USAA Investments Review 2024

USAA Investments, a financial arm of the United Services Automobile Association, deals with investment products. In 1922, a group made up of military officers founded the United Services Automobile Association (USAA).

They wanted to create an automobile association that could serve military personnel and their families. USAA now offers a variety of financial products including investments. We will be reviewing the brokerage services and the various investment options available by USAA in this review.

In this review article, we are going to give you an unbiased and unpaid review of USAA Investments. AtoZ Markets is in no way responsible for any opinions expressed by the writer.

USAA Investments Review: Company Overview

In the year 1922, 25 Army officers came together at San Antonio and decided to cover each other's vehicles. They couldn't have imagined that their tiny company would eventually serve thousands of customers and grow into one of the very few fully integrated financial service organizations in America.

William Garrison was elected the first president of USAA. Harold Dunton was the first USAA employee and a general manager.

Maj. Walter Moore purchases an insurance policy for his vehicle and becomes the first new member of USAA.

Eligibility To Be a Member Of USAA

Active Duty or Guard or Reserve

Individuals who are currently serving as part of those in the U.S. Air Force, Army, Coast Guard, Marines, Navy, National Guard and Reserves are eligible.

Veterans

People who have retired or resigned from the U.S. military with a discharge of Honorable are also eligible.

Eligible Family

The current spouses, widows, widowers and non-remarried former spouses from USAA participants who signed up to USAA before or after marriage or when their parents were members of USAA.

Cadets and Midshipmen

Midshipmen and cadets from U.S. service academies or affiliated academy preparatory schools in advanced ROTC or on an ROTC scholarship, and officers who are candidates within the first 24 months after being commissioned are also eligible for USAA membership.

The pros of USAA Investments

• They offer a variety of services and products.
•  Have an extensive selection of educational materials.
• Have Support for online chat.
• They have research and analysis tools that are solid.
• No account minimum required
• They also have a huge selection of zero-transaction-fee mutual funds.

Cons of USAA Investments

•  Their Commission costs are more than average.
•  No support for 24 hours a day
• Securities limited to a certain amount. They do not support  currency, futures, or cryptocurrency
• Only accessible to U.S. military, Navy, Air Force, Veterans and their family members.

Products Offered by USAA Investments

USAA members with an investment account benefit from a wide range of investment products, including stocks, bonds, mutual funds, ETFs, Financial Planning and Automated Investing. They also offer several different types of accounts, including individual and joint taxable accounts, Roth and traditional IRAs, 529 college savings plans, and 401(k) plans.

USAA Mutual Funds:

USAA Investments offers a wide variety of mutual funds, including both actively managed and passively managed options. They also offer target date funds, which automatically adjust their asset allocation as the investor gets closer to their retirement age.

Index Funds:

USAA Investments offers several index funds, which are passively managed portfolios that track a specific market index. This can be a great option for investors who want to invest in the stock market but don't want to worry about choosing individual stocks.

ETFs:

Exchange-traded funds (ETFs) are investment products that track an underlying Index or basket of assets. USAA Investments offers a wide range of ETFs covering everything from stocks to bonds to commodities.

Individual Stocks and Bonds:

USAA Investments also offers individual stocks and bonds for investors who want to build a more customized portfolio.

529 Plans:

529 plans are special savings accounts designed specifically for college expenses. USAA offers both in-state and out-of-state 529 plans, as well as a variety of investment options within each plan.

401(k) Plans:

401(k) plans are retirement savings accounts that allow employees to save money pre-tax. USAA Investments offers several different 401(k) plans, including Roth and traditional options. They also offer employer matching contributions in some plans.

Read our full review about Zacks Trade

About Investment Providers

USAA has chosen two investment providers to give all the investment services. They are Charles Schwab and Victory Capital. Let's see what they offer for USAA members.

Charles Schwab

• With Charles Schwab it's $0 commissions for online, listed equity trades.
• $0 account minimum.
• Account maintenance fees is also NIL
• You have Options for diversifying your portfolio with a range of products, including thousands of ETFs and mutual funds.
• You can manage your own investments.
• You can have Automated  investing option
• 24/7 phone and online chat support
• They have over 300 nationwide branches
• They also have specialists who can answer specific financial questions.

Victory Capital

• With Victory Capital, you can invest in USAA Mutual Funds and a USAA 529 Education Savings Plan.
• Investment options that are professionally managed starting at $50 per month.
• Resources for financial readiness that are specifically designed to support the military community.
• Get personalized investment advice from investment experts to guide you through your financial journey.

USAA Investments Review: Trust

USAA Investments is not a scam. It is a completely trusted investment platform. USAA has been around since 1922 and is one of the most trusted names in brokerage services. They offer a wide variety of investment options, including stocks, mutual funds, ETFs, and more.

You can open an account for as little as $25. And if you need investment advice to get started, they have a team of experts who can walk you through the process. USAA Investments offers investment services through Charles Schwab and Victory Capital Services, Inc. Both these companies are regulated and monitored by SEC and FINRA.

So if you're looking for a safe and reliable way to invest your money, USAA Investments is a great option.

Trading Platform of USAA Investments

The three platforms offered by Charles Schwab are the web-based CharlesSchwab.com platform, along with the industry-renowned StreetSmart Edge and StreetSmart Central. All three platforms offer a variety of features to help traders make informed investment decisions.

The CharlesSchwab.com platform is perfect for investors who want to keep things simple, as it offers a user-friendly interface and easy navigation. The StreetSmart Edge platform is ideal for more experienced traders, as it provides a wealth of tools and resources that can help them make more informed decisions.

Finally, the StreetSmart Central platform is great for investors who want access to all of their account information in one place. It offers comprehensive data on stocks.

The United States Automobile Association (USAA) was founded in 1922 by a group of army officers who wanted an automobile association that would serve military members and their families. USAA has since expanded to offer a wide range of financial products, including investments.

In this review, we will take a look at the different investment options offered by USAA and see how they compare to other investment firms.

Mobile App

USAA Investments' mobile offering has been significantly enhanced since it was launched via Charles Schwab's and Victory Capital Mobile Apps. They provide the same and unique mobile trading experiences and are identical to the main platform on the internet.

However, we've noticed how the trading app for mobile is not equipped with notifications and quotes, which is a necessity for the more engaged traders. Mobile apps are accessible for both Android and iOS.

USAA Investments Review: Types of Account

The different types of trading accounts available in USAA Investments are: Individual, Joint, Custodial, Retirement, and Business.

Each type of USAA brokerage account has its own set of features and benefits that may be more or less advantageous for you, so it is important to understand the differences before opening an account.

For example, a Retirement Account allows you to save for retirement with tax-advantaged growth potential, while a Business Account can provide simplified bookkeeping and record-keeping for your small business.

So take the time to review all the accounts offered by USAA Investments and find the one that best suits your needs.

Individual Accounts

This USAA brokerage account allows investors to manage their own investments without having to partner with another person. These accounts come in two varieties - Traditional and Roth - which offer different tax benefits. A Traditional Individual Account allows you to deduct your contributions from your taxable income, while a Roth Individual Account does not give you a tax deduction when you contribute but the money grows tax-free.

Joint Account

This type of USAA brokerage account is perfect for couples or families who want to manage their investments together. This account allows both investors to make decisions about where to invest their money and how it should be allocated. Plus, any profits generated by the account are shared equally between the two investors.

Custodial Accounts

Custodial Accounts are designed for minors under the age of 18. The parents or guardians act as custodians of the account and have control over all aspects of investing including asset allocation and investment selection. This type of USAA brokerage account can be a great way to teach your children about responsible money management at an early age.

Retirement Accounts

Retirement Accounts are specifically designed for individuals who want to save for retirement. There are two types of Retirement Accounts available - the Traditional IRA and the Roth IRA.

The main difference between these two accounts is when you get the tax benefits: with a Traditional IRA, you get the tax breaks upfront, while with a Roth IRA you get them at withdrawal. So make sure to consider which USAA brokerage account will work best for your individual needs.

Business Accounts

Business Accounts are perfect for small business owners who need to keep track of their finances in one place. This type of USAA brokerage account provides simplified bookkeeping and record-keeping, making it easy to manage your business' finances. Plus, you can also take advantage of special discounts on USAA products and services.

So these are the six different types of accounts available in USAA Investments. Take some time to review each one and find the one that best suits your needs.

USAA Account Minimum Investment

Once you are done setting up your investment account on the USAA website, you can start trading. As previously mentioned, there is no account minimum required for an initial investment, so members can start as low as they'd like and work from there. USAA can sometimes ask customers to get on managed accounts. Notably, managed accounts require a $0 account minimum and no maintenance fees.

USAA Investments Review: Costs

The process of opening an account and making deposits is now free, and the minimum amount of deposit USAA Investments USA once insisted on is no longer required.

The absence of minimum deposit requirements is likely to draw in novice investors However, Charles Schwab also boasts 0 percent commissions for options, stocks and ETFs. This will surely be a major attraction for traders who are more active.

There are fees for automated trades via phone (up to $5) as well as brokerage-assisted transactions (up 25 dollars). Charles Schwab also offers thousands of mutual funds that are able to be traded for no cost. But, there are some which charge premium fees that could be as high as $49.95 per transaction.

There are additional fees that are not related to trading, such as $50 for the complete exchange of assets and $25 for a partial transfer of assets.

USAA Investments Review: Customer Support

As Investments of USAA is provided by Charles Schwab and Victory Capital, customer support is also given by them.

Charles Schwab/Victory Capital Customer Support

Charles Schwab has mobile support and 24/7 live chat support. Along with these, you can visit any of their physical offices in the United States. On the other hand, Victory Capital doesn't have live chat support. They have phone and email support available from Monday-Friday 7:30 am to 8:00 pm (CT).

USAA Investments Review: Regulation

The Securities and Exchange Commission (SEC) is the regulatory agency responsible for overseeing USAA Investments. The SEC has a number of responsibilities, including:

•  Regulating the securities industry
•  Protecting investors
•  Maintaining fair and orderly markets

USAA Investments is required to comply with a variety of regulations administered by the SEC. These regulations cover issues such as disclosure requirements, prohibited activities, and fiduciary duties.

For example, USAA must disclose any conflicts of interest that may arise in its investment products or services. The company is also prohibited from engaging in certain types of practices, such as insider trading. And finally, USAA Investment managers are held to a fiduciary duty to act in their clients' best interests.

USAA Investments must comply with all applicable SEC regulations at all times. If you have any questions or concerns about how your investments are being regulated, please contact your financial advisor. Thank you for your interest in USAA Investments!

For USAA Investments, Charles Schwab provides a variety of other financial services, including a portfolio that includes a variety of offerings, including hundreds of ETFs and mutual funds. Victory Capital offers Mutual Funds and 529 Education Plans.

Each of Charles Schwab and Victory Capital are both regulated through FINRA along with the SEC to ensure that they are abided by US laws. This should provide some peace of mind for prospective customers regarding how secure their deposit, as well as account balances, are.

Charles Schwab is also backed by a policy issued by Lloyd's of London, which can provide a maximum of 600 million in insurance coverage in addition to the coverage already offered by SIPC.

Read Also: Top 5 FSCA Regulated Brokers

Conclusion

USAA offers insurance, banking, and brokerage service to its clients. USAA Investments remains a good option for those looking for a wide range of investment options at a low cost. And with their strong customer service, investors can feel confident that they will be able to get the help they need when needed. But the service of United Services Automobile Association is not for everyone.

Only the U.S. Air Force, Army, Coast Guard, Marines, Navy, National Guard, and Reserves people can be members of USAA. If you are among them, USAA Investments can be a good choice for your investment.