An individual retirement account (IRA) allows you to save and invest with tax breaks. You can open an IRA with a broker or a robo-advisor. The best IRA accounts provide an extensive investment selection (stocks, bonds, ETFs etc.), low fees, and the support needed to hit your retirement target. But this means different things for different people. The right fit depends on your goals, investment style, and level of expertise. To help you decide, we’ve identified the best IRA accounts for various situations.
To help you find the best IRA to meet your goals, we conducted hundreds of hours of comprehensive research, data analysis, and live platform demos on 26 online brokers and 21 robo-advisors, covering a total of 73 criteria and 1611 data points. We've been researching and reviewing IRA companies since 2019, and Investopedia has been a trusted source of financial information since 1999.
Best IRA Accounts for September 2024
- Best for Full-Service Brokerage Features: Fidelity Investments
- Best for Investor Education: Charles Schwab
- Best for Ease of Withdrawals After Age 59 1/2: E*TRADE
- Best for a Truly Hands-Off Approach to Investing: Wealthfront
- Best for Automated Investing With Access to Human Advice: Betterment
- Best for Access to Human Advisors: Merrill Edge
- Best for Access to Low-Cost Mutual Funds: Vanguard
- Best for a Wide Range of Global Assets: Interactive Brokers
Best for Full-Service Brokerage Features : Fidelity Investments
![Fidelity Investments](https://www.investopedia.com/thmb/9eNg0HpHYHL4g4MZ1O7OOC3nrqo=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Fid-Logo-Blk-2160x480-8a29ae20e787478b80d7e7732debf40f.jpg)
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trades
Fidelity delivers the complete package of brokerage services for IRA investors. Its accounts come with a top-tier investment offering, excellent pricing, quality trading platforms, and in-person support from Fidelity’s brick-and-mortar centers.
No IRA account minimums or fees
First-class investment selection
Large range of IRA account types
High-quality investment research and education
Excellent customer service, including in-person
Portfolio analysis and planning tools could be better organized
No futures trading, limited crypto and commodities selection
Virtual assistant only has basic functionality
As the largest broker in the country, Fidelity can offer plenty to its IRA investors. It provides a full range of IRA account types. Its IRAs have no account minimums or monthly fees, and they access Fidelity's massive selection of low-cost investments. Fidelity also pays a decent interest rate on uninvested cash.
Fidelity, Investopedia's choice as the best online broker overall, as well as for numerous other categories, shines with its service. It offers an extensive library of educational resources, abundant financial planning tools, and industry-leading customer support options. Investors can even get help in person at the Fidelity brick-and-mortar branches nationwide. That’s a key reason why it scored as the best full-service broker for IRAs.
Fidelity’s flaws are minor. While it offers plenty of analysis and planning tools, these could be better organized on the platform. Fidelity is also missing some investment options. It doesn’t allow futures trading and only offers limited access to commodities and crypto. Fidelity launched in 1946 and is headquartered in Boston. It continues to grow thanks to quality investment options like its IRAs.
Read the full Fidelity Investments review.
Best for Investor Education : Charles Schwab
![Charles Schwab](https://www.investopedia.com/thmb/n4ZNWFTJb5kGWWwtSF8mKifzNrc=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/charles-schwab-productcard-5c742da0c9e77c00010d6c5b.png)
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0.65 per contract for options
Charles Schwab makes it easy for investors to learn how to properly use an IRA. It provides user-friendly investment platforms, plenty of educational materials and live training sessions, and high-quality customer support, including in person.
Multiple investment platforms, including those made for beginners
Extensive educational materials and guides
Good range of IRA account types
No IRA account minimums or fees
Excellent customer support, including in-person options
No fractional share ETF trades
High fees on some mutual funds
Low interest rate on uninvested cash
Limited crypto trading
Charles “Chuck” Schwab founded the Charles Schwab Corporation in 1971 as a discount brokerage to open investing to regular people. The company has its headquarters in Westlake, Texas. Charles Schwab still focuses on supporting newer investors and offers the best investor education. Its website provides plenty of quality educational materials and guides on investing and retirement. Its IRAs have no account minimums or fees. Charles Schwab offers several investment platforms, including IRA custodial accounts made for beginner investors.
If a customer needs help, they can reach Charles Schwab by phone, email, live chat, or at one of its in-person branches. Charles Schwab’s IRA accounts lack a few investment options seen elsewhere, such as fractional shares of ETFs and direct investments in crypto. However, Charles Schwab offers spot Bitcoin and Ethereum ETFs. If you keep uninvested cash in your IRA, Charles Schwab pays interest, but the rate is low compared to others.
Read the full Charles Schwab review.
Best for Ease of Withdrawals After Age 59 1/2 : E*TRADE
![ETrade logo](https://www.investopedia.com/thmb/z2q-SJy93HGnKMI1dLqdRX-2Fuo=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Extrade-e1c511b275f548af9df5dacaf9630bcd.jpg)
ETrade logo
- Account Minimum: $0
- Fees: No commission for stock, ETF, and mutual fund trades. Options are $0.50-$0.65 per contract, depending on trading volume.
E*TRADE’s Complete IRA account makes it easy for retirees to access their IRA savings. It offers multiple fast withdrawal options, including checks, a debit card, and bill pay directly from the IRA.
Convenient access to IRA savings after age 59½
No IRA fees or account minimums
Zero-commission trades
Two impressive mobile apps for trading
High-quality educational content
No direct crypto investing
Low interest rate on uninvested cash
$2,500 investment minimum for ETFs
An IRA has two stages. First, you build up your savings, and second, you spend them in retirement. E*TRADE's Complete IRA product does an exceptional job with the second part. Once you turn 59½, you can immediately take money out of your IRA without waiting to complete paperwork. You can also tap into your IRA using a debit card, checks, and bill pay. It’s much faster and more accessible than other brokers.
E*TRADE also does a good job helping you build your savings first, with zero-commission trades and two trading apps for investors. It has a few minor downsides. E*TRADE doesn’t pay the best interest rate on uninvested cash, doesn’t have direct crypto investing, but does offer spot Bitcoin and Ethereum ETFs. However, E*Trade requires a high minimum investment for ETFs. Still, it’s a solid choice, especially as you get closer to retirement. E*TRADE launched in 1982 and has its headquarters in Arlington, Virginia.
Read the full E*TRADE review.
Best for a Truly Hands-Off Approach to Investing : Wealthfront
![Wealthfront](https://www.investopedia.com/thmb/PbpM_Q_kBT-ywkjD6bqoTI_15YU=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Wealthfront-79d83bb8f678494bb87519607f1c1c95.jpg)
Wealthfront
- Account Minimum: $500
- Fees: 0.25% for most accounts; no trading commission or fees for withdrawals, minimums, or transfers
As a robo-advisor, Wealthfront manages your IRA investments automatically. It does an excellent job for investors hoping to set it and forget it with their retirement plans.
Builds and manages IRA portfolios automatically
Excellent portfolio selection for customization
Offers financial planning and goal-setting tools
Cash management account with sky-high interest rate
No human financial advisors
Ongoing 0.25% annual management fee
$500 account minimum
Fewer IRA account options than others
Wealthfront is a robo-advisor. It uses technology to create and manage portfolios for investors at a much lower cost than a human advisor. You can use Wealthfront to set up your IRA and then leave the investment management to the platform, making it ideal for hands-off investing. The platform is user-friendly and does a terrific job designing your portfolio. You can customize across hundreds of categories like crypto, clean energy, and cannabis. Wealthfront also offers goal-planning tools to help you figure out how much to invest and the right fit for your portfolio.
As a true robo-advisor, Wealthfront has limited human support. There’s no live chat and no access to human financial advisors. You do pay an ongoing 0.25% annual fee for using the service. Wealthfront also has fewer IRA account options and is limited to the main ones: Traditional, Roth, simplified employee pension (SEP), and rollover. Wealthfront was launched in 2011 in Palo Alto, California, where it continues to operate today.
Read the full Wealthfront review.
Best for Automated Investing With Access to Human Advice : Betterment
![Betterment](https://www.investopedia.com/thmb/f5TsLMYbDdTUYuP0k3UGKr8m3zQ=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/betterment_new_logomark-color-486b823c00444745b726163af424e476.png)
Betterment
- Account Minimum: $0, $10 minimum to start investing. Crypto minimum $50. $50 minimum for rebalancing.
- Fees: 0.65% (annual) for investing plan accounts with at least $20,000 or at least $250 per month in recurring account deposits. Otherwise, the fee is $4/month. 0.65% (annual) fee on accounts with at least $100,000 in assets for Betterment Premium account holders with unlimited access to certified financial planners. Crypto accounts are charged an annual fee of 1% plus trading expenses. There are no management fees for Betterment Checking or Cash Reserve. For accounts with at least $2 million, there is a fee discount of 0.10%.
Paid non-client of Betterment. Views may not be representative; see more reviews at the App Store and Google Play Store. Learn More about this relationship.
Betterment is a top-tier robo-advisor that still gives the option to get human advice. This is a combination that can offer the best of both worlds to IRA investors.
User-friendly platform
Automatically monitors and rebalances portfolios
Good portfolio selection, including crypto and ESG
Access to human advisors
Ongoing 0.25% annual fee for robo-advisor
No individual stocks or other investments for trading
$100,000 minimum balance requirement for human advisors
Betterment launched in 2008 as a robo-advisor. Its headquarters is in New York City. As a robo-advisor, Betterment can create and manage your IRA investment portfolio automatically. The user-friendly platform makes it easy to set goals and find the right design for your portfolio. Even though Betterment is based on robo-advisor technology, you can still get support from human advisors. It’s a hybrid solution for those who want to use a robo-advisor without losing the human touch.
However, you need at least $100,000 in your account to access human advisors. Until then, you’d need to manage things with the technology alone. While you can customize the funds in your portfolio, you can’t trade individual stocks or other investments with Betterment. It doesn’t offer full brokerage capabilities.
Read the full Betterment review.
Best for Access to Human Advisors : Merrill Edge
![Merrill](https://www.investopedia.com/thmb/CqiY9XADY1-1kujTvgDUJkLUqs4=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Merrill-Edge-2dc3afacfc3d4b1b9967c62224bd7248.jpg)
Merrill
- Account Minimum: $0
- Fees: $0 per stock trade. Options trades $0 per leg plus $0.65 per contract.
Merrill Edge provides access to over 15,000 financial advisors across all 50 states. That’s on top of some of the industry's best research and investment platforms.
Human advisors throughout the country
$0 commission trades for stocks, ETFs, and options
Linked with Bank of America
High-quality investment research
Robo-advisor option
Missing advanced products like forex, futures, and crypto
No advanced order types for day traders
$20,000 minimum to work with a human advisor
Merrill Edge is a brokerage platform run by Bank of America. Bank of America created it in 2010 after it acquired Merrill Lynch. These two long-time financial giants prioritize the human touch with investing. That’s why Merrill Edge provides access to human advisors nationwide, including at Bank of America branches. It can be an excellent choice if you want real-life support for your IRA. If you bank with Bank of America, you can qualify for rewards and discounts on all your accounts by using Merrill Edge as well.
It takes at least $20,000 to access human advisors with Merrill Edge. For DIY investors, the platform stands strong, ranking in the top quartile of the 26 online brokers we reviewed as part of our Best Online Broker awards. Where Merrill Edge falls short is with its lack of advance trading tools and access to forex, crypto, and futures.
Read the full Merrill Edge review.
Best for Access to Low-Cost Mutual Funds : Vanguard
![Vanguard Logo](https://www.investopedia.com/thmb/mOZDPi3tKZUhmzv1L8FsPU5F4_k=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Vanguard_logo-d978009153c54d89a8237b8a39c508a2.jpeg)
- Account Minimum: $0
- Fees: $0/stock and ETF trade, $0 plus $1 per contract for options
Vanguard is famous for its low-cost mutual funds. It offers the industry’s largest selection of low-cost funds along with top-tier customer service.
Hundreds of funds with costs well below the industry average
High-quality educational materials
Top-tier customer service, including access to advisors
Robo-advisor available
Investment platform has limited trading capabilities
Clunky user experience for active investors
Mutual funds can require a minimum investment of $1,000 or more
John Bogle founded Vanguard in 1975 in Valley Forge, Pennsylvania, where it is still located today. Bogle designed the first index fund to track markets while keeping fees low. Vanguard continues to follow Bogle’s investment philosophy. It offers the largest selection of mutual funds and ETFs on the market, all at rock-bottom fees.
If you want to follow a long-term, buy-and-hold investment strategy for your IRA, Vanguard could be an excellent fit thanks to its low costs, quality educational materials, and supportive customer service. If you want to trade frequently, Vanguard might not be right for you. Its platform isn’t well desiged and is missing the capabilities seen at other brokers.
Read the full Vanguard review.
Best for a Wide Range of Global Assets : Interactive Brokers
![Interactive Brokers](https://www.investopedia.com/thmb/tCU40UnQeL4bg0cSX2XQm2_sC_g=/fit-in/1500x750/filters:format(png):fill(white):max_bytes(150000):strip_icc()/Interactive_Brokers-f442258340b54754ad99bb263a4e2757.jpg)
Interactive Brokers
- Account Minimum: $0
- Fees: $0.00 commissions for equities/ETFs available on IBKR’s TWS Lite, or low costs scaled by volume for active traders who want access to advanced functionality such as order routing. $0.65 per contract for options on TWS Lite; that is also the base rate for TWS Pro users, with scaled rates based on volume. $0.85 per contract for futures.
Serious IRA investors will appreciate Interactive Brokers. Not only does it offer an excellent range of U.S. investments, but it also provides trading opportunities across 34 countries using 27 currencies.
Global investment selection
Fast trade execution
Competitive commissions, especially for high trade volume
Commission-free trading option available
Advanced trading tools
Trader Workstation (TWS) platform can be intimidating for beginners
Complex commission structures
Commission-free option has slower trade execution
If you want to use advanced trading strategies with your IRA, consider Interactive Brokers (IBKR). It offers one of the widest investment offerings, including assets not commonly seen in other IRAs, like options, forex, futures, and American depositary receipts (ADRs). Interactive Brokers also gives you access to 150 markets across 34 countries using 27 currencies, making it the best for global assets. The Interactive Brokers platform provides faster trade execution and advanced trading tools, giving you an edge against the competition.
While IBKR's Trader Workstation is complex and requires a learning curve, the company has committed to making its platforms more accessible to beginners. With a growing library of educational content; available fractional investing; the recent addition of the user-friendly IBKR Desktop platform and GlobalTrader app (as well as other user-friendly platforms), Interactive Brokers is quickly gaining ground on the industry’s top all-around brokerage platforms.
IBKR's Pro account with full functionality charges commissions on every trade, but delivers excellent execution. There is a Lite version with commission-free trades available; however, it has slower trade execution. Interactive Brokers launched in 1977. Today, it is headquartered in Greenwich, Connecticut.
Read the full Interactive Brokers review.
The Bottom Line
Each of the best IRA accounts brings something valuable to the table. Fidelity is the best all-around full-service broker thanks to its combination of IRA account types, investment offerings, research, and customer support. For investors who need help with their IRAs, Charles Schwab is the best IRA for beginners, and Merrill Edge provides the most access to human advisors.
Another way to get assistance at a lower cost is through a robo-advisor. Wealthfront offers the best IRA robo-advisor for those who want a hands-off experience. Betterment offers a good combination of automated investing with access to human advisors. For IRA investors looking to build their own portfolios, Interactive Brokers offers the best range of global assets and the most powerful trading platform, while Vanguard provides the most low-cost mutual funds. Finally, E*TRADE stands out with the best withdrawal options after age 59½, making it appealing for investors nearing retirement.
Research Insights
When selecting a brokerage platform for investing in an individual retirement account (IRA), investors should prioritize investment selection, account management features, costs, and long-term financial planning tools. Additionally, ensuring that the platform provides clear guidance on the tax implications and benefits associated with each type of IRA can help investors make informed decisions.
Investors should favor platforms that provide access to comprehensive research and educational resources to help investors plan their retirement strategy effectively. Fees and costs associated with IRAs, such as account maintenance and investment-related fees, should also be carefully evaluated to ensure they do not erode long-term investment gains. By focusing on investment selection, account management features, and overall cost-effectiveness, investors can select a brokerage platform that aligns with their retirement goals and maximizes their potential for a secure financial future. - Amrut Deshmukh, Investopedia Research Analyst
Why You Should Trust Us
Investopedia collected and analyzed 73 criteria that are the most important to readers choosing the right IRA account to fit their needs. We used this data to evaluate a total of 47 online brokerage and digital wealth management platforms based on their financial services, calculators and tools, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999 and has been helping readers find the best IRAs since 2019.
How to Open an IRA Account
The exact process of how to open an IRA account will depend on the company you work with. But expect to follow these general steps.
- Decide on the company you want to invest with: Compare companies based on their fees, customer service, and investment offerings. You also should decide whether to use a broker or a robo-advisor.
- Decide on the type of IRA: Standard options include a traditional IRA, Roth IRA, rollover IRA, and SEP IRA.
- Open the account: You’ll need to provide your personal and financial information to the IRA company. It also likely will ask you to verify your identity with a form of ID.
- Fund the IRA: You could link a bank account to deposit money. If you already have an IRA or other retirement plan, you could transfer the funds and investments in through a rollover.
- Set up your investments: With a broker, you build the portfolio using its selection of stocks, bonds, mutual funds, ETFs, and other assets. With a robo-advisor, you’ll fill out a questionnaire. The platform will build the portfolio based on your answers and goals.
Frequently Asked Questions
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What Is an IRA Account?
An IRA account is a retirement account that people can open independently, outside work. It’s not tied to your job, like a 401(k). You can save in an IRA account each year and then invest to grow your savings. An IRA account offers several breaks. For example, IRAs offer tax-deferred growth. You don’t owe income tax on your investment gains while the money is in the account.
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What Is the Difference Between an IRA and a Roth IRA?
A regular IRA, more commonly known as a traditional IRA, offers an upfront tax deduction for contributions. You lower your tax bill while adding money to the IRA each year. A Roth IRA does not provide an upfront tax deduction. Instead, it allows tax-free withdrawals in retirement, starting at age 59½. Withdrawals from a traditional IRA are taxable.
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What Are the 3 Most Common Types of IRAs?
The three most common types of IRAs are traditional, Roth, and rollover. Rollover IRAs are set up when someone opens an IRA by moving money in from another retirement plan. A rollover IRA could be either a traditional or Roth IRA. The key difference is how it’s set up. You also have SEP IRAs and SIMPLE IRAs for small business owners.
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What Is the Best IRA to Avoid Taxes?
A traditional IRA is the best way to avoid taxes immediately. It gives an upfront tax deduction for contributions. A Roth IRA is best to avoid taxes in retirement. Withdrawals starting at 59½ are tax-free, meaning you don’t owe income tax on your investment earnings. When choosing between a Roth IRA vs. a traditional IRA, you need to decide whether you want to save on taxes today or in the future.
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How Many IRA Accounts Can You Have?
There’s no limit on the number of IRA accounts you can have. You could open both a traditional and a Roth IRA. You could also open IRA accounts at multiple companies, like one at a broker and one with a robo-advisor. However, the IRS limits how much you can save in an IRA per year. The IRA annual contribution limit is the same, regardless of whether you have one or many accounts.
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Companies We Reviewed
We researched and reviewed 47 online broker and digital wealth management platforms to find the best companies you see in the list above. Below is the full list of companies we researched, along with links to individual company reviews to help you learn more before making a decision:
Online Brokers:
Ally Invest, Charles Schwab, ChoiceTrade, E*TRADE, eOption, eToro, Fidelity, Interactive Brokers, J.P. Morgan SDI, Lightspeed, Lime Financial, Merrill Edge, Public, Robinhood, SoFi Invest, SogoTrade, T. Rowe Price, tastytrade, TradeStation, TradeZero, Vanguard, Webull, WellstradeDigital Wealth Management Platforms:
Titan, Interactive Advisors, Sofi Automated Investing, Ally Invest Robo Portfolios, Schwab Intelligent Portfolios, Fidelity Go, Wells Fargo Intuitive Investor, J.P. Morgan Automated Investing, Ellevest, Vanguard Digital Advisor, Wealthfront, Betterment, M1 Finance, Merrill Guided Investing, Sigfig, Stash, E*TRADE Core Portfolios, Axos Managed Portfolios, Acorns
How We Picked the Best IRA Accounts
Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers and robo-advisors. Our review of the best IRA accounts is the result of a thorough evaluation of 73 criteria that are critical to readers choosing the right IRA. We used this data to develop comprehensive online broker and robo-advisor ranking methodologies for evaluating a total of 47 online brokerage and digital wealth management platforms based on their financial services, calculators and tools, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Our last assessment of brokers and robo-advisors to determine the best IRAs was performed in April 2024.
Dotdash Meredith receives cash compensation from Wealthfront Advisers LLC (“Wealthfront Advisers”) for each new client that applies for a Wealthfront Automated Investing Account through our links. This creates an incentive that results in a material conflict of interest. Dotdash Meredith is not a Wealthfront Advisers client, and this is a paid endorsement. More information is available via our links to Wealthfront Advisers.
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