Free Charles Schwab IRA
Capital One IRA Commissions
| Investments | Commissions |
|---|
| Stocks and ETFs | $6.95 |
| Stocks and ETFs phone trades | $19.95 |
| Options | $6.95 + $0.75 per contract |
| Mutual funds | $19.95 |
| Automatic Investments (stocks, mutual funds and ETFs) | $3.95 |
| Investments | stocks, options, mutual funds, ETFs |
| Capital One Investing minimum deposit to open account | $0 for cash account, $2,000 for margin account |
Capital One IRA Fees
- IRA setup fee: $0
- Annual IRA fee: $0
- IRA termination fee: $0
- Account maintenance fee: $0
- Account inactivity fee: $0
- Outbound full account transfer: $75
- Outbound partial account transfer: $15 per security ($75 maximum)
Capital One IRA
Capital One is a large brick-and-mortar bank chain that also offers robust services for personal and business accounts, online investment
accounts, and more. The company, which recently acquired the ShareBuilder investing broker, offers an individual retirement account (IRA) option.
With a Capital One IRA, you can opt for either the traditional or Roth account. In a traditional IRA, the client can contribute pre-tax dollars that
are then taxed when the account holder takes distributions. With a Roth IRA, the client can contribute post-tax dollars and when they retire,
distributions are taken tax free.
Capital One’s IRA signup process is simple and efficient. The client is asked to complete a form detailing which type of IRA they are
requesting (Roth vs. Traditional), whether the account is an individual, joint account, or being opened on behalf of a child. Clients also
are asked to provide a beneficiary for the account and what other features they would like for the account, including the opportunity to
participate in options trading. These application forms can be completed via the Capital One website or over the phone with a live customer
support representative.
Pros
Capital One retirement accounts can have dividends and capital gains set to be automatically reinvested commission free.
Clients also have the option to set up reoccurring weekly deposits and these funds will be invested automatically at a lower
commission rate of $3.95 per trade for mutual funds.
Electronic funding transfers are also instant and free if the client has a checking or
savings account with Capital One. Additionally, the client can choose to do “express funding” for a fee of $6.95 as well as initiating a
wire transfer from an outside bank. Capital One offers free wire transfers but the client may be charged from the outside institution. The online platform allows for seamless account management between Capital One’s banking and investment accounts.
Capital One IRAs also come with analytical features such as portfolio allocation and fund performance tools. Clients can view a graphical breakdown of their portfolios by each holding, including percentages and current market values. The Portfolio page offers a detailed breakdown of ticket symbol, investment cost basis, last quote, % day change, current market value, cost per share, and more. Capital One also offers a rich assortment of graphs and charts for hundreds of equities, bonds, funds, and more. Clients can view historical trends and specific price points from intraday timeframes to several years past.
Capital One offers instant trade confirmations in its online platform that details trade execution, cost basis, and commissions paid.
Clients also receive trade confirmations via email as well as monthly account statements, which are also always available on the Capital One
website. The bank has an intuitive “Gain and Loss Tax Tool”, which is very helpful when clients need to calculate either short or long term
capital gains as well as loss information.
Cons
First, Capital One Investing does not offer extended hours trading: users cannot execute orders during pre-market and after-market hours.
Also the company's trading tools are basic - not as advanced as at many competitors.
Another drawback to using a Capital One IRA account is the low priced security surcharge. Any equity that has a
stock price below $1 per share is subject to the low priced security surcharge, which is a
$0.007 fee per share in addition to the base commission. Stocks that trade under $1 are often very volatile and not generally recommended for
retirement accounts, but if the client wishes to own these types of stocks, they will pay very high commissions to buy and sell them. This low
priced security surcharge has a maximum dollar amount of either $500 or 15% of the principal amount of the trade, whichever is less. Clients that
wish to buy and sell low priced securities on a continued basis may be inclined to transfer their Capital One retirement account to another brokerage
due to these fees.
One more negative aspect of using Capital One for IRAs is that there are very few IRA options available: only ROTH and traditional IRA. If client is
ever in need of opening another type of IRA account (Simple, SEP, 401K, etc.) he or she will have to do it at another company and some investors
prefer to have all their accounts at one firm.
Capital One offers a higher-range stock and ETF fee structure in the online investing industry, with commission rates at $6.95 per stock trade.
Capital One IRA Review Summary
Capital One offers customers a solid investment account for traditional and Roth IRAs with an intuitive and easy-to-use online trading
platform. However, their commission rates are on the higher side within the industry, and frequent traders may also be discouraged by the
lack of extended hours trading and advanced trading tools.
Updated on 4/8/2025.
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