If you’re planning to open an Individual Retirement Account, be sure to check out everything Robinhood
offers. One of the top brokerage companies for IRAs has many resources that retirement savers will find appealing.
IRAs Offered: Traditional IRA, Roth IRA
IRA Setup Fee: $0
IRA Annual Fee: $0 for self-directed IRAs
IRA Termination Fee: $0; a $100 ACATS transfer-out fee applies
Stocks and ETFs: $0
Robinhood IRA Promotion
3% IRA match and up to $200 in FREE stock with Robinhood.
Robinhood Fees and Services
Robinhood helped popularize ultra-low brokerage fees, and this company policy extends to Individual Retirement Accounts. Self-directed IRAs have $0 commissions on online stock and ETF trades and no per-contract fee for stock and ETF options. However, index-option fees, regulatory fees, and other charges may apply. Self-directed IRAs have no recurring account-maintenance fee.
A self-directed IRA at Robinhood can be managed through either the company’s website or mobile app, and trades can be placed on either platform. Robinhood also offers managed Traditional and Roth IRAs through Robinhood Strategies. It’s easy for small investors to get started in a self-directed IRA because Robinhood offers fractional-share trading starting at just $1.
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Free Robinhood IRA
3% IRA match and up to $200 in FREE stock with Robinhood.
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IRAs Offered: SEP IRA, SIMPLE IRA, Traditional IRA, Roth IRA, Rollover IRA, Custodial IRA, Inherited IRA
IRA Setup Fee: $0
IRA Annual Fee: $0
IRA Termination Fee: $0; a $50 full transfer-out fee applies
Charles Schwab Fees and Services
An IRA at Schwab can be opened under either the company’s brokerage or investment-advisory program. A self-directed IRA has no opening or maintenance fee, and online trades of listed stocks and ETFs have $0 commissions. Options trades have a per-contract fee, while commissions and other charges apply to certain additional products and services.
A managed IRA may have an annual asset-based fee, depending on the program chosen. Schwab Intelligent Portfolios charges no advisory fee or trading commissions, although ETF operating expenses and costs associated with its cash allocation apply. The program has a $5,000 minimum investment requirement, which is below the standard annual IRA contribution limit for an eligible investor.
IRA customers who enroll in Schwab Wealth Advisory can get personalized help on a wide variety of issues, including many that retirement savers typically need help with. These include:
- Individualized financial plan
- Asset preservation
- Tax-smart investing
- Estate planning
- Charitable giving
- Help with insurance
- And more...
Self-managed IRAs receive less assistance, although they can trade eligible stocks and ETFs in fractional shares starting at $1. They also have access to foreign stocks, although these trades may carry commissions. For trading the available asset classes, Schwab has excellent software that is free to use.
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Free Charles Schwab IRA
$0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
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Robinhood
| Investments | Commissions |
|---|
| Stocks and ETFs | $0 |
| Options | $0 for stock and ETF options; $0.50 per contract for index options for non-Gold customers and $0.35 per contract for Gold customers, plus applicable exchange and regulatory fees |
| Cryptocurrencies | $0 with market maker routing; Smart Exchange Routing uses volume-based fees starting at 0.85% |
| Futures | $0.50 per contract, per side for Gold customers; $0.75 per contract, per side for non-Gold customers, plus applicable exchange and regulatory fees |
| Investments | stocks, ETFs, closed-end funds, ADRs, OTC stocks, options, cryptocurrencies, futures |
| Minimum deposit to open an account | $0 account minimum; at least $2,000 and a Robinhood Gold subscription are required to buy securities on margin |
| Fees | Robinhood fees |
| Promotion |
Robinhood promotions
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Charles Schwab
| Investments | Commissions |
|---|
| Stocks and ETFs | $0 |
| Options | $0.65 per contract |
| Mutual funds | $0 for Schwab Mutual Fund OneSource funds, up to $49.95 per purchase for other funds, $49.95 short-term redemption fee on certain OneSource funds held 90 days or less |
| Futures | $2.25 per contract |
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CDs, Corporate Bonds, Municipal Bonds, Government Agencies, Zero-Coupon Treasuries,
including STRIPS and Mortgage-Backed Securities
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$1 per bond, $10 minimum, $250 maximum |
| Preferred Stocks and REITs | $0 |
| Commercial Paper, Foreign Bonds, Unit Investment Trusts | call for pricing |
| Investments |
stocks, bonds, mutual funds, futures, Treasury issues, options, CDs, insurance, ETFs,
forex, annuities, non-U.S. securities and ADRs, preferred stocks, REITs, and Canadian foreign orders
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| Minimum deposit to open an account | $0 for cash account, $2,000 for margin account |
| Fees | Charles Schwab fees |
| Promotion link | Charles Schwab promotions |
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Robinhood IRA clients will find much to like at the brokerage house. Perhaps the jewel in the crown is the 1% match on eligible annual contributions to self-directed IRAs. No employer is necessary for this bonus. The assets that earned the match must remain in the Robinhood IRA for at least five years to avoid a potential Early IRA Match Removal Fee. Managed IRAs are not eligible for the contribution match.
To bring this program to an even higher level, Robinhood gives Gold clients a 3% match on eligible annual IRA contributions to self-directed accounts. A Gold membership costs $5 per month or $50 per year and comes with additional benefits, such as Level II market data. Customers must maintain their Gold membership for at least one year after receiving their first Gold match to keep the full match.
Robinhood also offers a 1% match on eligible IRA transfers and old 401(k) rollovers into self-directed IRAs. The 1% match has no maximum. An old employer’s retirement plan worth $90,000 rolled into an IRA at Robinhood would receive a $900 match. The assets that earned the transfer or rollover match are subject to the same five-year holding requirement.
Once assets are in a self-directed IRA, the retirement account can trade stocks, ETFs, and eligible options strategies. Robinhood does not permit IRAs to trade cryptocurrencies.
Robinhood also offers managed Traditional and Roth IRAs through Robinhood Strategies. The investment team selects and manages the investments based on the customer’s goals, time horizon, and risk tolerance. The service has a $50 minimum investment and charges an annual management fee of 0.25% of assets. Eligible Gold members pay the management fee only on the first $100,000 in each managed account. Managed IRAs do not receive Robinhood’s IRA contribution, transfer, or rollover matches.
In addition to managed and self-directed investment choices, IRA customers receive access to investment education. The broker-dealer distributes learning materials through multiple channels, and some of these resources focus on retirement topics. We found these articles especially helpful:
- How much should I save for retirement?
- What is the Old-Age, Survivors, and Disability Insurance (OASDI) Program?
- Three things to do before you start investing
There is no charge for any of these materials, and even guests can use them. Just head over to the Learn page on the broker’s website.
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IRA clients of Schwab will be in very good hands, thanks to the company’s treasure trove of retirement resources. First is the large assortment of educational materials that Schwab publishes. These can be found at various locations on the website and mobile app. The website has the lion’s share of information, so it’s a good place to begin. Under the Learn tab in the top menu, there is a link to ‘Planning & Retirement.’ This hub has lots of articles that IRA investors will want to take a look at. Examples we found include:
- Preserving Family Wealth
- What Is a Roth IRA?
- Planning for Long-Term Care
Under the Products tab in the main menu, there is a link to a collection of calculators. They all lead the user step-by-step through a series of inputs that the software program will use to make a suggestion or estimate. Examples of calculators include:
- Preparing for retirement
- Saving for college
- Buying a house
- Estate planning
- Ready to build a portfolio
On the calculator page, there is a link to a complimentary financial plan focused on retirement. This is a valuable service that self-directed IRA owners may want to explore.
Then there is Schwab’s large nationwide network of branch locations. There are more than 400 locations, and both advisory and brokerage customers can use these offices. One-on-one planning from an investment advisor is available to eligible advisory IRA customers at these locations.
Brokerage clients who feel comfortable doing their own retirement planning in conjunction with Schwab’s educational materials already mentioned have their own resources. For example, Schwab has a long list (664 to be exact) of lifecycle mutual funds that are designed for retirement planning. It’s easy to find these securities using Schwab’s fund screener, and many of them have no load and no transaction fee.
Besides mutual funds, brokerage IRAs can trade bonds and other fixed-income securities, stocks, options, exchange-traded funds, and closed-end funds. The stock category includes both foreign and OTC stocks, although these trades may carry commissions.
Schwab’s website has a ladder tool that can be used to construct a bond ladder, a strategy that can be employed in a retirement plan. Brokered CDs can be used in the same manner. The tool is available in Schwab’s fixed-income research and trading section.
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Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
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