IRAs: Where to Open

[Jess]

One of my financial resolutions this year is to open a Roth IRA. I've been looking at a number of different places to do so. Financially speaking Vanguard and Fidelity are both out of my range, but I am considering T. Rowe Price (because of their Automatic Asset Builder), perhaps ING, and some discount brokers. I've been reading posts on many of the popular personal finance blogs, but I'd really like some "real life examples." Any recommendations (and why?) are greatly appreciated!

[The Honest Dollar]

I invest with Fidelity, but that's only because my company makes me. (My firm needs to keep tabs on my investment since it's in the heavily-regulated financial services industry, so it partners with Fidelity to provide IRAs to employees.)

I think the standard answer is to figure out what kind of investments you want to make first, then find the brokerage that will allow you to make those investments the cheapest. It sounds like you've already started doing this: you know you can only contribute a little each year, so you want to avoid brokerages with high minimums like Fidelity and Vanguard and go for an attractive automatic investment plan, like T. Rowe Price's. All 3 of those firms are reputable and provide low-expense investment options. You can't really go wrong, so just pick what's good for your situation.

[alex]

I use and recommend TradeKing. I've been with Waterhouse, Datek, and Scottrade, and TK's been the best. I was using Scottrade before, because there were no maintenance or inactivity fees. They were good, with satisfactory customer support and $7 trades.

I transferred my accounts to TradeKing when I found out they offered DRIPs, as well as lower commissions. So far, TradeKing's really impressed me. The site is really well designed and fast. Another thing I liked was I could manage multiple accounts with one login. That probably won't affect you if you plan to open only a Roth, but it will if you save more than the maximum contribution and need a place to invest that money.

They're also very option trader-friendly, if you're into that kind of thing.

[Joanne]

We use Ameritrade but Tradeking sounds like a good option also (thanks for the tip Alex).

[rstlne]

I currently use Scottrade for my Roth IRA because they have no-transaction-fee mutual funds and the $7 for stock trades isn't excessive. Previously, I had the Roth IRA at a smaller mutual fund boutique but they decided to stop handling IRAs, so I had to transfer.

[Cziki]

Vanguard -- they're known for no-load funds and low expenses so that your investment could grown bigger. Also, I recommend not going to a financial advisor but investing on your own.

[girlfromsouth]

I have the same problem. If I could pick ANYWHERE to get a Roth, I'd get it at Vanguard but I can't afford their minimums to get started and fees, etc.

Has anyone used the ING/Sharebuilder Roth IRA? I have an accoutn with ING and have loved their service adn automatic deposits (that are okay if they are small) but somehow to me it doesn't seem as "serious" as like, Vanguard or Fidelity or what have you.

[Megan]

I have heard a number of people recommend T. Rowe Price. I know it is also one of the companies that Suze Orman recommends for starting a Roth. I have a number of friends who have their Roths there (mine is at Vanguard), and they're all very happy.

[Xin Lu]

I have Tradeking as well and it has been a good experience. You can buy ETFs with very low commissions in your Tradeking Roth IRA and there are no account maintenance fees. If you want more mutual funds I'd say go with Schwab and buy their great selection of no load funds from multiple families (however a lot of these funds have different minimum balance requirements). Vanguard is where I keep most of my Roth IRA money but as you said the minimum account balance is a problem for people who are just starting out.

[stardanced]

Originally Posted by girlfromsouth

I have the same problem. If I could pick ANYWHERE to get a Roth, I'd get it at Vanguard but I can't afford their minimums to get started and fees, etc.

Vanguard waives their low-balance fees if you sign up for e-statements, and some of their funds (like the STAR fund) have $1000 minimums. I just stuck my money in a high-yield savings account until I had enough to buy into the STAR fund, then kept buying into the STAR until I had enough to shift my money into a target retirement fund ($3000). I love Vanguard because of their low expense ratio, and I've been happy with them so far.