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Charles Schwab Review: Newbie-Friendly, Expert-Approved

Review Updated
Alice Hoekstra
Author: Alice Hoekstra
Alice Hoekstra
Alice Hoekstra

Alice is a former content strategist for Motley Fool Money, where she worked full-time for almost five years. Throughout her five years at The Motley Fool, Alice worked on content across a wide range of financial topics, including credit cards, brokerages, banks, mortgages, personal loans, and auto insurance, helping readers make informed decisions with confidence.

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Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Charles Schwab has been a trusted name in investing for decades, offering something for everyone -- whether you're just starting or a seasoned pro. Schwab's $0 commissions, robust tools, and educational resources make it a standout. In this review, I'll cover the best (and a few not-so-perfect) things about Charles Schwab to help you decide if it's the right fit for your financial goals.

Ratings Methodology
Charles Schwab

Charles Schwab

Our Rating:

4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its lineup of no-commission-fee offerings. The robust lineup of account types, investment vehicles, and high quality app round out the stacked feature set.

Fees:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.

Account Minimum:

$0

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

Who should consider Charles Schwab?

Charles Schwab is a top pick for almost anyone looking to invest. It's beginner-friendly with an easy-to-use platform and $0 commissions, but it also packs advanced trading tools and competitive options rates for seasoned pros. Plus, there's a wide variety of accounts to fit all kinds of goals -- retirement, education, joint accounts, and more. Not every brokerage can cater to such a wide range of needs, but Schwab nails it.

What I like about Charles Schwab

No-commission trades

Nobody wants to see their hard-earned money chipped away by commissions. The good news? Schwab doesn't charge commissions on online trades for stocks, ETFs, or options. This can add up to serious savings, especially for beginners learning the ropes. Whether you're buying your first share or tweaking a seasoned portfolio, no-commission trades mean more of your cash stays where it belongs -- working for you.

Wide range of account options

Schwab isn't just about standard brokerage accounts. It offers retirement accounts like IRAs, educational accounts like 529s and Coverdell ESAs, custodial accounts for kids, and even joint accounts. Whatever your life stage or financial goal, Schwab probably has an account to match. This makes it a great choice if you're looking to consolidate different investment needs under one roof.

In-depth analysis with thinkorswim

For advanced traders, Schwab's thinkorswim platform is a game-changer. With tools for deep analysis, customizable charts, and even coding options for creating custom strategies, it's built for those who want to take trading to the next level. If you're all about data and predictions, this platform has you covered.

No account minimums

Starting with Schwab is as easy as deciding to invest. There's no minimum deposit required, so you can open an account even if your budget is tight. This makes it super approachable for beginners while still offering plenty of room to grow as your investments and income increase.

Standout mobile app

Schwab's app is a fan favorite, and it's easy to see why. Its clear, user-friendly design makes it a great brokerage for beginners who want a straightforward way to start investing without feeling overwhelmed. At the same time, it's packed with features that experienced traders will love, like advanced charts, detailed research tools, and seamless trade execution.

Schwab really masters the balance between simplicity and functionality, so you don't have to choose between an easy-to-use investing app and powerful investing tools. Whether you're checking your portfolio on the go, researching stocks, or making trades, the app's smooth interface and smart design ensure you can do it all quickly and efficiently. It's a one-stop shop that grows with you as your investing knowledge and goals evolve.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.

Broker Best For Commissions Learn More
Logo for Fidelity
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Full-service investing at every experience level $0 commission for online U.S. stock and ETFs*. No account fees****.
Learn More for Fidelity

On Fidelity's Secure Website.

Logo for SoFi Active Investing
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Managing your finances under one roof $0 for stocks, $0 for options contracts
Learn More for SoFi Active Investing

On SoFi Active Investing's Secure Website.

Logo for Robinhood
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Low fees on stocks, ETFs, crypto, and options $0 for stocks, ETFs, and options
Learn More for Robinhood

On Robinhood's Secure Website.

Downsides you should consider

Low APY on uninvested cash

One downside is the low interest Schwab offers on uninvested cash. If you want your idle money to earn a decent APY while you figure out where to invest it, you might want to keep that cash in a separate high-yield savings account.

Limited access to cryptocurrency

While Schwab provides indirect exposure to crypto through funds and ETFs, it doesn't support direct cryptocurrency trading. If you're looking to buy Bitcoin or Ethereum directly, you'll need to explore other crypto platforms.

Fees and pricing

Schwab shines with its straightforward pricing. There are no annual fees for most accounts and $0 commissions on trades. Options contracts are $0.65 each, which matches many competitors. Plus, you'll find thousands of mutual funds with no fees -- though some funds do have charges, so be sure to double-check before you invest.

Fractional shares

Not all brokers offer fractional shares, but they're a total game-changer for investors with smaller budgets or those who just want to dip their toes into the market. With fractional shares, you don't have to save up hundreds or even thousands of dollars to buy a single share of your favorite companies.

Schwab makes it easy for you to buy a slice of big-name stocks -- even ones with sky-high price tags -- so you can start building a diverse portfolio right away. It's a smart, beginner-friendly feature that lowers the barrier to entry and helps you make your money work harder, no matter how much you're starting with.

Whether you're investing $5, $50, or more, Schwab's fractional shares make it possible to spread your investments across multiple companies, giving you the benefits of diversification without breaking the bank.

How to open a Charles Schwab account

Opening a Charles Schwab account online is super simple and doesn't take much time.

First, you'll head over to Schwab's website to kick things off. From there, you'll fill out a short application where they'll ask for your basic personal and financial details. Don't worry -- this is standard for all brokerages since they need this info for tax reporting purposes.

Once your account is set up, Schwab will prompt you to link a bank account. This step is important because it's how you'll transfer funds to your new Schwab account. Whether you're starting small or ready to invest a bigger amount, connecting your bank makes it easy to move money back and forth whenever you're ready to invest.

The whole process is designed to be quick and straightforward, so you can go from signing up to buying your first stock in no time.

Final thoughts

Charles Schwab is one of the best brokerages out there for good reason. Its mix of low fees, excellent tools, and strong support make it a no-brainer for most investors. Whether you're just starting out and looking for a beginner investing app, or you're a seasoned investor in search of a trusted platform to manage your assets, Schwab is worth considering.

FAQs

  • Absolutely! Schwab offers educational resources and a user-friendly app. Plus, with no minimums, no commissions, and fractional share trading, Schwab makes investing accessible for any budget.

  • Not directly, but you can invest in crypto-related ETFs and other products.