I am no longer satisfied with my brokerage account. What are my options?

Some people open a brokerage account for the first time and keep it for a while. However, over time, you may realize that you didn’t choose the best account in the first place.

Maybe your brokerage account isn’t the most user-friendly. Or, there may be fees on your brokerage account, such as inactivity fees, that you don’t have to pay elsewhere.

Additionally, many brokerage accounts today allow you to invest in fractional shares, so you don’t always have to buy whole stocks, but some don’t. If your assets fall into the latter camp, you may want to consider switching to a brokerage account that offers fractional shares to further diversify your portfolio.

If you are not satisfied with your brokerage account, it may be a good idea to look into alternatives. But there are two other measures to consider as well.

1. Open an IRA

IRAs are actually less flexible than traditional brokerage accounts because they have rules to follow regarding annual contribution limits and withdrawals. A regular brokerage account allows you to save and invest as much money as you can afford in any given year.

This year, IRAs are allowed up to $7,000 for savers under 50 and $8,000 for savers 50 and older. However, traditional IRAs serve the important purpose of exempting a portion of your income from taxes, as contributions are tax-free up to the aforementioned limits.

Additionally, you are not taxed on your IRA’s investment gains each year like you would with a regular brokerage account. Rather, these gains are taxed only when withdrawn from the account, which typically occurs in retirement.

IRAs incur a penalty for withdrawals before age 59 1/2, with a few exceptions. However, if you want access to a variety of investment choices with limited fees, an IRA can still be a smart choice.

2. Talk to your financial advisor to see which brokerages they recommend.

Financial advisors are in the investment business. We recommend that you consult with a financial advisor to help you achieve your long-term financial goals.

But while you’re at it, why not ask for advice on a brokerage account that could replace the one you currently have? Chances are your advisor will have some good recommendations.

Of course, one option for you is to hand your portfolio over to a financial advisor to manage it for the long term. Doing so will cost you a lot of money. Often that fee is 1% of the amount of assets your advisor manages. So, if you have a portfolio of $50,000, you could pay $500 per year for that service.

But it may be worth it. Because from there, it will be your financial advisor’s job to monitor your accounts and add and remove assets as appropriate. That way, you don’t have to be the one navigating a new investment platform.

You should not settle for a brokerage account that is difficult to use, has high fees, and is not designed to meet your needs as an investor. Instead, look for alternatives and consider an IRA for the associated tax breaks.

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