A Roth Individual Retirement Account (IRA) lets you save and invest for the future with tax-free growth. You shouldn’t trust your retirement future to just any company. The best Roth IRA accounts offer a wide investment selection, high-quality financial planning tools, and the proper support so you reach your goals. The right combination means different things for different types of investors.
To help you find the best Roth IRA account, we conducted hundreds of hours of comprehensive research, data analysis, and live platform demos on 26 online brokers and 21 robo-advisors, covering a total of 73 criteria and 1611 data points. Investopedia has been researching and reviewing Roth IRA accounts since 2019, and we've been a trusted source of financial information since 1999.
Best Roth IRA Accounts for May 2024
- Best for Active Investors Seeking Full-Service Brokerage Features: Fidelity Investments
- Best for Investor Education: Charles Schwab
- Best for a Truly Hands-Off Approach to Investing: Wealthfront
- Best for Automated Investing With Access to Human Advice: Betterment
- Best for Active Investors Seeking Automated Tools: M1 Finance
- Best for Access to Low-Cost Mutual Funds: Vanguard
- Best Mobile App: E*TRADE
- Best for a Wide Range of Global Assets: Interactive Brokers
Best for Active Investors Seeking Full-Service Brokerage Features : Fidelity Investments
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0 plus $0.65/contract for options trades
Excellent investment selection
Zero commissions on stocks, ETFs, and option trades
No Roth IRA account fees or minimums
High interest rate on uninvested cash
Strong customer support, including in person
Limited crypto and commodities trading; no futures trading
Some of the planning tools are hard to navigate
Virtual assistant needs improvement
Fidelity, Investopedia's choice as the best online broker overall, is the largest broker in the country for good reason. It has a massive investment offering, pays a high interest rate on uninvested cash, and offers a huge customer service network, making it the best full-service broker for active investors.
If you plan on building and actively managing your Roth IRA investment portfolio, Fidelity delivers the complete package. It offers a massive investment selection, including stocks, bonds, exchange-traded funds (ETFs), low-cost mutual funds, and options. Fidelity also provides multiple trading platforms suitable for both beginner and advanced investors. Finally, if you need help, you have many ways to get it. Fidelity provides a robo-advisor, human financial advisors, an extensive educational library, planning tools, and even in-person support at its 200 customer centers.
There are a few drawbacks. Fidelity doesn’t offer futures trading and only provides limited crypto and commodities trading. Its virtual assistant and some of its financial planning tools could be better. Still, most Roth IRA investors will be pleased with Fidelity’s full-service experience.
Fidelity launched in 1946 and today has its headquarters in Boston.
Read the full Fidelity Investments review.
Best for Investor Education : Charles Schwab
- Account Minimum: $0
- Fees: $0 for stock/ETF trades, $0.65 per contract for options
Wide variety of educational content
Multiple trading platforms, including one for beginners
Excellent portfolio analysis tools and research screeners
No Roth IRA account minimums or fees
24/7 phone support and in-person support at branches
No fractional-share ETF trades
Some mutual funds have above-average costs
No direct investments in cryptocurrencies
Uninvested cash earns a low interest rate
Charles Schwab appreciates that Roth IRA investors need help to reach their retirement goals. It provides an abundant variety of educational content, a user-friendly platform, and in-person support.
If you’re still learning how to invest and manage a Roth IRA, consider Charles Schwab. It provides one of the most extensive libraries of educational content and research. Charles Schwab’s trading platform is also user-friendly while still providing a good range of analysis tools, including first-class ETF screeners. If you need more help, Charles Schwab provides 24/7 phone support and in-person support at its branches, including from financial advisors.
Charles Schwab has a few drawbacks on the investment side. It doesn’t allow fractional trading of ETF shares, meaning you can only buy complete shares for your Roth IRA. Charles Schwab also doesn’t let you buy directly into cryptocurrencies and doesn’t pay the highest rate on uninvested cash.
Charles Schwab’s headquarters is in Westlake, Texas. The company was founded in 1971.
Read the full Charles Schwab review.
Best for a Truly Hands-Off Approach to Investing : Wealthfront
- Account Minimum: $500
- Fees: 0.25% for most accounts; no trading commission or fees for withdrawals, minimums, or transfers
Builds and manages portfolios for investors automatically
Customizable portfolios with hundreds of options
Free digital financial planning tools
First-class cash management account
No human financial advisors
0.25% annual management fee
$500 account minimum
Doesn’t offer brokerage services
Wealthfront offers the best robo-advisor to manage a Roth IRA. After investors set up their retirement account, it runs itself.
As a robo-advisor, Wealthfront builds and manages your Roth IRA investment portfolio automatically. When you first sign up, you use the platform to list your investment risk tolerance, goals, and preferences to set up your portfolio. You can customize the portfolio across hundreds of possible funds, including crypto, clean energy, and cannabis. The platform then runs your portfolio for you, rebalancing as necessary for your goals. In other words, you don’t have to track and update your investments constantly. That’s why Wealthfront has the best Roth IRA accounts for hands-off investing.
Wealthfront is a technology-first company. It doesn’t provide access to human financial advisors or even support from a live chat. While Wealthfront charges much less than a human advisor to run your portfolio, you do need to pay an ongoing 0.25% annual fee. Finally, you can’t trade individual stocks, ETFs, and other assets. You can only use the robo-advisor portfolios.
Wealthfront launched in 2011 and has its headquarters in Palo Alto, California.
Read the full Wealthfront review.
Best for Automated Investing With Access to Human Advice : Betterment
- Account Minimum: $0, $10 minimum to start investing. Crypto minimum $50. $50 minimum for rebalancing.
- Fees: 0.25% (annual) for investing plan accounts with at least $20,000 or at least $250 per month in recurring account deposits. Otherwise, the fee is $4/month. 0.65% (annual) fee on accounts with at least $100,000 in assets for Betterment Premium account holders with unlimited access to certified financial planners. Crypto accounts are charged an annual fee of 1% plus trading expenses. There are no management fees for Betterment Checking or Cash Reserve. For accounts with at least $2 million, there is a fee discount of 0.10%.
Automatically plans and manages portfolios
Possible access to human financial advisors
User-friendly platform for setting asset allocation goals
Range of portfolio options, including crypto and ESG
No Roth IRA account minimum
Ongoing 0.25% annual fee; 0.65% for human advisors
Requires $100,000 for access to human advisors
Doesn’t allow trading of individual stocks and other investments
Betterment runs a robo-advisor that still keeps the human touch. It combines automated investing for a Roth IRA with access to human financial advisors.
Betterment is another popular robo-advisor for Roth IRA investors. Like Wealthfront, Betterment also uses technology to design the portfolio for your Roth IRA and automatically make updates so you can set it and forget it. However, Betterment still allows investors to work with a human financial advisor.
While Betterment doesn’t require a minimum Roth IRA balance to use its regular robo-advisor, you need at least $100,000 to work with a human advisor. In addition, the annual fee goes up to 0.65%, versus 0.25% for the robo-advisor. As a robo-advisor, Betterment doesn’t allow you to trade on your own. While you can pick between different portfolio options, you can’t build your own from scratch.
Betterment was founded in 2008 by Jon Stein and has its headquarters in New York City.
Read the full Betterment review.
Best for Active Investors Seeking Automated Tools : M1 Finance
- Account Minimum: $100 ($500 minimum for retirement accounts)
- Fees: 0%; $36 per year for M1 Plus ($3/month, 3 months free for new users)
Combines automated portfolio management with brokerage trading
No fees for account and portfolio management
Excellent portfolio customization options
High-yield cash account
Limited tools for financial planning and goal setting
No human advisors
$500 minimum requirement for Roth IRAs
M1 Finance lets investors build their own portfolios while still accessing automated investment capabilities. Best of all, there’s no ongoing management or portfolio fee.
M1 Finance strikes a balance between robo-advisors that manage the Roth IRA portfolio for you and brokers, where you must build and manage the portfolio yourself. With M1 Finance, you automate part of the process by investing your Roth IRA into pre-built portfolios called Pies. There is a massive selection of Pies for different strategies and goals. M1 Finance then runs these investments for you automatically. You can also use the M1 Finance tools to rebalance your portfolio back to your targets with just one click.
You can further customize the portfolio by buying into individual stocks, ETFs, and other investments. M1 Finance does not charge an annual fee for this service but makes money by earning interest on cash, subscription fees, and payment for order flow.
M1 Finance is not for beginners. Even though the platform automates running the investments, you still need to plan and set up the portfolio yourself. M1 Finance doesn’t provide many planning tools to help you do so and does not have human advisors.
M1 Finance launched in 2015 and has its headquarters in Chicago.
Read the full M1 Finance review.
M1 Finance combines self-directed brokerage features with pre-built portfolios and automated portfolio management capabilities. M1 Finance does not provide advisory services and therefore is not considered a traditional robo-advisor.
Best for Access to Low-Cost Mutual Funds : Vanguard
- Account Minimum: $0
- Fees: $0/stock and ETF trade, $0 plus $1 per contract for options
Mutual funds and ETFs charge low annual fees
Good customer service with human financial advisors
Automated portfolio management through its robo-advisor
Decent educational materials and planning tools
Investment platform looks out of date and clunky
Limited trading capabilities for serious investors
High $1,000 minimum for some mutual funds
Vanguard offers hundreds of mutual funds all charging rock-bottom annual management fees. It’s ideal for long-term buy-and-hold investors.
Vanguard is famous for its low-cost mutual funds. It’s an ideal choice for long-term Roth IRA investors because the less you pay in mutual fund fees, the more you keep for your future retirement. On top of low costs, Vanguard also offers an excellent library of educational materials, access to human advisors, and a robo-advisor.
If you want to actively trade in your Roth IRA, Vanguard might not be a fit. Its platform doesn’t have the same capabilities and trading tools as other major competitors. It also looks out-of-date and needs an upgrade. Vanguard encourages a passive, buy-and-hold strategy for investing. That philosophy comes through with its simpler website and trading platform.
John Bogle founded Vanguard in 1975. Today, its headquarters is in Valley Forge, Pennsylvania.
Read the full Vanguard review.
Best Mobile App : E*TRADE
- Account Minimum: $0
- Fees: No commission for stock, ETF, and mutual fund trades. Options are $0.50-$0.65 per contract, depending on trading volume.
Industry-best mobile apps for investors
No commissions on trades
No IRA account minimums or fees
Convenient IRA retirement withdrawal options
High $2,500 investment minimum on some ETFs
Limited crypto investing
Pays minimal interest on uninvested cash
E*TRADE, Investopedia’s choice as the best online broker for mobile investing and trading, solidifies itself as a pioneer in both mobile and online trading by offering two well-designed mobile apps with the right mix of what matters most in an intuitive mobile experience.
E*TRADE is an excellent all-around broker for Roth IRAs, but it stands out for its two mobile apps. The E*TRADE Mobile app is user-friendly and convenient for managing investments on the go. Power E*TRADE provides many more advanced tools, including more robust charting, portfolio analysis, and screening capabilities. Once you retire, E*TRADE offers convenient IRA withdrawal options and lets you draw down your account using checks, a debit card, and direct bill pay.
E*TRADE doesn’t have many downsides. It doesn’t pay the best interest rate on uninvested cash. It doesn’t have direct crypto investing and some of its ETFs require a high $2,500 minimum contribution. Besides that, there isn’t much to complain about for Roth IRA investors.
E*TRADE was founded in 1982 and has its headquarters in Arlington, VA.
Read the full E*TRADE review.
Best for a Wide Range of Global Assets : Interactive Brokers
- Account Minimum: $0.00
- Fees: $0.00 commissions for equities/ETFs available on IBKR’s TWS Lite, or low costs scaled by volume for active traders that want access to advanced functionality such as order routing. $0.65 per contract for options on TWS Lite; that is also the base rate for TWS Pro users, with scaled rates based on volume. $0.85 per contract for futures.
Allows trading across over 150 markets in 27 countries
Excellent investment selection
Advanced platform trading capabilities
Fast trade execution
Platform can be too complicated for beginners
Charges trading commissions
Zero-commission option has slower trade execution
Interactive Brokers opens the entire world up to Roth IRA investors. Not only does it provide a wide range of investment options, but it also allows trading across 150 markets in 34 countries.
Interactive Brokers is one of the best platforms for serious Roth IRA investors. You can access investments that are not widely available through its platform, including options, forex, futures, and American depositary receipts (ADRs). Interactive Brokers also has a global focus, letting investors access 150 markets across 34 countries. Finally, the Interactive Brokers platform offers advanced trading capabilities, ongoing research, and faster trade execution than the typical broker.
All these features can be overwhelming for beginner investors. In addition, if you want to access faster trade execution through Interactive Brokers Pro, you owe commissions on every trade. If you don’t plan on actively day trading in your Roth IRA, all this power might be overkill.
Interactive Brokers launched in 1977 and has its headquarters in Greenwich, Connecticut.
Read the full Interactive Brokers review.
The Bottom Line
The best Roth IRA accounts for you depend on your preferences and investment goals. If you’d like to invest on your own in a Roth IRA, Fidelity offers the best all-around broker experience. Vanguard is best for low-cost mutual funds, Interactive Brokers is best for advanced capabilities and access to global markets, and E*TRADE has the best mobile apps for investors.
Charles Schwab provides the best education if you want help managing your Roth IRA. You could also use a robo-advisor to handle the work for you. Wealthfront provides the best hands-off experience through full automation, while Betterment combines automatic management with access to human advisors. To save money, you could build the Roth IRA portfolio yourself through M1 Finance while still gaining access to some automated portfolio management.
Why You Should Trust Us
Investopedia collected and analyzed 73 criteria that are the most important to readers choosing the right Roth IRA to fit their needs. We used this data to evaluate a total of 47 online brokerage and digital wealth management platforms based on their financial services, calculators and tools, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Investopedia launched in 1999, and has been helping readers find the best Roth IRA accounts since 2019.
Frequently Asked Questions
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What Is a Roth IRA Account?
A Roth IRA is a retirement account. You add money each year and then invest it to grow for the future. A Roth IRA account offers tax-deferred growth during your career and tax-free retirement withdrawals after you turn 59½. These Roth IRA benefits can help you reach your long-term financial goals more effectively.
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How to Open a Roth IRA Account
You can open a Roth IRA account with an investment broker or a robo-advisor. You’ll need to create an account with the company first by providing your personal contact information, Social Security number, and a form of ID. You can transfer money into your Roth IRA using your bank. Then, you can invest in a Roth IRA. The specific process for how to start a Roth IRA will depend on the company you use.
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How Many Roth IRA Accounts Can I Have?
There is no limit on the number of Roth IRA accounts you can have. You can open multiple Roth IRA accounts with different companies to access different benefits. For example, you open one with a robo-advisor and another with a regular broker to invest on your own. You must still follow the same annual IRA contribution limits: $7,000 if you are younger than 50 and $8,000 if you are 50 or older in 2024. The Roth IRA limits are the same whether you have one account or many.
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Do You Pay Taxes on a Roth IRA?
You don’t pay taxes on your investment earnings in a Roth IRA while the money stays in your account. If you wait until you turn 59½ and have owned a Roth IRA for at least five years, your withdrawals are also tax-free. In other words, you avoid paying taxes on your investment earnings. If you take out your gains before reaching these milestones, you owe income tax on the gains and a possible 10% early withdrawal penalty. To learn more about the tax benefits, check out how a Roth vs. traditional IRA compares.
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What Is the Income Limit for a Roth IRA?
In 2024, the income limit for a Roth IRA is $161,000 for single filers and $240,000 for married couples filing jointly. If your modified adjusted gross income (MAGI) is above these limits for the year, you cannot directly contribute to a Roth IRA. However, you could continue investing money already in a Roth IRA or transfer funds from another retirement account using a Roth conversion. Every year, the IRS increases the income limits for inflation.
How We Picked the Best Roth IRA Accounts
Investopedia is dedicated to providing investors with unbiased, comprehensive reviews and ratings of online brokers and robo-advisors. Our review of the best Roth IRA accounts is the result of a thorough evaluation of 73 criteria that are critical to readers choosing the right Roth IRA. We used this data to develop comprehensive online broker and robo-advisor ranking methodologies for evaluating a total of 47 online brokerage and digital wealth management platforms based on their financial services, calculators and tools, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right decision for their needs. Our last assessment for inclusion in this Best Roth IRA Accounts article was performed in April 2024.
Dotdash Meredith receives cash compensation from Wealthfront Advisers LLC (“Wealthfront Advisers”) for each new client that applies for a Wealthfront Automated Investing Account through our links. This creates an incentive that results in a material conflict of interest. Dotdash Meredith is not a Wealthfront Advisers client, and this is a paid endorsement. More information is available via our links to Wealthfront Advisers.
Guide to Roth IRA Accounts
Learn more about Roth IRA accounts:
Roth IRA: What It Is and How to Open One
How Can I Fund a Roth IRA If My Income Is Too High?
How to Use Your Roth IRA as an Emergency Fund
How a Roth IRA Works After Retirement
How to Open a Roth IRA in 5 Steps
How Converting to a Roth IRA Can Affect Taxes
What Fees Do You Pay in a Roth IRA?
How Do I Roll Over a SIMPLE IRA to a Roth IRA?