T. Rowe Price has a long history of providing quality investments with reliable performance at a reasonably low cost. The Baltimore-based company is well-known for its variety of proprietary no-load, actively managed mutual funds, managing more than $1 trillion for individual and institutional investors, primarily in the U.S.
Among the most popular offerings are T. Rowe Priceâ€™s target-date funds, which are managed for growth or preservation, depending on your retirement timeline. T. Rowe Price also manages workplace 401(k) plans for corporate employers. Overall, about two-thirds of assets under management are in retirement-based accounts.
T. Rowe Price also offers discount brokerage services, with a simplified trading platform for self-directed investors. Investors can access a wide range of investment types, including competitor no-load mutual funds, no-fee exchange-traded funds (ETFs), stocks, bonds, options and more.
Whether you should considerÂ T. Rowe Price as a broker depends largely on the type of services you seek. If you are an investor who likes the idea of outperforming the stock market without having to select the individual investments, then investing through a T. Rowe Price fund is worth considering. Over a 10-year period ending on Sept. 30, 2018, more than 90% of the companyâ€™s stock funds outperformed their Lipper averages based on cumulative return. If you invest in an a T. Rowe Price actively managed fund directly, you can cut out the broker fee.
Investors who are looking to trade stocks on a regular basis or dabble in more speculative markets probablyÂ should look elsewhere. WhileÂ T. Rowe Price does offer an online brokerage, high trading costs and minimum balances make it ill-suited to both new investors and frequent traders. Timely, in-depth stock analysis is not part of the companyâ€™s offerings. And while theyâ€™re easy to use, the siteâ€™s tools are not designed to give active traders an edge.
|Stock trading fees||
|Account fees (annual, transfer, inactivity)||
|Commission-free ETFs offered|
|Mutual funds (no transaction fee) offered|
|Offers automated portfolio/robo-advisor|
|Ease of use|
|Mobile app||iOS, Android|
|Customer support||Phone, Email|
It also offers robo-advisor services through its ActivePlus Portfolios, along with Private Asset Management and Select Client Services for clients with a higher net worth. T. Rowe Price even offers a top-rated 529 college savings plan, according to a November 2018 analysis from Savingforcollege.com.
Over the companyâ€™s 80-plus-year history, it has built a reputation of stability, straightforwardness and character, and it has been named among the worldâ€™s most admired companies by Fortune. T. Rowe Price portfolio managers spend an average of 16 years with the company, almost unheard of in the churn-and-burn world of finance.
T. Rowe Price is a member of the Financial Industry Regulatory Authority (FINRA), which monitors broker activity, and the Securities Investor Protection Corporation (SIPC), which protects investor assets up to $500,000 should the brokerage fail (although this does not cover losses from market fluctuation). For all client accounts, the company has protection on an aggregate loss limit of $1 billion and a per-client loss limit of $1.9 million for cash awaiting reinvestment.
The company protects customers online by using a two-factor authentication process for login on both desktop and mobile and provides industry standard secure encryption within your account.
If your goal is sophisticated, high-speed trading without a lot of hand-holding, there are less expensive options that may be more suited to your needs. As of the date of publishing, stock trading is just $4.95 at large competitor firms Fidelity and Schwab, andÂ Ally Invest is offering $3.95 trades for active investors, and you can trade no-load funds there for $9.95. But if your chest of tools includes risk-adjusted mutual fund investing, T. Rowe Price funds can offer benchmark-beating, long-term track records at a reasonably low cost.