Individual Resignation Accounts (IRAs) are one of the most popular ways to invest in retirement. You are not only saving for your future, but you are also gaining a generous tax advantage to do so, courtesy of the US government. If you are considering a quick start in your retirement finances, your IRA is the perfect place to start and you can complete the entire setup online in just a few minutes.
One of the best opportunities to accumulate nest eggs is to invest in financial markets. To do this, you will need a securities company or a robo-advisor.
- a Securities account You can choose your own investment, including individual stocks, stock funds, bonds, and more.
- a Robo Advisor Build a portfolio for you, choose funds, and assign assets based on risk tolerance and time perspective.
Whether you want to do it yourself or have someone do it (or somewhere in between), here are some of the top IRA accounts you should open.
Best IRA accounts to open in 2025
Summary: Top IRA Accounts for 2025
Here are some of the best brokers or robo-advisors you can use when setting up your IRA.
Charles Schwab
Charles Schwab is preceded by a long-standing reputation for working all core mediation functions and investor-friendly. If your IRA needs stocks, bonds, funds, or even CDs, Schwab can get the job done. In fact, Schwab offers thousands of mutual funds with no deposit fees. Additionally, with fee-free transactions and prompt customer service, brokers regularly rate the industry’s leading companies. Of course, if you want to be more active, you can go to Thinkorswim, Schwab’s flagship trading platform, to trade.
It fits well: Investors who want to manage their IRAs aggressively or passively.
Wealthfront
WealthFront is a top robo-advisor and can build retirement portfolios based on risk tolerance. WealthFront automatically recalibrates your portfolio so that your allocations maintain your targets. You can also access a sophisticated goal-based planner (even if you don’t have an IRA here) and a fully functional cash management account. The management fee is 0.25% per year, or $25 for every $10,000 invested, and you can pay anywhere for the ETF held in your portfolio.
It fits well: Investors who want a low-cost, professionally managed portfolio.
A loyal investment
Fidelity is one of the best overall brokers and you can see it with everything they do, including friendly and kind customer service, a powerful trading platform for active traders, a policy that won’t hit you for any nickel and DIME, a wide range of investments (including thousands of mutual funds available without trading fees), and more. It’s also not harmful that brokers don’t charge account fees or minimums to open a retail IRA account. Fidelity does it all at a high level and you are unlikely to be disappointed.
It fits well: Investors who want to become active traders or passively invest.
Vanguard
Vanguard is perfect for low-cost mutual funds, even if you can buy funds from other brokers. Still, Vanguard is very suitable, as with most major brokers, if you’re a passive investor, even cutting the online trading commission of stocks and ETFs to zero.
It fits well: Investors who want to passively manage their IRAs, especially with Vanguard funds.
Improvements
If you’re happy to have someone else manage your IRA, the improvements are probably good. For one low flat rate of 0.25%, this robo-advisor manages the portfolio from start to finish, all you need to do is add money. Get valuable features such as tax LOSS harvesting and automatic rebalancing at no additional charge. Plus, you can pay a slightly higher fee and bring over $100,000 to your account. You can also access human advisors for all detailed questions.
It fits well: Investors who want to manage their IRAs with a robo-advisor, or who sometimes want to access human planners.
Interactive broker
Interactive Brokers is a brokerage that provides ample access to global markets. So if you need a “go anywhere” outfit, this is for you. Interactive brokers have long been known as brokers for serious active traders, but of course there is no need to open an IRA here. Choose the Pro platform of brokers known for running the top, or visit the Lite platform where you can trade free. Either way, you will be investing in one of the safest institutions in the world.
It fits well: Investors who want to trade aggressively and access all kinds of markets.
Schwab Intelligent Portfolio
Schwab brings investor-friendly street credit to Schwab Intelligent Portfolios, a robo-advisor who manages IRAs in a personalized portfolio. Schwab’s management fees – Nothing, but its low-cost ETFs and customer service available daily is praised. If you want to access a financial advisor, you can step up to the premium tier. This costs a flat of $30 per month (after a one-time setup fee of $300). In either case, you will need to bring some money to the robo-advisor. The base service costs $5,000 and the premium costs $25,000.
It fits well: Investors looking for low-cost professional management with the option of unlimited access to human advisors.
Meryl Edge
As a Merrill Edge customer, you will benefit from the robust brokerage offerings and access to stock surveys and strong customer service. Plus, Merrill is a great choice if you’re likely to need in-person assistance, as its parent company Bank of America offers Merrill’s reps at over 2,000 branches. Another Edge: If you’re already one of your bank’s customers, it’s easier to put all your financial business in one place.
It fits well: Investors who want to trade aggressively or passively, or need the help of a human planner.
Fundrise
If you want to do something from the beaten path in your IRA, foundation lips may be for you. Fundrise allows you to invest in real estate using your IRA. This could fit perfectly in your IRA. With Fundrise, you will invest in REIT, a well-known structure that allows investors to access a diverse real estate portfolio and pass dividends to investors. With Fundrise, it may not be for everyone, as you may need to lock your money in for years. However, for investors looking for alternative investments such as real estate, foundationalisation can be an attractive option.
It fits well: Investors who want to expel real estate and invest.
e-trade
Like other major brokers, e-Trade offers trading with no fees on stocks and ETFs, but is also perfect for mutual funds. In fact, E-Trade offers over 6,000 mutual funds with no trading fees. e-trade is an all broker, perfect for active traders (optional volume discounts, power e-trade platforms) and ideal for passive investors (third-party research) who are thinking in the long term.
It fits well: Investors who want to invest aggressively or passively.
Firestride
Firstrade is popular with traders for its commission-free trading on stocks, ETFs and options, but brokers also often offer savings for retirement. Firstrade offers 11,000 non-migration fee mutual funds and allows you to open almost any type of IRA account you need, including SEPs and Simple IRAs that are not offered by all brokers. There are also solid research, including free access to the Morningstar Report.
It fits well: Investors who want to invest aggressively or passively.
Fidelity Go
If you want to take a more handoff approach to your portfolio, Fidelity Go is another robo-advisor option to consider. Accounts under $25,000 have no fees, and the fees are 0.35% above that threshold. The portfolio is built using fidelity funds that do not charge an expense ratio, so you don’t have to worry about the additional fund fees charged by most robo-advisors. You also get the complete benefits of being a loyal customer, including top-notch educational resources and 24/7 customer service.
It fits well: Investors looking for a low-cost, professionally managed portfolio.
IRA: What you need to know
Using a traditional IRA will allow you to receive tax deductions while saving money for retirement this year. You will also enjoy tax-deferred growth on your investments, until you withdraw money from your account upon retirement, defined as 59 years and above. Normally you will be able to avoid taxes on contributions you put in your account. So, it’s a good way to cut your current taxes.
It’s useful to think of an IRA as a “shield” or “wrapper” in a regular account that protects you from tax men. Many financial companies offer IRAs that include banks, brokerages, insurance companies, and robo-advisors, each of which may allow them to make different types of investments.
These types of investments will determine what you ultimately earn with your IRA. If you are invested in historically strong assets such as stocks, it can get better over time than CDS or bonds. However, there are trade-offs to keep in mind. High-performance investments require you to take on more risk, but safer assets are generally much less or in some cases (such as CDS) without risk.
We recommend reading the details of your IRA to make the most of your plan and avoid pitfalls. You may soon see why it is such a popular old man’s car.
How to open an IRA account
There are multiple options for opening an IRA account, including brokerages and robo-advisors. These providers allow you to quickly open your account and set up your IRA within 15 minutes. Walk through the opening steps of the provider’s site.
- Choose a broker or robo-advisor. The most difficult thing is to choose which broker or robo-advisor to use. So we’d like to review the best robo-advisors and see the best brokers.
- Open your account. Once you have selected a brokerage or Robo-Advisor, you will need to provide your personal and financial details, including your legal name, address, social security number, employer, and some other details to open an account.
- Connect the bank. After you have opened an account, you can connect your bank to your account and fund your IRA. It’s really easy.
What is the difference between an IRA and a Roth IRA?
There are many differences between an IRA (or traditional IRA) and a Ross IRA, but both are tax accounts that help you save money on your retirement. Some of the key differences revolve around specific tax benefits, which accounts work best in certain situations.
- in Traditional IRAyou can donate your pre-tax income to your account and deduct the contribution from your income (if it’s not too expensive). These contributions can increase tax deferral until withdrawal during retirement.
- in Roth Irayou can donate after-tax income to your account and those contributions can increase tax-free within your account. If withdrawn at retirement, it will remain tax-free. You can always make donations (not revenue) from the Roth IRA without creating any tax issues. The Roth IRA also offers other benefits, with income limits.
A traditional IRA is a better choice when you’re older or making more money. Because you can avoid income tax at a higher tax rate with today’s income. When you think that your tax rate (or your tax rate) will fall in the future, it’s a good choice. This allows you to pay a lower tax rate in future withdrawals. However, traditional IRAs are not non-deductible at relatively low income levels.
A Roth IRA is usually a better choice when you’re younger or earning money. This is because they only refrain from small tax cuts on contributions received from traditional IRAs. A Roth IRA could also be great if you expect tax rates (or tax rates) to rise in the future, and increase the value of Roth’s tax exemption withdrawal. The Roth IRA also gives the heirs a tax-free withdrawal.
The three most common types of IRA
- Traditional IRA: A traditional IRA allows you to make pre-tax contributions. This will allow us to lower today’s tax bills. Rescissions made during retirement are taxable, but this is a good option if you think your tax rate will fall in the future.
- Roth IRA: The Ross IRA will donate in post-tax dollars. In other words, you won’t get any tax benefits today. However, during retirement, all withdrawals are tax-free and, like traditional IRAs, there is no need to take minimal distribution.
- Rollover IRA: A rollover IRA is what happens when you convert a 401(k) plan from a previous employer to an IRA. IRA investment options have far more investment options than employers plan.
When should I open an IRA?
There will never be a bad time to open an IRA, but the sooner you can do it, the more you will achieve your retirement goals. The Roth IRA is particularly appealing to people early in their careers as they are likely to be in a lower tax range than in future years. The contributions made between your 20s and 30s will go a long way in achieving your goals due to the power of compound interest.
If you’re over 50, you could also add $1,000 a year to your IRA to help you keep up with your savings as you approach retirement age.
How to transfer an IRA to a new broker
Don’t like your IRA provider? Switching your IRA is easy and for some reason you can do it almost anytime. It is best to transfer an IRA directly from one broker to another.
The procedure for transferring an IRA is simple.
- Open a new IRA account that will receive the current IRA transfer.
- Please contact your new provider about the transfer. You may be able to transfer your IRA online without human help, but customer representatives can also help you if necessary.
- You usually fill out the transfer form online or on paper. You will need to provide details such as your old provider and account number. If you are investing in an old IRA, your old provider may charge you a fee to move to your new account.
A few days later, the securities and cash from the old account will appear in the new account.
You need to be careful when transferring an IRA. This is because switching IRA types between traditional IRAs and Roth IRAs allows you to create additional taxes. Generally, you want to have the same type of account. In other words, it is recommended that you transfer funds from traditional IRAs to Roth IRAs to Roth IRAs to Roth IRAs and vice versa.
If you change your account type, you may create substantial tax liabilities and you must provide sufficient information about them before making the transfer.
– Bank Rate Logan Jacoby I contributed to updating this article.