What is Equity Trust？
Equity Trust, established in 1974 and registered in the United States, is a prominent custodian of Self-Directed IRAs, offering a wide array of investment options, including real estate, private lending, private equity, and so on, in its account management system, myEQUITY. One of Equity Trust's key strengths is its ability to cater to both individual and institutional clients. They offer tailored solutions to multiple professional institutions. However, Equity Trust operates without regulation.
Pros & Cons
Pros:
Diverse Investment Options: Equity Trust offers a wide range of investment options, including Real Estate, Private Lending, Private Equity, Forex Trading, Cryptocurrency IRA, Precious Metals, Mutual Funds & Stocks, and more, allowing investors to diversify their portfolios.
Tailored Solutions: They provide tailored solutions for both individual and institutional clients, including Precious Metals Dealers, Cryptocurrency Providers, Investment Platforms, Crowdfunding & Private Equity, Directed Trustee Services, and RIAs & Broker Dealers.
User-Friendly Platform: They advertise a user-friendly online platform, myEQUITY, for managing accounts and investments.
Customer Support: They offer customer support via phone, email, and various social media platforms, as well as educational resources to help clients navigate self-directed investing.
Cons:
Lack of Regulation: Equity Trust operates without regulatory oversight. There sre increased risks related to transparency, accountability, and investor protection.
Complex Fee Structure: Equity Trust's fee structure is complex, comprising an annual fee based on portfolio value, an account set-up fee, brokerage commissions for transactions, and a termination fee for closing accounts.
Is Equity Trust Safe or Scam？
Equity Trust claims to be a regulated trust company audited by an independent third party and enforces strict account protection policies. However, it operates without regulatory oversight in fact. This lack of regulation means that there may be fewer safeguards in place to protect investors' funds compared to regulated custodians. Additionally, the complex fee structure and inherent risks associated with investing in alternative assets are also concerning. So there are risks associated with investing through Equity Trust.
Investment Types
Equity Trust offers a wide range of alternative investment options for self-directed accounts, allowing investors to diversify their portfolios beyond traditional assets.
Real Estate: Investments can include residential rentals, fix-and-flips, commercial properties, land development, and more.
Promissory Notes: An opportunity to loan funds from your account, potentially providing passive, tax-advantaged income.
Private Equity: Enables you to buy into private companies for potentially significant profits, while securing your financial future.
Cryptocurrency: An alternative to traditional currencies, offering benefits such as decentralization, market independence, anonymity, and security.
Precious Metals: Not tied to public market performance, precious metals have historically fared well against inflation and economic uncertainty.
Mutual Funds, Stocks, ETFs, and More: Its possible to hold public and private investments in the same Equity Trust account.
Trading Accounts/Forex: Attractive to investors due to the ease of money movement and market availability.
Other Alternative Investments: If you can imagine it, you can probably hold it in your retirement account with Equity Trust.
Account Management System
Equity Trust's myEQUITY online account management system offers a seamless investing experience with leading technology. You can easily manage your accounts on any device, opening an account in minutes with a guided wizard. Funding the account is simple using the Transfer Wizard or setting up one-time or recurring ACH payments. You can also track your investments in real time, pay bills related to your investments, manage account preferences for a personalized experience, view statements easily, and take distributions at any time, all through the myEQUITY platform.
Self-Directed Accounts
Equity Trust offers a variety of self-directed account options, allowing investors to take control of their retirement savings and diversify their portfolios with alternative investments.
Traditional IRA: A tax-advantaged retirement account where contributions may be tax-deductible and earnings grow tax-deferred until withdrawal.
Roth IRA: Contributions to a Roth IRA are made with after-tax dollars, but qualified distributions, including earnings, are tax-free.
CESA (Coverdell Education Savings Account): Designed to help families save for education expenses, contributions are not tax-deductible, but earnings grow tax-free.
HSA (Health Savings Account): Used to save for qualified medical expenses, contributions are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
Solo 401(k): A retirement account for self-employed individuals or small business owners without full-time employees, offering higher contribution limits than traditional IRAs.
SEP IRA (Simplified Employee Pension IRA): A retirement plan for self-employed individuals or small business owners and their employees, with contributions made by the employer.
SIMPLE IRA (Savings Incentive Match Plan for Employees IRA): A retirement plan for small businesses with fewer than 100 employees, allowing both employers and employees to contribute.
Institutional Solutions
Equity Trust Company expands beyond catering to individual investors with self-directed IRAs. Their Institutional Solutions target financial institutions seeking to participate in the alternative investment landscape within retirement accounts.
Precious Metals Dealers: Equity Trust acts as a custodian for precious metals held in IRAs, potentially streamlining the process for both dealers and investors.
Cryptocurrency Providers: They offer a turnkey solution for cryptocurrency providers to introduce their services to retirement investors. This can be mutually beneficial, giving providers access to a new market segment and investors a secure way to invest in cryptocurrency through IRAs.
Crowdfunding & Private Equity Platforms: Equity Trust can act as a custodian for assets acquired through crowdfunding and private equity investments held in IRAs. This collaboration allows these platforms to expand their reach to retirement account holders.
Investment Platforms: Equity Trust aims to simplify the process for investment platforms to offer alternative investment options to their clients through IRAs.
RIAs (Registered Investment Advisors) & Broker-Dealers: Equity Trust's Directed Trustee Services act as a solution for RIAs and broker-dealers. They handle administrative tasks like tax reporting and compliance for clients' self-directed IRAs, alleviating these burdens for financial advisors.
Fees
Equity Trust's fee structure is complex, covering various aspects of account management and transactions.
The annual fee, which is the primary cost for maintaining an account, is determined by the portfolio value, starting at $225 for portfolios valued between $1 to $14,999 and increasing incrementally for higher portfolio values. This fee covers the administrative costs associated with managing the account and providing services to investors.
There is also an account set-up fee ranging from $50 for online applications to $75 for paper applications. This fee is a one-time charge for opening an account and covers the initial administrative costs of setting up the account.
Equity Trust imposes termination fees for both partial and full account terminations, as well as for the distribution of assets or re-registration. The partial termination fee is $100.00 per asset, while the full termination fee is $250.00. Additionally, a fee of $100.00 per asset is charged for the distribution of assets or re-registration.
Special service fees apply for services such as paper bill pay or statements, or special handling requests. These fees are specific to the service requested and are not included in the standard fee schedule.
Investment fees are also part of the fee structure, but they are not transaction-based. Instead, these fees are taken from the account on the day an investment is processed unless they are pre-paid.
For Coverdell Education Savings Accounts (CESAs) for minors, there are special maintenance fees. Accounts valued at $10,000 or less incur a $50 one-time set-up fee and a $75 yearly maintenance fee. Once the child reaches age 18 or the account exceeds $10,000, it converts to the regular maintenance fee schedule.
Payment Methods
Equity Trust has introduced the Online Payment Center to simplify and speed up the process of submitting rental and loan payments. This new feature allows tenants, property managers, and borrowers to make payments online using ACH direct debits. With the Online Payment Center, payments can be made in minutes without the need for checks or deposit coupons.
While the Online Payment Center offers a fast and convenient way to make payments, there is no requirement to use this service. Equity Trust will continue to accept deposits via check for those who prefer this method.
Customer Service
Equity Trust provides multiple avenues for customer support, ensuring clients can easily reach out for assistance whenever needed.
Clients can contact Equity Trust via phone at +1 855.233.4382 or +1 888.382.4727 to speak directly with a representative and address any inquiries or concerns they may have.
Additionally, clients can reach out via email at NewAccountsETC@TrustETC.com for inquiries related to new accounts, and Help@TrustETC.com for general assistance and support.
Equity Trust also maintains an active presence on various social media platforms including YouTube, Facebook, LinkedIn, Instagram, Twitter, and TikTok.
Conclusion
Equity Trust offers a wide array of investment options and tailored solutions for both individual and institutional clients and caters to investors seeking to diversify their retirement portfolios beyond traditional stocks and bonds. Additionally, its user-friendly online platform, myEQUITY, simplifies account management and investment tracking.
However, a major drawback of Equity Trust is the lack of regulatory oversight. Furthermore, the complex fee structure adds to the complexity of investing through Equity Trust. We advise you to weigh the pros and cons and consider other custodians before making a decision.
Frequently Asked Questions (FAQs)
Q: Is Equity Trust regulated？
A: No, Equity Trust operates without regulation.
Q: What types of investments does Equity Trust offer？
A: Equity Trust offers a wide range of investment options, including Real Estate, Private Lending, Private Equity, Forex Trading, Cryptocurrency IRA, Precious Metals, Mutual Funds & Stocks, and more.
Risk Warning
Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies.
In addition, the date on which this review was generated may also be an important factor to consider, as information may have changed since then. Therefore, readers are advised to always verify updated information directly with the company before making any decision or taking any action. Responsibility for the use of the information provided in this review rests solely with the reader.
start to write first comment