Best IRA For Beginners in 2016
Best beginner IRA brokerage firm in 2016. Top traditional, ROTH, SEP, rollover, 401k, and SIMPLE retirement account for new investor.
Setting up a new IRA is free with TDA. Applications take about 15 minutes to complete and are available online. In compliance with the US Patriot Act, investors will have to provide four important pieces of information to open an account:
- U.S. Permanent Residential Address
- Date of Birth
- Social Security or Tax ID number
- Employer name and address
TDA may require additional pieces of identification such as a State ID or a copy of a driver’s license before accepting funds. It is prudent to assume a two-week waiting period between initial application and availability of funds for trading in the online account. It is important to notify TDA of any changes in this information as any inconsistency can result in account suspension.
TDA’s recent acquisition of ThinkorSwim (review) has opened up a new dimension
of trading to its IRA customers. Investors are now able to download and use proprietary software equivalent to the type of power-user
applications available to professional stockbrokers. IRA investors can now trade equities, ETFs,
Forex (FX) from the same account
with the click of a button. Trades that were previously reserved for professional or authorized accounts are now available to the average
investor looking for diversification.
To compliment the advancements in their trading platform, TDA has also assembled a comprehensive educational database for their clients. Investors can find the investment strategy right for them through webcasts, podcasts and YouTube videos. These free educational tools are available for download and can be saved to laptop or mobile device for future viewing at home or on the road.
Checking account balances and placing trades has never been easier with TDA’s mobile app. Available for both the iPhone or Android operating system, this free, light-weight mobile application allows users to read market headlines, check balances in real-time, download analyst reports and move money in or out of an account.
TDA’s mobile app has come a long way since its introduction. New functionality is added with each version update. In its latest version, TDA has allowed customers to deposit and withdrawal funds from an IRA account. Transactions post in real-time and often a message will appear inside the app within seconds informing the client that a buy or sell trade has been executed. Clients can then view their new portfolio and money market balances within seconds. ThinkorSwim™ is also available as a separate mobile app.
TDA completely redesigned their TDAmeritrade.com website. The new sleek yet simplistic design is a clear upgrade from their previous late 90’s design. The website now loads much faster and more functionality is bundled into each webpage using Flash and Java technology. Contacting customer support is even easier with live chat and a secure inbox that allows messages from representatives to be available upon login.
The redesigned website has a mobile version for investors who may not be able to download the TDA mobile apps. TDA utilizes industry standard HTTPS and SSL Internet encryption to protect user information and account integrity. Users traveling abroad or using a VPN network may be asked to verify their identity by answering their secret security questions but will otherwise have the same functionality and customer support as when at home.
TDA doesn’t charge setup or annual fees for IRA accounts. New accounts can be setup through initial deposit or as a rollover account from an employer or from a competing brokerage firm. Stock trades occur at $9.99 each and mutual funds trades occur at $49 per transaction. Unlike other brokerage firms, TDA doesn’t charge for extended-hour trading or cap the size of individual trades.
- TDA does not charge an early IRA distribution fee
- TDA has excellent customer service
- Free mobile apps continue to increase in functionality and are invaluable to the investor on-the-go
- Acquisition of ThinkorSwim™ technology allows end-users to use specialized trading software usually reserved for institutional traders
- The “Education” section of the TDA website provides extensive documentation about understanding the different aspects of international finance
TDAmeritrade continues to charge $9.99 per stock transaction — a rate that hasn’t been competitive since the late 1990’s.
Despite upgrades, the TDAmeritrade.com domain is often slow to load. The website has become more difficult to access from slower connections with the increase in graphic content.
TDA has a proven track record of providing both brick-and-mortar and online brokerage products to customers around the world. TDA has made great progress in providing streaming
online content with education material relevant to beginning and advanced users. Overall the TDAmeritrade offers one of the best IRAs
for beginner investors.
TDAmeritrade IRA Fees
- IRA setup fee: $0
- Annual IRA fee: $0
- IRA Termination Fee: $0
- Account maintenance fee: $0
- Account inactivity fee: $0
- Outbound Full Account Transfer: $75
- Outbound Partial Account Transfer: $25
Trade free for 60 days + get up to $600.
Updated on 2/2/2016.