A Comparison of the Top 5 Traditional IRA Providers for Retirement Savings

Choosing where to house your Traditional IRA is one of the highest-leverage decisions you’ll make for retirement. The right provider can lower costs, simplify your life, and make it easier to invest consistently—while the wrong fit can add friction, fees, and avoidable headaches. In this in-depth comparison of the top five Traditional IRA providers for retirement savings, you’ll learn how the accounts work, what to watch for in fees and fine print, how to get set up step by step, and how to measure progress over time. You’ll also see a practical four-week starter plan and get answers to the most common questions investors ask when opening or transferring an IRA.

Disclaimer: This article is educational and does not constitute financial, tax, or legal advice. Before acting on any strategy, consult a qualified professional who understands your personal situation.

Key takeaways

Your provider choice matters: small differences in fees, fund access, and tools compound over decades.
The 2025 IRA contribution limit is unchanged: $7,000 ($8,000 if age 50+) across all your IRAs combined; deductibility depends on income and workplace plan coverage.
Zero-commission trading is common—but read the broader fee schedule (transfer/close-out fees, certain mutual fund transaction fees, broker-assisted trade fees, etc.).
Pick for your style: whether you prefer DIY index funds, target-date simplicity, or automated/managed portfolios, there’s a strong provider for you.
Start simple: automate contributions, pick a diversified core, and measure progress with a small set of KPIs (savings rate, asset mix, and all-in cost).

How to compare Traditional IRA providers (what actually matters)

A Traditional IRA is a tax-advantaged retirement account that can deliver an up-front tax deduction (subject to income and workplace plan rules) and tax-deferred growth. To compare providers, focus on:

Account access & costs: account minimums, annual/maintenance fees, trading commissions (online stock/ETF), and less obvious fees (close-out, outgoing transfers, broker-assisted trades).
Investment menu: broad, low-cost index funds and ETFs; target-date or all-in-one options; access to bonds, CDs, treasuries, and cash vehicles.
Tools & automation: automatic deposits, portfolio builders, rebalancing, calculators (RMD, contribution eligibility), planning and tax insights.
Managed options: in-house robo or advisory programs, minimums, and program fees.
Service & ergonomics: website/app reliability, phone/chat, learning center quality, and rollover support.
Portability: what it costs or entails if you later transfer or close an account.

2025 rules to know (fast refresher)

Contribution limit: $7,000 (or $8,000 if 50+).
Deductibility: depends on your income and whether you (or a spouse) are covered by a plan at work; common 2025 phase-out ranges include $79,000–$89,000 (single, covered), $126,000–$146,000 (married filing jointly, contributor covered), and $236,000–$246,000 (married filing jointly, contributor not covered but spouse is).
RMDs: begin at age 73 under current law (with first-year timing nuances).

The Top 5 Traditional IRA providers (one H2 per provider)

1) Fidelity

What it is & core benefits
Fidelity’s IRA combines $0 online commissions for U.S. stocks and ETFs with no account minimum to open. It offers a deep fund lineup (including broad-market index funds), fixed-income access, cash/treasury tools, and strong educational content. For hands-off investors, Fidelity provides managed solutions in addition to DIY.

Requirements / prerequisites & low-cost alternatives

Account minimum: none to open an IRA. Some mutual funds may have their own purchase minimums.
Core trading costs: online U.S. stock/ETF trades at $0; options typically add a per-contract fee.
Alternatives: If you prefer another $0-commission broker with similar breadth, Schwab and E*TRADE are close peers; if your heart is set on a specific fund family (e.g., a favorite target-date series), verify availability and transaction fees before you open.

Step-by-step: Open and fund a Fidelity Traditional IRA

Start the application online; choose “Traditional IRA.”
Verify identity, employment, and funding method (bank link/ACH is common).
Select how you’ll invest (DIY or a managed option).
Make your initial contribution or schedule automatic deposits.
Pick investments (for beginners, a broad stock index fund plus a core bond fund is a simple foundation, or a single target-date fund).

Beginner modifications & progressions

Simplify: a single target-date fund can deliver diversified stocks/bonds and built-in glide path.
Graduate: layer a total-market stock index fund, a total-international index fund, and a core bond fund; rebalance annually or at contribution time.

Recommended frequency / duration / metrics

Automate monthly contributions (e.g., the first or second business day).
Quarterly: check your contribution rate vs. the annual limit and your all-in cost (expense ratios + any fees paid).
Annually: confirm your asset mix vs. target and rebalance if off by more than ~5 percentage points.

Safety, caveats, and mistakes to avoid

Don’t stop at “$0 commissions”—review product-specific transaction fees and service fees (e.g., broker-assisted trades).
Avoid idle cash drag—choose an investment or a cash vehicle deliberately.
If you’re near the deductibility phase-outs, double-check MAGI before filing.

Sample mini-plan (Fidelity)

This week: open the IRA and link your bank.
This month: set a recurring transfer (e.g., $300/month) and buy a balanced, low-cost fund lineup.

2) Vanguard

What it is & core benefits
Vanguard is synonymous with low-cost index investing. In a Vanguard brokerage IRA, online trades of stocks and ETFs are commission-free, and investors can access both Vanguard and non-Vanguard funds. Vanguard’s target-date and LifeStrategy funds are popular “single-fund” choices for simplicity.

Requirements / prerequisites & low-cost alternatives

Account opening: there’s no charge to open a Vanguard IRA.
Investment minimums: Vanguard mutual funds often have minimums (commonly $3,000 for many index funds), while ETFs can be purchased in small dollar amounts.
Account service fees: published account service fees can apply to certain holdings but are avoidable or waivable in several ways (e.g., e-delivery or asset thresholds).
Outgoing transfers: note that a full account transfer/closure fee may apply if you later move assets out; plan transfers deliberately.

Step-by-step: Open and fund a Vanguard Traditional IRA

Start the IRA application and choose “Traditional.”
Decide: one-fund (target-date/LifeStrategy) or DIY building blocks.
Link your bank for contributions/rollovers.
Place your first trade(s): ETF shares or eligible mutual funds.
Turn on e-delivery and automatic contributions to reduce friction and fees.

Beginner modifications & progressions

Simplify: a single target-date fund that roughly matches your intended retirement year.
Graduate: use a three-fund portfolio (total U.S. stock, total international stock, total bond). Add TIPS or a money market if you want more stability later.

Recommended frequency / duration / metrics

Monthly: auto-fund.
Semiannually: confirm you’re on track to hit the annual limit.
Annually: review the expense ratios of your holdings and keep them lean.

Safety, caveats, and mistakes to avoid

Minimums for mutual funds can trip up small initial contributions; ETFs offer a low-dollar workaround.
If you might transfer providers later, be aware of any account closure/transfer fee.
Don’t ignore account service fee rules; opt into e-delivery and check waivers.

Sample mini-plan (Vanguard)

This week: open IRA, choose a target-date fund based on your time horizon.
This month: automate contributions and enroll in e-delivery to minimize fees.

3) Charles Schwab

What it is & core benefits
Schwab offers a well-rounded IRA platform with $0 online stock and ETF trades, no account minimums, a strong fixed-income marketplace, and extensive planning tools. For investors who want automation, Schwab’s robo and advisory options are available (with distinct features, minimums, and cash allocations).

Requirements / prerequisites & low-cost alternatives

Account minimum: $0 to open and maintain an IRA.
Trading: online U.S. stock/ETF at $0; options add a per-contract fee; many no-transaction-fee mutual funds are available.
Alternatives: Fidelity and E*TRADE are direct rivals in breadth and cost; choose based on app feel, fund access, and fee nuances.

Step-by-step: Open and fund a Schwab Traditional IRA

Apply online; choose Traditional IRA.
Link your bank or initiate a rollover.
Select investments (DIY, fund screener, or in-house automated options).
Place trades and set an automatic contribution schedule.
Use tools like RMD and retirement calculators as needed.

Beginner modifications & progressions

Simplify: a single target-date fund from a reputable family.
Graduate: build a core with total U.S. stock, total international, and core bonds; add short-term treasuries or TIPS as you age.

Recommended frequency / duration / metrics

Monthly: contribute automatically and glance at uninvested cash.
Quarterly: check allocation drift, contribution pace, and realized costs.
Annually: rebalance and audit any service fees you paid (aim for $0-low).

Safety, caveats, and mistakes to avoid

Understand which mutual funds are truly no-transaction-fee and which carry ticket charges.
If trading complex products (options), review disclosures and ensure suitability.
Keep records of all IRA contributions for tax reporting accuracy.

Sample mini-plan (Schwab)

This week: open IRA; build a simple two-fund core (total stock + total bond).
This month: enable auto-contributions and set a calendar reminder to rebalance annually.

4) E*TRADE from Morgan Stanley

What it is & core benefits
E*TRADE’s IRA is known for approachable design, no annual IRA fees or account minimums, and $0 online commissions on U.S. stock/ETF trades. It also highlights a useful automated option (Core Portfolios) for hands-off investors, with a low account minimum and a straightforward advisory fee.

Requirements / prerequisites & low-cost alternatives

Account minimum: none for self-directed IRA; $500 for Core Portfolios.
Trading: online U.S. stock/ETF $0; check individual fund transaction policies and any per-contract options fee.
Alternatives: If automation is the priority, compare managed fee schedules and features across your shortlist (e.g., cash allocation, tax-loss harvesting scope).

Step-by-step: Open and fund an E*TRADE Traditional IRA

Choose the Traditional IRA application (self-directed or Core Portfolios).
Link a bank account or start a rollover.
For Core Portfolios, complete the goal/risk questionnaire; for DIY, build your fund/ETF lineup.
Place your first trade(s) or let the robo implement the model.
Turn on recurring contributions.

Beginner modifications & progressions

Simplify: self-directed with one all-in-one fund, or use Core Portfolios to automate.
Graduate: customize with sector/tilts only after your core is fully funded and costs are controlled.

Recommended frequency / duration / metrics

Monthly: auto-fund and confirm execution into chosen funds/ETFs.
Quarterly: review Core Portfolios’ fee (if using it) and the underlying ETF expense ratios; target an all-in cost that stays lean.
Annually: evaluate whether to remain automated or switch to DIY once balances grow.

Safety, caveats, and mistakes to avoid

If you later need flexible spending from the IRA (retirement-stage features), explore E*TRADE’s Complete IRA options and ensure you follow RMD and withholding rules.
Understand that automated portfolios still carry underlying fund expenses in addition to advisory fees.
Don’t assume all mutual funds are transaction-free; verify before buying.

Sample mini-plan (E*TRADE)

This week: open the IRA and invest either in a target-date fund or enroll in Core Portfolios.
This month: automate a fixed monthly contribution and review your projected time to max the annual limit.

5) Merrill Edge (Bank of America)

What it is & core benefits
Merrill Edge pairs $0 online stock/ETF/options trades in self-directed IRAs with tight integration to Bank of America banking and rewards tiers. Investors who want a professional touch can consider Merrill’s managed programs, each with clear program fees and minimums.

Requirements / prerequisites & low-cost alternatives

Account minimum: none for self-directed IRAs.
Trading: online U.S. stock/ETF $0; options carry separate per-contract costs; review the full pricing grid (including transfer/close-out line items for retirement accounts).
Managed options: Merrill Guided Investing (digital) and Merrill Guided Investing with Advisor (human-assisted) have transparent annual fees and minimums—good to know if you want to “start DIY, upgrade later.”

Step-by-step: Open and fund a Merrill Edge Traditional IRA

Begin the Traditional IRA application.
Link a bank account (easy if you bank with BofA) or initiate a rollover.
Choose self-directed or guided; if guided, complete the goals/risk intake.
Fund and place trades (or let the program allocate).
Set recurring contributions and check for any applicable account promotions or rewards.

Beginner modifications & progressions

Simplify: one target-date fund for set-and-forget diversification.
Graduate: three-fund core plus a dash of short-term treasuries as you approach retirement; if you prefer advice, consider upgrading to a managed program and weigh the annual fee against peace-of-mind.

Recommended frequency / duration / metrics

Monthly: auto-fund; verify orders filled at low or no commission.
Quarterly: audit realized costs (including any account service items) and confirm your asset mix.
Annually: rebalance, and for retirees, coordinate RMDs with a withdrawal plan.

Safety, caveats, and mistakes to avoid

Review the retirement-account pricing table for full/partial transfer and close-out fees so you aren’t surprised if you later move accounts.
If options are enabled, ensure suitability and knowledge of risks.
Keep tax documentation tidy—managed accounts charge asset-based fees that may show up in year-end reporting.

Sample mini-plan (Merrill Edge)

This week: open IRA; start with a simple diversified fund.
This month: link to BofA for easy funding and set a monthly auto-deposit toward the annual cap.

Quick-start checklist (15 minutes)

Decide: DIY index funds/ETFs, a single target-date fund, or an automated/managed program.
Verify your 2025 contribution target (e.g., $7,000 or $8,000 if 50+).
Open the IRA at your chosen provider and link your bank.
Place your first trade (or enroll in the automated portfolio).
Turn on automatic monthly contributions.
Save the provider’s fee schedule and note any transfer/close-out fees.
Add a yearly rebalance reminder and a tax-time check for deductibility.

Troubleshooting & common pitfalls

“I opened the account but didn’t invest.”
Set a default purchase: either a target-date fund or your core ETF. Idle cash drags returns.
“I’m not sure if my contribution is deductible.”
Check your MAGI and whether you or a spouse is covered by a workplace plan; compare with the 2025 phase-out ranges and keep documentation.
“I accidentally over-contributed.”
Correct excess contributions before your filing deadline (including extensions); remove associated earnings if required.
“My fund had a transaction fee I didn’t expect.”
Re-check the fund’s transaction policy at your provider. Many have large no-fee lists, but not all funds are included.
“I need to transfer to another broker.”
Start the ACAT transfer at the new broker. Confirm whether the current provider charges full/partial transfer or close-out fees.
“I’m approaching RMD age.”
For Traditional IRAs, the RMD start age is currently 73. Use the provider’s RMD calculator and set a calendar reminder to avoid penalties.

How to measure progress (your IRA scorecard)

Keep it simple. Track:

Savings rate: total IRA contributions year-to-date ÷ annual limit (goal: 100% by the deadline).
All-in cost: sum of fund expense ratios (weighted), plus any advisory fees, plus any trading/service fees (goal: as low as practical for your strategy).
Asset mix vs. target: % stocks / % bonds / % cash; rebalance when drift exceeds ~5 percentage points.
Funding cadence: months with successful auto-contributions ÷ months elapsed (goal: 100%).
Time in market: stay invested; minimize idle cash unless it’s part of your plan.

A simple 4-week starter plan

Week 1: Choose & open

Pick your provider based on platform comfort, fees, and available funds.
Open the Traditional IRA, link your bank, and read the fee schedule (including transfer/close-out items).

Week 2: Fund & invest

Set a monthly transfer (e.g., $300–$600 depending on your goal).
Buy a diversified target-date fund or a two-fund core (total U.S. stock + core bond).
Record your intended asset mix.

Week 3: Automate & document

Enable automatic investments or recurring contributions.
Save confirmation statements; note contribution amounts for tax time.
If deductibility is borderline, create a running MAGI estimate.

Week 4: Optimize & future-proof

Review holdings and expense ratios; consider switching to lower-cost share classes/ETFs if appropriate.
Add a yearly rebalance reminder and a quarterly cost audit.
If you hold multiple IRAs, list them with beneficiary designations and RMD notes.

FAQs

What’s the 2025 Traditional IRA contribution limit?
$7,000 total across all IRAs (or $8,000 if you’re 50+). Limits can’t exceed your earned income.
Is my contribution deductible?
Maybe. It depends on your filing status, MAGI, and whether you or your spouse is covered by a workplace plan. For 2025, common phase-outs include $79,000–$89,000 (single, covered), $126,000–$146,000 (married filing jointly, contributor covered), and $236,000–$246,000 (married filing jointly when the contributor isn’t covered but the spouse is).
Can I contribute to both a 401(k) and a Traditional IRA?
Yes. Your IRA deductibility may be limited based on income and workplace plan coverage, but you can contribute to both accounts.
When do RMDs start for Traditional IRAs?
At age 73 under current rules. You can delay the very first one into the following year (by April 1), but that could cause two distributions in the same calendar year.
Are “$0 commissions” the whole story?
No. You still pay fund expense ratios, and some mutual funds may have transaction fees. Other line items—broker-assisted trades, certain account services, or transfer/close-out fees—may apply.
Should a beginner pick a target-date fund or build a three-fund portfolio?
Either is fine. Target-date funds are simpler; three-fund portfolios can be slightly cheaper and more customizable. The key is picking one, keeping costs low, and contributing regularly.
What if I contribute too much by mistake?
You can remove the excess (and associated earnings) before your tax filing deadline. Contact the provider for the correct process.
How do I move my IRA to a different provider?
Open the new IRA first, then initiate an ACAT transfer from the new provider’s side. Ask your current provider about transfer or close-out fees before you move.
Can I make a spousal contribution?
Yes, if one spouse has earned income and you file jointly, you can fund an IRA for a non-working spouse, subject to the normal limits and deductibility rules.
Do providers help with RMDs and planning tools?
Most offer calculators and reminders. You’ll still be responsible for meeting the deadline and reporting distributions correctly.
Do IRAs have early-withdrawal penalties?
Generally, distributions before age 59½ may face a 10% additional tax plus regular income tax on the taxable portion, with some exceptions (e.g., certain medical or education expenses). Verify details before taking money out.
What’s the simplest setup if I don’t want to think about it?
Open the IRA, set an automatic monthly contribution, and choose a low-cost target-date fund that matches your rough retirement year. Revisit annually.

References

401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000 — Internal Revenue Service — November 1, 2024 — https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
Retirement topics — IRA contribution limits — Internal Revenue Service — (publication date not listed) — https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
Retirement plan and IRA required minimum distributions (RMDs) FAQs — Internal Revenue Service — Updated December 10, 2024 — https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
Retirement topics — Required minimum distributions (RMDs) — Internal Revenue Service — (publication date not listed) — https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
IRA contribution limits for 2024 and 2025 — Fidelity Learning Center — (publication date not listed) — https://www.fidelity.com/learning-center/smart-money/ira-contribution-limits
Traditional IRA: Tax-deferred retirement growth — Fidelity — (publication date not listed) — https://www.fidelity.com/retirement-ira/traditional-ira
Trading Commissions and Margin Rates — Fidelity — (publication date not listed) — https://www.fidelity.com/trading/commissions-margin-rates
Retirement & IRAs: Account Options, Benefits & Guidance — Fidelity — (publication date not listed) — https://www.fidelity.com/retirement-ira/overview
Pricing | Account Fees & Commissions — Charles Schwab — (publication date not listed) — https://www.schwab.com/pricing
Individual Retirement Accounts (IRAs) — Charles Schwab — (publication date not listed) — https://www.schwab.com/ira
What is a Traditional IRA? — Charles Schwab — (publication date not listed) — https://www.schwab.com/ira/traditional-ira
Traditional IRA | Open a Retirement Account — E*TRADE from Morgan Stanley — (publication date not listed) — https://us.etrade.com/what-we-offer/our-accounts/traditional-ira
Pricing & Rates — E*TRADE from Morgan Stanley — (publication date not listed) — https://us.etrade.com/what-we-offer/pricing-and-rates
Core Portfolios: Automatic Investment Management — E*TRADE from Morgan Stanley — (publication date not listed) — https://us.etrade.com/what-we-offer/our-accounts/core-portfolios
What Is a Traditional IRA? Open an IRA Account Online — Merrill Edge — (publication date not listed) — https://www.merrilledge.com/retirement/traditional-ira
Merrill Pricing: Brokerage Fees & Trading Commissions — Merrill — (publication date not listed) — https://www.merrilledge.com/pricing
Brokerage services commission & fee schedules — Vanguard — (publication date not listed) — https://investor.vanguard.com/client-benefits/brokerage-fees-commissions
Invest for your future with Vanguard IRAs — Vanguard — (publication date not listed) — https://investor.vanguard.com/accounts-plans/iras
Account service fees — Vanguard — (publication date not listed) — https://investor.vanguard.com/client-benefits/account-fees
Vanguard Brokerage Services® commission and fee schedules (PDF) — Vanguard — (publication date not listed on PDF; currently available) — https://personal1.vanguard.com/pdf/v414.pdf
Calculate your traditional IRA RMD — Charles Schwab — (publication date not listed) — https://www.schwab.com/ira/ira-calculators/rmd