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 vs Brokers IRA Overview
Opening an IRA at a bank can be a smart move if you want to build a nest egg for retirement. But is it better to open a retirement account with a bank or a broker? This article will look at the pros and cons of having an IRA at a bank or at E*TRADE, Fidelity, or Charles Schwab.
Bank IRAs
If a bank has FDIC insurance, IRAs held at the bank can also receive FDIC coverage. The IRA does not qualify for separate or additional insurance beyond the retirement-account coverage limits. Rather, the IRA balance is covered up to the applicable FDIC limits for retirement accounts. Nevertheless, having a retirement account that is FDIC insured is certainly appealing to many investors. As we shall see, an IRA at a broker is not FDIC insured.
There are other benefits of having a bank IRA. For example, the assets of an IRA at a bank are usually deposited in a savings account or a certificate of deposit. Since these accounts are fixed-income products, the principal is guaranteed not to go down. Interest payments are also assured, which makes the IRA very safe. Retirement savers who are concerned about the volatility of variable investments, which a broker's IRA is usually invested in, would benefit from the safety and stability of a bank IRA.
One of the downsides of the bank version is that they tend to offer lower returns. For example, an IRA at Ally Bank invested in a savings account currently earns 3.20%. This rate is variable and can change. Bank of America also offers a Money Market IRA, although customers generally need to call for current rates. Investors who need a higher return would probably be better off with a broker's IRA, where they can invest in higher-yielding assets.
Different bank IRAs can be structured either as a Roth or Traditional account. The Roth version is ideal for retirement savers who expect to be in a higher tax bracket after work, while the Traditional account is better for workers who plan to be in a lower bracket during retirement. Some banks also offer SEP IRAs, which allow self-employed workers and small-business owners to save for retirement in a tax-advantaged account.
Brokerage IRA
A broker is not a bank, so it is not FDIC insured. There is however SIPC insurance, which protects brokerage accounts up to $500,000. Of this amount, a maximum of $250,000 in cash is insured. SIPC is not a government institution like the FDIC. Rather, it is Congressionally mandated and funded by the brokers themselves.
An IRA at a broker can invest in the same securities that a non-retirement account can. Typically, these assets are stocks, bonds, ETFs, and mutual funds. Exposure to precious metals, such as gold and silver, can also be added in some IRA portfolios. Let's take a look at some IRA offerings from three specific brokers.
E*TRADE IRA
Several retirement accounts are available at E*TRADE. These include Traditional, Roth, Rollover, Beneficiary, SIMPLE, SEP, and Complete IRAs. They carry no annual IRA fee, although other account and transaction fees may apply. E*TRADE retirement specialists can be reached over the phone, and there is a lot of educational material on the broker's website dedicated to retirement issues. The broker also offers commission-free online trading in U.S.-listed stocks, ETFs, mutual funds, and options.
Fidelity IRA
Fidelity offers Traditional, Roth, Rollover, Inherited, SEP, and SIMPLE IRA accounts. They
carry no special fees. The firm's clients have access to a very large mutual fund lineup, some of which are
target-date funds. The Fidelity site has plenty of material on it dedicated to retirement topics.
Charles Schwab IRA
Several IRA choices can be found at Charles Schwab, including Traditional, Roth, Rollover, Inherited, Custodial, SEP, and SIMPLE accounts. The broker does not charge
any IRA fees. Its fund lineup is extensive, and calculators, such as an IRA distribution tool, are on the broker's website.
Capital One IRA Review Final Thoughts
While banks come with FDIC insurance, IRA choices are rather limited and typically come with lower yields. Investors who have longer time horizons
and higher risk tolerance may benefit more from an IRA at a brokerage firm, which offers trading in securities. Schwab and Fidelity both offer deep fund selection,
while E*TRADE has one of the broadest IRA menus.
Updated on 4/22/2026.
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