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Best Self-Directed IRAs

Pick one of these IRAs if you’re an active investor.

Updated on March 14, 2020

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Key Takeaways
  • You’ll want a self-directed IRA if you prefer full control over what your retirement assets are invested in.
  • Some of the biggest brand names in finance like Fidelity, Vanguard, Schwab and E-Trade offer good options.
  • Newer tech-driven companies like SoFi and Ally also offer easy-to-use self-directed IRAs.
  • Commissions for online trades have recently been cut across the board making it cheaper to manage your own money.

What’s a self-directed IRA?

A self-directed IRA is a type of retirement account that allows you to place your own trades. It’s typically used by more active investors who want more control over their portfolios. Most self-directed IRAs allow you to invest in a full range of stocks, exchange-traded funds (ETFs), and options, though option trading is generally recommended for more experienced investors.

Self-directed IRAs generally have a far wider range of investment options than what’s in employer-sponsored plans like a 401(k). This is one reason why people choose to rollover a legacy 401(k) into a self-directed IRA. It’s generally a good option for more confident investors who are comfortable building their own portfolio. If that’s not you then you’ll be better served by picking an automated rollover IRA where the portfolio is constructed and rebalance for you.

What are the fees?

  • Commissions: In the past, most self-directed IRAs charged a commission for each trade that was placed. Many providers have now cut their commissions for online stock trading to zero as a result of a price war in the industry that began in late 2019. You’ll still probably pay commissions for option trades, but that’s less relevant for most investors who are buying stocks and ETFs.
  • Fees on any ETFs you purchase in the account: If you choose to invest in an ETF in your self-directed IRA then that ETF will still have an underlying fee associated with it. That’s known as an “expense ratio” and is usually expressed as an annual percentage that’s deducted automatically from your assets. Average expense ratios have also come down across the industry, and can now be as low as 0.05% per year for large ETFs.
  • A lower interest rate on your cash balance: While this isn’t explicitly a “fee” you pay, be aware that you might not earn the best interest rate on any cash you keep in your IRA. This is one way IRA providers make money from your assets that allows them to offer other services for free (like commissions). Be sure to compare the interest rate offered by different self-directed IRAs—it changes regularly.

How can you compare options?

Besides fees, these are the key features that self-directed IRAs can differ on:

  • Customer support: Larger, older institutions will generally have more established customer support that includes call centers and branches. Newer, tech-driven providers tend to only offer online support.
  • Quality of user interface: While all firms have invested heavily in technology, younger firms will generally still have an advantage when it comes to the user interface, especially when it comes to mobile apps.
  • Access to research & data: Some firms offer more research and data than others. These can include access to brokerage reports on stocks, macroeconomic research, and live data on security prices.

The best self-directed IRAs

Fidelity logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options, Bonds
Limitations: Fidelity's fees on money market mutual funds (where you can put extra cash in your account) are a little higher than some peers.
Access to Research: Good: access to market data and reports from third-party research providers (e.g. Argus, CFRA).
More details
Merrill Lynch logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options, Bonds
Limitations: Some extra benefits (e.g. fee discounts) are reserved for Bank of America customers.
Access to Research: Good: access to extensive Bank of America research and some third-party research.
More details
AltoIRA logo
Commissions: Crypto IRA: 1% Trade Fee for all transactions; No Custody or Account Fees
Alto IRA: $10/month for Starter and $25/month for Pro, and $10-75 fee per private investment
Invest in: Cryptocurrency and Crypto Funds, Securitized Collectibles, Cannabis, Real Estate, Crowdfunding, Private Credit, Private Equity, Pre-IPO Stocks and funds, Private High Yield Offerings, Venture Capital, and more.
Limitations: Standard restrictions on alternative investments apply; in addition, you cannot currently invest in publicly traded assets like stocks and bonds.
Access to Research: Good: access to research on private investments through Alto partners like AngelList and Forge.
More details
Tradestation logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options, Futures, Crypto, Bonds
Limitations: Might be a little heavy-duty for inexperienced traders.
Access to Research: Good: lots of data and charting tools, less access to fundamental third-party research.
More details
Ally logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options, Bonds
Limitations: Ally has some great tools for traders (charts and screeners) but a little less third-party research.
Access to Research: Good: market data and some third-party research on stocks (e.g. Morningstar, CFRA).
More details
E*TRADE logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options, Futures, Bonds
Limitations: The E*TRADE platform has more functions than many brokers, so it can take a bit to get the hang of.
Access to Research: Great: market data and third-party research on stocks, mutual funds & markets (e.g. Thomson Reuters, Credit Suisse, Argus). In addition, E*TRADE offers resources for beginner investors.
More details
TD Ameritrade logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options, Futures, Bonds
Limitations: TD's branches are concentrated in the Northeast if you like in-person service.
Access to Research: Good: market data and some third-party research on stocks, mutual funds & markets (e.g. Morningstar, CFRA).
More details
BitcoinIRA logo
Commissions: Initial deposit fee: 5.99%; Transaction fees: 2% of all trades; Monthly account fee: 0.08%
Invest in: Cryptocurrency (like Bitcoin, Ethereum, and 60+ others); Gold (note: these are actual gold bars stored in Brink’s storage facilities on your behalf)
Limitations: Bitcoin IRA has higher fees than some other providers of crypto IRAs, though you will be able to earn some interest on your holdings.
Access to Research: Good; Bitcoin IRA offers various reports (on web and mobile) and allows you to set up advanced charts and price alerts which is especially useful for crypto trading.
More details
SoFi logo
Commissions: Trade stocks and ETFs commission-free and pay no SoFi management fees on professionally-managed portfolios. Other fees may apply.
Invest in: Individual stocks, ETFs, IPOs, and professionally managed portfolios
Limitations: SoFi doesn’t allow you to trade options in IRAs (although it is allowed in taxable accounts) and doesn’t offer advanced technical research capabilities
Access to Research: Limited: some market data but no third-party research.
More details
Robinhood logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs). Other fees may apply.
Invest in: Stocks & ETFs, Options
Limitations: Users can earn the matching contribution immediately on eligible contributions, but must hold the funds in the IRA account for five years before the match can be withdrawn without a potential fee.
Access to Research: Good: Robinhood offers advanced charts to visualize, research, and analyze investment options. Robinhood’s portfolio building tools also offer useful information on investment choices
More details
M1 Finance logo
Commissions: $0 commission online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, REITs
Limitations: M1 is not an active trading platform; all trades occur during set trade windows and are executed automatically. You can also initiate trades manually during the trade windows.
Access to Research: Good; Includes access to market and individual stock news, screening tools for stocks and ETFs.
More details
Vanguard logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options
Limitations: Vanguard's platform is limited if you want to trade things other than ETFs and some Vanguard funds have high minimums.
Access to Research: Limited: some market data but not much third-party research.
More details
Charles Schwab logo
Commissions: $0 online trades for stocks and exchange-traded funds (ETFs)
Invest in: Stocks & ETFs, Mutual Funds, Options, Futures, Bonds
Limitations: Schwab does not offer direct investments in cryptocurrency, though this won't be a limitation for most investors.
Access to Research: Good: market data and some third-party research on stocks, mutual funds & markets (e.g. Morningstar, Credit Suisse, Argus).
More details
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