Which brokers offer Roth IRA accounts?
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  1. #1
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    Default Which brokers offer Roth IRA accounts?

    I'm interested in starting a Roth IRA for short term trading; does anyone recommend a particular online broker that has the option to create a self-managed Roth IRA?

  2. #2
    phil838's Avatar
    phil838 is offline FX-Men Honorary Member
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    I can't really recommend them because I haven't used the service, but I was looking into this same thing a couple years ago and Tradestation.com had the best IRA forex deal I could find.

    I never opened the account though. I don't remember the specifics of why I chose not to do it, since it was so long ago, but I think there were high yearly maintenance fees associated with it or something like that. Not just with this broker but with all of them...

    Their website should have all the info you need.
    "The market is weird. Every time one guy sells, another one buys, and they both think they're smart." Ancient Trading Proverb...
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  3. #3
    Gudimy is offline Newbie
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    Excuse my ignorance, but afterall we are all here to learn. What is IRA account?

  4. #4
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    A Roth IRA is an Individual Retirement Arrangement (IRA) allowed under the tax law of the United States.

    Established by the Taxpayer Relief Act of 1997 (Public Law 105-34), a Roth IRA (Individual Retirement Arrangement) can invest in securities, usually common stocks or mutual funds (although other investments, including derivatives, notes, certificates of deposit, and real estate are possible). As with all IRAs, there are specific eligibility and filing status requirements mandated by the Internal Revenue Service. A Roth IRA's main advantage is its tax structure. Depending on with whom a Roth IRA is set up, it can be managed in creative ways, including investments in non-typical assets (self-directed IRA).

    en.wikipedia.org/wiki/Roth_ira

    Basically, it is a retirement account funded with after-tax dollars. The key advantage is that upon maturation (5 year minimum, account holder's age 59.5) withdrawal are exempt from capital gains.

    I'm a former retail stock-broker who has been option trading for the past 6 years and looking to venture into Forex
    Last edited by Jess; 04-28-2010 at 10:46 PM. Reason: Link Violation

  5. #5
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    Just a FYI, MB Trading has IRAs (SEP, Traditional and Roth); these accounts would be self-directed IRAs established as a trust under the holding company Entrust Administration Inc ( though I would assume another trust company could be used, such as Millenium).

  6. #6
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    Default before roth IRA expert's advice is necessary

    the roth IRA is a flexible investment plan, it is always good to have a expert's advice before invest in this IRA.

  7. #7
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    I would recommend forex as well. I use them for most of my investing matters. You should definitely do some research before you jump into this. Once you read up on it, you can start a self directed IRA. People do transition to this after they get used to traditional IRAs. Here's a little article that can explain the basics of a self directed IRA to you in layman's term: gobankingrates.com/retirement/ira/what-is-a-self-directed-ira
    Last edited by Nica; 07-29-2010 at 08:09 PM. Reason: Link Violation

  8. #8
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    I'm not sure you are allowed to use your Roth IRA for short term trading purposes, check with your tax consultant. Also the costs of short term trading as well as the time (& opportunity cost) may not make it worthwhile. Why do you want to gamble with your retirement money? Someone from fatwallet forums says

    Finance theory proposes that transactions costs are not recoverable in the long-run, add up and compound over long periods of time. taxes are only one component of transaction costs. there are also trading costs. also no shred of evidence exists that frequent trading will improve your returns over the long-run.

    You should instead take advantage of compound interest. John* starts putting $100 a month in his roth ira at age 25 until he’s 65. When he retires he’ll have $1,100,000. (assuming compound interest around 8%)
    Source: definerothira.com

    Bob doesn’t start putting money in his Roth until he’s 35. He then puts the same $100 every month until he reaches 65. When he retires he’ll only have $300,000!!!

    Those 10 years of not investing cost him $700,000 OMG!!

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