Security Trust Company Reviews

This is a third party review of Security Trust Company. This due diligence report reviews over 100 different data points for Security Trust Company to provide you with a thorough due diligence report of the company to help you make a better decision. The public version provides only 20 of these data points. If you want to see the full version of this review, you can click the button below.

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Information last updated on: 11/13/2025

Company certified on: 11/23/2016

1

Security Trust Company

Introduction

Security Trust Company (now known as STC) is a self directed IRA administrator. STC's experienced staff attorneys and CPAs provide a unique customer-centered focus toward administering your self directed IRA. They will help you analyze and structure potential transactions, review your retirement plan's financial performance and comply with the complex reporting requirements associated with self directed IRAs.


2

Security Trust Company

Contact Information

Website:

Phone Number:

(301) 665-2838

Email:

Offices:

Corporate Office:

223 N Prospect St. Suite 202, Hagerstown, MD 21740

Business Hours:

8:00 AM - 4:00 PM EST (Monday - Friday)


3

Security Trust Company

Company Details

Company Classification: 

Administrator

Date Established (under current name):

2005

Type of entity:

S-Corp

Who provides custody for client assets:

Mainstar Trust

Company is registered in: 

Maryland

Primary Line of Business

Providing self-directed IRA administrative services to clients for alternative investments

Other Lines of Business:

  • Trust Administration

Typical Client:

Retail Clients

Capable of working with Financial Advisory Firms

No

Governmental Agency Oversight: 

None

Company's Last Audit: 

Does Not Have Audits

Summary of Assets Under Custody

Number of Active Clients:

500

Number of Active accounts:

500

Amount of assets company provides custody for:

$120 Million

Self-Directed IRA Industry Affiliations

Self-Directed IRA industry affiliations (outside of this company):

None

Ownership of industry related websites:

None

Industry related company affiliations:

None

Industry related non-profits:

None

Industry related associations:

None

Industry related board of trustee positions:

None

Industry related publications:

None


4

Security Trust Company

Fee Schedule

Account Setup Fee:

$2,000

Account Termination Fee:

$350

Service Fee Classification: (flat, transaction-based, asset-based, hybrid)

Asset-based fees - All fees are included in annual mgmt. fee except fees for wires and fed ex.

Company Fee Schedule:

* Use the Security Trust Fee Calculator (click button below) to calculate your estimated fees based on the company's published fee schedule. This is a useful tool when comparing different custodians based on your cost to use them. Please note, if you have never before used a self-directed IRA custodian or administrator to administer your account, the fees will be different than most broker dealers that provide transactional services for stocks, bonds, and mutual funds.


5

Security Trust Company

Available Account Types

Type of Account:

Available at Security Trust Company

Traditional IRA

Yes

Roth IRA

Yes

SEP IRA

(or SERSEP)

Yes

SIMPLE IRA

No

Individual 401(k)

No

Defined Contribution Plan

(Group plan e.g. 401k, 403b 457)

No

Defined Benefit Plan

(pension)

No

ESOP

(Employee Stock Ownership Plan)

No

Health Savings Account (HSA)

No

Education IRA (ESA)

(Coverdell Education Savings Account)

No

Non-Qualified Account (Individual)

No

Non-Qualified Account (Joint Tenants)

No

Trust Account

No

Partnership / Limited Partnership

No

UTMA / UGMA Custodial Account

No

C-corp, S-corp, or LLC account

No

Other:

N/A


6

Security Trust Company

List of Allowable Assets

Type of Asset

Allowed For Custody?

Real Estate

Yes

Private Placement (Reg A)

No

Private Placement (Reg D)

No

Private Placement

(e.g. REIT, BDC, etc)

Yes

Precious Metals

Yes

Futures or Managed Futures

No

Options or Hedges

(non-publicly Traded)

No

Bitcoin (or other virtual currency)

No

FOREX

No

Hedge Funds

No

Limited Partnerships

Yes

Single-member LLC

(or Checkbook LLC)

Yes

Multi-member LLC

Yes

REITs

Yes

Annuities (fixed or Variable)

No

Viaticles or Life Settlements

No

Insurance (other)

No

Trust Deeds

No

Tax Liens

Yes

Private Lending (Unsecured Notes)

Yes

Private Lending (Secured Notes)

Yes

Private Company Stock

No

Public Company Stock (or ETFs)

Yes

Publicly Traded Options

No

Church Bonds

No

Mutual Funds or Closed-End Funds (CEF)

No

Livestock, Horses, or similar animals

No

Business Development Company (BDC)

No

International Real Estate

No

International Asset (other than real estate)

No

Other

N/A

 

Does Security Trust Company sub-custody certain assets at other firms:

No

Does Security Trust Company provide sub custody services to other firms:

No

Asset Specialization:

No specialization

Most popular assets held:

  1. Real Estate
  2. Promissory Notes

7

Security Trust Company

Operations

Client account title format:

They use an LLC, no client name listed

Number of full-time employees:

3

Process for setting up a new account:

Client completes Setup Paperwork package, STC sets up LLC in designated state while Custodial Account is created at Mainstar. Funds are transferred to the LLC after the IRA has been funded.

Process for adding a new asset to client account:

Client completes a "Request to Transfer Funds" form along with investment paperwork. STC reviews paperwork to make sure it is not a prohibited transaction.

Procedures in place to protect client information

(Not Disclosed)

Procedures for annual valuations

(Not Disclosed)

Procedures for when an investment is suspected to be or is found to be fraudulent:

(Not Disclosed)


8

Security Trust Company

Technology

Does company participate in DTC system:

No

Details of DTC:

N/A

Does company accept Fed Funds wires:

Yes

Fed Funds wire details:

(Not Disclosed)

Client account access: 

Proprietary Software

Accounting:

Proprietary Software

Account reporting:

Proprietary Software

Trading investments:

(Not Disclosed)

Safekeeping of client assets:

Proprietary Software

Record keeping of client assets:

Proprietary Software

Document storage:

(Not Disclosed)

Compliance:

(Not Disclosed)

Security and client information protection:

(Not Disclosed)


9

Security Trust Company

Management Team

  • John Laughlin, President
  • Mick Hersh, Chief Operating Officer
  • Holly Blubaugh, Client Operations Manager
  • Sue Snyder, Client Services Manager

Access Company Management Profiles

Glassdoor Ratings: (How company rates as an employer) (No profile)


10

Security Trust Company

Client Protection

Insurance coverage limits for client assets:

None

Coverage for uninvested cash balances:

None

Errors & Omissions coverage (E&O):

None

Additional or supplemental insurance coverage for client accounts:

None

Have any owners or managing members of the company been charged with a felony, theft, or fraud:

No

Has the company itself ever been investigated, charged, or convicted of a felony, fraud, theft, or industry related violation:

No


11

Security Trust Company

Customer Satisfaction

Better Business Bureau: (click to review BBB overview)

Accredited Business since:

Not Accredited

BBB Rating:

A+

Yelp Ratings: (click to review yelp ratings)

Number of people on customer service team:

2

Number of people on the "premier" or " institutional" customer service team:

2

Number of people on the team that performs investment reviews for client assets:

2

Average turnaround time for a client's new investment (assuming all documents required have been send in by client):

Same Day

Average turnaround time for setting up a new client account (assuming all documentation required has been sent in by client):

4 Weeks

Method of client account access:

Online Access and Quarterly Statements

Is client education provided by company:

Yes

Is financial advice provided by company to client:

No


12

Security Trust Company

Self Direct Your Retirement Transparency Index

The Self Direct Your Retirement Transparency Index is a metric we have developed to indicate how transparent self-directed IRA custodians and administrators are about their company. We value transparency as an ideal trait from a company that is providing custody or administration of your retirement accounts. It shows that the company has nothing to hide about their activities. You should consider this when you are making your choice.

The Self Direct Your Retirement Transparency Index is split into two parts. The first part is whether they voluntarily provided this information to us or whether we had to find this data on our own. Companies that provided us with the data were given the "company certified seal". If they did not participate, the seal does not show up in their profile. The second part of the index is how transparent the companies were in providing us with this information. A higher transparency number indicates a more transparent company. A number above 80% is ideal. There may be legitimate reasons companies do not want to share certain information, but you should consider this when making your decision.

Below the seal, we have listed the last time the company provided us with information. As long as the company has the certified seal, the information should be considered up-to-date. We contact the company periodically to ensure the information is accurate. If the company chooses not to verify the information, then we remove the seal. Transparency is only one factor you should consider when choosing a self directed IRA custodian or administrator.

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Willingness to provide information - Moderate

Company Certified Information

Information last updated on: 11/23/2016


13

Security Trust Company

Compared to Peers

Visit the Self-Directed IRA custodian & administrator comparison page to see how Security Trust Company compares to its peers.


14

Security Trust Company

Company Spotlight - Industry Trends

We asked Security Trust Company (STC) to provide their individual insight into the following questions. This section is a bit more personal. The idea is that it will give you more insight into the company you are considering to custody your investments. 

What trends do you see in the self-directed IRA industry?

New clients opening accounts are doing so to primarily invest in Real Estate and Notes

What trends in asset types do you see at your firm?

Clients continue to focus on Real Estate, either flips or rentals

What is your firm's biggest concern about the self-directed IRA industry?

(Not Disclosed)

Please list some additional concerns your firm has about the industry?

(Not Disclosed)

Do you see any changes in regards to what investors want from custodians and administrators?

Clients are looking for a responsive, customer service based administrator.

What are your company's biggest challenges?

Public awareness of the Self Directed IRA industry.

What are the self-directed IRA industry's biggest challenges?

Public awareness of the Self Directed IRA industry.

What needs to be changed in the Self-Directed IRA industry?

(Not Disclosed)

How could the Self-Directed IRA Industry improve?

(Not Disclosed)

What is the biggest reason for the company's success?

Great Customer Service

Company's view of important of the following items (ranked in order of importance)

  • Legitimacy - Prevention of fraudulent investments and schemes
  • Visibility - Creating greater visibility about self-directed IRAs to investors.
  • Transparency - Providing Clients with Transparent information. 
  • Coordination - Coordinating with other custodians, administrators, and professionals. 

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Security Trust Company

Conclusion

STC has provided us with a moderate amount of transparency. While it may be more than most of their peers, we do not think it is sufficient to make a reasonable assessment of the company. There are a number of questions you may have as an investor. You will want to know that the company you have chosen to administer your self directed IRA is able to provide you the answers to these questions. While the company might be suitable for your investing needs, you should exercise caution unless they are willing to disclose all the information you need to make a reasonable decision.


If you find a company that is not willing to be transparent to you as a potential customer of their services, then you should reconsider them as a potential choice for your retirement funds. Ultimately, your personal retirement investing needs will determine whether Security Trust Company is ultimately a good fit for you. Transparency is only one metric which you should consider in your due diligence process. Please use our Self Directed IRA Custodian & Administrator Comparison Tool to help you make that determination.


One of the biggest areas of frustration we see from self-directed IRA investors is when they realize they have chosen the wrong self-directed IRA custodian or administrator. Choose your Self-Directed IRA custodian or administrator wisely. If you put the time in now to find the right company, you will save time, money, and aggravation later. Read our Choosing a Self-Directed IRA Custodian report for more information.

Next Steps... Once you have located your ideal Self-Directed IRA Custodian or Administrator, you will be on your way to self-directing your retirement. If you decide that this process seems too complex and you need assistance or financial advice, feel free to contact us. Our wealth management firm specializes in providing financial advice pertaining to alternative investments held in self-directed IRAs and 401ks. We are fiduciaries and provide unbiased advice. Contact us if you want to learn more about our services.


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