In the U.S., one of the best ways for individuals to protect their income from taxes and save for retirement is by using an individual retirement account (IRA). IRAs come in many forms that can be tailored to specific individual preferences. However, significant rules and regulations have been developed and initiated by the IRS and the U.S. Treasury department that can make the use of IRAs quite confusing. Two of the main IRAs are self-directed IRAs and Roth IRAs.

Self-directed IRAs are ones that are controlled by the individual. These accounts are established between the individual opening the account and a stockbroker. The individual is then in control of all the money that he or she wishes to invest. Roth IRAs can be opened through a broker, mutual fund or bank. Contributions made toward a Roth IRA are made on an after-tax basis; however, the key to the Roth IRA is that it provides tax-free growth.

Fortunately, individuals who have self-directed IRAs or Roth IRAs can trade in the forex market as an investment. In order to do this, a forex trading IRA must be opened. Individuals who do this benefit greatly from being able to day trade tax free. Using forex within a retirement plan also provides added diversification that can be used to add stability to an investor's returns. Furthermore, individuals who already have assets invested in other IRA accounts are able to transfer those assets into a forex IRA account by filling out the necessary paperwork.

As with traditional IRAs, forex IRAs can either be self-directed by the individual opening the account, or managed by a professional forex manager.

To learn more, see Tax-Saving Advice For IRA Holders, Ten Tips For Achieving Financial Security and Traditional IRA Deductibility Limits..

  1. How do I open an IRA?

    Opening a Roth or Traditional IRA online with a minimal deposit takes less than 15 minutes when starting an account with ... Read Answer >>
  2. What are the differences between a self-directed IRA and a traditional IRA?

    Explore the investment options available to and restrictions on account holders who choose a self-directed IRA as their retirement ... Read Answer >>
  3. How does an IRA grow over time?

    Learn how the magic of compounding helps grow individual retirement accounts, or IRAs. IRAs are one of the most proven options ... Read Answer >>
Related Articles
  1. Retirement

    11 Things You May Not Know About Your IRA

    These little-known features will help you get the most out of your retirement savings.
  2. Retirement

    Roth IRA Contribution Limits in 2016

    Discover the benefits of Roth IRA accounts and how much you can contribute for your retirement. Learn which IRA plan is best for you.
  3. Retirement

    House Your Retirement With Self-Directed Real Estate IRAs

    Investors are now able to invest directly in real property, mortgages and other assets.
  4. Financial Advisor

    Roth IRAs Tutorial

    This comprehensive guide goes through what a Roth IRA is and how to set one up, contribute to it and withdraw from it.
  5. Retirement

    Roth IRAs: Investing And Trading Do’s And Don’ts

    Just what can you invest in in a Roth IRA? And what constitutes a prohibited transaction?
  6. Financial Advisor

    7 Top IRA Strategies for Your Clients

    With IRA season in full swing, advisors should consider these seven strategies for clients.
  7. Retirement

    Funding Your IRA vs. Your Roth IRA, Which First?

    The answer depends on where you are in your career and personal life each year. Here are some scenarios and rules to think about.
  1. Individual Retirement Account - IRA

    An investing tool used by individuals to earn and earmark funds ...
  2. Traditional IRA

    An individual retirement account (IRA) that allows individuals ...
  3. Roth IRA Conversion

    A reportable movement of assets from a Traditional, SEP or SIMPLE ...
  4. Roth IRA

    A Roth IRA is an individual retirement plan that bears many similarities ...
  5. IRA Plan

    A plan that individuals may establish to arrange and plan for ...
  6. IRS Publication 590: Individual Retirement Arrangements (IRAs)

    A document published by the Internal Revenue Service (IRS) that ...
Hot Definitions
  1. Perkins Loan

    A loan program that provides low-interest student loans to undergraduate and graduate students who demonstrate exceptional ...
  2. Wealth Management

    A high-level professional service that combines financial/investment advice, accounting/tax services, retirement planning ...
  3. Assets Under Management - AUM

    The market value of assets that an investment company manages on behalf of investors. Assets under management (AUM) is looked ...
  4. Subprime Auto Loan

    A type of auto loan approved for people with substandard credit scores or limited credit histories. There is no official ...
  5. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
  6. Federal Debt

    The total amount of money that the United States federal government owes to creditors. The government's creditors include ...
Trading Center