Capital One IRA Review

Capital One 360 Roth IRA, Traditional IRA, Rollover IRA, SEP IRA, SIMPLE IRA (individual retirement accounts) review. Capital One IRA rates and fees. Is it good and safe way to invest?

Capital One IRA Review

Investors who are interested in building a nest egg for retirement should consider opening an IRA at Capital One Investing. With low commissions and the financial strength of Capital One backing it up, the broker is worth taking a look at.

Capital One IRA Choices

There are three Individual Retirement Account types at Capital One Investing: Traditional, Roth, and Rollover. The Traditional account type was created for investors who expect to be in a lower tax bracket during retirement. The Roth was designed for the opposite situation. The Rollover IRA is the conversion of an old employer plan, such as a 401(k), into an IRA.

A retirement account at Capital One comes with no special fees. An IRA has no annual, maintenance, inactivity, or setup fees. If a full account is transferred to another firm, Capital One Investing does charge a $75 transfer fee. The broker has customer service agents who specialize in retirement issues. They can be reached at 1-877-464-0292 during the weekday.

Capital One ROTH IRA Review

Capital One IRA Fees and Commissions

The broker's regular pricing schedule applies to both retirement and non-retirement accounts. Stock and ETF trades cost $6.95, which is very low by industry standards. Options are 75¢ extra. The broker also offers recurring purchases on Tuesday of stocks and ETFs. It is called the ShareBuilder Plan, and all purchases are just $3.95. PortfolioBuilder is another purchase plan Capital One offers. Traders can create a portfolio of ETFs, and buy all of them with one order. It costs $18.95 per trade. Customer service reps can also assist clients with order execution. Using this service over the phone incurs a $19.95 charge.

Capital One IRA Rates

IRA Resources

Capital One Investing customers will find a few IRA tools on the broker's website. There is a Retire MyWay calculator that estimates a user's financial needs when retirement starts. There are some articles on retirement issues, such as rolling over a 401(k) plan to an IRA, planning for retirement, and investing in target date funds.

Capital One ROTH IRA Review

Funds for IRAs

Investors who open an IRA may be interested in Capital One's selection of mutual funds. The broker has more than 1,000 available on its website. Of these, roughly 400 come with no load and no transaction fee. There is a $19.95 charge for funds that carry a transaction fee. The broker applies the fee to both the buy and sell sides. There is also a $49.95 fee whenever an NTF mutual fund is sold less than 90 days after buying it.

Investment Help

Capital One Investing has financial advisors who can assist clients with retirement planning. These professionals are located in certain Capital One Bank locations. There is a fee for the service.

Other Accounts

Capital One Investing offers an Education Savings Account (also known as a Coverdell ESA). Retirement savers who would like to assist their children or grandchildren in saving for educational expenses might benefit from this account. It is taxed just like a Roth IRA, meaning that contributions are made after-tax, and all earnings and qualified withdrawals are tax free.

The broker also offers a 401(k) plan, which a small business can use. Clients will find articles and videos on 401(k) topics. Furthermore, Capital One Investing provides licensed 401(k) consultants to assist customers with any retirement issues.


Capital One Investing doesn't have nearly as many retirement resources as several other brokers. Merrill Edge has more videos on retirement topics, while TD Ameritrade has more articles. Fidelity has more IRA calculators. E*Trade offers ten different IRA types, while Capital One Investing has just three.

The broker's list of 1,000 mutual funds is very small by industry standards. Vanguard offers its customers 16,000 funds, while TD Ameritrade has 11,000. Capital One's mutual fund screener isn't able to search for target date funds, which are ideal for retirement savers. It's easy to find target date funds on Firstrade's site, by comparison. Many other brokers also have more than 400 no-load, no-transaction-fee funds. Schwab has 3,100, while Scottrade offers 2,100.

The lack of commission-free ETFs at Capital One Investing is disappointing in an era where many investors prefer low-cost ETFs. Other brokers, including Firstrade, Schwab, and E*Trade do offer some ETFs that are free to trade.

On the positive side, Capital One Investing IRAs have no fees. This is better than Vanguard and E*Trade, both of whom do charge certain fees on IRAs. There are also more IRA resources on the Capital One Investing site compared to OptionsHouse, which offers even less. Capital One's $6.95 commission is also lower than what many other firms charge. Fidelity, Schwab, and TD Ameritrade are all higher.

IRA Promotion

Customers who open a new IRA with at least $5,000 at Capital One Investing will receive a $50 cash bonus.  

Capital One IRA Conclusion

Capital One Investing has no-fee IRAs with a team of retirement specialists. Throw in a current IRA promotion, and the broker may be a good deal. Despite these advantages, investors who plan to invest in ETFs or mutual funds would be better off at TD Ameritrade.

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