The Verdict
Preferred Trust is a solid self-directed IRA custodian with competitive fees and good customer service. They're a strong option for real estate investors, though larger custodians like Equity Trust offer more resources.
Visit Preferred TrustOfficial Link • Secure & Verified
Preferred Trust at a Glance
Founded
2007
Headquarters
Las Vegas, Nevada
Minimum Investment
$0 (no minimum)
BBB Rating
A
Years in Business
17+ years
Best For
Real estate and alternative asset investors
What is Preferred Trust?
Preferred Trust Company is a self-directed IRA custodian based in Las Vegas, Nevada. Founded in 2007, they specialize in holding alternative investments within retirement accounts, including real estate, precious metals, private equity, and promissory notes.
Unlike traditional brokerages that limit you to stocks and mutual funds, Preferred Trust allows you to diversify your retirement portfolio with assets outside of Wall Street. They serve as the custodian (required by the IRS) while you make the investment decisions.
Pros & Cons
The Good
- Competitive fee structure for SDIRAs
- A rating with the BBB
- No account minimum to get started
- Supports wide range of alternative investments
- Responsive customer service
- Online portal for account management
The Bad
- Smaller than major competitors like Equity Trust
- Limited educational resources compared to larger custodians
- No checkbook control option
- Per-transaction fees can add up for active investors
Preferred Trust Fee Structure
Preferred Trust uses a straightforward fee structure. Here are the typical fees:
| Fee Type | Amount |
|---|---|
| Account Setup | $50 |
| Annual Account Fee | $275 - $495 (based on assets) |
| Transaction Fee | $95 - $150 per transaction |
| Wire Transfer | $25 |
| Precious Metals Storage | $100 - $300/year (varies by depository) |
| Account Termination | $75 |
Fee Analysis: Preferred Trust's fees are competitive with industry averages. The per-transaction model works well for buy-and-hold investors. If you plan to make frequent transactions, consider Rocket Dollar's flat monthly fee instead.
Services Offered
Preferred Trust offers a range of self-directed retirement account services:
Investment Options
Preferred Trust supports a wide variety of alternative investments:
Preferred Trust vs Competitors
| Feature | Preferred Trust | Equity Trust | Rocket Dollar |
|---|---|---|---|
| Founded | 2007 | 1974 | 2018 |
| BBB Rating | A | A+ | A |
| Pricing Model | Per-transaction | Per-transaction | Flat monthly |
| Checkbook Control | No | Extra fee | |
| Best For | Real estate | Long-term hold | Active investors |
Who Should Use Preferred Trust?
- Real estate investors looking for a SDIRA custodian
- Buy-and-hold investors who make occasional transactions
- Those wanting personalized service from a smaller custodian
- Investors in the Southwest who prefer a local company
Who Should NOT Use Preferred Trust?
- Active traders - per-transaction fees add up
- Those wanting checkbook control - Rocket Dollar is better
- Investors wanting maximum resources - Equity Trust has more
Final Verdict
Preferred Trust is a reliable self-directed IRA custodian with competitive fees and good customer service. While not as large as Equity Trust, they offer a solid option for real estate and alternative asset investors who prefer a more personalized experience.
Rating: 4.0/5
Frequently Asked Questions
Is Preferred Trust Company legit?
Yes, Preferred Trust is a legitimate self-directed IRA custodian with an A rating from the BBB. They've been in business since 2007 and are based in Las Vegas, Nevada.
What types of investments can I hold with Preferred Trust?
Preferred Trust supports a wide range of alternative investments including real estate, precious metals, private equity, promissory notes, and more. They cannot hold collectibles or life insurance per IRS rules.
Does Preferred Trust offer checkbook control?
No, Preferred Trust does not offer checkbook control. If you need to write checks directly from your IRA, consider Rocket Dollar instead.
How do Preferred Trust fees compare to competitors?
Preferred Trust fees are competitive with industry averages. Their annual fees range from $275-$495 depending on account value, with transaction fees of $95-$150.
Want a Gold IRA With Premium Service?
Custodians like Preferred Trust work with Gold IRA companies. For a premium Gold IRA experience with fee waivers and education-first approach, consider Augusta Precious Metals.
$50k minimum | Up to 10 years fees waived | A+ BBB Rating