Top 5 Brokers for Opening a ROTH IRA in 2021: Where to Begin Your Roth IRA?

by | May 28, 2023 | Vanguard IRA | 14 comments




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In this video I discuss the best stock brokers for Roth IRA’s. I break this video into different sections to better help you figure out which broker is the best for a Roth. First, I discuss traditional brokers like Fidelity and Schwab. Next, I discuss the fintech type of brokers of brokers like M1 Finance. Finally we have the robo-advisors like Betterment and Wealthfront.

From there, I break the brokers down by investment style. Some brokers are best for passive investors, some are best for mid- long-term active investors. Some are best for active investors like day traders or swing traders.

0:00 Intro Best Brokers for Roth IRA
3:38 Best Roth IRA Broker for Passive Investors, Fideilty, Schwab, M1 Finance
4:52 Best Robo-Advisor for Roth IRA Fidelity Go, Schwab Intelligent Portfolios, Betterment, Wealthfront
8:44 Best broker for a Roth IRA for Active mid- long-term investors Fidelity, Schwab, M1 Finance
9:33 Best broker for a Roth IRA Active short-term traders Fidelity, Schwab, TD Ameritrade
10:43 Best brokers for Roth IRA summary graphic

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If you are thinking of saving up for your retirement, then you might already have heard of ROTH IRA. It is a type of retirement savings account that allows you to invest money after taxes, which then grows tax-free and can be withdrawn tax-free in retirement. Basically, a ROTH IRA is a great way to save up for retirement without worrying about taxes later on.

Now, if you are planning to open a ROTH IRA account, the first thing you need to do is find a reputable broker. There are many brokers out there, each with their own pros and cons. However, we have compiled a list of the 5 best brokers to open a ROTH IRA in 2021.

1. Fidelity Investments

Fidelity Investments is one of the largest and most reputable brokers in the country. They offer a wide range of investment options, including mutual funds, ETFs, and stocks. Fidelity also offers low fees and no account minimums for ROTH IRA accounts, making it a great option for beginners.

See also  What's so Excellent About a Roth IRA?

2. Vanguard

Vanguard is another well-known broker that offers a variety of investment options, including mutual funds, ETFs, and stocks. They are known for their low fees and high-quality investment options. However, the minimum investment to open a ROTH IRA account with Vanguard is $1,000.

3. Charles Schwab

Charles Schwab is a well-respected broker that offers investment options such as mutual funds, ETFs, stocks, and bonds. They also have no account minimums for ROTH IRA accounts, making it a great option for beginners. Charles Schwab is known for its low fees and strong customer service.

4. E-Trade

E-Trade is a popular broker that offers investment options such as mutual funds, ETFs, stocks, and bonds. They have no account minimums for ROTH IRA accounts and offer low fees. E-Trade also has a great mobile app that makes it easy to manage your investments on-the-go.

5. TD Ameritrade

TD Ameritrade is a reputable broker that offers a wide range of investment options, including mutual funds, ETFs, and stocks. They have no account minimum for ROTH IRA accounts and offer low fees. TD Ameritrade also has a powerful trading platform that is easy to use and offers a wealth of investment research.

In conclusion, finding the right broker is an important first step in opening a ROTH IRA account. Each of these brokers offers their own unique advantages, so it is important to choose the one that best fits your investment needs and goals. With the help of any of these brokers, you can start saving for your retirement without having to worry about taxes later on.

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14 Comments

  1. Thomas Brendelson

    How do you feel about a Webull Roth IRA? I like that you can still trade within the IRA with swings or even a day trade but also still have long term holdings. I also like the pre and after market trading ability. Just wanted your thoughts on Webull’s IRA?

  2. Cruising With Captain Cliff

    Maraming salamat for the information Mr. MoneyLa. I have existing accounts with Datek now TD, Schawb, eTrade, Fidelity, etc. Is there brokerage with sign-up bonus (like credit) when rolling over? If I have two IRA accounts with CS with over $5k on each, there's no fee for monitoring ETFs? Again, thanks!

  3. Cliff DaRiff

    62 yrs old… want to invest savings…. dollar cost averaging into dividend income stocks for future retirement. Already have a 401k… long term…looking free of fees. Friend recommended TD Ameritrade.

  4. D S

    Great video… lots of awesome info. Thanks for posting.

  5. Ken Fariñas Apostol

    Hey Robbie, it's my first time seeing one of your videos and was surprised you're based in Manila! Did you move there for work or early retirement?

  6. David Gayman

    Hey Robbie, great video thank you for your detailed brokerage reviews! One item I haven't heard you mention yet is which brokerages offer self-directed HSA accounts. Bank of America and Fidelity have this but Schwab only offers a "Health Savings Brokerage Account" which needs to be linked with an HSA from another provider.

    From a tax standpoint it seems to me it's like another Roth IRA that can effectively add $3600 to the contribution limit for non-taxable investments. It rolls over. Earnings are tax-free. Seems like an excellent way to build a safety net for medical expenses in retirement. But I don't hear a lot of people recommend this, why? Are there significant trading restrictions?

    Also my employer offers an FSA so I wonder if there are any fees for opting out of a provided FSA/HSA and using my own.

  7. Derek

    Ugh. I can’t decide between Fidelity & Schwab. Very interested in index funds and I’m new to this whole thing. Definitely trying to save for retirement.

  8. Mr. Berry

    People only need one of three for retirement investing:

    1) Fidelity
    2) Charles Schwab
    3) M1 Finance

    Then invest 80% into an S&P 500 fund or a Total USA fund. The remaining 20% into an international fund. M1 is great for Vanguard ETFs. Index mutual funds with Fidelity & Schwab are the least expensive, and they offer great customer service.

  9. Lantz Family Adventures

    I’ve been using Webull to trade stocks for a little over a year now. I’m good at turning short term investments into long-term ha ha. For my Roth I just want to pick some long-term funds, contribute monthly and let it go. First I went with M1 finance and really enjoyed setting up the pie chart because of how simple it is to see what you have. I ended up going with Fidelity though because of all the funds they offer. Also didn’t like that M1 locks you into a 9:30 bell open buy.

  10. T-BoT Finance

    Robbie's content is gold. Only a matter of time before youtube algorithm recognizes it

  11. tzaidi23

    Love that M1 is like a robo but allows (much) more control, wish they had tax loss harvesting.
    Love Schwabs $free.99 & TLH, wish they didnt keep so much cash.
    I propose they make a Schwab1

  12. El Azteka Solitario

    1. Fidelity
    2. Charles Schwab
    3.M1 Finance
    4.Betterment
    5.Wealthfront.

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