How to choose where to open an IRA or investing account

For a long-term investor, the cheapest broad index funds and easy automatic investing matter far more than research tools or trading features.

The checklist

Low-cost broad index funds or ETFsLook for total-market or S&P 500 funds with expense ratios well under 0.2%.
No account feesNo annual fee, no inactivity fee and no fee to open an IRA.
No minimum to startMany accounts open with $0 and buy fractional shares, so $50 a month works.
Automatic investingYou should be able to schedule a monthly deposit and have it invested automatically.
SIPC protectionBrokerage accounts should be SIPC members, which protects your holdings if the firm fails (not against market losses).
Target-date funds if you want one-fund simplicityA target-date fund handles the stock and bond mix for you.
A simple app you'll actually openIf the app pushes trading, alerts and hot stocks, it's built for a different kind of investor.

We don't list specific accounts yet. Use the checklist on any account you're considering. How we make money.