Strata Trust Company Review 2023

If you’re considering safeguarding your retirement savings with gold IRAs, the first thing to do is find a reputable IRA company. That, however, can be tricky, especially with all the gold IRA companies available.

Until today, you’ve probably browsed through dozens of IRA company names, some more than once. One of such names is likely Strata Trust Company. That’s not surprising, as Strata Trust is one of the most established brands in the custodial world.

The company specializes in self-direct IRAs (IRAs managed by account owners), offering investors several alternative investment types, including real estate, private equity, private debt, and, what interests us the most, gold and other precious metals.

Is Strata Trust Company the best place for your gold IRA investments, though? There’s only one way to find out…

About Strata Trust Company

Founded in 2008 as a wholly-owned subsidiary of Horizon Bank, SBB, Strata Trust Company quickly became one of the leading brands specializing in self-directed IRAs, reaching a milestone of $1 billion in assets under administration only 7 years after its birth.

In 2023, the company has over $4 billion in assets under custody, employs over 70 financial professionals, and boasts over 40 thousand client accounts.

These numbers speak volumes about Strata Trust Company. But they aren’t the only highlights worth mentioning. For instance, Strata Trust is one of the first IRA companies to work with crowdfunding platforms. They are also praised for their fee transparency and cutting-edge solutions that significantly simplify IRA transactions.

However, all these benefits come at a cost. Regarding that, Strata Trust can be considered quite pricey compared to some other IRA brands, charging extra fees for actions and features many companies don’t.

Strata Trust Company Investment Options

Strata Trust Company offers an incredibly vast portfolio of self-directed IRA investment options, ranging from real estate to private equity. But let’s start uncovering its layers with a service that interests us all the most – gold and precious metals IRAs:

Gold & Precious Metals IRAs

Strata Trust Company offers IRA investors multiple gold and precious metals investments.

Through your IRA account, you can buy, hold, and sell gold, silver, platinum, and palladium bars and coins. Furthermore, the company also allows you to withdraw your bullion or coins and take them into direct physical possession.

Of course, these precious metals coins and bars need to meet specific requirements. First of all, there are purity requirements. According to them, to be IRA-eligible, gold must be 99.5% pure and silver 99.9%, whereas platinum and palladium must both be 99.5% pure.

Secondly, all bars, rounds, and coins must be produced by an entity accredited by such governing bodies as NYMEX, COMEX, LBMA, TOCOM, and the national government mint.

Which products meet these strict requirements?

• Gold IRA coins and bars:
  • American Eagle gold coins
  • Australian Lunar gold coins
  • British Britannia
  • Chinese Panda gold coins
  • Credit Suisse – PAMP Suisse bars
  • Other gold products that meet the minimum finesse requirements
• Silver IRA coins and bars:
  • American Eagle silver coins
  • Austrian Vienna Philharmonic silver coins
  • Canadian Maple Leaf silver coins
  • Mexican Libertad bullion silver coins
  • Other silver products meeting the minimum finesse requirements
• Platinum IRA coins and bars:
  • Australian Koala platinum coins
  • Canadian Maple Leaf platinum coins
  • Isle of Man platinum coins
  • Other platinum products meeting finesse requirements
• Palladium IRA coins and bars:
• • Canadian Maple Leaf palladium coins
  • Other palladium products that meet the minimum finesse requirements

Now, regarding storage, Strata Trust Company doesn’t have its own vaults. Instead, it works with a third-party depository, Delaware Depository. It’s a nationally recognized and renowned company with storage locations in Wilmington, DE, and Boulder City, NV. Naturally, you’ll be responsible for your storage fees.

Real Estate IRAs

Real estate IRAs can be an exciting investment opportunity. With Strata Trust Company, you can use your self-directed IRA account to invest in all forms of real estate, including:

• Residential and commercial properties
• Mortgage notes
• Raw land
• REO properties
• Apartments and condominiums
• Improved land

Strata Trust Company offers investors several ways to fund such investments. Generally, if you have enough funds in your IRA account, you can opt for a direct purchase. You can also opt for a partnership with other investors or fund your IRA account with a non-resource loan.

Private Equity IRAs

You can also use your IRA account to invest in private equity. This type of investment refers to funding firms, usually startups, in exchange for an equity stake in the company. Such investments are considered high-risk, but their tax-advantageous nature and potential for high returns make them an exciting IRA investment option.

Private Debt IRAs

Private debt is definitely an interesting form of investment. Put simply, it refers to lending your IRA funds to companies and individuals for interest. Such investments, while also with a level of risk, are considered less hazardous than, for instance, private equity IRAs. And while their potential returns may be less impressive, they can offer investors steady and sure yields on a tax advantage basis.

Crowdfunding

Although they’re now quite common, Strata Trust Company was one of the first IRA companies to offer crowdfunding IRAs. Essentially, this type of investment allows you to use your tax-advantaged IRA account to contribute to business expansions, startup ventures, and other projects along with other investors. Such investments offer two primary benefits – they promote diversification and are available at lower costs than individual investments.

Futures IRAs

Strata Trust Company provides investors access to trade commodities, futures, and forex using their IRA accounts. Such investments can offer incredible flexibility and high potential yields. What’s more, self-directed IRAs provide tax-deferred advantages on any trading profits. On the other hand, futures carry greater risk, which can be dissuasive for some.

Structured Settlements

Structured settlements offer an interesting alternative to more traditional IRAs. These are legal settlements paid out as annuities rather than a lump sum. For instance, when someone is injured during an accident, an insurance company must pay them a specific amount over a determined period ($2,000 a month for 10 years, for example).

If a person wants to receive a lump sum instead, they can sell their cash flow at a discount for their money upfront. In such a case, you can pay that lump sum with your IRA funds in exchange for the annuities from the structured settlement, providing you with a steady cash flow for a given period.

Public Investments

Finally, you can use your Strata Trust IRA account to invest in public investments. These investment options are publicly registered with the Securities Exchange Commission (SEC) and may or may not be publicly traded. Through your self-directed IRA account, you can trade public stocks, bonds, mutual funds, and other securities.

Strata Trust Company Fees

Strata Trust Company needs to earn money somehow. And like every other IRA company, it charges its users fees. These will depend on the type of account you set up – Precious Metals IRA, Basic IRA, and Flex IRA. However, either way, you can expect these fees to be relatively high. Indeed, compared to some other IRA companies, Strata Trust Company can be considered quite pricey.

First, there’s an account set-up fee of $50 for each account type. Then, there are annual account administration fees of $125 for Precious Metals and Basic IRAs and $300 for Flex IRA accounts. Starting from 2024, account holders will need to pay $150 and $350 for Basic and Flex accounts, respectively.

Additionally, Flex IRA users are also charged annual asset holding fees – $150 for real estate and $50 for private investment holdings – paid per asset. Regarding annual storage fees, these are $100 for commingled storage and $175 for segregated storage.

Then there comes processing fees and service fees, such as precious metals shipping fees, wire transfer fees, Roth conversion fees, overnight fees, etc. Long story short, there are tons of costs to consider, many of which aren’t charged by most IRA companies.

That said, we’d suggest studying their fee structure thoroughly before setting up your account with Strata.

Customer Support

While there are plenty of negative things to say regarding Strata’s fee structure, we can’t say one bad thing about their approach to customer support and education. Their site is full of materials, including blog posts, financial calculators, in-depth guides, and videos. There’s also an extensive FAQ page where you can find all the essential questions answered.

The customer service is also incredibly responsive, and you can access it through their phone, online contact form, or live chat – Monday through Friday from 8 AM to 5.30 PM Central Time.

Strata Trust Company Reviews

Our Strata Trust Company review can only paint a part of the overall picture. To get a broader view of its reliability, you’d also need to look at what other users say about the company. When it comes to that, customer reviews are more than positive.

The company can boast a stellar 4.8 rating out of 5 stars on Trustpilot. What’s more, it has an average score of over 1.2 thousand reviews, so you can rest assured it’s reliable.

Now, one thing that may cause some concern is the lack of BBB accreditation. One look at the Better Business Bureau site, though, is enough to see that there aren’t many complaints about Strata Trust Company, which allows it to hold an excellent A+ BBB rating.

In general, most customer complaints are about their fee structure, which, as we’ve already discussed, isn’t Strata’s strongest suit. Other than that, the company can boast an almost perfect reputation.

Setting Up an Account at Strata Trust Company

Opening an account at Strata Trust Company takes only three simple steps:

1. Choose your investment.
2. Decide on the type of IRA that suits your goals and preferences.
3. Decide how you want to fund your account.

According to Strata, the whole application process shouldn’t take more than 10 minutes. That’s what we call a hassle-free registration!

One minus here, though, is that to open an account, you must pay a $50 fee. Considering that most IRA companies don’t charge anything for registration, we can say that it’s definitely a disadvantage. Fortunately, there are not many more.

Pros and Cons

As we slowly approach the end of our Strata Trust Company review, let’s summarize what we’ve learned through a simple list of pros and cons:

Wrapping Up

So, based on what we’ve covered above, is Strata Trust Company a good place for gold and precious metals IRA investments? Yes, and we can say that without a shadow of a doubt. Strata is one of the most reputable custodians out there, and its large portfolio of available IRA investments makes it an excellent company for savvy investors seeking diversification.

One thing to keep in mind when investing with Strata is their relatively high fee structure. Indeed, compared to many other IRA companies, Strata Trust Company is one of the most expensive custodians, which can be a deal breaker for some.

But yes, ultimately, Strata Trust Company should be at the top of your list of IRA companies. And if you’re wondering what other companies should join it, be sure to visit our knowledgebase, where you’ll find more about gold IRA investments, along with in-depth reviews of the most renowned IRA companies, such as:

• Augusta Precious Metals (Recommended)
• Advantage Gold
• Regal Assets
• Noble Gold Investments
• Goldco Precious Metals
• Patriot Gold Group

Article Sources

At Gold IRA Blueprint, we dive deep into the world of gold IRAs, using trusted sources to back up our insights. Our sources range from official documents to expert interviews, ensuring our content is both accurate and reliable. We also draw on research from reputable publishers to give you the most comprehensive understanding possible. Check out our editorial policy to see how we maintain our high standards for accuracy and fairness. Also make sure to check out our Financial Review Process to have a better understanding of our process.

1. https://www.bbb.org/us/tx/waco/profile/financial-services/strata-trust-company-0825-90081399/complaints
2. https://www.trustpilot.com/review/stratatrust.com
3. https://www.stratatrust.com/