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Best Roth IRA Accounts for 2020

28 july 2020

Best Roth IRA Accounts for 2020

TD Ameritrade IRA: Best for individual management

One of the biggest names in banking offers Roth IRA accounts with an attractive $0 minimum starting balance. Investors also get access to more than 4,100 no-transaction-fee mutual funds and $0 online trading fees on stocks and bonds. TD Ameritrade’s Roth IRA is great for beginners because its platform offers a virtual trading simulator where new investors can practice investments before making real-life trades.

Merrill Edge Roth IRA: Best for researching

Similar to other Roth IRA accounts on the list, Merrill Edge offers free stock, bond and ETF trades. The company offers roughly 2,680 transaction-fee-free mutual funds, a smaller selection than TD Ameritrade’s Roth IRA plan. A big perk of Merrill Edge is investors have access to the company’s private research platform, which additionally includes third-party research from companies like Morningstar and Recognia.

Fidelity Roth IRA: Best for mutual funds

Fidelity matches most other options across the board when it comes to account minimums and fees. It does fall a little short when it comes to promotions, though, as at the time of our last checking, it was not offering promotions to customers. Fidelity does earn back credit, though, in its low to no-fee mutual fund offerings. The company was the first to bring no expense ratio market index funds to customers.

Betterment Roth IRA: Best for managed accounts

For those looking for a professional helping hand, you may want to consider Betterment Roth IRAs. The company has two levels to choose from — Betterment Digital, its original offering that comes with no account minimum and a 0.25% management fee. The other option, Betterment Premium, comes with unlimited phone access to certified financial planners but does carry a $100,000 minimum investing and a 0.40% management fee. There is a fee discount available of 0.10% on the portion of your account over $2 million.

Vanguard Roth IRA: Best for returns

Over the past 10 years, 88% of Vanguard’s no-load mutual funds outperformed its respective peer groups. Those looking to have a professionally managed account will like Vanguard’s options as it has a proven track record and lower fund fees on its mutual funds at an average of around 0.10%. You will need at least $1,000 to get started. Additionally, if you’re an active trader, you may want to look elsewhere as Vanguard IRAs do not have commission-free trading.

Charles Schwab IRA: Best for beginners

If you’re new to retirement savings and are looking for a user-friendly experience, you’ll want to check out Charles Schwab. The company not only has one of the best mobile apps in the industry, but it also offers fee-free trades, extensive research data and 24/7 support.

Ally Roth IRA: Best for promotions

Those looking for the biggest available promotions available will want to consider Ally as a candidate. The company is currently offering completely free account management for investors willing to keep 30% or greater of their accounts in cash at all times. While this might not be ideal for some, it could spell significant savings for others, especially those closer to retirement.