Minimize IRA Custodian Fees: A Guide for Investors

Many investors rely on their IRA custodian for many things. While they can be a good source of information, they will usually charge you handsomely for their services. Here are the basics of how you can avoid IRA custodian fees. 

Self-Directed IRA

One way to cut down on the custodian fees is to utilize a self-directed IRA. While you may not be able to completely eliminate fees, this can help lower them significantly. When you rely on your custodian to make every transaction for you and give you investment advice, they are going to charge you quite a bit more. If you do all of the investment research and handle all of the transactions yourself, you can eliminate most of the fees. 

Shop Around

Before you agree to do business with a particular custodian, you should do your homework on the different brokers that are available. Shop around and ask everyone what their fees include. You can find some brokers that offer "no-load" and "no transaction fee" accounts. While it might seem difficult to find them, there are brokers out there that will not charge much for their IRA services. It might help to ask family and friends who they use for their IRA custodian as well.