Can the investment brokerage with the baby on all of its commercials really be a great option to save for retirement? E*Trade Securities has been in the online discount brokerage business for over 20 years, so it is definitely a company to consider if you are looking to start your Roth IRA. E*Trade offers some of the lowest discount trade prices in the industry, and a suite of investment tools to enhance your portfolio as you build up your nest egg.

E*Trade is Highly Rated

E*Trade has been in the discount brokerage business for a long time. This has provided them a competitive advantage in comparison to other brokers. They’ve had many years to streamline their customer service and investing platforms. Due to this, the firm has received high ratings from independent organizations:

• Smart Money Magazine: 5 stars for trading tools in 2011
• Kiplinger’s Magazine: 5 stars for customer service in 2011
• Barron’s Magazine: 4.5 stars for research in 2011

If these financial experts trust E*Trade for investing, you should too.

Roll Over Your 401(k) and Get up to $600.

Sign Up Bonus

Not only is E*Trade highly rated, but if you open an account you will receive a sign up bonus that could top $600. The sign up bonus is tiered based on the amount of money you transfer in to the brokerage: Open an account with:

• $25,000 — $99,999 and receive $100

• $100,000 — $249,999 and receive $300
• $250,000 or more and receive $600

Investing Fees and Commissions

Not many people who are first starting out have thousands of dollars to open up an account to generate a bonus. If you fall into this category, E*Trade can still be a good option based on their low investing fees and commissions.

Stock and ETF Transaction Commissions:

• Stock and Option Trades: $9.99 per trade unless you trade more than 150 times per quarter (price drops to $7.99 with that volume of trades; Option Contracts also have a $0.75 charge)
• Broker-assisted Trades: Add $25 on top of your normal cost

Mutual Fund Transaction Fees:

• No-Transaction Fee Mutual Funds: $0 to buy, sell, and exchange ($49.99 if you sell/exchange before 90 days of holding the investment)
• No-load Mutual Funds: $19.99 to buy, $19.99 to sell, and $19.99 to exchange
• Loaded Mutual Funds: depends on the fund
• Broker-assisted Trades: Add $25 on top of your normal cost

Account Maintenance and Closing Fees:

E*Trade will not charge you an account maintenance fee. However, you will pay $60 to transfer all the money out of your account if you decide to close your account.

Roth IRA Fees:

No fees to open a Roth IRA, no account minimum, and no annual fee. The only fees you pay with retirement accounts at E*Trade come if you contribute too much to your account (and need it withdrawn) or need to recharacterize your investment. The fee for that is $25.

Investment Options

With E*Trade you can invest in all of the main types of investment that you would want to hold in your Roth IRA. You can invest in individual stocks and bonds, ETFs, and mutual funds. You’ll have access to 7,600 mutual funds to choose from; over 1,100 of those mutual funds are are leading no-load funds.