Charles Schwab Review: A Complete Brokerage Breakdown

4.7

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Our Take: With Charles Schwab, investment is affordable and accessible to everyone. The company has a long history as a discount stockbroker. Charles Schwab offers low to no commissions, an almost overwhelming array of investment options and customer service levels ranging from hands-off to hand-holding for investors at every experience level. Learn more in this Charles Schwab review.

For a quick overview on Charles Schwab, take a look at the benefits and drawbacks.

About Charles Schwab

There is, in fact, a real Charles Schwab; although, he went by Chuck when he linked up with two partners in 1963 to launch the Investment Indicator newsletter. In 1971, they incorporated as First Commander Corporation, a company that handled the newsletters and also conducted a broker-dealer securities business.

Schwab bought out the company the following year, and when the SEC deregulated the securities business in 1975, he transformed it into the discount brokerage that it still is today, albeit with a lot of high-tech changes. Bank of America, Member FDIC bought the company for $55 million in 1983, but Schwab bought it back and took the company public in 1986.

Today, Charles Schwab offers comprehensive investment services via a robust online trading platform, as well as brick-and-mortar locations. You could visit a different Charles Schwab branch every day for a full year and still not see them all. This stockbroker has $314.8 billion enrolled in advisor solutions. Schwab recently merged with TD Ameritrade to create a full-service, low-cost brokerage like no other.

Charles Schwab Features

This Charles Schwab review is packed with useful information, but the table below summarizes the most important facts and figures. It tells you what you need to know about the costs to open an account and invest your money, as well as support and current Charles Schwab promotions.

Trading Technology

Charles Schwab has several trading platforms and apps that serve beginners all the way up to professional traders. The standard Charles Schwab app is user-friendly and offers an intuitive interface–while thinkorswim, which is imported from TD Ameritrade, offers comprehensive trading tools.

Charles Schwab Platforms

Beginner investors and those that want a simple user interface for buying and selling stocks, ETFs and other investments can use Schwab.com or the Schwab mobile app, which is available on both Android and iOS devices. Both platforms offer access to the stock and ETF trading, mutual funds, fixed-income investing, and even options trading. 

The standard platforms are designed for long-term investors that want to build an investment portfolio or place infrequent trades. You can monitor your portfolio, track your performance, set alerts, and place basic trades with both Schwab.com and the Schwab mobile app.

While the Schwab mobile app is available on both Android and iOS app stores, the Android version has very poor rating and only 2.3 out of 5 stars overall. The iOS app is rated at 4.8 stars with over 800,000 reviews.

thinkorswim Platforms

Schwab merged with TD Ameritrade and integrated the thinkorswim world-class trading platform–replacing its longstanding StreetSmart Edge platforms in 2024. The thinkorswim platforms offer comprehensive trading tools that are designed for active and professional traders.

In addition to detailed charting and analysis, thinkorswim offers practice trading with its paperMoney® feature. This lets you simulate execute trades–allowing your to test your trade ideas before risking your own funds.

You can use thinkorswim on the web, or download the desktop app for Windows or Mac computers.

Usability

The Charles Schwab website is built around usability and offers full service and personal support if you ever feel lost. The chat pops up while you’re on the website, so help is always at your fingertips. This is a natural outgrowth of the company’s commitment to customer service that dates back to long before websites and apps were even in the public’s imagination.

In 1982, it started providing a quote and order-entry service 24 hours a day, seven days a week, rather than sticking to the stock market’s schedule like its competitors. That support is now available online and offline.

Mobile and Emerging Tech

Charles Schwab has apps available for both Android and Apple mobile devices. The apps allow trading, tracking and depositing checks and gives access to research, news and charts for stocks, mutual funds and ETFs. The research element does not require a login.

Range of Offerings and Investment Selection

Charles Schwab has something for everyone, whether you identify as a wolf of Wall Street or have no idea what to do with your funds. The company’s well-rounded range of investment options includes:

Mutual Funds

Schwab offers access to over 16,000 mutual funds from various investment firms and managers. Included with these are thousands of no-load, no-transaction-fee mutual funds through Schwab’s Mutual Fund OneSource® service.

You can access both active and passively-managed funds from over 600 different fund families. 

ETFs

Over 3,000 commission-free ETFs from both Schwab and third-party providers that span 70 investment categories. That means you can buy and sell unlimited ETFs and avoid paying any commissions to Schwab. These ETFs are prescreened for low costs and updated semi-annually. 

Money Market Funds

Schwab offers access to several money market funds that offer high yields and may even come with tax advantages. With interest rates sky-high in 2024, some Schwab money market funds are paying yields over 5.00% APY. 

In addition to standard and government money market funds–Schwab also offers access to municipal money market funds. These funds offer lower annual yields–but interest earned from these funds are exempt from federal taxes.

Stocks

Schwab offers commission-free trading on thousands of U.S. stocks as well as “Stock Slices,” which allow you to purchase fractional shares in some stocks. This is great for beginners as Schwab allows you to invest as little as $5 at a time–but you can only buy fractional shares in companies that are part of the S&P 500.

International Stocks from Over 35 Countries

Outside of U.S. stocks, Schwab also offers access to international stocks via American Depositary Receipts or ADRs, foreign ordinaries, and Canadian stock markets access. This allows you to invest in companies that are based outside the U.S.–offering global diversification and ease of access to international markets.

Futures

Schwab offers a comprehensive futures trading platform and access to several futures markets, including market indices, such as the S&P 500, precious metals, commodities and agriculture. Schwab offers educational materials for investors that are new to futures trading, including expansive training on the website and a paper trading account through the thinkorswim platform.

Options

Schwab offers a straightforward options trading experience and comprehensive research tools through the Schwab.com website and trading platforms. Fees are competitive, too–with a $0 base fee and $0.65 per options contract charge-and no “per-leg” fees. You can trade options with a simple interface using the standard Schwab app–or place more advanced trades with the thinkorswim trading platform.

Margin loans

Schwab offers margin loans which allow you to borrow against your taxable brokerage account balance. These loans offer variable interest rates and function as a line-of-credit against the securities held within your account. Margin rates are comparable to other large brokers–but become more attractive the more you borrow.

Bonds and Fixed-Income Products

Schwab has a massive selection of bonds and other fixed-income investments–with over 36,000 bonds to choose from–along with bond funds, bond ETFs, CDs and preferred securities. Plus, Schwab offers access to brokered CDs from various banks that offer the higher rates than most banks do directly.

Annuities

Schwab offers access to (relatively) low-fee annuities from partner insurance companies such as MassMutual and New York Life. You can access fixed, variable, and indexed annuities with a wide range of terms and minimums available. 

Cryptocurrency

While Schwab is not a cryptocurrency exchange and you can’t buy crypto directly–there are many crypto-related investments you can access with Schwab.

• Spot Bitcoin ETFs. With the recent approval of spot Bitcoin ETFs, Schwab offers access to trade these assets. 
• Bitcoin futures. Schwab offers Bitcoin futures trading with micro futures contracts. You can also trade Ether (Ethereum) futures as well.
• Cryptocurrency coin trusts. There are several cryptocurrency coin trusts that hold large amounts of a specific crypto within a trust that you can invest. Popular crypto trusts include Grayscale Bitcoin Trust, Grayscale Ethereum Trust and Bitwise 10 Crypto Index Fund.

Charles Schwab Managed Investment Services

If you don’t want to deal with that kind of pressure, Charles Schwab offers robo-advisors that expertly craft a diversified portfolio of ETFs for you. Robo-advisors never sleep; they’re always on the job, monitoring and rebalancing your investments. If you don’t want to put all of your confidence in automation, add a premium service that includes unlimited 1:1 assistance from a certified financial planner.

• Warning: Schwab was recently hit with a $187 million fine from the Securities and Exchange Commission (SEC) for misleading investors in their Schwab Intelligent Portfolios robo-advisory service. The automated investment portfolios created were “cash-heavy” and caused over $1 billion in lost gains for investors. Proceed with caution if choosing any Schwab automated investing service.

News and Research

In 2002, Charles Schwab bucked the industry trend of only providing “buy” recommendations. Instead, Schwab Equity Ratings objectively ranked 3,000 stocks, providing recommendations on both the buy and sell sides.

Today, Charles Schwab currently provides market research from a variety of sources, including Argus, Credit Suisse, Market Edge, Morningstar and Ned Davis. Its news sources include Briefing.com and Reuters. While this information is only available to clients, prospective Charles Schwab customers can view reports on the company website.

If you’re looking for something a little more basic, Charles Schwab hosts financial education webinars available to both Charles Schwab customers and noncustomers on a variety of topics.

Portfolio Analysis and Reports

Charles Schwab provides a variety of ways in which to evaluate your portfolio. Schwab Portfolio Checkup shows you the overall performance, risk-and-return analysis and individual account and asset class performance. It also allows you to view your returns as compared to a benchmark. Prospective Charles Schwab customers can review sample reports on the Charles Schwab website.

Customer Service

If you’re all about the human touch, Schwab has financial consultants who work with you. You can visit them in person at one of more than 400 branches, over the phone or even in a video chat. The website has a handy branch locator to see if you have one nearby.

While no brokerage, Charles Schwab included, guarantees that you’ll make money, the company does give you an accountability guarantee. This guarantee, which started in 2013, pledges to refund your service fee from the prior quarter if the client is not happy with one of its participating investment advisory services. It’s a small but nice touch.

Charles Schwab can help you invest even if you’re not a customer. It holds a wide variety of workshops on topics like, “7 Fundamentals You Need for Investing Success” and “Getting Retirement Ready” that are open to everyone, regardless of whether you have a Schwab account or ever plan to get one.

Security

If you’ve ever heard horror stories of online criminals draining victims’ bank accounts, you’ll feel better knowing that Charles Schwab pays extra attention to account security. It uses multilayer technology and other controls that help keep your funds safe.

Its website also has customer-facing educational materials to help you be proactive in protecting your money. Reassurances are nice, but Schwab backs that up with the Schwab Security Guarantee, a promise to cover 100% of any losses in any of your Schwab accounts due to unauthorized activity.

Types of Accounts

It only takes about 10 minutes to open any of the following accounts online. None of these accounts have associated fees. The account minimum, if applicable, is listed for each:

Charles Schwab Fees

The following table breaks down the commission costs for stock trades and ETFs for each of the three methods you might use:

The table below lays out the mutual fund transaction fee per executed trade for online trades, automated phone trades and for using broker assistance.

The table below lists the commission costs for options trades by all transaction methods.

The table below breaks down what you’ll pay when you trade futures online or with broker assistance.

The table below explains the transaction fees and commissions on trades for fixed-income investment strategies:

Who Is Schwab Best For?

Charles Schwab is best for investors for whom the following items are most important:

• Range of offerings and investment selection: The combination of offerings, extensive research, access to financial consultants and robo-advisors means that Charles Schwab can fill the bill for virtually any investor. Experienced? No problem — dive right in, thumb through the research and make your choices. Have questions? Sift through the options with a financial consultant. Don’t want to do anything but put in your money and watch its performance? Charles Schwab robo-advisors will handle it.
• Customer service: If you’re all about the human touch, Schwab has financial consultants who work with you. You can visit them in person at one of more than 400 branches, over the phone or even in a video chat. The website has a handy branch locator to help you find an office near you.

The accountability guarantee underscores Charles Schwab’s commitment to customer service, even though it’s only a fee refund.

Disadvantages

Charles Schwab falls short of other brokers in some areas. Those weaknesses are detailed below:

• Usability: Sometimes Charles Schwab can be too much of a good thing, especially for new investors who are easily overwhelmed. Its website offers a dizzying array of information. Even with the many help options, it may scare away people who aren’t familiar with investing or those who aren’t used to navigating websites with so many options.
• Mobile and Emerging Tech: A robust app and robo-advisors appeal to many investors, but some may be distrustful of these tools and may miss the fact that they can get personal service, too, because of the information overload on the Charles Schwab website.
• Robo-advisor lawsuit. While Schwab does have a robo-advisory service–they were less-than-transparent with investors and portfolios underperformed due to consumers being misled. You should proceed with caution using Schwab Intelligent Portfolios.

How Does Charles Schwab Compare With Other Brokers?

See how Charles Schwab compares to competitors E-Trade and Fidelity in the following chart. This quick comparison will help you decide which one works best for you.

Charles Schwab vs. E-Trade

Charles Schwab and E-Trade both have robust trading platforms. Charles Schwab provides more services with access to financial planners and branches. If you had to choose between the two powerhouses, you can’t go wrong. Charles Schwab would be best for newer investors in search of more guidance or interested in trading in fractional shares, which are only available through E-Trade when using automated investing in specific ETFs. E-Trade would be best for more experienced traders who embrace Power E-Trade, the most customizable yet user-friendly platform offered by the brokerage.

Charles Schwab vs. Fidelity

Schwab and Fidelity are both household names in the investment business. They both provide a wide range of banking and investing services. Both provide value, with no-commission trades and low fees in general. Surprisingly, Fidelity doesn’t offer futures trading as Charles Schwab does. But both platforms offer stellar chatting capabilities, especially since Schwab integrated thinkorswim in 2024. Choose Schwab if branch availability and online training and webinars are important to you. Otherwise, Fidelity is an excellent, low-cost choice for traders of all abilities.

Should You Invest With Charles Schwab?

Charles Schwab is a well-rounded brokerage with a solid history that has kept up-to-date with its website and mobile apps while staying true to its roots as a discount brokerage. It provides do-it-yourselfers with information or does as much hand-holding as you need. You may find better deals elsewhere, but if you want the full package, you won’t go wrong with choosing Charles Schwab as your investment home.

How To Open a Charles Schwab Account

To open an account with Charles Schwab, you can apply online, over the phone, or in-person at a Charles Schwab location. You’ll need to provide personal and financial information–and choose any account type to open. This may include a retirement account, investment account, or linked bank account–depending on your financial goals.

There are no minimums to open any account, and most accounts don’t charge any monthly maintenance fees. 

Barb Nefer and Cynthia Bowman contributed to the reporting for this article.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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