Brokerage Accounts

New Direction IRA is not a licensed brokerage and cannot hold or trade publicly traded stock directly. To purchase stocks or mutual funds, the IRA holder needs to instruct us to open a brokerage account that will be used to purchase the securities. Having a brokerage account within your Self-Directed IRA allows you to invest in traditional securities, while keeping your liquid funds in a convenient spot for future self-directed investments.

Guidelines:

  • Purchases using margin are prohibited.
  • Short sales, naked calls and naked puts are also prohibited.
  • The account cannot be at risk of going below a $0 balance.
  • Assets held by the account cannot be transferred in or out in-kind. If you decide to close, transfer or convert your New Direction IRA account, this brokerage account will need to be liquidated and sold.

Frequently Asked Questions:

Q: Does New Direction IRA pick the brokerage account for you?
A: It is the IRA holder’s responsibility to research and decide on the brokerage account they wish to open.

Q: What are some companies New Direction IRA has worked with?
A: Scottrade, Vanguard, Charles Schwab and Fidelity are just a few of the companies New Direction clients have used. This is not a list of recommended brokerages, it is simply a list of brokerages we are able to work with. If you wish to use a brokerage not on this list, please call us for more information.

Q: Is there any way to move stocks from my personal account to my account through New Direction IRA?
A: No,  You cannot move any assets from your personal account to your IRA.  The internal brokerage account will be held within your New Direction IRA and everything must flow in and out of that IRA

Q: How often can I move funds in and out of my brokerage account?
A: You can move funds between the IRA and the brokerage account as often as you like however New Direction IRA will charge a small processing fee each time you do.  It may be easier to wait until a significant amount of cash builds up in your New Direction IRA account before you move funds.  This will lower the number of transaction and thereby the transaction costs.

Q: Can I open the brokerage account myself?
A: Please do NOT attempt to open the brokerage account yourself as this will cause problems.

Q: How long does it take to open a brokerage account through my New Direction IRA?
A: On average, it takes 5-10 business days to open a brokerage account depending on which company you use.

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For more information, call us toll-free at 1-877-742-1270.