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You may direct your own investments in stocks and bonds, as well as alternative assets like real estate, private equity, and precious metals, with the help of a self-directed IRA custodian or facilitator.
We compared the investment choices, costs, and customer service of dozens of self-directed IRA providers before settling on the top eight.
Top Self-Directed IRA Custodians and Companies
We attempted to limit our list to custodians of self-directed IRAs, but some of the greatest and most well-known self-directed IRA providers aren’t set up as custodians. Client back-office services are often provided by third-party custodians. We’ve added remarks below for organizations that don’t directly manage custodial assets for self-directed IRAs but may nonetheless assist customers with a variety of alternative asset investments.
How Did We Pick the Best Self-Directed IRA Providers?
We looked at several self-directed IRA custodians to see which ones were the best for certain sorts of investments. Fees and customer service differ by provider—some self-directed IRA firms provide checkbook IRAs, while others only allow access to a limited number of alternative assets. It’s critical to choose a provider that fits your financial strategy and objectives.
We looked at self-directed IRA custodians based on a number of characteristics, including:
- Alternative Investments – What kind of alternative investments does a provider have access to or specialize in?
- Checkbook Control – If IRA customers may invest in anything simply by writing a check, what is the point of having an IRA?
- Fees — A provider’s charges for setup, management, and transactional fees.
- Account Setup & Maintenance Ease – How simple it is to set up and operate a custodial account.
- Customer Service — A self-directed IRA company’s willingness to assist with account concerns and provide assistance.
- Account Availability – The procedure of establishing an account and how soon you can do so.
In retirement accounts, investors are legally permitted to own any kind of asset. There are relatively few assets that you are not permitted to own. The investments accessible to most participants are restricted by their IRA custodians. Companies that provide self-directed IRAs enable customers to invest in a variety of assets other than stocks, bonds, and mutual funds. Self-directed IRA custodians, on the other hand, can’t give customers checkbook power; only facilitators can do it.
We identified Entrust Group as the top overall self-directed IRA firm after reviewing more than a dozen of the most established self-directed IRA providers. Entrust is a well-known and trustworthy firm that provides clients with a diverse range of alternative investments as well as a team of experts to help with account setup and management.
Choosing a Self-Directed IRA Provider: Some Pointers
When selecting a self-directed IRA custodian, we recommends the following:
“Make certain you do your own research. Make sure your self-directed IRA is set up with an IRS-approved financial institution. Certain tax benefits are available to all IRAs, but only if they are kept by an IRS-approved institution. You may check the IRS’s list of authorized IRA custodians to see whether your prospective provider is on the list. An IRA custodian is a person who manages an account. They aren’t like a broker/dealer or an investment adviser in that they don’t do any form of due diligence, assessments, or appraisals on possible investments or offer recommendations. Unlike other investment providers, a self-directed IRA custodian’s account statements may simply show what investments you hold and how much you paid for them. You’re in charge of keeping track of the worth of your assets and deciding what to keep and what to sell.”
FINRA’s Senior Vice President of Investor Education, Gerri Walsh
For adopting a self-directed IRA, the chairman of the Retirement Industry Trust Association offered the following advice:
“Opening a self-directed IRA that allows for alternative asset investment is typically no different from opening an IRA with a bank or broker-dealer that solely allows for conventional asset investment, and most custodians enable you to create an account through the Internet.” The custodian will handle accounting and reporting to the client and the government when needed, but the IRA owner is in charge of selecting investments and guiding the custodian’s activities. Customers should be informed that certain assets, such as real estate, need ongoing involvement in order to sustain the investment. In general, a self-directed IRA owner who invests in alternative assets would be more active in account administration than someone who invests in conventional assets like a CD or a combination of equities and mutual funds.”
-Retirement Industry Trust Association President, Tom Anderson
Entrust Group; the best overall self-directed IRA company.
Entrust Group is our top overall self-directed IRA provider because they’re a well-established provider with over $3 billion in retirement funds and have been operational for more than 36 years. They are a well-known self-directed IRA custodian that exclusively offers pre-screened assets on their website.
Investment Options of the Entrust Group
Entrust Group’s self-directed IRA offers a variety of investment alternatives, including:
- Real estate – Real estate may be held in a self-directed IRA.
- LLCs and other private firms are examples of private equity.
- Gold, silver, platinum, and palladium bars, coins, and rounds are examples of precious metals.
- Firms that produce and develop energy are known as oil and gas companies.
- Mortgage Notes – Unsecured and secured private loans
Entrust gives customers access to a variety of alternative assets, but it doesn’t give them checkbook control, which would provide them with more investing options. Entrust does not provide checkbook IRAs, but it does provide materials to assist customers in setting one up on their own.
Pricing
In comparison to other self-directed IRA businesses, Entrust charges fair costs. There is a minor account setup cost that is waived for precious metals investments. Entrust also charges administrative costs, which are calculated depending on the number of investments or account size. There are transaction fees as well, some of which are waived in the case of precious metals.
Entrust charges the following fees for a self-directed IRA:
- Account Setup Cost ($50) – This is a one-time fee that is waived if you invest in precious metals.
- ($199 – $1,995) Annual Administration Fee – Entrust imposes costs depending on the number of investments or the size of your account; if you invest in precious metals, fees are reduced.
- Transaction Fees ($0 – $250) — When you purchase, sell, or swap an investment in your self-directed IRA, Entrust charges fees, which vary by investment type.
Features
Entrust’s website allows you to establish an account and perform account maintenance entirely online. When you choose Entrust as your facilitator, The Entrust Trust Company acts as your self-directed IRA custodian and manages all of your assets. Entrust also keeps track of your records and sends you frequent information on your account’s activity.
Entrust Group offers a variety of services in addition to account management and record-keeping, such as:
- While Entrust does not provide particular financial advice, its patented investment platform makes it simple to participate in private placements and other alternative assets.
- Entrust provides a variety of investor education resources to assist investors in better understanding self-directed IRAs and making smarter investing choices.
- If you have additional assets, you may use the eMoney Advisor to combine them with your Entrust investments as part of your total portfolio.
Customer Service
Entrust routinely works with other investment experts to offer self-directed IRAs as part of their clients’ entire investment plan, in addition to their in-house specialists. If you already have an adviser, you may deal with Entrust directly or via select independent financial companies.
Cons
Entrust makes it simple to invest in a variety of traditional alternative assets. This self-directed IRA firm, on the other hand, does not provide checkbook IRAs to customers, but it may assist them in setting up their self-directed IRA for checkbook management. Entrust also does not give customers personalized financial advice.
Customer Feedback
Despite its long history, Entrust Group does not have many customer reviews. However, Entrust has had few complaints from the Better Business Bureau, and its reputation among independent self-directed IRA custodian ratings is usually favorable.
How to Apply for a Job at Entrust Group
Visit Entrust’s website to sign up for an account. You may learn more about their services or establish and fund an account in under 10 minutes. After you’ve created an account, you may choose whether to create a checkbook IRA on your own or invest via Entrust’s website.
uDirect IRA Services; best self-directed checkbook IRA for real estate investments
Since its inception, uDirect IRA Services has focused on assisting customers with real estate investments. uDirect has extended its products to include a checkbook IRA, and according to self-directed IRA business evaluations, uDirect is still the best self-directed IRA company for investing in real estate with a self-directed IRA.
Investment Options with uDirect IRA Services
The following are some of the investment possibilities available with an uDirect checkbook IRA:
- Apartments, single-family houses, commercial buildings, and undeveloped land
- REITs
- Mortgages and deeds of trust
- Promissory notes, private loans, vehicle loans, accounts receivable finance, and equipment leasing
- Limited partnerships, limited liability firms, and C corporations
- Tax Lien Certificates – Purchase tax liens on properties whose owners have failed to pay their taxes.
- Commodities — This includes investments in oil and gas.
- Judicial Judgements and Structured Settlements – Purchase the rights to legal judgments and structured settlements.
- Gold and silver bullion
You may invest in anything approved by the IRS with a checkbook IRA from uDirect. However, uDirect is still the greatest option for real estate. If you want to acquire tax lien certificates or real estate at auction, you’ll need rapid access to cash, and checkbook control offers you that power.
Pricing
The following are the expenses of a self-directed IRA with uDirect:
- Account Setup Fee ($50) — uDirect charges a one-time setup fee to get your account up and running.
- Annual Account Fee ($275) – Every year, account holders are paid a fee for record-keeping and reporting services.
- The transaction fee ($35) is waived for the first six transactions in a new account, after which investors must pay every time they purchase, sell, or swap an investment.
- Monthly Storage Fees ($8–$18) – Clients who invest in precious metals or currencies are charged a monthly storage cost, which varies depending on the kind of asset and the quantity retained.
The fees for an uDirect checkbook IRA are quite low. A minimal startup cost, as well as yearly fees, are charged by the firm. Every time an investor buys, sells, or exchanges an investment in their account, they pay a charge. Additional costs apply to the storage of precious metals and currencies.
Features
The majority of account setup and maintenance may be done online via the uDirect website. You may, however, need to print and sign certain paperwork from time to time, which may then be scanned and submitted. uDirect also provides customers self-directed 401(k)s and other flexible investment options in addition to checkbook IRAs.
Customer Service
uDirect is a young firm that hasn’t built up a large client base or received many evaluations yet. Although the organization is tiny, it is quite helpful in walking new customers through the process of opening an account and investing via it.
uDirect provides a variety of services in addition to direct client assistance, including:
- Investor Education — Learn how to make the most of your self-directed IRA.
- Investment Guides – Information on how to invest in certain areas using your account.
- Online Document Upload – Some uDirect account maintenance problems need signed copies of paperwork, which may be submitted to the internet for fast processing.
Cons
For real estate investment, uDirect has one of the finest self-directed IRA custodian evaluations. However, the firm is not a self-directed IRA custodian, but rather a facilitator that may assist with the creation of self-directed IRAs. For customer accounts, uDirect employs American Estate and Trust as a custodian.
uDirect is likewise a smaller company with a smaller crew that can provide personalized assistance. The paperwork submission procedure might be time-consuming since documents must be printed, signed, scanned, and posted via their website.
Customer Feedback on uDirect Services
uDirect doesn’t have many reviews yet, which is understandable considering that it’s a very young firm that was founded primarily to assist with specialty real estate transactions. The firm, on the other hand, has excellent independent ratings on Trustlink and an A+ rating from the Better Business Bureau.
How to Use uDirect IRA Services to Apply
Visit their website to discover more about investing possibilities and the benefits of utilizing uDirect. You may discover more about the account setup and management procedure, as well as several IRA investment methods and the process for swiftly investing cash. If you wish to register an account with uDirect, you may do it right on their website.
Charles Schwab; best self-directed IRA custodian with additional banking services.
Charles Schwab is one of the world’s major financial services conglomerates. They provide everything from retail banking to stock and bond trading, as well as personal financial counseling and online trading accounts. Schwab is a self-directed IRA custodian to consider if you want to control your own investments and have access to a variety of banking and other financial services.
Investment Options from Charles Schwab
The following are some of the Schwab self-directed IRA investing options:
- Stocks – Individual company shares in the United States or throughout the globe.
- Bonds
- Schwab’s own line of commission-free mutual funds, as well as hundreds of other funds.
- Target Date Funds – As a target retirement date approaches, Schwab provides access to funds that transition from equities to bonds, including their own line of funds.
- ETFs — In addition to funds from third-party providers, Schwab provides various commission-free ETFs that are comparable to mutual funds but trade-like stocks.
Because they are a custodian, Charles Schwab does not provide checkbook IRAs. Schwab accounts are self-directed because they let investors make their own investment choices rather than working with an adviser, and they provide more investment possibilities than most 401(k)s and other employer-sponsored retirement plans.
Pricing
The following are some of the charges associated with a Schwab self-directed IRA:
- Minimum account balance: $25,000
- Trading Commissions: $4.95+ per transaction – You’ll be charged a fee every time you buy, sell, or trade-in your Schwab account.
- Schwab ETFs have no commissions — While Schwab charges fees on most transactions, they do have a proprietary line of commission-free mutual funds and ETFs available to clients.
- Expense Ratios: 0.1 percent to 1.5 percent — Expense ratios are charged on all mutual funds and ETFs purchased via Schwab (including commission-free funds) to cover the fund’s trading and administration expenses.
Charles Schwab, unlike many other self-directed IRA custodians, does not levy monthly or yearly account fees. Instead, their pricing structure is based on commissions for transactions executed in your account, as well as adviser fees if you want to work with an investment advisor. Other services, such as commercial banking and financing, come with extra fees.
Features
Schwab also offers the following extra features:
- Schwab is a fully-licensed bank that may offer checking and savings accounts, cash management, and a variety of other banking services in addition to securities trading and investment management.
- Lending – If a customer qualifies, Schwab may arrange a loan for them.
- Investment Advisory Services — If you need assistance developing or implementing an individual investment plan, Schwab can match you with an adviser who can provide personalized advice.
Customer Service
Schwab has a reputation for offering dependable customer service among major national suppliers. They offer offices in a number of places around the nation where you may obtain in-person help if you need it, which is significantly more than the majority of self-directed IRA custodians on our list. Most account concerns, however, may be resolved online or over the phone.
Cons
If you prefer to manage your own assets without the aid of an adviser, Schwab is a great option. They do not, however, provide access to many of the alternative assets that most individuals want in self-directed IRAs, such as real estate, oil, gas, or precious metals. If you trade a lot in your account, Schwab’s commission-based cost structure may grow expensive.
Customer Feedback on Charles Schwab
The evaluations for Charles Schwab as a self-directed IRA custodian are largely excellent. People prefer to pay commissions only when they trade in their account because of the transparency and absence of monthly expenses. A few negative reviews have surfaced on the internet, although they are largely connected to the retail banking aspect of the firm or individual instances.
How to Apply for a Position at Charles Schwab
Begin by going to Schwab’s website to set up a self-directed IRA. You may download an account application form Schwab’s website to fill out and send in. It may take seven to ten business days to open your account, and you’ll need to deposit at least $25,000 when you submit your application.
Equity Trust; the best self-directed IRA company with personal advisors.
Equity Trust employs over 400 professionals who can assist individual customers in vetting investments and resolving account concerns. Equity Trust’s network is significantly wider than that of other self-directed IRA providers, making it perfect for one-on-one support. With more than 30 years of expertise and over $25 billion in assets under management, Equity Trust is also one of the most well-known self-directed IRA firms.
Options for Investing in Equity Trusts
Equity Trust provides investment choices to self-directed IRA custodian customers, including:
- Land, residential or commercial properties, mobile homes, and overseas properties
- Certificates of Tax Lien
- Private loans, such as mortgages, are granted straight from your account.
- Private placements
- Gold, silver, and platinum
- Currencies
Pricing
The following are the expenses of a self-directed IRA with Equity Trust:
- Account Setup Price ($50) — This is a one-time fee for opening an account.
- ($205 – $2,150) Annual Administration Fee – Annual fees vary based on the size of your account and are paid in the first quarter of each year.
- There are no transaction fees.
For investors, Equity Trust is another low-cost, self-directed IRA option. There are no transaction costs unless special processing is required, despite the fact that the firm charges a nominal startup fee and yearly account fees. While brokerage costs still apply, Equity Trust might be a good option if you plan on making more than one or two trades each year.
Features
Accounts with Equity Trust may be opened and managed completely online. You’ll also get access to Equity’s staff of over 400 experts, who can help you with any account difficulties or inquiries. The business, on the other hand, is merely an account custodian and does not provide financial advice.
Customer Service
Equity Trust has a very good reputation for customer service among our self-directed IRA custodian evaluations, according to the BBB and independent reviews. The company’s website has a number of useful resources for learning more about self-directed IRAs and investing alternatives. Investors also have access to a team of over 400 experts who can answer queries and help with account concerns.
Cons
Equity Trust is a well-known self-directed IRA custodian with a large staff of experts to assist customers. Clients, on the other hand, do not get personalized financial advice from the firm. It also doesn’t let you handle your checkbook; instead, you must give the corporation instructions on how to invest cash from your account.
Customer Feedback
Equity Trust is another well-known self-directed IRA custodian with a small number of ratings in comparison to its size. The firm does, however, have an A+ rating from the Better Business Bureau and a good review rating of more than 60% after more than 70 independent customer evaluations.
How to Make an Equity Trust Application
Through their website, you may open an account with Equity Trust. If you’d rather work with a professional or have questions regarding Equity Trust’s offerings, you may go to their website for additional information or call one of their 400-plus specialists to answer your inquiries or create an account.
IRA Financial; best for self-directed IRA custodian for checkbook control.
IRA Financial is a smaller self-directed IRA custodian that we looked into. A team of tax law experts founded the business, which has helped customers place more than $4.9 billion into self-directed IRAs. They specialize in assisting individuals who seek a wide range of investment alternatives to set up checkbook IRAs.
Financial Investment Options
IRA Financial offers a wide range of investment opportunities, including:
- Land, rental houses, mobile homes, and projects
- Precious Metals
- General Partnerships
- Peer-to-peer lending and private mortgages
- Foreign Exchange
- Trading stock options and other derivatives
- Bitcoin and other cryptocurrencies
These are just a few of the investing possibilities. Clients may invest in anything that is authorized under IRS restrictions using a checkbook IRA from IRA Financial.
Pricing
IRA Financial provides self-directed IRA accounts without checkbook control, but their checkbook IRA account is far more cost-effective and has a much wider range of investment alternatives. The business does not charge a setup cost, but it does impose yearly custodian fees, which are withdrawn quarterly. Depending on the kind of investment, clients must additionally pay transaction fees.
There are certain particular IRA charges that may be paid with a checkbook IRA. The following are the financial costs:
- Custodian Fee ($180 – $360) every year — Clients with self-directed IRAs pay an annual charge that is lower when they manage their checkbook.
- Transaction Fees ($35–$45) – When you purchase, sell, or exchange an asset, you pay a cost that varies depending on the asset type.
Features
IRA Financial is more difficult to set up and manage than the majority of our self-directed IRA custodian assessments. The firm’s founders are tax experts who have a thorough grasp of self-directed IRA laws and regulations, but they are less concerned with technology and expediting customer services. The account creation procedure may be begun on their website, but it will take you a few more steps to finish.
Customer Service at IRA Financial
IRA Financial stands behind its products and offers online and phone customer assistance to customers with concerns or account management difficulties. The firm also offers a variety of instructional resources on its website and assists customers in defending self-directed IRA investments against IRS audits, if necessary.
IRA Financial also offers the following services:
- Investor Education — Websites and podcasts that explain the advantages of self-directed and checkbook IRAs, as well as how to utilize them.
- Audit Defense – If required, assist in defending against an IRS audit.
- Guides to Specific Assets — Information on a variety of investments accessible via self-directed IRAs, such as real estate and precious metals.
Cons
IRA Financial’s staff is well aware of IRA laws and regulations. They have a nice checkbook IRA, but they don’t have many regular investing possibilities. The firm’s application procedure is also a little lengthy, and opening an account immediately via their website is not feasible.
Customer Feedback
IRA Financial has the best rating out of all of our self-directed IRA custodian ratings. The Better Business Bureau has given the firm an A+ rating, with just one complaint after more than ten reviews. Overall, the IRA Financial reviews we’ve discovered are highly good.
How to Make an IRA Financial Application
Start by visiting IRA Financial’s website to discover more about self-directed IRAs and how to open an account with them. You may start the process of opening an account right now if you chose to do so. Once you’ve started the process, a representative from IRA Financial will contact you to complete the process.
PENSCO; the best self-directed IRA custodian for international real estate investments.
With more than $16 billion in assets and 50,000 customer accounts, PENSCO is one of the biggest self-directed IRA custodians. Although PENSCO does not provide checkbook control, it does provide excellent investment opportunities via a variety of venues. It is also one of the few companies that offer certain unique services, such as overseas real estate investments.
Optional Investments from PENSCO
PENSCO offers the following investment options:
- Homes, buildings, land, and mobile home parks are all examples of real estate.
- Stock in private enterprises such as LLCs and C-Corporations is known as private equity.
- Private loans and mortgages are secured by promissory notes.
- Coins and bars composed of precious metals such as gold and silver are known as precious metals.
- Cryptocurrency and other blockchain ventures – Bitcoin
- Investments in oil and gas, as well as property and mineral rights
PENSCO provides self-directed IRA customers with a diverse range of investing alternatives across numerous platforms, as well as a marketplace that connects alternative investment providers and investors. However, since PENSCO does not provide checkbook management, you will not be able to invest in anything simply by writing a check. PENSCO must handle all transactions.
Pricing
A self-directed IRA with PENSCO typically has the following costs:
- Account Setup Charge ($50) – This is a one-time fee to get your account up and running.
- Quarterly Account Administration Fee ($100 – $525 or more per quarter) – PENSCO imposes quarterly account administration fees that vary depending on account size.
- Quarterly Asset Maintenance Fee ($0 – $12 per asset) — Except for real estate, promissory notes, and mortgage assets stored at PENSCO, there are no quarterly asset costs.
- Transaction Fees — Except for international real estate, transactions are free.
- International Real Estate Transactions ($1,000) – PENSCO has a separate fee structure for foreign real estate transactions, charging $1,000 for every acquisition or sale.
In our self-directed IRA custodian ratings, PENSCO has some of the highest costs. A little startup fee and minor transaction fees are charged by the firm. They also impose large quarterly account administration and asset maintenance fees, particularly as your account expands and you invest in a variety of assets.
Features
Through the PENSCO internet interface, you may form and fund a self-directed IRA, as well as manage all of your assets. All account maintenance may be done online, but PENSCO also offers customer care representatives on hand to assist with any inquiries or issues.
Customer Service
PENSCO has a great reputation for excellent customer service as one of the most established self-directed IRA firms. Through investing platforms, they also make it very simple for investors to handle their own accounts and assets. Even real estate and other assets maintained in a self-directed IRA may be financed with PENSCO’s assistance.
PENSCO offers a variety of services in addition to standard account management, such as:
- PENSCO gives customers access to internet investing platforms to assist them in identifying possible investments.
- Investors and alternative investment providers may discover each other on the PENSCO Marketplace.
- Financing — PENSCO works with non-recourse lenders to assist set up financing that complies with IRS regulations.
Cons
PENSCO is one of the most well-known and well-known self-directed IRA custodians. They do not, however, give consumers checkbook management, which might allow more financial freedom.
Customer Feedback
PENSCO is a significant self-directed IRA provider, however it does not seem to have a lot of favorable feedback. The majority of the reviews we’ve discovered are unfavorable, and customer service issues are common. While the BBB has given PENSCO an A+ rating, there are few customer evaluations (mainly negative) and multiple complaints.
How to Apply at PENSCO
In as little as 10 minutes, you may establish an account with PENSCO on their website. You can also learn more about their investment alternatives, online platforms, and the PENSCO Marketplace by visiting their website. If you want to create an account, you may do so online, fund it, and begin investing right away.
Merrill Edge; best self-directed IRA for investing via a platform.
Merrill Edge is a Bank of America subsidiary that offers self-directed IRAs through an online platform. All Merrill Edge accounts are held in trust by their parent firm, and consumers have access to a variety of Bank of America and Merrill Lynch services. Consider Merrill Edge if you currently have a Merrill Lynch account or want a personal financial counselor to assist you with other accounts.
Investment Options
Merrill Edge allows customers to choose from a variety of investment alternatives, including:
- Merrill Edge offers a variety of proprietary and third-party mutual funds to its customers.
- Merrill customers may also invest in exchange-traded funds (ETFs), which are designed similarly to mutual funds but trade like stocks.
- Individual stocks
- Bonds – Purchase and sell bonds issued by corporations and governments.
- In your self-directed account, you may purchase and sell derivatives.
- Merrill Edge doesn’t have its own target-date funds, but it does provide Merrill Lynch and other providers’ funds that automatically switch from equities to bonds as the desired retirement date approaches.
Account-holders have access to a variety of Bank of America and Merrill Lynch services and resources, including business banking, lending, and wealth management, via Merrill Edge. While Bank of America manages the accounts, Merrill Edge, as a self-directed IRA provider, provides customers with a simple and cost-effective option to control their own investments.
Merrill Edge is also offering some fantastic starting deals right now, including:
- If you invest at least $20,000 within 45 days, you will get $100.
- If you invest at least $50,000 within 45 days, you will get $150.
- If you invest at least $100,000 within 45 days, you will get $250.
- If you invest at least $200,000 within 45 days, you will get $600.
Most self-directed IRA firms do not give initial incentives as generous as these. These incentives, however, cannot be combined.
Pricing
The following are typical fees for a Merrill Edge self-directed IRA:
- Merrill Edge does not have a minimum account size requirement for self-directed IRA investment.
- $6.95 per transaction in stocks and ETFs – Investors pay $6.95 for every trade in stocks and ETFs.
- Options Trades: $6.95 per transaction plus $0.75 for every contract of options — For an additional cost per contract, options contracts may be traded on Merrill’s platform.
- Mutual Fund Transaction Costs: $0 – $19.95 per transaction — While many funds have no commissions, other funds charge charges for self-directed transactions; nevertheless, these fees are disclosed before trades are performed.
- Bond Trades: $0 – $1 per bond — Many bonds, such as Treasuries, may be traded for free, but even those that do charge are just $1 per bond for self-directed transactions ($10 minimum, $250 maximum).
- Mutual Fund Expense Ratio: 0.03 percent to 2% yearly – Annual expense ratios are charged by mutual funds, including target-date funds, to cover the expenses of trading and management.
Merrill Edge isn’t the cheapest IRA provider, but it does allow individuals who wish to actively trade stocks, bonds, and other assets in their self-directed IRA to do so at a reasonable fee per transaction.
Features
Account-holders have full access to products and services from Bank of America and Merrill Lynch, in addition to Merrill Edge’s trading platform and market research capabilities. Those who want to engage with a financial adviser instead of managing their own accounts may do so at any moment.
Customer Service
Merrill Edge is an online platform, although customers have access to both Bank of America and Merrill Lynch’s global branches. Dedicated specialists can assist handle account difficulties or give personalized counseling, as well as much other banking and investing services, at Merrill Lynch offices and Bank of America (BofA) branches in most locations around the nation.
Cons
Merrill Edge is primarily focused on discount brokerage services to trade listed securities while being a relatively cost-effective supplier. Many of the alternative assets that individuals search for in self-directed IRAs are not available to them. Additionally, although you may begin working with a financial adviser at any time, you will be required to fulfill certain account minimums and will be charged extra fees if you do not.
Customer Feedback
Merrill Edge has good customer evaluations and is well-known as a fantastic self-directed IRA provider that allows consumers to trade a variety of assets online at a low cost. Customers at Merrill Edge note out that accounts may be readily connected to Bank of America accounts, which is particularly useful for Bank of America Preferred Rewards members. Merrill Edge is available to anybody who isn’t a BofA customer.
How to Apply
Merrill Edge’s website has further information and may help you set up a self-directed IRA. You may always work with a Merrill Lynch or Merrill Edge specialist to set up your account if you like. Once your account is set up, you may immediately fund it online and begin managing your own assets.
TD Ameritrade; best self-directed option for 401(k) plans.
TD Ameritrade is a Nebraska-based brokerage business that is also an IRS-approved IRA custodian. However, giving access to self-directed alternatives inside a 401(k) plan is one of their better services. If your small company has a 401(k) plan, and you want to provide plan members the option to self-direct all or part of their account, check out TD Ameritrade.
Investment Options
In a self-directed account, TD Ameritrade offers the following investing options:
- Individual equities
- Individual bonds
- Mutual Funds
- Target Date Funds (TDFs)
- ETFs – ETFs allow plan members to swap stock baskets.
- CDs — Like a bank, TD Ameritrade also provides Certificates of Deposit (CDs).
A self-directed brokerage account from TD Ameritrade, in addition to the investment alternatives provided via your 401(k) plan, allows members to pick from a large selection for an additional expense. Participants in the plan have access to TD Ameritrade research to aid in the selection of specific assets, but to utilize this option successfully, individuals need to be more informed.
If you choose to start a self-directed IRA with TD Ameritrade, you will get the following benefits:
- If you deposit $3,000 or more, you’ll get 60 days of free stock, ETF, and options trading.
- If you deposit $25,000 or more, you will get $100 and 60 days of free trading.
- If you invest $100,000 or more, you will get $300 and 60 days of free trading.
- If you invest $250,000 or more, you will get $600 and 60 days of free trading.
These are the best self-directed IRA beginning deals available from the firms on our list. These incentives, however, cannot be combined.
Pricing
The following are the expenses of adding a TD Ameritrade self-directed option to a 401(k):
- Trading Commissions: $6.95 per transaction — Participants pay $6.95 for non-commission-free U.S. stock trades and ETFs, while bonds and CDs trade on a net yield basis (so the commission is built into the price of the bond)
- Self-Directed Account Fee: $15 per month — Participants who choose the self-directed option will be charged an extra $15 per month.
- Fees for plan administration and record-keeping may cost up to 1.5 percent each year, but this fee is included regardless of whether you select a self-directed option.
- Annual Participant Fees: up to $50 per year — Whether or whether they choose the self-directed option, plan participants pay an annual fee to have a 401(k) account with TD Ameritrade.
- Cost ratios for mutual funds: 0.1 percent to 1.5 percent or higher — Like other providers, TD Ameritrade charges expense ratios that start at around 0.4 percent.
Participants in a TD Ameritrade 401(k) account may choose from hundreds of commission-free mutual funds and ETFs. Sponsors may allow plan members to trade in individual stocks, bonds, and other assets for an extra fee plus trading charges by introducing a self-directed brokerage option plan.
Features
The following features are available in a self-directed account inside a TD Ameritrade 401(k) plan:
- TD Ameritrade’s self-directed brokerage option permits plan members to borrow against their retirement assets, unlike the other self-directed IRA providers on our list.
- Account-holders who use TD Ameritrade for other services may access their bank accounts in both the United States and Canada.
Customer Service
TD Ameritrade has locations around the United States and is noted for its excellent customer service. When you add a self-directed brokerage option to a 401(k) plan, plan members should already have access to a personal adviser as well as a number of customer service professionals to assist with account concerns. Participants in the plan, on the other hand, may employ a self-directed option to manage their own assets without the help of experts.
Cons
While TD Ameritrade does provide a loan option that other self-directed IRA custodians do not, their service is not a complete self-directed IRA. It lacks access to other assets like real estate and precious metals, as well as checkbook control.
Customer Feedback
TD Ameritrade gets a lot of positive feedback. It is particularly well-known for inexpensive securities brokerage, such as the self-directed option offered by several 401(k) plans. While account concerns have arisen in the past for individual investors, they are significantly less typical in 401(k) plans with self-directed alternatives.
How to Apply
You must first set up a 401(k) plan for your small company before you can open a self-directed account with TD Ameritrade. If you currently have a TD Ameritrade 401(k) plan and wish to add the self-directed brokerage option, contact your account advisor.
Conclusion
Small company owners and their workers may profit significantly from self-directed IRA custodians. Our studies of self-directed IRA custodians reveal which ones are the most cost-effective and provide the most investing options.
