I need to find a broker to open a Roth IRA. I’m 17 and will have earned income this summer, and want to start putting money away. Ameritrade wouldn’t go for it, and Schwab requires $10,000 in their accounts before they’ll cooperate (and they have high trading fees). Does anyone know a good discount broker that will open a custodial Roth for me?
I’m surprised that neither brokerage wants to take your money. Are you sure you’ve made it clear you want to open a Roth IRA? Traditional IRAs require you to be 18 and no brokerage I’ve ever looked at require that large a minimum for an IRA, but may for a non-retirement account. I don’t like coming in here and suggesting you’re the one who screwed up, but that’s the only thing I can think of off the top of my head.
You didn’t ask but I’m going to offer a little free advice anyway – keeping in mind you’ll be getting exactly what you pay for from me. If you haven’t already looked into investing in a mutual fund, do so. You will probably end up paying more in fees than when you’re investing in individual stocks through a discount broker, but you’ll also end up doing less homework in making your selections and you’ll have a professional managing the fund which is usually (not always) better. You will also be able to diversify immediately which many stock experts think is a good thing.
And let me congratulate you on starting a retirement fund so early in life. You’re about 20 years ahead of most everyone you know and will be able to enjoy a fairly easy retirement, especially if you can contribute the max for the next few years.
I don’t know about age restrictions, but www.sharebuilder.com will let you get started without a big initial deposit.
I’ve used them, they’re legit.
I don’t think you will get anyone to sign a contract with a minor. Have one of your parents, or guardians, get you a trust account with the broker. They sign the contract and hold the proceeds in trust for you. Then when you become 18, it that’s the age in your state, you can transfer the whole thing to a regular IRA.
Failing that, open a bank saving account until you are 18, or whatever the legal age is in your state.
Another possibility is the brokerage arm of a bank. These days most large commercial banks have affiliated brokerages that are very interested in managing the IRA deposits of the bank’s depositors. I don’t know where you bank, but you may want to try there.