Charles Schwab at a glance
Charles Schwab is a financial services institution with more than $10.31 trillion in client assets. They’re known for pioneering the discount brokerage model, with low fees and online trading services.
You’ll find a full range of financial services at a low cost, making it a great option for both novice and advanced investors. Investing tools are particularly robust.
One example is Schwab’s thinkorswim app, which is fully customizable, allowing you to place complex trades, create charts, dive into research, and more.
Schwab’s 24/7 customer support is noted for its speed and competence, which is a welcome change from many companies in business today.
What does Charles Schwab do?
Schwab offers a full suite of financial services and products, from self-directed brokerage accounts to robo-advisor portfolios.
Schwab’s core services and key offerings include:
| Core services | Key offerings |
|---|---|
| Brokerage & Trading | $0 commissions, wide range of investment options, powerful trading platforms, trading education, and 24/7 support. |
| Retirement Accounts | IRAs: Traditional, Roth, custodial, inherited, rollovers. |
| Funds and ETFs | Low-cost Schwab index and mutual funds, thematic funds, and comprehensive ETF selection. |
| Banking and Lending | FDIC-insured checking and savings accounts geared toward investors, ATM fee reimbursements, Pledged Asset Line loans, and credit cards. |
| Managed Advisory | Robo-advisor and full-service advisory. |
| Research and Education | Investor and third-party research tools, online insights, and investor education. |
| Innovation and tools | Thinkorswim platform, fractional investing, automated investing, personalized portfolio builder, fund finder, and many more. |
What are the pros and cons of Charles Schwab?
Charles Schwab is a solid financial services company, but there are some pros and cons to consider.
Pros
- Trustworthy provider: Charles Schwab has a strong reputation, having earned the most trusted financial services company from Investor’s Business Daily.
- Thinkorswim capabilities: Schwab’s acquisition of TD Ameritrade brought the thinkorswim trading platform to the Charles Schwab world.
- Customer service is top-notch: Customers report knowledgeable customer service providers who answer questions quickly.
- Clearly-presented information: Numbers and information are clearly presented so users can understand their overall portfolio, investments, positions, banking information, and more.
- Automatic tax-loss harvesting in Schwab Intelligent Portfolios: You can elect to participate in tax-loss harvesting with the robo-advisor.
Cons
- Mobile interface difficult to maneuver: Some users complain about the difficulty of navigating the website and mobile app. Day traders may not like the number of clicks and scrolls needed to get to a trade, and delays are detrimental to trading. Users coming from TDA don’t like the changes.
- No automatic “sweep” in Schwab Money Funds™: You need to manually move your money, whether that’s to earn a better interest rate in a money market account or to protect your cash in an FDIC-insured account. Other competitors can do this automatically.
- Limited in fractional trading: Schwab's fractional trading is limited to S&P 500 companies, which doesn’t offer as many stocks as competitors do.
- High minimum for robo-advisor: Schwab Intelligent Portfolios, Schwab’s robo-advisor, requires a $5,000 minimum.
- Limited crypto trading: You’ll only be able to trade crypto in an ETF or ETP with Schwab.
Charles Schwab fees: How much does Charles Schwab cost?
Schwab is known for its low-cost trades and services. Most online trades, accounts, and services don’t charge fees. You will see fees when you need to complete broker-assisted trades, buy futures, pay interest on leveraged funds (margin), buy foreign stocks, and invest in a mutual fund not participating in Schwab’s Mutual Fund OneSource service.
Some common fees you’ll see for Charles Schwab financial products are as follows:
| Product / Service | Fees |
|---|---|
| Stocks & ETFs | $0 online; $5 phone; $25 broker-assisted |
| Options | $0 + $0.65/contract |
| Mutual Funds | $0 for selecting a Charles Schwab mutual fund or any fund participating in Schwab’s Mutual Fund OneSource service. Up to $74.95 for others. |
| U.S. OTC | $6.95 online |
| Preferreds or REITs | Stock commissions and minimums apply |
| Foreign Stocks | $50 for trades placed on the U.S. OTC market; $100 or .75% of the principal for trades placed directly on a foreign exchange |
| Futures | $2.25 per contract |
| Forex | $0 commission |
| Advisory | 0% to 0.80% fee for assets under management (AUM) |
| Margin | From 10.825% to 12.575% based on balance |
| U.S. Treasuries | $0 |
| CDs | $0 |
| Secondary bond market | $1 per bond |
| Foreign transaction fees | None for the Schwab Bank Visa Platinum Debit Card |
| ATM fees | ATM fees reimbursed when using the Schwab Bank Visa Platinum Debit Card |
Notes: Prices reflect online trades. All broker-assisted trades and automated phone trades have an additional surcharge. Negotiable fees possible for high-volume or high-balance clients. Inquire about pricing for specialty products like foreign bonds, asset-based securities, and mortgage-backed securities.
What is Charles Schwab’s minimum account size?
Charles Schwab minimums are $0 for the majority of accounts and services. These include:
- Brokerage: $0
- IRA: $0
- Trust: $0
- Estate: $0
- Education or 529: $0
- Custodial: $0
- Individual 401(k): $0
- Inherited IRA/401(k): $0
- SEP-IRA: $0
The main exception is Schwab Intelligent Portfolios®, Schwab’s robo-advisor, which has a $5,000 minimum.
Schwab Intelligent Portfolios Premium® has a $25,000 minimum, and Schwab Wealth Advisory™has a $500,000 minimum.
Who should choose Charles Schwab?
Charles Schwab is often thought of as one of the best in the business when it comes to low-cost trades.
They don’t charge commissions for online trading of stocks, ETFs, and options (though options do have a $.65 contract fee). Schwab offers a wide range of investments, making it ideal for investors seeking diverse options. Schwab offers $0 minimums for most accounts, which is great for beginners.
There are some online complaints about the apps, Charles Schwab Mobile and thinkorswim. Day traders may not be a fan of the order entry process and the time it takes to complete a trade.
Charles Schwab may not be a suitable fit for new investors seeking a robo-advisor. The robo-advisor, Schwab Intelligent Portfolios, doesn’t charge an advisory fee, but requires $5,000 to start.
Charles Schwab: Is it secure?
In 2024, Charles Schwab was named the #1 Overall Most Trusted Financial Company by Investor Business Daily.
The rating was determined from customer satisfaction surveys in categories of financial soundness, quality of products/services, privacy and security of personal data, ethical business practices, sensitivity to customer needs, customer service, prices, and confidence in management. This rating speaks to the security of investments held with Charles Schwab.
Charles Schwab is an FDIC- and SIPC-member brokerage.
FDIC coverage is for $250,000 per depositor. SIPC provides coverage up to $500,000 in brokerage accounts for securities and up to $250,000 for cash.
Beyond that, Charles Schwab offers excess SIPC coverage, which offers additional money to investors after SIPC coverage has been exhausted.
When it comes to security, your information is protected by multi-layered technology such as encryption and risk-based security technology. An identity verification process and continual monitoring help keep your information secure. Schwab offers a security guarantee, which is that Schwab will cover losses due to unauthorized activity in your account.
Charles Schwab: Customer service
Customer service is a shining star for Charles Schwab. Hold times are generally short, and issues are resolved quickly. Customer service is also available at any time of day.
To contact Charles Schwab, there are three avenues:
- By phone, available 24/7: 866-855-9102
- Live chat on Schwab’s website
- Find a local branch
Charles Schwab reviews: What real customers are saying?
On the whole, customers generally have positive experiences with Schwab, especially when it comes to client service.
Customers say Schwab offers great support and learning tools for investing.
When it comes to the mobile app platforms, there are mixed reviews.
Some note that the user interface isn’t as sleek as those from other competitors.
Some users are dissatisfied with order entry systems, as evidenced by Google users reporting issues with the user interface and frequent crashes.
Customers coming to Schwab as a result of Schwab’s acquisition of TD Ameritrade aren’t happy with the changes.
Some customers dislike the lack of options when it comes to fractional share trading.
Charles Schwab: Mobile app
Charles Schwab has several options for managing your money and investments via a mobile device.
Schwab Mobile: Schwab Mobile is the standard mobile version for Schwab investing, trading, and financial products. It offers the ability to track your portfolio, trade, research, build charts, move money, deposit checks, and more.
The mobile app has customization features that can make the trading experience better for you. You can also receive stock alerts, open a new account, contact client services, and download statements or tax documents. Users rate it 4.8 out of 5 in the App Store and 2.6 in the Google Play Store.
Thinkorswim: Thinkorswim is the platform acquired by Schwab when it bought TD Ameritrade. It offers a wide range of tools for advanced users, but it also appears to need more work to appease more advanced traders. Users report slow loading times, updates that move or eliminate features, viewing problems, and lag times for trading. Users give it 4.7 out of 5 stars in the App Store and 2.5 out of 5 in Google Play.
The bottom line
Charles Schwab is a solid company with a solid platform for investing and managing your money. There are few downsides.
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