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We evaluated Roth IRA accounts from brokerage firms that are available in all 50 states, ultimately only featuring those that fit our strict criteria. To be included on this list, providers must:
Have at least $1 trillion in assets under management if offering a self-directed account.
Have at least $20 billion in assets under management if offering a robo-advisor account.
Understanding Our Methodology
To choose the best Roth IRA providers in 2023, Annuity.org’s independent editorial team carefully considered Roth IRA offerings from the top brokerage firms in the country.
Annuity.org uses a strict and fact-based methodology to determine which companies qualify for our rankings. To be considered, a provider must offer Roth individual retirement accounts (IRAs) in all 50 states.
We also considered other factors, including account minimums, fees, tools and resources available to investors, and the variety of investment options offered.
Learn more about our broader Editorial Guidelines.
The defining feature of Roth IRAs is that investors pay taxes upfront on money that is deposited (i.e., they contribute after-tax dollars). However, on the back-end, when withdrawals are made in retirement, both contributions and earnings are tax-free if certain qualifications are met.
Nobody knows what tax rates will be later in life or how much wealth they might accumulate. Roth IRAs are an ‘uncertainty hedge’ in case you end up in a higher tax bracket later in life.
Barbara O’Neill, Ph.D., CFP®, AFC®, CRPC®Owner and CEO of Money TalkWith an extensive 41-year tenure at Rutgers University, Barbara O’Neill has established herself as a highly knowledgeable personal finance expert. As a Certified Financial Planner™ and Accredited Financial Counselor™ professional, she possesses a wealth of expertise in the field. She currently serves as the owner and CEO of Money Talk, where she actively engages in writing, speaking and reviewing personal finance content. In 2020, she notably authored the book Flipping a Switch, delving into various aspects of personal finance.
Editor’s Choice: Best Overall
Best Self-Directed: Fidelity Investments
Provider Details
Fidelity Investments is one of the largest financial services firms in the nation with over $3 trillion in assets under management. Fidelity serves more than 40 million individual investors in America and nine other countries.
Pros & Cons
Pros
- No account or advisory fees
- No account minimum
- Over 10,000 fund choices including index funds with no expense ratio
- Robust planning tools, calculators, reporting features and other resources
Cons
- No futures trading offered
Our Take
Fidelity’s self-directed Roth IRA makes saving for retirement easy and accessible. You can choose from over 10,000 fund choices, including some with no expense ratio. Other investment options provided by Fidelity include stocks, bonds, mutual funds, ETFs and options. Plus, you’ll pay no account or advisory fees when you open a Roth IRA with Fidelity.
The robust tools and resources Fidelity offers help make it our top pick for self-directed Roth IRAs. Investors can trade with confidence using Fidelity’s calculators, reporting features and chatbot support. You can even access free four-week courses from the Learning Center to brush up on trading basics.
Best Robo-Advisor: Wealthfront
Provider Details
Wealthfront is an automated investment service company, commonly referred to as a “robo-advisor.” Wealthfront’s mission is to make investing easier, better and more accessible, and it does that by offering software-based financial planning solutions designed to automate investing.
Pros & Cons
Pros
- Low account minimum
- Hundreds of funds to choose from, including crypto exposure
- Can choose portfolios designed for socially conscious investing
Cons
- 0.25% management fee
- Technical support only, no investment or financial planning advice available
Our Take
As one of the biggest names in robo-advising, Wealthfront stands out with its accessibility and customizable features. Investors can open a Roth IRA at Wealthfront with as little as $500, one of the lowest account minimums of any robo-advisor.
The Roth IRA from Wealthfront can be customized to fit investors of all experience levels. Investors can build their own portfolio with hundreds of investment options across a wide range of asset classes. Beginning investors or those who prefer a hands-off approach can simply choose one of the premade portfolios that Wealthfront’s investing experts will build and manage for them.
Best for No Account Minimum
Best Self-Directed: E*TRADE from Morgan Stanley
Provider Details
E*TRADE is an online brokerage firm that pioneered online investment trading for consumers in the early 1980s. The global financial services firm Morgan Stanley acquired E*TRADE in 2020.
Pros & Cons
Pros
- No account minimum for Roth IRAs
- No account fees and no commissions on stocks, ETFs or mutual funds
- Over 6,500 mutual funds and 50,000+ bond and CD offerings
Cons
- $1 per bond charge for online secondary market trades ($10 minimum)
- $0.50 to $0.65 charge per contract for options trading
Our Take
Investors can open a Roth IRA at E*TRADE with no account minimum, and the company charges no account fees and little to no commissions on most trades. The charges that do come with certain investment choices, such as bonds and options trading, are clearly outlined on E*TRADE’s website.
E*TRADE offers a wide variety of investment options to build your portfolio with as much or as little risk as you like. Those who want to craft a conservative portfolio designed for reliable long-term growth might especially prefer E*TRADE’s thousands of mutual fund choices and over 50,000 offerings of bonds and CDs.
Best Robo-Advisor: Betterment
Provider Details
Betterment is a robo-advising company offering investment services including retirement accounts such as IRAs and 401(k)s. Betterment’s approach to robo-advising combines human financial expertise and automation technology to help their customers manage their money.
Pros & Cons
Pros
- No account minimum
- Can customize curated portfolios to adjust for risk tolerance
- Premium plan includes phone and email support from financial planners
- Tools for tax-loss harvesting, tax coordination and rebalancing
Cons
- 0.25% management fee for basic plan, 0.40% for premium plan
- No direct indexing
Our Take
Betterment stands out among other robo-advisor companies by having no minimum deposit needed to open and maintain a Roth IRA account. The company charges a typical 0.25% in advisory fees for their basic plan, which includes digital-only investing advice. The basic plan also comes with tools for retirement planning, goal tracking, tax-loss harvesting and portfolio rebalancing.
A Roth IRA from Betterment would be well-suited for someone new to investing or someone who doesn’t want to have to manage their portfolio. When you open a retirement account with Betterment, you’ll choose a curated portfolio with a specific asset class focus, like “Stocks and Bonds” or “Socially Conscious.” The allocations of each portfolio can be adjusted for your risk tolerance, so there is some level of customization offered.
Best for No Fees
Best Self-Directed: Charles Schwab
Provider Details
In the fifty years since its founding, Charles Schwab has built a reputation for excellence as a brokerage firm. The corporation was named one of the Best Online Brokers of 2022 and Most Trusted Financial Companies of 2022 by Investor’s Business Daily.
Pros & Cons
Pros
- No account opening or maintenance fees
- $0 commission on stock, options and ETF trades
- Over 2,000 ETFs and 7,000 mutual funds to choose from
- Award-winning 24/7 customer service support
Cons
- No crypto assets to invest in
- Higher margin rates
Our Take
Charles Schwab’s Roth IRAs have no account or maintenance fees and no commission on most online trades. You can build your Roth IRA portfolio with over 2,000 ETFs and 7,000 mutual fund options, as well as other choices like stocks, bonds, annuities, money market funds, futures and margin loans. Schwab even offers over 25 proprietary ETFs with expense ratios as low as 0.03%.
Opening a Roth IRA with Charles Schwab also gives you access to the brokerage’s StreetSmart Edge® online trading platform and their highly rated customer service, available 24/7. Schwab’s user-friendly online trading and reputation for customer support helped them score the highest in overall investor satisfaction in J.D Power’s 2023 Full-Service Investor Satisfaction Study.
Best Robo-Advisor: Schwab Intelligent Portfolios
Provider Details
Schwab Intelligent Portfolios® is the robo-advising subsidiary of Charles Schwab. Schwab’s robo-advisor selects ETFs for investors’ portfolios based on how the investor answers questions about their goals, risk tolerance and investment timeline.
Pros & Cons
Pros
- No advisory or management fees
- Three investment strategies and six risk profiles to choose from
- 24/7 live support
Cons
- $5,000 account minimum
- Automatic tax-loss harvesting only for clients with balances of $50,000 or more
Our Take
If you’re looking for a robo-advising option for your Roth IRA but don’t want management fees to eat into your portfolio’s growth, Schwab Intelligent Portfolios® could be a good choice. Though it has a relatively high account minimum of $5,000, Schwab Intelligent Portfolios® is unique among robo-advisors because it charges no advisory or management fees.
Schwab’s robo-advisor lets investors choose three investment strategies and six risk profiles from Conservative to Aggressive Growth to create their portfolios. The algorithm then selects from over 50 low-cost ETFs to create a portfolio specially tailored to each investor’s needs.
Best for Hands-Off Investors
Best Self-Directed: Vanguard
Provider Details
Founded by legendary business magnate John Bogle, Vanguard stands as the largest investment firm in the nation today. The company is best known for its selection of low-cost index and mutual funds.
Pros & Cons
Pros
- Low average expense ratio (0.09%)
- $0 commission for stocks, ETFs and Vanguard mutual funds
- 160 Vanguard mutual funds with no transaction fee
- Over 3,000 mutual funds to choose from
Cons
- Most Vanguard mutual funds require a minimum investment of $3,000
- Trading platform lacks tools and interactive features
- $20 annual account fee, can be waived by signing up for e-delivery of account updates
Our Take
Investors who want a hands-off approach to managing their portfolio might prefer the simplified approach of Vanguard’s Roth IRA. Vanguard’s online trading platform doesn’t have as many interactive tools and features as other providers, but it’s perfect for those who just want to put their money into low-risk, low-cost mutual and index funds and let it grow.
Those low-cost funds are how Vanguard became one of the largest brokerages in the country, and you can take full advantage of them with a Vanguard Roth IRA. You can choose from over 3,000 mutual fund options, many with low expense ratios. Vanguard’s 160 proprietary mutual funds also come with no transaction fees.
Best Robo-Advisor: Vanguard Digital Advisor
Provider Details
Vanguard Digital Advisor is a robo-advisor offered by the Vanguard Group. Vanguard Digital Advisor builds custom portfolios based on investors’ current savings, risk assessment and investment timeline.
Pros & Cons
Pros
- Customized investment portfolios of mutual funds and ETFs
- Automatically adjusts asset mix for tax efficiencies and financial goals
- No advisory fees for first 90 days
Cons
- $3,000 account minimum
- 0.20% advisory fee
- Cannot have non-Vanguard mutual funds or individual bonds in portfolio
Our Take
Most robo-advisors provide a hands-off experience for managing a Roth IRA, but Vanguard Digital Advisor goes the extra mile, automatically adjusting your portfolio’s asset mix to help you reduce your tax liability and reach your financial goals. The robo-advisor requires a $3,000 account minimum and charges a 0.20% advisory fee, but new customers won’t pay advisory fees for their first 90 days.
When you open a Roth IRA with Vanguard Digital Advisor, you’ll answer questions about your risk tolerance, current savings and investment timeline. The robo-advisor’s algorithms will use your answers to select investment choices from Vanguard’s low-cost mutual funds and ETFs to create a personalized, diversified portfolio.
Best for Hands-On Investors
Provider Details
TD Ameritrade is a brokerage providing online stock trading, investing and retirement planning services to over 11 million customers. The company has since been acquired and is currently being integrated into Charles Schwab.
Pros & Cons
Pros
- $0 commission for ETFs, stocks and mutual funds
- Wide variety of investment options including 13,000+ mutual funds
- Interactive tools, third-party research resources, personalized reporting and analysis
Cons
- All accounts will move to Charles Schwab after acquisition
Our Take
TD Ameritrade is our top choice for investors who want hands-on management of their Roth IRA. The brokerage offers a range of tools and resources for active investors, like personalized screeners, interactive calculators, tools to analyze and compare mutual funds, technical analysis and third-party research provided by top firms like Morningstar.
You can build your Roth IRA portfolio with a variety of investment options from TD Ameritrade. Choose from stocks, bonds, ETFs, annuities, futures and over 13,000 mutual funds. Just be aware that, since TD Ameritrade has been acquired by Charles Schwab, all TD investment accounts will move to Schwab at some point in the future.
Best for a Promotional Bonus
Provider Details
Merrill Edge is an online investment trading platform owned by Bank of America. Merrill’s offerings include self-directed and guided investment accounts including IRAs.
Pros & Cons
Pros
- Cash reward up to $600 for opening and funding a Roth IRA
- No annual account fees
- No commission on stock, ETF or options trades
- Can connect to a linked Bank of America account
Cons
- Not as wide a variety of investment options as other brokerages
Our Take
The Roth IRA Merrill Edge offers is standard amongst major brokerage firms: you can invest in a variety of asset options with no fees and no commission on stock, options or ETF trades. But if you want to get a head start on saving for retirement, Merrill Edge’s bonus for new accounts might be appealing to you.
New customers who fund their Roth IRA with at least $20,000 within 45 days of opening the account can receive a cash reward. The reward starts at $100 for balances between $20,000 and $49,999 and increases incrementally. The maximum reward is $600 for qualifying accounts with balances of at least $200,000.
Best for Integrating With Your Bank
Provider Details
J.P. Morgan is one of the largest financial services firms in the world and the largest bank in the United States. The firm’s Wealth Management division offers investment and retirement accounts along with personal wealth advising services.
Pros & Cons
Pros
- No account minimum and no fees
- No commission for online stock, ETF and options trades
- Can link Chase banking and credit card accounts through mobile app
Cons
- No crypto, forex or futures trading
- $2,500 minimum balance for Portfolio Builder tool
Our Take
With a Roth IRA from J.P. Morgan, you can build a portfolio with stocks, ETFs, mutual funds, options and fixed income products. J.P. Morgan’s investment choices aren’t as varied as other brokerages, but they come with no fees and no commission, as well as access to Morgan’s Portfolio Builder tool. The Portfolio Builder is a useful resource that helps self-directed investors craft a portfolio for their needs, but it requires a minimum balance of $2,500.
Investors who value convenience might like the all-in-one approach to investing, banking and credit cards that J.P. Morgan can provide. With the user-friendly Chase app, you can view and manage your Chase bank accounts, credit cards and Roth IRA all in one place.
What Is a Roth IRA?
A Roth IRA is one type of account that allows people to invest money during their working years so they can withdraw from it during retirement. Each year, you can contribute up to a certain amount to the Roth IRA, and your contributions are invested into assets you choose, such as stocks, bonds, mutual funds and index funds.
There are two types of IRAs you can open: a traditional IRA and a Roth IRA. One major difference between these accounts is the rules for opening them. Anyone can open a traditional IRA, but only those whose annual income does not exceed the limit ($153,000 for single filers and $228,000 for married filing jointly in 2023) can open a Roth IRA.
The other key difference between these two accounts is how they are taxed. Traditional IRA contributions are made with pretax money; you can deduct the income you contributed to an IRA from your total taxable income that year. The money in a traditional IRA is taxed when you withdraw money from the account; the distributions count as your taxable income in the year you receive them.
By contrast, Roth IRAs are funded with money that’s already taxed. You can’t deduct Roth IRA contributions from your taxable income, but the distributions don’t count as taxable income in retirement.
Read More: Roth IRA Calculator
Who Should Open a Roth IRA?
Opening a Roth IRA over a traditional one might be a good idea if you believe you will have a higher income at retirement than you do now. This is because of the way IRAs and Roth IRAs are taxed.
If you have a higher income at retirement, you’ll be taxed in a higher income bracket. This means if you had a traditional IRA, you’d pay more in taxes when you receive the distributions from your account.
By contrast, you pay taxes on the money in a Roth IRA as you make contributions, so you won’t be taxed when you take the money out at retirement. If your income is lower now while you’re making contributions, you’ll be taxed at a lower rate on those contributions.
For this reason, many experts recommend Roth IRAs for younger investors. If you’re in your 20s or 30s, your income is likely to grow over your career. By the time you reach retirement age, you’ll likely be making more income and be taxed at a higher marginal tax rate. A Roth IRA can help you take advantage of your financial circumstances to get the most out of your retirement savings.
Frequently Asked Questions About Roth IRAs
Yes, in 2023, the contribution limit for Roth IRAs is $6,500, or $7,500 for people aged 50 or older.
Withdrawals for Roth IRAs must be taken after age 59 1/2 and after a five-year holding period to avoid a 10% penalty. Exceptions can be made for withdrawals related to a first-time home purchase, becoming disabled, education expenses, birth or adoption expenses.
A backdoor Roth IRA is an informal workaround strategy used by people who make too much money to be eligible for a Roth IRA. They can create a backdoor Roth by converting their traditional IRA into a Roth IRA via a rollover or a transfer.
