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Ratings methodology for IRAs

We rate broker and robo-advisor IRAs by investment options, tax strategies, IRA matching and more.

Finder’s investment experts assess individual retirement accounts (IRAs) across online brokers and robo-advisors. We rate IRAs from these providers separately to recognize the distinct features, offerings and priorities of each type of provider.

Brokerages typically offer a wide range of investment options, including individual stocks, bonds, exchange-traded funds (ETFs), mutual funds and more. Our star rating methodology for IRAs from brokers emphasizes factors such as trading fees, investment options and research and analysis tools.

Robo-advisors specialize in automated, low-cost investment management, using algorithms to build and rebalance portfolios based on investors’ goals and risk tolerance. Our star rating methodology for IRAs from robo-advisors focuses on factors like annual advisory fees, minimum deposit requirements, portfolio diversification and tax-advantaged strategies.

By tailoring rating methodologies to each type of provider, investors can make more informed decisions based on the specific attributes and preferences relevant to their IRA investment strategy.

Scoring and rating

We consider 36 core elements and 92 weighted criteria for robo-advisor IRAs and 40 core elements and 100 weighted criteria for broker IRAs. Providers that offer extra perks are rewarded with additional points, while those that don’t offer them aren’t penalized. For robo-advisors, we consider perks like individual securities trading and human financial advisors, whereas for broker IRAs, we reward those offering perks like additional investment options, IPO access, 24/7 customer support, paper trading and access to a robo-advisor and financial advisor.

We rate IRAs using a system of one to five stars, incremented in tenths of a star, with 5 stars being the best possible score.

★★★★★ 5/5 — Excellent

★★★★★ 4/5 — Good

★★★★★ 3/5 — Average

★★★★★ 2/5 — Subpar

★★★★★ 1/5 — Poor

Category weightings

We weigh each metric based on factors we believe are most important to consumers. Each category is scored differently depending on whether it’s a robo-advisor or a broker offering the IRA and then an overall score is calculated based on these weightings.

Breakdown of broker IRA star ratings

Breakdown of robo-advisor IRA star ratings

Data collection

We collect data manually through online research and from providers directly. For many of the IRAs we review, our investment experts perform hands-on testing. Some brokers and robo-advisors also provide live demonstrations of their platforms and services.

How we score and rate online broker IRAs

Given that IRAs are a specific account type, we apply many of the same evaluation criteria used for brokers at the provider level when assessing their IRAs. This includes considerations like trading tools, customer support and mobile app ratings, which remain consistent across both taxable brokerage accounts and IRAs with the same provider. While a broker may not permit certain investments in an IRA that they do in a taxable brokerage account, we use the same approach to scoring investment options: broker IRAs earn a base score on whether they offer stocks, ETFs and options and then additional points for each additional investment option.

We use our methodology for online brokers to evaluate online broker IRAs in the following categories:

  • Investment options
  • Trading platforms and technology
  • Customer support
  • Mobile app
  • Features and amenities

We consider IRA-specific factors in addition to our general online brokers methodology. We look at trading costs, account fees and account types and minimums, but adjust them to include IRA-specific factors. For example, we don’t factor in margin rates because IRAs typically can’t use margin trading. We also consider IRA closing fees, which don’t apply to brokerage accounts. And instead of cash sweep rates, we assess IRA matches.

Here’s how we rate IRA-specific categories:

How we score and rate robo-advisor IRAs

Robo-advisor IRAs are a specific account type, so we apply many of the same evaluation criteria used for robo-advisors at the provider level when assessing their IRAs. We consider things like account minimums, portfolio mix and customer support, which remain consistent across both taxable brokerage accounts and IRAs with the same provider.

We use our methodology for robo-advisors to evaluate robo-advisor IRAs in the following categories:

  • Account minimums
  • Portfolio mix
  • Customer support
  • Mobile app
  • Features and amenities

We also consider IRA-specific factors in addition to our general robo-advisor methodology. We look at costs and fees and account types but adjust them to include IRA-specific factors. For example, we consider IRA closing fees for IRAs, which don’t apply to brokerage accounts. And instead of cash sweep rates, we assess IRA matches.

Here’s how we rate IRA-specific categories:

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