Self-Directed IRAs allow you to invest in all types of investments within your retirement account.
If you have a retirement account at a traditional brokerage such as Fidelity, Schwab, E*TRADE, or Vanguard, you’ve probably noticed that your investment choices are limited to stocks, funds, and bonds. This limitation isn’t because of some law. It’s a restriction imposed by financial institutions. After all, financial institutions sell financial products.
What if you want to invest in something outside of stock market securities? That probably isn’t going to happen at a traditional financial brokerage. You’ll typically have to move your funds into what’s called a self-directed IRA (SDIRA).
The best self-directed IRA providers are most likely separate companies from the financial institution where your retirement is now. But once you open a self-directed IRA, you’ll have far more freedom to invest in what’s called alternative assets. Keep reading to learn more about how they work and the top providers available today.
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Self-Directed IRA Quick Comparison
See how the various SDIRA providers charge at one asset for various AUM. This charge is the fees for one asset or type of asset (i.e. one property, one brokerage account):
What Is A Self-Directed IRA?
A self-directed IRA is a custodian or administrator that allows you to use your IRA as you see fit. This means you have the ability to invest in alternative assets. Alternative assets include gold, real estate, startups, Bitcoin, and more. The custodian is passive, meaning they do not guide or restrict your choices (as long as your investments are legal).
Besides being able to invest in alternative assets, a self-directed IRA retains its tax advantages. Say you purchase a $100,000 property and sell it for $150,000. That $50,000 gain would normally generate a sizable tax bill. But in a self-directed IRA, you may no taxes on this profit. Just like stock gains inside a typical IRA, those gains are tax-sheltered.
But you must be careful to follow the rules and not create a taxable event. It’s best to work with your tax advisor when investing in alternative assets. As a side note, you can still invest in stocks, funds, and bonds with a self-directed IRA. You aren’t restricted to only alternative assets.
Modern Day Alternative Asset Investing
A few years ago, if you wanted to invest in alternative assets, you had to identify someone who was selling that specific asset. It could take a long time to do. And once the deal was done, the investment holding period was usually a few years because many alternative assets are hard to sell.
Lastly, the investor had to be an accredited investor, which means they had to have made at least $250,000 in the last two years or have a net worth of at least $1 million, not counting their main home. If that’s not a high enough bar, alternative assets usually need a lot of money to start, which can be in the hundreds of thousands.
Then crowdfunding and other new ways to invest in alternative assets came along. Investing in alternative assets has become more modern, which has shortened the time investors have to hold them, dropped the minimum amount they have to invest, and no longer requires investors to be accredited.
The self-directed IRA market has risen since it is now easier to get into alternative investing. It is much easier to use a retirement account to invest in different kinds of assets than it was a few years ago.
Our Picks Of The Best Self-Directed IRA Providers
To set up a self-directed IRA, you’ll need to first choose a self-directed IRA provider. It does take some time to set up a self-directed IRA and transfer funds from your brokerage. You’ll want to keep this in mind if you’re planning to invest in any alternative investments in the near future.
Speak to both your traditional IRA broker and the self-directed IRA provider about timelines and coordination. Here are some of the best self-directed IRA providers available today.
IRA Financial
IRA Financial oversees more than $5 billion in assets across over 26,000 clients. With an IRA Financial self-directed IRA, you can invest in stocks and bonds, and the following alternative assets: Real estate, private equity, private lending, precious metals, timber, oil/mineral rights, livestock, and more.
You can open the following account types: Traditional, Roth, Simple, Inherited, and SEP IRAs, Health Savings Accounts, solo 401(k), and a Coverdell Education Savings Account (ESA). They also offer a ROBS plan.
IRA Financial charges a flat fee of $495, regardless of account size.
Key Factors to Compare When Choosing a Custodian
When evaluating self-directed IRA providers — especially in 2026 — consider these essentials:
✔ Fee Structure
Custodians charge:
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Setup fees
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Annual maintenance fees
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Transaction fees per asset
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Possible wire and closing fees
These can vary widely, so comparing total expected costs is critical.
✔ Asset Flexibility
Ensure the custodian supports the specific asset types you want to hold — e.g., real estate, crypto, private equity, precious metals.
✔ Customer Support & Education
Because SDIRAs require investor due diligence, custodians with strong educational resources and responsive support teams can be invaluable.
✔ Compliance & Transparency
Good custodians offer clear fee disclosures and help you navigate IRS rules — critical to avoiding prohibited transactions or compliance penalties.
Final Recommendation: Align Provider With Your Strategy
There isn’t a “one-size-fits-all” best SDIRA, your choice should match your investment strategy:
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Real estate focus: uDirect IRA
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Precious metals & diversified alternative: Equity Trust
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Private equity & venture opportunities: Entrust Group
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Crypto and digital assets: Kingdom Trust
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Low-cost, broad alternative access: Rocket Dollar or IRA Services
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Maximum direct control (checkbook IRA): Broad Financial