Charles Schwab Review

Investors who want brokerage, trading, and advice options

SIPC FDIC CFTC NFA

Why investors choose this broker

$0 online listed stock and ETF commissions reduce trading costs
$0 brokerage opening, maintenance, and account minimums
Stock Slices let clients buy S&P 500 fractional shares from $5
paperMoney offers simulated trading on thinkorswim platforms

Review summary

Charles Schwab combines $0 online listed stock and ETF commissions with thinkorswim platforms, fractional S&P 500 Stock Slices, and automated portfolios.

Pros

$0 online listed stock and ETF commissions reduce trading costs
$0 brokerage opening, maintenance, and account minimums
Stock Slices let clients buy S&P 500 fractional shares from $5
paperMoney offers simulated trading on thinkorswim platforms
Schwab Intelligent Portfolios has no advisory fee or commissions
Treasuries trade online for $0 commission
Investor Checking has no monthly service or foreign transaction fees

Cons

Options carry a $0.65 per-contract fee
Broker-assisted stock and ETF trades add a $25 service charge
US OTC equities cost $6.95 online
Other mutual funds can cost up to $74.95 per purchase
Stock Slices are limited to S&P 500 companies
Day trading on thinkorswim requires margin approval and $25,000 equity
Futures and forex accounts are not protected by SIPC
Direct crypto cannot currently be traded in a Schwab brokerage account

Company background

Charles Schwab is a brokerage, banking, and financial advisory provider. Its website presents self-directed investing, active trading with thinkorswim, automated investing through Schwab Intelligent Portfolios, and advisor-led wealth management in one place. The product menu includes stocks, ETFs, mutual funds, options, futures, bonds and fixed income, money market funds, annuities, cryptocurrency-related investments, and banking services.

Fees and pricing

Pricing is strongest for common online investing activity. Listed stocks and ETFs have a $0 online commission, while online options trades have a $0 base commission plus a $0.65 per-contract fee. Brokerage accounts show $0 opening and maintenance fees and $0 account minimums. Schwab Mutual Fund OneSource trades are $0 online, but other mutual funds can cost up to $74.95 per purchase.

More specialized activity has clearer costs. Futures and futures options are priced at $2.25 per contract. Forex has $0 online commission, with trading costs reflected in the bid/ask spread. US OTC equities cost $6.95 online, and foreign stock transactions placed on the US OTC market carry a $50 foreign transaction fee. Schwab Intelligent Portfolios has no advisory fee and no commissions, with a $5,000 account minimum.

Regulation and safety

Securities brokerage products are offered by Charles Schwab & Co., Inc., which is listed as Member SIPC. Schwab Bank is Member FDIC, and deposits at Charles Schwab Bank, SSB are insured up to $250,000 based on account ownership type. Schwab also says its Security Guarantee covers losses in Schwab accounts due to unauthorized activity.

Futures, futures options, and forex trading services are provided by Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member. Futures and forex accounts are not protected by SIPC.

Platform experience

Charles Schwab offers Schwab.com, Schwab Mobile, and the thinkorswim platform suite. thinkorswim is available as desktop software, a web platform, and a mobile platform. paperMoney is built into all thinkorswim platforms as a virtual trading environment for testing strategies in a live market simulation, and a 30-day Guest Pass is available for users without a Schwab account.

Pros and cons

Charles Schwab combines low-cost online stock and ETF trading with a broad product menu and advanced trading platforms. Its main limitations are the fees attached to specific products and service channels, including options contracts, OTC equities, broker-assisted trades, and some mutual fund purchases. Crypto exposure is available through related products, but individual cryptocurrencies cannot currently be bought or sold directly through a Schwab brokerage account.

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Open an account directly with the broker. Confirm current fees and account eligibility on the broker's website before depositing.

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Your capital is at risk. Other fees apply.

Trading fees & commissions

Charles Schwab charges $0 online commission on listed stocks and ETFs, $0 online options base commission plus $0.65 per contract, and $2.25 per futures contract. Brokerage accounts show $0 opening and maintenance fees with $0 account minimums; other mutual funds can cost up to $74.95 per purchase.

Fees

Item	Fee
Bonds	Treasuries $0 online; other secondary trades $1 per bond, $10 minimum, $250 maximum
Funds	Schwab Mutual Fund OneSource $0 online; all other mutual funds up to $74.95 per purchase
Account	$0 opening and maintenance fees; $0 account minimums for brokerage
Futures	$2.25 per contract
Options	$0 online base commission + $0.65 per contract fee
Broker Assisted	$25 service charge
Foreign Stock Otc	$50 foreign transaction fee
Fractional Shares	Schwab Stock Slices from $5
Managed Portfolios	Schwab Intelligent Portfolios: no advisory fee + no commissions; $5,000 account minimum
Short Term Redemption	$49.95 for Mutual Fund OneSource funds held for 90 days or less
Foreign Stock Local Exchange	The greater of $100 or 0.75% of principal, with no maximum
Intelligent Portfolios Premium	$300 initial planning fee and $30-per-month advisory fee

Trading platform & features

Platforms

Schwab.com
Schwab Mobile
thinkorswim desktop
thinkorswim web
thinkorswim mobile
paperMoney

Regulation and investor protection

Securities brokerage products are offered by Charles Schwab & Co., Inc., Member SIPC, and Schwab Bank is Member FDIC. Futures and forex services are provided by Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member; futures and forex accounts are not protected by SIPC.

Broker FAQs

Is Charles Schwab safe?

Charles Schwab & Co., Inc. is Member SIPC, and Schwab Bank is Member FDIC. Schwab also says its Security Guarantee covers losses in Schwab accounts due to unauthorized activity.

Is Charles Schwab a scam?

No. Securities brokerage products are offered by Charles Schwab & Co., Inc., Member SIPC, while futures and forex services are provided by Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member.

Is Charles Schwab regulated and by whom?

Futures and forex services are provided by Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member. Charles Schwab & Co., Inc. is Member SIPC, and Schwab Bank is Member FDIC.

What products does Charles Schwab offer?

Charles Schwab lists stocks, ETFs, mutual funds, options, futures, bonds and fixed income, money market funds, annuities, cryptocurrency-related investments, and banking services.

What does Charles Schwab charge for stock trades?

Listed stocks and ETFs have a $0 online commission. US over-the-counter equities cost $6.95 online.

What does Charles Schwab charge for options?

Online options trades have a $0 base commission plus a $0.65 per-contract fee. Broker-assisted options trades add a $25 service charge.

Does Charles Schwab charge an inactivity fee?

Brokerage accounts show $0 opening and maintenance fees, and the pricing page lists $0 account minimums for individual and joint brokerage accounts.

What is the minimum deposit at Charles Schwab?

There is no minimum investment needed to open a brokerage account. Schwab Intelligent Portfolios has a $5,000 account minimum.

Does Charles Schwab have a mobile app?

Yes. Charles Schwab lists Schwab Mobile and thinkorswim mobile among its platforms.

Does Charles Schwab have a demo account?

paperMoney is built into all thinkorswim platforms as a virtual trading environment for testing strategies in a live market simulation. Users without a Schwab account can try thinkorswim for 30 days with a Guest Pass.

Can I buy fractional shares on Charles Schwab?

Yes. Schwab Stock Slices lets clients buy fractional shares of S&P 500 companies for as little as $5.

Does Charles Schwab offer crypto?

Charles Schwab offers cryptocurrency exposure through products such as crypto-related ETPs, ETFs, mutual funds, futures, and trusts. Individual cryptocurrencies cannot currently be bought or sold directly through a Schwab brokerage account.

Is Charles Schwab good for day trading?

Day trading is available on thinkorswim. It requires a Schwab brokerage account, margin approval, and minimum equity of $25,000 in the account at all times.

How do I open an account at Charles Schwab?

An account can be opened online, by phone, or at a branch. The online process is described as taking about 10 minutes.

Bottom line

Charles Schwab suits investors who want low-cost online stock and ETF trading, advanced thinkorswim platforms, and access to advisory or automated portfolio services. It may be less suitable for users who want direct crypto trading inside a brokerage account or who want to avoid product-specific fees such as options, OTC equity, or broker-assisted charges.

Charles Schwab

Investors who want brokerage, trading, and advice options

Open Account

Your capital is at risk. Other fees apply.