Charles Schwab has more than $6 trillion of client assets. This allows it to understand how to deliver value to customers. You will find highlights like $0 trades and excellent stock research. There are also a wide range of trading tools. And, an industry-leading selection of financial planning services.
Minimum Deposit: $0.00
Stock Trade Fee: $0.00
Options per Contract: $0.65
The Top Takeaways
Here are the top results from our three-month test of 11 online brokers to determine their best performance for our 11th Annual Review.
Schwab is a full-service brokerage that offers a wide range of investment options to suit every investor. We found Schwab's telephone service to be excellent in our nationwide testing.
Schwab's stock market research is not only a shining star in retirement, but Schwab is also our top choice for IRA accounts.
The Schwab trading platforms are robust and will please most traders. This makes it an acceptable choice for options trading and day trading. Schwab's stock trading application does not provide real-time streaming quotes.
Summary
Feature | Rating |
All in all | 4.5 |
Commissions & Fees | 4 |
Platforms & Tools | 4.5 |
Research | 5 |
Mobile trading | 4 |
Offering Investments | 4 |
Education | 4.5 |
It's easy to use | 5 |
Commissions and Fees
Schwab offers stock and ETF trades at $0 and options trades at $0.65 per contract. Investors will be pleased to know that Schwab, along with Fidelity, is the only broker that lists the price improvements received on eligible orders. This transparency is crucial for order execution quality.
Charles Schwab offers crypto? Charles Schwab does not offer crypto. Cryptocurrencies such as Bitcoin, Ethereum and Dogecoin cannot be traded.
Fractional shares: Also known as Schwab Stock Slices customers can buy fractional shares from any company listed in the S&P 500. Minimum purchase: $5
Penny stocks: We found that Charles Schwab charges $$6.95 per penny stock trade, making it one of the most expensive brokers to trade OTC stocks.
Mutual funds: All transaction-fee mutual funds are $49.95 per trade. Charles Schwab and Fidelity are the only brokers that charge for the initial purchase. Selling is free. Schwab has over 150 OneSource Funds available for investors who are looking for funds with no transaction fee (NTF) or load (NL). These funds have been selected using a variety of quantitative and qualitative criteria.
Schwab pricing summary:
Feature | Charles Schwab |
Minimum Deposit | $0.00 |
Stock Trades | $0.00 |
Penny Stock Fees (OTCCB) | $6.95 |
ETF Trade Fee | $0.00 |
Options (Base Fee). | $0.00 |
Options (Per Contract). | $0.65 |
Futures (per Contract) | $2.25 |
Mutual Fund Trade Fee | $49.95 |
Broker Assisted Trade Fee | $25.00 |
Trade Platforms and Trading Tools
Schwab customers have access to two main platforms, StreetSmart Edge (desktop-based active traders) and StreetSmart Central(web-based futures trading). Although each platform has its strengths and weaknesses, Schwab is the best option for most traders.
StreetSmart Edge: Schwab’s flagship downloadable trading platform StreetSmart Edge provides all the features day traders and traders need to be successful. Although the platform is easier to use than TradeStation and TD Ameritrade, it offers a richer overall experience. Schwab's All in one trade ticket and Walk Limit order types are excellent options traders. Schwab was voted Best in Class for Active Trading in 2021.
Trade Source: This tool is for casual investors who are looking for a simple tool with streaming quotes and clean charts. It's not as complicated as active traders would like. Trade Source is accessible to Schwab customers via the website. It is basically a standalone platform.
Futures trading: Although futures trading is available, it must be done on the StreetSmart Central platform. Futures trading cannot be done on the Schwab main website or StreetSmart Edge.
Research
Market commentary: Schwab's inhouse research is fantastic thanks to its team of experts, which includes Liz Ann Sonders and Randy Frederick. Lee Bohl and Kathy Jones are just a few examples. Schwab Insights portal also provides market commentary that is always fresh and engaging. Schwab broadcasts live daily across 11 shows as a cherry on the cake, a feat that is unmatched by TD Ameritrade.
Stock research: Schwab's equity ratings are an added value to stock research. You can find Charles Schwab's ratings throughout the platform, such as when viewing a stock screener or watch list.
Charles Schwab's mutual fund research and ETFs: There are many things to love about researching mutual funds and ETFs with Charles Schwab. Charles Schwab is able to provide all of the necessary information, including ratings, reports and detailed screening, thanks to third-party providers such as Morningstar. Schwab's new Beta Research experience allows stocks, mutual funds, and ETFs to all be researched simultaneously.
Mobile trading
Charles Schwab offers a consistent, enjoyable and overall pleasant experience for mobile trading regardless of device. Schwab's mobile app is lacking in key functionality for active traders: alerts, and quotes.
Market research: Schwab offers full support for all types of trading, including stocks, mutual funds, and complex options. They also do thorough market research that is very comprehensive. Option traders will appreciate the Idea Hub tool. It is unique to Schwab mobile, and allows for easy screening and filtering of options trade ideas.
Schwab must improve its market data use. Stock price alerts cannot be set. Stock quotes are real-time, but need manual refreshing. Watch lists automatically refresh every ten seconds. Schwab's competitors offer streaming real-time quotes, however they are all comparable.
Options Trading: The Options tab in the Schwab app offers over 20 pre-defined strategies. These include multi-legged spreads, combinations, and multi-legged spreads. The only problem is that there are no options chains. This means you will have to manually choose the expiration date and strike price from the trade ticket window.
Schwab Assistant: Schwab assistant is an AI-powered tool. You can use voice commands within the Schwab mobile application to carry out basic operations such as checking market news or checking quotes, and even request to speak with a representative. Schwab Assistant suggested that I look at podcasts and videos, with a link to their media center.
Investments
Schwab offers a full range of services and products, just like other full-service brokers. Charles Schwab offers everything, from stocks (including fractional shares), options trading, fixed income and retirement guidance. All account types are covered, including Individual, Joint and Traditional IRAs, Roth IRAs, Rollover IRAs, Inherited IRAs, Custodial IRAs, Custodial IRAs, Roth IRAs, Rollover IRAs, Inherited IRAs, Custodial IRAs, 529 plans, charity accounts, estate and trust accounts. This list could go on.
Retirement: We are the No. Retirement: Schwab is our No. 1 choice for IRA accounts in 2021. Schwab account services go beyond self-directed investment when it comes to retirement planning. Schwab's Intelligent Portfolios robo-advisor service allows customers to choose to have their assets managed by Schwab. Intelligent Portfolios Premium, which provides unlimited, one-on-one guidance from a Certified Financial Planner, (CFP), costs $30/month. This fee covers a $300 planning fee. Schwab also offers a free tool called Schwab Plan that can be used to plan your retirement.
Education
Charles Schwab offers a comprehensive educational experience that will satisfy beginning investors. Schwab's Learning Center covers all aspects of investing, including stock trading and retirement. Each month, at least 50 webinars are available for free to existing customers. You can also view the webinars archived online. There are many things to love.
Despite this, Schwab's education offerings are inferior to TD Ameritrade's. Schwab does not offer enhanced learning functionality. You can't track your progress or see what educational content you have completed. Interactive learning tools such as quizzes are not available.
Banking
Charles Schwab is a top-rated bank and brokerage combination in our annual review. Charles Schwab, a registered member in good standing of the Federal Deposit Insurance Corporation (FDIC), has 369 service locations. This corporation covers bank deposits up to $250,000.
Loyalty Rewards: Charles Schwab's online brokerage does not offer loyalty rewards for multiple products. Bank of America Merrill Edge is the leader in loyalty rewards.
Last Thoughts
Schwab has been reviewed for more than a decade. It is evident that Schwab knows what self-directed investors need to navigate the markets. Charles Schwab offers many highlights, but its core business is research.
Schwab is a great choice for investors who are interested in retirement planning and life planning. Schwab's slogan for 2021 is "Own Your Tomorrow."
Charles Schwab
Charles Schwab, a leading brokerage firm in the United States, is headquartered in San Francisco, California. It was established in 1971. Charles Schwab has 28 million clients and $6 trillion in assets as of August 2020. Charles Schwab is also a major player in retirement. As of the year-end 2018, it was still the largest provider of custodial service for independent investment advisers (3).
Charles Schwab's primary focus is on seeing the world "Through Clients’ Eyes." This means that Charles Schwab delivers products and services customers want, and leads industry trends instead of following them.