ameritrade offers over 250 commission-free ETFs and a great number of no-transaction-fee mutual funds. All of these will help cut down the cost of investment.

TD Ameritrade makes it easy for a new investor to open an online account and learn more about retirement investing. Yet if you prefer face-to-face business, this IRA provider has over 100 branches around the country to help you with all your questions.

You will need to start with an initial deposit of $2,500. After that, your contributions can be as small as $50 or even less. You can open a TD Ameritrade account with no obligations or commitments with no deposit and explore all the retirement and trading tools the company offers.

  •   Minimum initial investment of $2,500 for an IRA; $0 to open an account
  •   $6.95 for stocks and ETFs (over 250 commission-free ETFs); $49.99 for mutual funds (a wide range of no-transaction-fee mutual funds)
  •   No annual fee

If you plan to invest $3,000 or more you can take advantage of a special TD Ameritrade's offer. When you make a deposit within 60 calendar days of account opening you receive $100+ cash bonus in addition to commission-free trades fot 60 days. All you need is just open a new IRA account and make a deposit.

If you would like to learn more about TD Ameritrade, check out this TD Ameritrade review.

Best cheapest IRA provider

Ally Invest is the number one IRA provider when it comes to the cheapest option. The company does not only offer fees-free IRA accounts, but it also has one of the lowest commissions among the largest online investment companies.

Investing in stocks will cost you only $4.95 and mutual funds will cost only $9.95.

For active traders, which means you make 30 or more trades in the prior calendar quarter, Ally Invest is cutting commissions down to $3.95 per trade.

As TD Ameritrade, Ally Invest offers different types of retirement accounts. The most popular, traditional and Roth IRAs, as well as Rollover and SIMPLE IRAs, are among them. Any retirement account can be opened with as little as $0. The broker does not set a minimum initial deposit.

Open Ally Invest account now or or transfer your account, and Ally Invest will credit other brokers' transfer fees up to $150.

  •   Minimum initial investment of $0 for an IRA; $0 to open an account
  •   $4.95 for stocks and ETFs; $9.95 for mutual funds
  •   No annual fee

If you'd like to learn more about Ally Invest, take a look at this Ally Invest review.

Best bank IRA accounts

Ally takes up the second spot among IRA providers this time as the best online bank IRA provider. All Ally Invest self-directed investors have access to a range of great banking products with high rates.

The availability of all investments under one roof is one of the most attractive and convenient benefits Ally Invest offers.

IRA High Yield CD, IRA Select CD, IRA Raise Your Rate CD and IRA Online Savings are FDIC-insured accounts with competitive rates and no maintenance fees. Accounts offer flexible funding options and available for Roth, SEP and Traditional IRAs. Interest is compounded on a daily schedule.

You can open an IRA bank account as a new Ally bank customer. You can also open and access it through an Ally Invest self-directed account, which can be opened with no fees or commitment in less than 15 minutes.

  •   No minimum initial or opening deposit
  •   Competitive rates
  •   No maintanance fees

Which IRA account is the best for you?

Best IRA providers

Finding the best provider to open an IRA is the first step to enjoying many years ahead of worry-free retirement savings. You will save more money if you choose a retirement provider which can help you avoid too many fees. Even though most investment companies do not charge annual IRA fees, there are many companies that still do charge those fees. Make sure that your IRA provider is not one of them.

Making sure that an IRA provider offers the right type of retirement account for you is the next step. The Roth IRA and the traditional IRA are the two most popular retirement accounts.

The biggest difference between a Roth IRA and a traditional IRA is seen when you pay income tax on your money. With the Roth IRA, you pay income tax on the money you put in. With the traditional IRA, you contribute pretax money. There is an income cap on who can use the Roth IRA. There are no income limits with the traditional IRA.

Which one is better? It really depends on what tax bracket you will be when you retire. But again, in this fast-paced world, it depends on what the tax laws will be then.

With the Roth IRA, money can be taken out tax- and penalty-free at any time. Of course, money can be taken out of a traditional retirement account at any time. Yet, if you do it before the age of 59½, you will have to pay a huge 10% penalty fee on your dollars.

The main difference between bank IRA accounts and brokerage IRA accounts is the number of investment choices available. With a bank as your IRA provider, you have traditional choices for retirement savings – savings accounts and certificates of deposits. A brokerage IRA account gives you access to a wider range of investment instruments such as ETFs, stocks and mutual funds, as well as fixed-income instruments.

Whether you go with a brokerage firm or a bank as your best IRA provider, choose a retirement account that makes the most sense for you and your financial situation.

Big savings!

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