Open an Individual Retirement Account (IRA) Online
Now that brokerages offer totally online account set-up, management, and trading, it has never been easier to open an individual retirement account (IRA) online. Whether you need to open a traditional IRA, Roth IRA, or you need to rollover an old 401(k) into an individual retirement account, you can select and open an account online in about fifteen minutes.
What Should You Look For?
Unless you’re after specific funds, I recommend creating an inexpensive, well-diversified portfolio using ETFs, which you can do anywhere. Where, then, should you open an IRA? Look for low minimum account balance requirements, low fees, affordable per-trade commissions, and great customer service. Here are my recommended “newbie friendly” brokerages:
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ZeccoFrequently named a SmartMoney Magazine “best discount broker”, Zecco has no minimum account balance requirement and trades are just $4.50 each. There is a $30 annual fee. However, if you have a balance of at least $25,000 or make 25 trades a month, you get 10 free trades per month, making Zecco a great deal, fee notwithstanding. |
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TradeKingAnother top SmartMoney discount broker, TradeKing has no minimum balance requirement, no annual fees, and offers trades for just $4.95. TradeKing will also reimburse up to $150 in fees if you rollover an account and get charged “tranfer out” fees by your old broker. |
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E*TradeE*Trade has no minimum account balance requirement, no annual IRA fee (as long as you receive electronic statements), and offers free dividend reinvestment. Trades cost $12.99. New accounts receive 100 commission-free trades for use within 30 days of account opening. |
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OptionsXpressDon’t be fooled by its name; OptionsXpress is a full-service online brokerage that has no minimum account balance requirements or annual fees. Trade commissions are a bit higher at $14.95, but there’s no additional charge for broker-assisted trades and OptionsXpress’ online trading tools are consistently rated among the highest. |
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tradeMONSTERInvest with tradeMONSTER and enjoy no annual fees, no minimum balance requirement, and trades at just $7.50 each. Plus, you can practice trading using real stock data (but not real money) using their feature paperTRADE. |
