HomeForex Account TypesBest Forex Brokers With IRA Accounts 2021

Best Forex Brokers With IRA Accounts 2021

Brokers offering IRA accounts have expertise in reporting and planning tools. When deciding to let the broker take care of an IRA account, one must consider the potential performance and the investment strategy deployed by the broker.

Effectively, the broker manages the IRA account for the client, buying and selling securities in exchange for a fee. The aim is to generate income safely for the individual investor within the financial markets, the Forex market is often used to hedge positions in investment portfolios.

1
Min. Deposit
$100
Exclusive promotion
Our score
10
Leverage
30:1
New accounts
Spreads
0.7
PIPs
Regulations
NFA, CFTC, FCA
Forex Pairs
No Fee
Start Trading
Pros:
Open an account in less than 5 minitues with the global Market leader since 2001
Trade on one of the world's most popular trading platforms with access to dedicated support and integrated trading tools exclusive to FOREX.com
We’ve spent over a decade investing in technology and building a deep network of liquidity partners, so we can consistently quote tight spreads in most market conditions.
Payment Methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Full regulations list:
NFA, CFTC, FCA, FSA, IIROC, CIMA, FFA Japan, MAS, SFC of Hong Kong
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2
Min. Deposit
$10
Exclusive promotion
Our score
9.3
Leverage
500:1
New accounts
Spreads
0.8
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
55+ currency pairs available
Trade on a trusted platform
24/7 support via live chats, email or phone call
Payment Methods
Credit Card, Debit Card, Visa, Bitcoin
Full regulations list:
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
3
Min. Deposit
$200
Exclusive promotion
Our score
8.7
Leverage
500:1
New accounts
Spreads
0.5
PIPs
Regulations
FSPR, FMA New Zealand
Forex Pairs
27+
No Fee
Start Trading
Pros:
BlackBull Markets’ unique feature lies in its stated goal of delivering an “institutional” trading experience to retail clients
No-Dealing Desk Broker (NDD), with Straight Through Processing (STP) all done on a true ECN
State of the art Equinix servers, based in New York (NY4), London (LD5) and Tokyo (TY3)
Payment Methods
Mastercard, Visa, Bank Transfer, Neteller, Skrill, UnionPay, FasaPay
Full regulations list:
FSPR, FMA New Zealand
4
Min. Deposit
$10
Exclusive promotion
Our score
8.5
Leverage
500:1
New accounts
Spreads
0.7
PIPs
Regulations
Forex Pairs
55+
No Fee
Start Trading
Pros:
0% Commission Account
Low Spreads
Eco-Account Option
Payment Methods
Bitcoin, Credit Card, Debit Card
Full regulations list:
Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary seek independent advice.
5
Min. Deposit
$200
Exclusive promotion
Our score
7.9
Leverage
30:1
New accounts
Spreads
1
PIPs
Regulations
CySEC, FCA
Forex Pairs
No Fee
Start Trading
Pros:
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment Methods
Wire Transfer, Bank Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.

IRA accounts can be opened with the following brokers:

ATC brokers
FOREX.com
FXCM
FXDD
Gain Capital (Forex.com)
Interactive brokers
thinkorswim

What Is an IRA Account?

IRA stands for an individual retirement account. This is an account designed to save you money for retirement. Long-Term savings account and eventual income when you are no longer working.

Multiple types of IRA accounts exist, but a traditional IRA account is one you can open on your own. If you want to put your money to work for the long term, investing is an option.

Brokers around the world have financial advisors and investing departments built to manage individual IRA accounts for a fee. In other words, there’s no need for financial knowledge and or trading experience, just set the goal (conservative or aggressive approach) and let the professionals do the work for you.

There is a whole set of rules and requirements for IRAs. If you have not decided on whether an IRA account is for you, consider consulting your tax advisor. Also, you can find information about IRA accounts at the U.S. Treasury and IRS.

Traditional Self-Directed IRA & Roth IRA

There are two main types of IRA accounts:

Traditional self-directed IRA – set in between a broker and an individual and controlled by an individual. The contribution is made with pretax dollars. The balance on the account accumulated tax-free until the funds are withdrawn at retirement, where the taxes on profits should be paid.

Roth IRA – could be opened through a broker, bank or a mutual fund. The contributions are to be made with after-tax dollars. The balance on the IRA is accumulated again tax-free, and if a withdrawal of funds is made at the retirement age, you won’t have to pay any taxes.

There is also an option to open a professionally managed IRA account.

How Can You Use an IRA Account?

Setting up an IRA account is easy. Anyone can do it. After deciding on the brokerage house to manage it, the idea is to sit back and relax while your money is at work.

However, there are some things to consider. First, the fee paid to the broker. Second, the limitations offered by the IRA account in terms of contributions. Secondly, the withdrawal penalties. Finally, the saver must know the ultimate goal of the IRA account and the desired way to get there.

A traditional IRA account has contribution limits based on the saver’s age. Up to the age of fifty, the maximum contribution to such an account is $6000/year. It increases slightly afterwards.

Upon deciding to entrust your IRA account to a broker, you must consider the investment strategy that suits your expectations. For instance, some brokers favour investing in ETFs over currencies or individual stocks over options and bonds.

Pros and Cons of an IRA Account

Pros:

  • Take advantage of specific tax benefits
  • Tax-deferred growth
  • Tax-deductible contributions (sometimes)

Cons:

  • Early withdrawal penalties.
  • Limits to contributions,
  • Limited investment choices.

Factors to Consider When Choosing a Broker for an IRA Account

The most important things to consider are withdrawals, distributions, and penalties. When planning for an IRA account, everyone assumes a certain savings rate. However, life is full of surprises, and early withdrawals from an IRA account have a ten per cent penalty.

Also, before deciding to open an IRA account, one needs to understand the differences between a traditional brokerage account and an IRA one. Moreover, if it is individually managed or not because it will suffer from additional trading-related costs.

Conclusion

With an IRA account, you may benefit from some tax deductions, but for sure, you’ll be taxed when you begin making withdrawals. Trading your own IRA account typically comes at higher costs than trading a traditional brokerage account, and brokers usually push for a financial planning service.

Depending on the savings objective and the plan to get there, an IRA account might or might not be suitable for everyone. In case you decide on one, the list of brokerage houses in this article can help you reach your savings objective.

FAQ’s

Is an IRA account fully tax-free?

No. Some contributions may be tax-exempt, but withdrawals are taxed.

Can I manage my own IRA account?

Yes. Beware of the higher trading costs, though.

What type of IRA suits an individual investor?

Traditional IRA.

Are all types of IRA accounts the same?

No. Each type has different contributions, limits, distributions, or penalties, and suits different investors’ categories.