iTrustCapital Review 2023: Pros, Cons, Products, and Features
- Writer Ruholamin Haqshanas
- andEditor Shannon Ullman
- December 22, 2022
- •7 Min Read
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- The cryptocurrency broker offers digital assets and commodities (gold and silver) trading in tax-advantaged IRAs.
- Users can trade well-known cryptocurrencies around the clock directly from their client accounts without the need for complicated trading tools or third-party exchanges.
- iTrustCapital offers low and transparent pricing.
Crypto individual retirement accounts (IRAs) can be a good option for those who want to diversify their retirement portfolios while maintaining a decent risk threshold. These platforms provide a blend of traditional and modern investment avenues, offering the best of both worlds.
Digital assets have seen their reputations and adoption surge as traditional investors eagerly explore cryptocurrencies. This has put crypto IRAs in the spotlight, leading to the emergence of platforms that aim to offer easy access to this investment option.
One such platform is iTrustCapital, which has firmly established itself in this niche. With its user-friendly interface and variety of IRA offerings, iTrustCapital has made it easy to include digital assets as part of your retirement plan.
What Is iTrustCapital?
iTrustCapital offers self-directed IRAs for investing in cryptocurrencies, gold, and other commodities. The exchange's low fees make it a top choice among crypto enthusiasts.
The exchange was founded in 2018 by Todd Southwick and Blake Skadron, and is currently headed by Interim CEO Kevin Maloney. iTrustCapital says it aims to seamlessly infuse digital finance into the existing retirement investment system. Headquartered in Irvine, California, the company has recorded over $4.5 billion in transactions since its inception and employs over 100 people.
iTrustCapital is beginner-friendly and allows clients to efficiently, safely, and legally transfer funds from their retirement accounts into cryptocurrencies and other commodities.
The exchange has low fees and over 30 digital assets available for trading. This, combined with its well-regarded customer service, various IRA account types, and easy-to-use interface, makes it a good choice for novice and experienced investors alike.
How iTrustCapital Works
iTrustCapital allows investors to add non-traditional investments like cryptocurrency and precious metals to their IRAs.
Like regular IRAs, iTrustCapital's crypto IRAs provide certain tax advantages. Depending on the account type — traditional or Roth — the IRAs are either tax-deferred or tax-free. Traditional IRAs are funded using pre-tax money, and withdrawals are taxed. Roth IRA contributions are funded using post-tax money, therefore withdrawals are not taxed. Which option is best for you depends on your tax situation and goals.
Three options exist for funding an account on iTrustCapital: transferring an existing IRA, rolling over an employer plan, or opening a brand-new account. Direct contributions are typically completed in a couple of days, while rolling over an employer plan could take up to one month. Notably, the platform does not allow using credit cards or debit cards for deposits. Instead, users need to deposit money either via bank wire or check.
The trading platform is active and open for transactions round-the-clock. Users can buy and sell assets once their accounts have money. iTrustCapital presents all accessible assets in an easy-to-read format, along with each asset's price. Simply selecting the "Buy" or "Sell" button will execute the trade of an asset. A 1% transaction fee is charged on all transactions. An initial minimum deposit of $1,000 is required to start trading, and then there is a $500 minimum for all subsequent contributions.
iTrustCapital offers two main products to investors looking to add digital assets to their retirement accounts.
iTrustCapital Crypto IRA
This is a tax-advantaged IRA account for saving cryptocurrencies for retirement. iTrustCapital users can choose from among the three IRA types available on the exchange:.
- Traditional Crypto IRA
- Roth Crypto IRA
- SEP Crypto IRA
iTrustCapital Gold IRA
A gold IRA, commonly referred to as a precious metals IRA, offers the same tax benefits as an IRA account and allows investors to hold both gold and silver.
There are several other competitors and crypto IRAs similar to iTrustCapital, but what distinguishes iTrustCapital from these other platforms are its features.
Easy Account Opening And Funding
Opening an iTrustCapital account can be accomplished in minutes. After the setup is complete, users choose their account type and begin funding the account.
Several funding methods are available on iTrustCapital. They are:
- Direct fund transfer from another IRA, including traditional, Roth, SEP, and simple IRAs
- Rollover of existing employer plans from a 401(k), TSP, 403(b), 457, or similar Roth IRA
- Directly contributing to the new iTrustCapital account
Available Investment Assets
The iTrustCapital exchange offers investors the opportunity to add cryptocurrencies and precious metals to their retirement accounts. The platform provides 29 digital assets not limited to popular cryptocurrencies like Bitcoin and Ethereum but other altcoins. Also, physical gold and silver from the Royal Canadian Mint are offered to investors to trade.
iTrustCapital says assets held on the platform are protected using robust security measures. The exchange is an "institutional custody partner" with Coinbase. This means all assets held by iTrustCapital are put in secure offline storage, with a further $320 million insurance policy covering them.
iTrustCapital also uses Fireblocks, a security platform that safeguards accounts and valuables. Fireblocks employs a multi-layer security strategy and is also backed up by a $45 million insurance policy. Additionally, two-factor authentication is provided to help users secure their accounts.
iTrustCapital Fees and Account Minimums
The fee structure of iTrustCapital is simple to understand and less expensive than other cryptocurrency IRA providers. These are the fees and minimums users can expect:
- Cryptocurrencies: 1% per trade
- Gold: $50 over the spot (market price) per ounce
- Silver: $2.50 over the spot (market price) per ounce
- Account Minimum: $1,000
- Minimum Contribution: $500
iTrustCapital currently offers 29 cryptocurrencies for trading. However, several more are earmarked for listing in the future. The most well-known digital assets, Bitcoin and Ethereum, are available alongside several others.
Bitcoin, Ethereum, Cardano, Dogecoin, Polkadot, Litecoin, Chainlink, Bitcoin Cash, Stellar, EOS, Uniswap, and Compound.
Alongside cryptocurrencies, users of iTrustCapital also have access to precious metals, which they can add to their IRA accounts. Physical gold and silver are the options available to investors. These are not gold- or silver-backed securities, but rather actual gold and silver obtained from the Royal Canadian Mint, an iTrustCapital partner. Furthermore, the platform recently launched a Staking service. However, it is still in the beta testing phase and has a limited number of cryptocurrency assets that can be staked.
iTrustCapital Pros and Cons
- Excellent customer service
- Relatively low fees
- Easy account setup, 24/7 trading
- In-kind transfers
- Educational resources available through Knowledge Center
- Options to buy gold and silver
- Fully regulated platform
- Limited cryptocurrency selection
- Account minimums
- Custodial wallet services
- No interest earned on crypto holdings
- Limited to US investors
- No app for Android users
Excellent Customer Service
The exchange has earned rave reviews, on both Trustpilot and Google Reviews, from its users for excellent customer service. Customers laud the quick and simple account setup process and customer support. iTrustCapital complements this with a detailed guide for general issues that may not require personal assistance. All contact details are available on the company's website.
Relatively Low Fees
The low, straightforward fees that iTrustCapital charges are a big advantage of using the platform. Users pay only 1% of transaction costs when trading cryptocurrencies, among the lowest fees in the sector. There are also no monthly maintenance fees, unlike other SDIRA providers who impose monthly fees, as well as setup fees.
Easy Account Setup, 24/7 Trading
An iTrustCapital account can be created in minutes. Users choose how they intend to finance their accounts and how much to deposit after choosing their IRA type. Traditional, Roth, and simplified employee pension (SEP) IRAs are available. After that, it takes iTrustCapital one to three business days to review and open an account. Once the account opening is complete, users can trade on the platform at any time.
Investors with cryptocurrency in another IRA can quickly transfer it to their new iTrustCapital account without having to first change it into fiat (traditional) currency. This feature allows a smooth transition without the usual hassles accompanying platform migration. Users who switch from other platforms can enjoy six months of fee-free trading. However, due to US Internal Revenue Service (IRS) regulations, users cannot deposit funds from a cryptocurrency wallet or exchange account to their IRA.
Limited Cryptocurrency Selection
With iTrustCapital, investors only have a limited number of digital assets they can invest in. The platform currently offers less than 30 cryptocurrencies, with more reportedly on the way. Compared with competitors, these offerings are meager. Therefore, investors seeking a wide range of crypto options may not find this exchange suitable to their taste.
While iTrustCapital offers some of the lowest fees for cryptocurrency trading in the space, its minimum deposit may be a barrier for some investors. The exchange has a $1,000 minimum deposit, unlike other IRA account alternatives, which offer commission-free trading with no account minimums. It also has a minimum contribution of $500 on all subsequent deposits to the crypto IRA.
Most crypto IRA providers, including iTrustCapital, keep track of your money in a custodial wallet — one where you don't control your own private key. This could be a deal-breaker for some investors.
No Interest Earned on Crypto Holdings
Generally, investors can benefit from growth in value and interest payments on their digital asset holdings. However, iTrustCapital does not pay interest on cryptocurrencies held by investors, unlike other crypto IRAs that let users earn interest on their crypto assets.
How to Set Up an iTrustCapital Account
Users can set up an iTrustCapital account in a matter of minutes by following these instructions:
Step 1: Go to iTrustCapital’s website and select “Open Account.”
Step 2: Provide the requested basic information, such as name, email address, and phone number. Set a password and click "Create Account."
Step 3: You will receive an email that you will need to open and click through to verify your email address.
Step 4: You will find the “Start Your Application” button at the top of your screen.
Step 5: Start filling in the data wizard with your personal information.
Step 6: Choose the type of IRA you want to open and how you will fund it.
Step 7: Enter your beneficiaries. This is who would inherit your IRA upon your passing - you must have at least one primary beneficiary. Click "Save Beneficiary" when done.
Step 8: Your application is now submitted, and your initial funding event has been created.
Step 9: Wait for an email from the iTrustCapital review team, which will include some questions regarding your application.
Step 10: Once accepted, you'll receive an email to DocuSign your application.
Asset Safety And Custody
Security is a major concern for iTrustCapital, considering it is a custodial crypto IRA exchange. It has a partnership with Curv, which offers institutional-grade software to secure its customers' assets. The cryptocurrency keys to each wallet are encrypted, and Curv also has an insurance deal with Munich Re against exchange hacks.
Furthermore, assets are held in cold storage to offer extra protection, owing to a second agreement with Coinbase custody. Two-factor authentication is also available on all accounts.
There are other platforms that let you set up an individual retirement account (IRA) to invest in cryptocurrency. Two well-known examples are Alto CryptoIRA and Bitcoin IRA.
iTrustCapital vs. Alto CryptoIRA
Alto CryptoIRA lets you invest as low as $10 in an IRA, compared to iTrustCapital which requires a minimum of $1,000. Alto also supports 200+ tokens, much higher than what iTrustCapital offers.
Both platforms charge the same trading fee of 1%.
|Minimum deposit||Number of supported tokens||Supported fiat currencies||Digital wallet?||Early withdrawal penalty||Countries available||Trading fee|
Read our full Alto CryptoIRA review.
iTrustCapital Vs. BitcoinIRA
iTrustCapital’s minimum deposit of $1,000 seems high, but Bitcoin IRA has an even higher minimum deposit of $3,000. The platform lets you buy over 60 tokens for your IRA, compared to iTrustCapital which supports about 25 tokens.
The main advantage of iTrustCapital over Bitcoin IRA lies in trading fees. The latter charges a 2% fee for crypto trades compared to the former’s 1% fee.
|Minimum deposit||Number of supported tokens||Supported fiat currencies||Digital wallet?||Early withdrawal penalty||Countries available||Trading fee|
Read our full BitcoinIRA review.
To Sum It Up
iTrustCapital is an excellent option to consider if you're looking for an IRA provider to assist with investing in cryptocurrencies and precious metals. Thanks to cheaper costs and robust security, along with the excellent customer support, users of the platform can invest confidently in crypto assets.
Additionally, its straightforward and intuitive interface makes creating an account and using the exchange easy, even for novices. There are also different funding options, which include fund transfers from another IRA, rollover, and direct deposit.However, the platform has a relatively high account minimum and a comparably low selection of cryptocurrencies. Moreover, it does not provide Android users with a customized mobile app.
Frequently Asked Questions
Who owns iTrustCapital?Expand to learn more
iTrustCapital was founded by Todd Southwick and Blake Skadron.
Does iTrustCapital have monthly fees?Expand to learn more
There are no monthly fees associated with iTrustCapital. Users only need to pay a 1% transaction cost when they make a trade. As a result, it ranks as one of the most cost-effective ways to enter the cryptocurrency market.
What crypto can I buy on iTrustCapital?Expand to learn more
Users can purchase an array of cryptocurrencies, as well as gold and silver, and add them to their retirement accounts on the exchange.
What is the iTrustCapital minimum deposit?Expand to learn more
The minimum deposit on iTrustCapital is $1,000. All subsequent contributions to the crypto IRA have a minimum of $500.
Is there an app for iTrustCapital?Expand to learn more
For iOS devices, there is an app. However, there is none for Android devices. The current iPhone mobile app has received average ratings from customers.
Ruholamin Haqshanas is contributing crypto writer for Milk Road and finance journalist with over two years of experience writing in the field. He has a solid grasp of various segments of the FinTech space, including the decentralized iteration of financial systems (DeFi) and the emerging market for non-fungible tokens (NFTs).
Shannon Ullman is the managing editor for Milk Road. She specializes in cryptocurrency and personal finance content. Her work has appeared in publications like Insider Inc.
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