Best ROTH IRA Promotions. Bonus Offers To Open ROTH IRA Account.


2017 new ROTH IRA promotions, bonus offers, referral codes to open account for new customers. Review best ROTH IRA companies deals from Etrade, TD Ameritrade, Fidelity, and Ally Invest.



Ally Invest rating

Ally Invest

Ally Invest ROTH IRA Promotion


Promotion link: Switch to Ally Invest and get up to $150 in transfer fees reimbursed.

Only the most active traders will make the best use of Ally Invest's Roth IRA promotion. With a $5,000 initial deposit into a new account, a trader will receive $1,000 in free trade commissions for equity and options trades. Eligible trades must be made within 60 days. The account must be funded within 30 days of opening. This offer is available only to new Ally Invest clients and expires June 30, 2017.

Ally Invest also will refund up to $150 in transfer fees for anyone who moves an existing account with another firm to a Ally Invest account. The minimum account balance required is $2,500.


Ally Invest ROTH IRA Basics

  • $0 to open a Roth IRA cash account, $2,000 to open a margin account
  • $4.95 stock and ETF commissions
  • $4.95 + $0.65 per contract options commissions
  • $9.95 mutual fund commissions

Read full Ally Invest ROTH IRA review



TD Ameritrade rating

TD Ameritrade


TD Ameritrade ROTH IRA Bonus


ROTH IRA Bonus link: Trade free for 60 days + get up to $600.

This brokerage offers cash bonuses in addition to free trades for opening a new Roth IRA account. All new accounts initially funded with at least $3,000 receive 60 days of commission-free trading. Trades are limited to stocks, ETFs, and options. A maximum of 500 free trades is allowed with a 60 calendar day period after funding the account. The account must be funded within 60 days of opening.

Cash bonuses are also given at the following break points for initial funding of the account: $25,000+ = $100; $100,000+ = $300; $250,000+ = $600. This offer expires on Sept. 30, 2017.


TD Ameritrade ROTH IRA Basics

  • $0 to open a Roth IRA cash account, $2,000 to open a margin account
  • $6.95 stock and ETF commissions
  • $6.95 + $0.75 per contract option commission
  • $49.99 no-load mutual fund commissions

Read full TD Ameritrade ROTH IRA review



Etrade rating

E*trade


Etrade ROTH IRA Bonus


ROTH IRA Bonus link: At E*TRADE, active traders get $4.95 trades + 50₵ per options contract.


Etrade ROTH IRA Basics

  • $0 to open a Roth IRA cash account, $2,000 to open a margin account
  • $6.95 stock and ETF commissions ($4.95 if 30+ trades per quarter)
  • $6.95 + $0.75 per contract option commissions ($4.95 + $0.50 if 30+ trades per quarter)
  • $19.99 mutual fund commissions

Read full Etrade ROTH IRA review



Scottrade rating

Scottrade


Scottrade ROTH IRA Promotion


Promotion link: Trade free for 60 days + get up to $600.

Existing account holders can also take advantage of Scottrade's promotional offer. Investors may either open a new account with at least $10,000 or add at least $10,000 to an existing account to qualify for 50 free trades and up to $2,000 in bonuses. The free trades must be made within 90 days of funding the account and are limited to 50 stock or option trades.

Cash bonuses are awarded at the following investment levels: $25,000+ = $100; $50,000+ = $200; $100,000+ = $300; $250,000+ = $600; $500,000+ = $1,000; $1,000,000+ = $2,000.


Scottrade ROTH IRA Basics

  • $0 minimum investment to open a Roth IRA account, $2,500 for taxable accounts
  • $7 stock and ETF commissions
  • $7 + $0.70 per contract option commissions
  • $17 mutual fund commissions

Read full Scottrade ROTH IRA review



Fidelity Investments rating

Fidelity


Fidelity ROTH IRA Bonus


ROTH IRA Bonus link: Get 500 free trades with $100,000+ deposit.

This Fidelity ROTH IRA promotion offer is valid for new or existing Fidelity customers. In order to receive the free trades, you must designate an existing eligible Fidelity IRA or brokerage account or open and fund a new eligible Fidelity IRA or brokerage account. Accounts receiving $50,000 to $99,999 will receive 300 free trades; accounts receiving over $100,000 of net new assets will receive 500 free trades. Trades must be used within 90 calendar days of being credited to the customer's account. Commission-free trades must be designated to the one account receiving the qualifying assets or amount, and are limited to online domestic equities and options. Options trades are limited to 20 contracts or less per trade; for orders beyond these limitations standard commission rates apply to the entire order. You will not receive cash compensation for any unused commission-free trades; unused trades expire worthless. This 2017 Fidelity Promotion Offer is nontransferable, limited to one per individual per rolling 12 months, and may not be combined with other offers.

Account holders must maintain a minimum account balance of $50,000 of net new assets for the 300 free trade offer or $100,000 of net new assets for the 500 free trade offer (minus any losses related to trading or market volatility) for at least nine months from the date on which the trades are credited to the account, otherwise commission charges may be incurred retroactively on free trade executions based on the customer's applicable commission rate under Fidelity's Commission & Fee Schedule.

Funding must come from an external, non-Fidelity source via any standard monetary transfer method (a standard Transfer of Assets form, check, electronic funds transfer, ADM deposit, etc.); rollovers from a former employer's Fidelity-recordkept workplace savings plan are treated as coming from an external source for purposes of this offer. Net new assets are defined as an individual’s external new money in minus money out, including distributions and transfers.


Read full Fidelity ROTH IRA review





Roth IRA Promotions at a Brokerage Firm


Many online brokers offer special promotions to entice investors to open new ROTH IRA account. Both traditional IRAs and Roth IRAs are eligible to receive these free trades or cash bonuses, but not all brokers offer free mutual fund trades. Mutual fund investors should check with the prospective broker to be sure mutual fund trades are included in any promotion.


Reasons to Open a Roth IRA at a Brokerage Firm


Opening a Roth IRA with bonus offer above can be a good way to start building a nest egg for retirement. This tax-advantaged account can be opened at different financial institutions, including banks. As we shall see, a broker is an excellent place to open the account.


Roth IRA at a Bank


It’s possible to open a Roth IRA at a bank and deposit the retirement account’s contributions into a savings account, money market deposit account, or certificate of deposit. Doing so will result in a stable return over the lifetime of the account. Savings accounts, money market accounts, and CD’s are guaranteed not to go down in value, and in return you receive a small annual stream of income. Typically, this can be 1% or even lower. Bank of America, for example, offers a money market IRA account that pays just 3 basis points per year.

The investment choices with a bank IRA are very limited. Typically, you only get three options: a savings, money market, or CD account. Most banks only offer savings accounts and certificates of deposit for IRA’s.

Ally Bank currently offers a savings account Roth IRA that pays 1.15% on all balance levels. The bank’s CD’s are eligible for retirement accounts. They pay between 0.30% and 2.25%, depending on term level and balance. Synchrony Bank pays between 0.25% and 2.35% for its CD’s, which can be used inside a Roth IRA. Its Roth IRA money market account pays 85 basis points.

Bank products, including balances from a Roth IRA, are insured by the FDIC. But the government limits this protection to $250,000 per customer.


Advantages of a Brokerage Roth IRA


Some retirement savers aren’t going to be satisfied with the Roth IRA rates that banks offer. And that’s why the brokerage version of the Roth IRA has become more popular. Holding a retirement account at a broker-dealer opens up many more investment opportunities than what a bank can provide, although with increased return comes increased risk.

Some of the available investments when you open brokerage Roth IRA with promotion offer above include stocks and bonds. Bonds have more stable price histories, while stocks have very high return potential. For example, in 2016, U.S. Steel (ticker symbol X) returned 316%. This was one of the best performing stocks on American exchanges that year. Obviously, this is much higher than any bank account yielded in the same year. Of course, there is far less consistency in the stock market. The year before, the same stock went down 69%. On a two-year average, that’s still over a 100% return.

Besides stocks and bonds, there are other investments available to Roth IRA account holders at a brokerage house. Mutual funds are very popular, and target-date funds are designed for retirement savers. These securities become less risky as the target date approaches. This is the date that retirement is supposed to begin. Available target dates are usually in multiples of fives—2030, 2035, 2040, and so on. Because mutual funds are securities, they are not available in a bank IRA.

Although brokerage accounts are not protected by the FDIC, most brokers offer coverage through SIPC. This is the brokerage world’s primary insurance. It protects accounts up to $500,000. This is twice the amount of insurance that the FDIC provides. Furthermore, many brokerage firms, including Fidelity and Vanguard, provide supplemental insurance for accounts above $500,000. Retirement savers who have large accounts would obviously be better off with a brokerage IRA rather than a bank IRA.

Many brokerage firms also offer a wide range of brokered CD’s. These can be traded inside a brokerage Roth IRA. Because there are usually multiple banks that provide these products, buying a CD in a brokerage IRA is actually a better idea. By going through a broker-dealer, you will get a larger selection of CD’s. For example, E*Trade’s CD screener returns over 40 products from several banks, including Discover Bank, HSBC, Bank of China, Berkshire Bank, JP Morgan Chase, and others.

Many broker-dealers also provide large amounts of retirement planning resources. The Schwab and TD Ameritrade websites, for example, host articles and videos that discuss many important retirement topics. These include how to generate income during retirement and how to incorporate Social Security into a retirement plan. Retirement calculators that can make very important financial estimations are also on both websites. Most banks don’t provide their customers with such thorough educational materials on retirement planning.

Many on-line discount brokerage firms today offer account management services. If you don’t have the time or ability to manage your Roth IRA, licensed financial advisors can manage your account for you. Usually, this costs 1% or more per year. Robo-advisory services cost far less. This type of account management uses a computer program to make trading decisions, and it can be used for a retirement account. Banks don’t provide these types of services.


The Employer’s Role in Funding a Roth IRA


As the name suggests, a Roth Individual Retirement Account is typically funded individually without any assistance from an employer. However, an employer can make after-tax contributions to a Roth IRA on behalf of an employee.

Most employer-sponsored retirement plans are 401(k)’s or similar arrangements. These usually have much more limited investment options, sometimes just from a single mutual fund family. This means stocks and other securities won’t be available. But a Roth IRA at a brokerage firm can invest in virtually any asset, including option contracts. There are also IRA’s that can invest in gold and silver coins.


Roth IRA Promotions Summary


If a Roth IRA is opened at a brokerage house, it will come with a host of benefits that aren’t available at a bank. Over time, these benefits can lead to a larger account balance.


Updated on 8/30/2017.



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