How to Select the Best Roth IRA Account

Read time: 5 minutes

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So you’ve decided to open a Roth IRA.

Great decision! 🎉

But now you’re faced with another choice: which brokerage should you use?

There are dozens of options, and they all claim to be the best.

Here’s how I approach selecting a Roth IRA account — and the two I personally recommend.

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The 4 Factors I Consider

1. Account Minimums

Some brokerages require a minimum deposit to open an account.

Brokerage	Minimum to Open
Fidelity	$0
Charles Schwab	$0
Vanguard	$0 (was $3,000)
Betterment	$0

If you’re just getting started, look for brokerages with $0 minimums so you can begin investing immediately — even if it’s just $25/month.

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2. Expense Ratios (Fees)

This is the silent killer of investment returns.

An expense ratio is the annual fee charged by a fund, expressed as a percentage of your investment.

Example:

• $10,000 invested
• 0.03% expense ratio = $3/year
• 1.00% expense ratio = $100/year

Over 30 years, that difference compounds significantly.

Target expense ratios of 0.20% or lower. Many index funds are now 0.03% - 0.10%.

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3. Investment Options

You want access to low-cost index funds that track the overall market.

Look for funds like:

• S&P 500 Index Funds (tracks 500 largest US companies)
• Total Stock Market Index Funds (tracks entire US market)
• Target Date Funds (automatically adjusts as you age)

Both Fidelity and Vanguard offer excellent options in all these categories.

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4. User Experience

You’ll be using this account for decades.

Make sure the platform is:

• Easy to navigate
• Has a good mobile app
• Offers automatic contributions
• Has responsive customer support

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My Top 2 Recommendations

1. Fidelity

Best for: Beginners and those who want $0 minimums

Why I like it:

• ✅ $0 minimum to open
• ✅ $0 minimum for most funds
• ✅ Excellent mobile app
• ✅ Zero-fee index funds (FZROX, FZILX)
• ✅ Great customer service

Standout funds:

• Fidelity ZERO Total Market Index Fund (FZROX) - 0.00% expense ratio
• Fidelity 500 Index Fund (FXAIX) - 0.015% expense ratio

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2. Vanguard

Best for: Long-term investors who want rock-solid index funds

Why I like it:

• ✅ Invented the index fund
• ✅ Owned by its funds (no outside shareholders)
• ✅ Extremely low expense ratios
• ✅ Trusted for decades
• ✅ $0 minimum to open (recently changed)

Standout funds:

• Vanguard Total Stock Market ETF (VTI) - 0.03% expense ratio
• Vanguard S&P 500 ETF (VOO) - 0.03% expense ratio
• Vanguard Target Retirement Funds - 0.08% - 0.15%

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What I Personally Use

I have my Roth IRA at Vanguard because I opened it years ago when they were the clear leader in low-cost index funds.

If I were starting fresh today, I’d probably choose Fidelity for the $0 minimums and zero-fee funds.

Honestly, you can’t go wrong with either.

The most important thing is to just get started rather than overthinking which brokerage is “perfect.”

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What to Avoid

❌ High-Fee Financial Advisors

Some advisors charge 1% - 2% annually to manage your Roth IRA.

On $100,000, that’s $1,000 - $2,000 per year — for something you can do yourself in 15 minutes.

❌ Complex Active Funds

Actively managed funds often charge higher fees and rarely beat index funds over the long term.

Keep it simple with index funds.

❌ Analysis Paralysis

Don’t spend months researching the “perfect” brokerage.

Pick Fidelity or Vanguard, open an account, and start contributing.

Time in the market beats timing the market.

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Quick Start Checklist

• Choose a brokerage (Fidelity or Vanguard)
• Open a Roth IRA account (15 minutes)
• Set up automatic monthly contributions
• Invest in a low-cost index fund or target date fund
• Don’t touch it until retirement

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Related Resources

• What is a Roth IRA? - Why I max this out every year
• How to Make a Budget - Free up money to invest

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This article is for educational purposes and not financial advice. Please consider consulting with a licensed professional before making any financial or legal decisions.