Looking For A Financial Advisor?
Get In Touch With A Pre-screened Financial Advisor In 3 Minutes
Summary of Best Roth IRA Accounts of 2025
Fidelity
Best Overall Roth IRA
Fidelity
Premium Wealth Services Available
Editor’s Take
An impressive selection of zero-expense-ratio index funds and no-minimum-purchase mutual funds makes Fidelity Investments a great place to open a Roth IRA. In addition to its rich menu of fund choices, it’s also worth noting that Fidelity is one of the few traditional brokerages to offer fractional share trading. Fidelity also offers access to over 7,000 U.S. stocks and exchange-traded funds (ETFs).
Fidelity’s well-rounded platform serves all kinds of retirement investors well, whether they’re new to the markets or experienced hands-on traders. In addition, investors can always opt to put some of their balance under automated management in the company’s highly rated robo-advisor platform, Fidelity Go.
Pros & Cons
- No account opening fees or minimums
- Wide range of low-cost funds available
- Fidelity Go robo-advisor is available with as little as $10
- Fidelity Zero funds won’t transfer if you switch brokerages in the future
- Wealth management services start with 1.5% assets under management (AUM) fees
- No paper trading
IRA Offerings
- Traditional IRA
- Roth IRA
- SEP IRA
- SIMPLE IRA
- Custodial/Minor IRA
Vanguard
Best IRA For Beginners
Vanguard
Premium Wealth Services Available
Editor’s Take
Vanguard is a giant in the retirement investing industry. So, it makes sense that the company should offer a superior hands-off Roth IRA investing option. Vanguard is also the house that John C. Bogle built, known for giving retail investors access to the markets.
The reputable brand offers numerous fund options for parking your retirement cash. There’s a wide array of commission-free ETFs, plus around 160 no-transaction-fee mutual funds.
The downside is that many of Vanguard’s mutual funds come with a minimum investment amount of $1,000 to $3,000. But there’s a silver lining. Many of Vanguard’s popular funds come with an inexpensive ETF twin. For instance, instead of investing in the Vanguard Total Stock Market Index Fund (VTSAX) with an investment minimum of $3,000, you can invest in the Vanguard Total Stock Market ETF (VTI) for as little as $1.
Pros & Cons
- No account minimum for opening a Vanguard Roth IRA
- Reputable brand
- Numerous investment options (e.g., commission-free ETFs and 160 no-transaction mutual fund choices)
- A $25 annual account service fee. But the fee is waived if you opt for e-statements.
- Higher mutual fund minimum investments, many requiring $1,000 to $3,000
- Lack of advanced trading and digital retirement tools
IRA Offerings
E*TRADE
Best IRA For Portfolio Options
E*TRADE
Premium Wealth Services Available
Editor’s Take
E*TRADE is a solid platform if you’re an active trader or buy-and-hold investor. One feature that sets E*TRADE apart from other major brokerages is its automated portfolio management for IRAs.
If you have a rollover, traditional IRA, or Roth IRA, you can use E*TRADE’s Core Portfolio to manage your account automatically. This service comes with an annual advisory fee of 0.30%, which is relatively low compared with other AUM advisory fees. The fee is automatically deducted from your cash position each month.
Another notable feature of E*TRADE IRAs is access to cash management tools starting at age 59½, including the ability to write checks or use a debit card. But there are some downsides. There is a $75 full transfer-out fee for IRA accounts, and there is no high interest account for uninvested cash.
Pros & Cons
- No minimum deposit or annual maintenance fee(s)
- Specialized IRA withdrawal products for investors over 59½ (e.g., debit cards, check writing, etc.)
- Automated managed portfolio service “Core Portfolios” is available for retirement accounts
- No cash management accounts available; idle uninvested cash only earns low interest
- $75 full transfer-out fee for IRA accounts
- More than a third of mutual funds carry an expense ratio of 1% or more
IRA Offerings
- Traditional IRA
- Roth IRA
- SEP IRA
- SIMPLE IRA
- Self-Directed IRA (SDIRA)
- Custodial/Minor IRA
Charles Schwab
Best IRA For Customer Service
Charles Schwab
Premium Wealth Services Available
Editor’s Take
Offering a comprehensive selection of low-fee, no-load mutual funds, index funds and ETFs, Charles Schwab is a serious contender for your Roth IRA dollars. The firm’s customer service is among the best we encountered in our assessment of the industry.
Charles Schwab also offers robo-advisory products for its IRAs. Robo-product Intelligent Portfolios requires a $5,000 minimum in investable assets to get started. If you choose to leave Schwab and transfer your IRA to a different brokerage, you’ll be on the hook for a $50 full account transfer fee. Another thing we don’t like? Schwab has fallen prey to cyberattacks, including a breach in August 2023 that affected 60,000 customers.
Pros & Cons
- Robo-advisory portfolio management is available for an IRA
- Range of IRA types available (e.g., traditional, Roth, SEP, inherited, etc.)
- A vast choice of investment options
- $50 IRA account transfer-out fee
- Intelligent Portfolios, for automated portfolio management, has a $5,000 minimum
- Multiple security data breaches, including a breach in May 2023
IRA Offerings
- Traditional IRA
- Roth IRA
- SEP IRA
- SIMPLE IRA
- Self-Directed IRA (SDIRA)
- Custodial/Minor IRA
- Inherited IRA
Wells Fargo Advisors
Best For Self-Directed Investors
Wells Fargo Advisors
Premium Wealth Services Available
Editor’s Take
You can open a self-directed Roth or traditional IRA through a WellsTrade account. With your account, you’ll be able to add stock, ETFs, no-load mutual funds, money market mutual funds and options. You can add bonds, Treasurys and brokerage certificates of deposit (CDs), but you’ll have to make those trades over the phone. There is no transaction charge for purchasing Treasurys.
Fractional ETF and stock shares are also available. You’ll be able to purchase partial shares of stocks and/or ETFs if you make your investment purchases using the Wells Fargo Mobile app.
Being a big bank, Wells Fargo is no stranger to having its name mentioned in headlines, including negative ones. The U.S. Securities and Exchange Commission fined Wells Fargo Advisors Financial Network in January 2025 for policies not acting in their “clients’ best interest when evaluating potential sweep options for cash held in advisory accounts.” That’s a fancy way of saying customers may not have put their uninvested cash in the highest interest-bearing product available. And Wells Fargo had a duty as a fiduciary to impart that knowledge to their advisory clients.
Pros & Cons
- Intuitive Investor automated investor program
- Advisory services available
- Highly rated mobile app
- Regulatory actions on Wells Fargo Advisors’ cash sweep programs
- Limited customer support avenues
- Account closure fees
IRA Offerings
- Traditional IRA
- Roth IRA
- SEP IRA
- SIMPLE IRA
- Self-Directed IRA (SDIRA)
- Custodial/Minor IRA
Interactive Brokers
Best For Advanced Traders
Interactive Brokers
Premium Wealth Services Available
Editor’s Take
It should come as no surprise that IBKR raises the bar for the types of equity investments it allows for its IRA products. Yes, you can purchase mutual funds, ETFs and bonds with an Interactive Broker IRA. But what’s more interesting is that you can also invest in the Toronto Stock Exchange with your account, provided you have all the necessary trading permissions in place.
IBKR also offers all sorts of IRAs under its umbrella of products: traditional, traditional rollover, traditional inherited, Roth, Roth inherited and Simplified Employee Pension (SEP), to name a few. Compared to the other IRA providers on this list, IBKR does not impose an IRA closure fee.
Pros & Cons
- Wide selection of investment options
- No closure fees
- Extensive research and educational resources
- No human advisory services
- Customer support is limited, no 24/7 assistance
IRA Offerings
- Traditional IRA
- Roth IRA
- SEP IRA
- SIMPLE IRA
- Self-Directed IRA (SDIRA)
Benefits of a Roth IRA
A Roth IRA is a type of individual retirement account you open and manage on your own, separate from your employer. IRAs are either traditional or Roth.
With a traditional IRA, you get the benefit of a tax deduction now if you’re under a certain income limit. With a Roth IRA, you don’t get a tax benefit now, but you’ll never have to pay taxes on earnings in the account or withdrawals in retirement.
How Does a Roth IRA Grow?
A Roth IRA grows through the power of time and compound interest, if it’s invested. Any growth in a Roth IRA account is tax-free, and any qualified withdrawals are tax-free.
Roth IRA vs. Traditional IRA
Individual retirement accounts come in two flavors: traditional and Roth. The difference between a Roth IRA versus a traditional IRA comes down to taxes and contributions.
How To Open a Roth IRA Account
Opening a Roth IRA is simple, but before you get started, you’ll want to make sure you’ve decided what kind of Roth IRA account you want. Are you ready to dig into market research and manage your account by yourself? Or would you prefer to leave all the buying and selling to the experts?
- Check your eligibility. You’ll need to have income from a job, even if it’s self-employment. And then check to see if you meet the income threshold. For a full contribution, you need to earn less than $150,000 if you are filing as “single.” For those who are married and filing jointly, the limit is under $236,000.
- Choose a provider. You’ll want to assess which IRA provider has the right features and services for you. Another decision to make is whether you want your Roth IRA to be under a brokerage like Fidelity or Schwab or under a robo-advisor like Betterment or Wealthfront.
- Gather information. You’ll want to ensure you have access to information that you’ll need for the application process, such as:
- Social Security number
- Government ID
- Bank account info for funding (or linking your account)
- Employer and income info
- Open an IRA account. After you’ve selected your IRA provider, you’ll likely fill out an online application to open the IRA account. That process will usually take around 10 to 15 minutes.
- Fund your account. The process of funding your account can vary by brokerage in terms of the process. But the general idea is the same: You connect to a specific funding source, such as a bank account, cash management account (CMA) or other account to fund your newly opened Roth IRA.
- Select your investments. Lastly, you put your cash to work by selecting appropriate investments. Most retail investors either select a target date fund or a selection of balanced funds (either mutual or exchange-traded funds). A target date fund is the default, go-to fund, and it adjusts to an appropriate mix of investments based on your intended retirement age. For example, if you plan to retire in 2055, you might consider a fund like Vanguard Target Retirement 2055 Fund (VFFVX) or Schwab Target 2055 Index Fund (SWYJX).
Why Choose a Roth IRA?
Contributions to a Roth IRA are made using money that has already been taxed, and as a result, all withdrawals on contributions are free of income taxes.
A traditional IRA locks down your money before you reach age 59½. Withdraw money earlier, and in all but a few special circumstances, you’ll owe the IRS a 10% penalty, plus income taxes. But with a Roth IRA, you can withdraw contributions, but not any earnings, tax- and penalty-free at any time.
Like other tax-advantaged retirement accounts, a Roth IRA shelters your retirement investments from capital gains taxes. Compare that to a taxable brokerage account, where you pay taxes on any profits you realize when you sell investments or earn dividends.
How We Rate the Best Roth IRAs
Methodology
To determine the best IRA accounts, we analyzed nearly 20 top brokerage IRA offerings, comparing each on 59 data points across multiple categories. These included investment types, account and trading fees, advisory services, insurance, customer support, educational tools, research and security.
This is the breakdown of our analysis:
Frequently Asked Questions (FAQs)
How much money do I need to start a Roth IRA?
In 2025, you can contribute up to $7,000 a year to your Roth IRA. If you’re single, you’ll need to have earned income over $7,000 and a modified adjusted gross income under $150,000 to contribute to the limit. If you’re married filing jointly, you’ll need to have a combined earned income between you and your spouse greater than both of your Roth IRA contributions and a modified adjusted gross income under $236,000 to contribute to the limit.
What is a backdoor Roth IRA?
Individuals who are over the income limits for contributing to a Roth IRA can still take advantage of a backdoor Roth IRA. This loophole involves making a non-deductible contribution to a traditional IRA and then converting it to a Roth IRA.
A rollover IRA is a term that can refer to rolling over your 401(k) to an IRA or rolling one IRA into another. In either case, you’re taking money from one brokerage account to another. The most common reason to rollover an account is to get access to lower fees, better fund options, or to consolidate your financial life.