Choosing a Brokerage Firm for a Roth IRA
When you're ready to open a Roth IRA, you'll need to choose a brokerage firm. There are many factors to consider when making this decision, including fees, features, and services. Fees One of the most important factors to consider when choosing a brokerage firm is fees. There are a number of different fees that brokerage firms charge, including: Expense ratios: These are annual fees that are charged by mutual funds and exchange-traded funds (ETFs). They can range from 0.05% to 2% or more. Maintenance or custodial fees: These are fees that are charged by some brokerage firms for managing an account. They can range from $5 to $20 per month or more. Management or advisory fees: These are fees that are charged by some brokerage firms for managing an account. They are typically a percentage of the assets in the account, such as 1% per year. Account opening and closing costs: Some brokerage firms charge a fee to open an account. Others charge a fee to close an account. Account asset