Top No-fees Brokerage IRA Accounts

Today, some brokers provide no-fees IRA accounts. Whether you are thinking about opening your first retirement account, you need to rollover your existing IRA or you would like to supplement your existing 401(k), which can provide you with very limited investment choices, the following brokerage companies are worth considering as your new IRA provider. All brokers are rated very high in the industry and offer no cost retirement solutions.

Open Account 4.5-star brokerage firm rating

  • Stocks & ETFs: $6.95
  • Options: $6.95 + $0.75 per contract
  • Mutual Funds: $49.99
  • IRA setup fee: $0
  • Annual IRA fee: $0
  • IRA termination fee: $0

IRAs offered: Traditional IRA, Individual 401k, ROTH IRA, SIMPLE IRA, SEP IRA, Rollover IRA.

Minimum to open: $0 for a cash account, $2,000 for an IRA.
Investments: Stocks, Options, ETFs, Bonds, CDs, Mutual Funds, Futures, Forex.

  • Excellent educational resources
  • Great customer support
  • In-person services
  • Great selection of mutual funds
  • 101 commission-free ETFs
  • Banking services
  • Excellent educational resources

TD Ameritrade is one of the largest investment companies in the country. IRA accounts are fee-free with minimum opening deposit of $2,000. The firm provides great research, sophisticated trading platform and powerful trading tools that help investors take full control of their investments. Personalized guidance for retirement savings is available at local branches. A solid, well-respected brokerage comes with a high pricing. Trading commissions are well above the industry average.

TD Ameritrade Review »

Open an account: Open an IRA in 15 minutes or less. Rollover your 401k or open and fund your IRA and get up to $600 cash. Get started with TD Ameritrade today.

Open Account TradeKing brokerage firm rating

  • Stocks & ETFs: $4.95
  • Options: $4.95 + $0.65 per contract
  • Mutual Funds: $9.95
  • IRA setup fee: $0
  • Annual IRA fee: $0
  • Termination fee/transfer funds: $50
  • Inactivity: $50; $0 with 1 trade/year or for $2,500+ accounts

IRAs offered: Traditional IRA, ROTH IRA, Rollover IRA, SEP IRA, SIMPLE IRA, Coverdell Education Savings.

Minimum to open: $0 for a cash account, $0 for an IRA.
Investments: Stocks, ETFs, Options, Mutual Funds, Bonds, CDs, Treasuries, Forex.

  • Very low trading commissions
  • Excellent customer support via email, phone and chat
  • Intuitive, user-friendly trading platform
  • Great educational resources
  • $0 to open an IRA

A low investing price and lack of IRA fees are the main advantages of TradeKing. If you are new to retirement investing, TradeKing is a good start. The broker can be perfect for those people who consider opening a second IRA or rolling over a 401(K). A number of mutual funds provided by a broker and its cost are often considered as one of the main criteria for choosing a company for opening a retirement account. TradeKing has a lot to offer in this department. The brokerage offers over 12,000 US-based load and no-load mutual funds and one of the lowest commissions, which are only $9.95 to buy or to sell.

In addition, all TradeKing IRA account holders can take advantage of the broker's free dividend reinvestment plans to increase their savings potentially. However, it is important to be aware of the inactivity fee, which can be easily avoided with only one trade per year.

TradeKing IRA Review »

Open an account: Open a TradeKing account and get up to $1,000 in free trade commissions.

Open Account Optionshouse brokerage firm rating

  • Stocks & ETFs: $4.95
  • Options: $4.95 + $0.50 per contract
  • Mutual Funds: $20
  • IRA setup fee: $0
  • Annual IRA fee: $0
  • IRA termination fee: $60

IRAs offered: Traditional IRA, ROTH IRA, Rollover IRA, SEP IRA, SIMPLE IRA, Coverdell Education Savings.

Minimum to open: $0 for a cash account, $0 for an IRA.
Investments: Stocks, ETFs, Options, Bonds, Mutual Funds.

  • Very low trading commissions
  • No minimum deposit to open
  • Great broker for options traders
  • Sophisticated trading platform and powerful tools

A variety of IRAs with no set-up and no annual fees are available at Optionshouse. The brokerage ranked second in 2015 by Barron's Magazine scored the highest in usability, portfolio analysis, mobile trading and reporting. With trading fees only $4.95 per stock, Optionshouse is the cheapest investment firm in the U.S. The company provides advanced trading tools, great research and customer services. $60 IRA termination fee is an area where Optionshouse is lacking.

Optionshouse Review »

Open an account: Open and fund an OptionsHouse account to receive up to $1,000 worth of commissions on online trades for a full 60 days.

Best Brokerages For IRA Accounts

Brokerage firms provide all types of retirement accounts, including both employer-sponsored and individual accounts. Choosing an IRA firm that does not charge account fees or has relatively low fees offers a wide set of investment offerings such as setting your retirement goals, deciding on what type of a retirement account (Traditional, Roth IRA, Rollover IRA, 401(k), SIMPLE IRA, SEP IRA) will suit your savings objectives best and deciding on how you will invest your money. After all, high account fees can potentially decrease savings.

What Type Of Brokerage IRA Is Best For You?

There are two kinds of IRAs. One is a traditional IRA, and the other is a Roth IRA. The difference between these two accounts in the tax effect. With a traditional IRA, all funds you deposit into the account and pre-tax. This means that you do not pay taxes on these funds. At the end of the year, when you file your tax return, you deduct the amount of money you deposited into your IRA from your taxable income. This reduces your tax liability for the year. The funds in your IRA can be invested in stocks, bonds, mutual funds, and ETFs (Exchange Traded Funds), and all earnings on your investments are also not taxed. There are limits as to how much money you can deposit into your IRA each year. Presently that amount is $5,500 if you are under 50, and $6,500 if you are over 50.

Once you reach retirement age, and start drawing your funds, you will be taxed, but it will be at a lower tax rate. Presently, the age at which you can begin drawing funds from your IRA is 59 ½, If you draw funds from the account before you reach the age of 59 ½, you will be taxed, and you will also pay a penalty for early withdrawal.

With a Roth IRA, all funds you deposit are after-tax. This means that you would not deduct these funds from your taxable income, however, when you begin drawing funds from the account at age 59 ½, you will not be taxed, as you would with a traditional IRA. This is because Roth IRA deposits have already been taxed. You can invest the funds in your Roth IRA, and the earnings will not be taxed until your draw them. The other advantage to a Roth IRA is that you can draw the deposited funds without being taxed, or paying a penalty – but if you draw on the earnings, you will be taxed, and pay a penalty. There are no limits on how much money you can deposit into your Roth IRA.