In 1922, when 25 Army officers met in San Antonio, Texas, and decided to insure each other's vehicles, they could not have imagined that
their tiny organization would one day serve over 8 million members and become one of the only fully integrated financial services companies in America.
While USAA provides a full range of highly competitive financial products and services to the military and their families,
trading/brokerage accounts and USAA IRAs
are available to any household.
There is no minimum deposit ($0) to open USAA standard brokerage account. For a mutual fund account the following initial investments
required: $1,000 or $0 with $50 a month for First Start Growth Fund and Money Market Fund, $1,000 or $500 with $50 a month for Cornerstone Funds and Target Retirement Funds,
and $3,000 for any other fund.
by Derek W,
I have largely been happy with USAA. I've never had trouble accessing my money and they are largely very helpful with any issues. My only real complaint is that they push managed accounts pretty hard. They charge a ~1% management fee and then invest the money in mutual funds which also have expenses. I've done just as good if not better picking my own funds.
Cons: won't let you use your money and won't give it back
USAA will steal your money and their representatives will constantly lie to you. They can't even get their story straight. I deposited money in my brokerage account, but when I tried to buy any stock, I got an error saying I couldn't. The various reps I talked to said either it was a available to trade (uh, no, no matter how many times I tried), or gave me different excuses as to why I couldn't trade, how long until I could, or what I had to do to be able to. Often times they said I had to call a number, but that the office wasn't open atm, so I would have to call later (convenient, right??). Since I couldn't use my money for the purpose I deposited it (and opened a BROKERAGE account) for, I decided to transfer it back to my bank account... guess what?? I got an error message saying I couldn't do that either! Again, various reps gave me various excuses... told me I had to call offices "later" because they weren't open now.. told me that I need to jump through more security hoops to get MY MONEY back to MY ACCOUNT. I already set up a secure connection between the two accounts, and they didn't seem to care about security when taking my money... why do they care so much about giving it back?? Obviously "security" is complete BS, makes no sense!! Anyway, after being put on hold for 30 minutes by one rep, he told me that I had to call back tomorrow to get to the office who handles transfers, because the office was suddenly "closed"... actually, he WAS in the office that handles transfers, I know because that's who I requested, and that's what I was talking to him about before he put me on hold! On top of that, he refused to answer what the hours were for the transfers were. I kept on asking to please just tell me what the hours of that office were so that I knew when I could call back, and he just kept on ignoring me, refusing to tell me the hours, and telling me to call back tomorrow. He ended up hanging up on me rather than simply telling me what the hours to back were... there's no excuse for not giving someone hours of availability when you're telling them to call back another day because they're closed now! Very clearly just lying and jerking me around so I'll never get my money back.
Anyway, I guess USAA doesn't know this, since they don't seem to care at all, but we can very easily file and win a class action lawsuit for damages due to inability to access funds... which is exactly what's happening to me and many other people on here it seem. So I strongly suggest someone gets the ball rolling on that. I may do just that. I've already reported them to the SEC for this, which is another viable option.
USAA has yet to join the modern brokerage world. Too many functions require you call the brokerage during business hours to make a change to your stock brokerage account.
They are way behind on modern features. Should you ever decide you no longer wish to reinvest dividends on a stock, you have to make a phone call during business hours and request the representative to do it for you. If you are a night owl like me, it's needless delay that shows poor programming and a lack of customer regard.
by Mike Wentink,
I really liked USAA for a number of years. Then, in August they changed to have the accounts handled outside. Change for changes sake. Fixing something that wasn't broken. Very unsatisfied with the new system. Many entries that I don't understand either because of abbreviations or lack of information. They say "corporate action", but no explanation. Hey can't even get a comma where it belongs in one number. Really unhappy with USAA since the change.
I am in the process of transferring my accounts from USAA. I opened accounts with them when they opened an office in Atlanta. Our new wealth advisor left USAA in March of this year and I was NOT made aware of it until October when I called to speak to him. The advisor who inherited our accounts never called in the 7 months he supposedly managed our business. While I am happy with their insurance and banking arms, our experience on the brokerage side was a disaster......I cannot recommend them to anyone.
I've banked with USAA for years, but their investment division is a mess! Don't bother.
It took me three days to get an account, when I tried to fund it, I found it was simply a membership account having nothing to do with brokerage accounting. I had to start over. it, then it took 8 days for them to acknowledge the funding for the account, then i find that they have no adequate trading platform . So I decided to cancel, only to learn that they must keep my money for at least five more days, (even tho it was paid in cash), before they can send it back. All and all, their service stinks, and as another party said, Pros???? they are courteous, and always apologetic, but absolutely stupid when it comes to brokerage situations, DON'T JOIN THEM unless you want problems.
Rates are a little high and web site is primitive
They have good customer service.
They are best for mutual funds and then for stock, but not options.
Their rates aren't too good.
Their web site is slow and very clunky to get around. It is very difficult to close out of positions.
This is best for people who don't trade very much.