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Charles Schwab is a consistent advocate of the individual investor, whether it's seasoned vets or beginners making their first trade. It has aggressively slashed fees on its mutual funds, removed common account fees, and eliminated its per-trade commissions, making it one of the most affordable places to open an account and trade stocks, ETFs, and funds. In the Charles Schwab review below, we'll show you how the brokerage compares on commissions, fees, margin rates, trading platforms, and more.
Charles Schwab
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.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades
$0
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 2024.
This stock broker is a good fit for: Investors seeking a one-stop-shop brokerage solution. Charles Schwab's commissions, investment options, and array of account offerings (investing and banking) make it a clear top pick to consider.
"I opened my Charles Schwab account as a brand-new investor who knew almost nothing about investing, and I’ve learned a lot through their educational resources. While the website isn't the most modern, it's easy to use. I’ve spent a good amount of time using their customer service support as well as a Schwab Financial Consultant and both have been tremendously helpful. I like the active trading experience but have also enjoyed using their robo-investing option, Schwab Intelligent Portfolios."
- The Ascent SEO Manager Brooklyn Welch
Charles Schwab is one of our favorite brokerages. It ranks among the best brokers we've seen in these categories:
Keep reading for the perks that make Charles Schwab one of our top picks.
Offering $0 stock and ETF trades, Charles Schwab is one of the least expensive online discount brokers for basic stock and ETF trades. That said, most of the major discount brokers now offer commission-free trading.
Schwab recently eliminated account minimums on its retail brokerage accounts, making it one of the best stock brokers for beginners.
Beginner investors will find Schwab's Stock Slices valuable. All you need is $5 to begin investing in S&P 500 companies with share prices that are much higher.
If you'd like to trade stocks on foreign markets, Schwab can help. It offers trading in more than 30 global markets. Sign up for a Schwab Global Account to be able to trade stocks online in 12 of the top-traded foreign markets, each with real-time quotes during market hours.
One advantage of working with Charles Schwab is that it has a branch network of more than 340 locations across the country. It's one of a handful of discount brokers that offer in-person help when you need it, which is a compelling advantage.
Schwab offers one of the largest marketplaces for low-cost ETF and index investing, including its own line of branded ETFs that rival the lowest cost options we've come across.
Similar to ETFs, Schwab has a diverse marketplace for mutual fund investors who are wanting to put their money into the mutual fund of their choosing. In addition to its OneSource list of no load, no commission mutual funds, Schwab also offers its own low-cost mutual funds.
Schwab offers one of the widest array of account types we've seen, from taxable brokerages to IRAs, custodial accounts, trusts, and more.
Schwab is truly a one-stop shop for your money needs. It offers banking products such as the Schwab Bank High Yield Investor Checking account, CDs, and credit cards.
Schwab Intelligent Portfolios is among the best robo-advisors for passive investors. Further, Schwab offers managed portfolios and access to a network of financial advisors that rivals the biggest names in the market.
Customers valuing in-person investing and banking relationships will want to add Schwab to their shortlist.
Schwab's mobile app is among the best available from a big brokerage house. It has an iOS rating of 4.8 out of 5 stars. While its Android rating of 3 out of 5 stars is lower than average, our research has found the ratings aren't aligned with the apps high quality overall. Many brokerage apps are slimmed down, less versatile versions of their online experiences. But Schwab's apps closely mirror its robust online experience, including for trading, account access and management, banking, and trading platforms.
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While Charles Schwab does have robust trading tools, its margin rates for traders aren't the lowest. Those looking for really low rates may want to consider Interactive Brokers.
Schwab does not offer the ability to invest in cryptocurrencies.
Charles Schwab was the first big brokerage to eliminate commissions on online stock and ETF trades, and it sparked the commission-free revolution of late 2019. Nearly all of Charles Schwab's competitors followed suit, slashing commissions to zero.
Here are Charles Schwab's trading fees based on the type of investment:
Stocks and ETFs | Options | Mutual funds |
---|---|---|
$0 | $0.65 per contract | $0 for OneSource mutual funds |
Notably, Schwab offers thousands of OneSource no-load, no-transaction-fee mutual funds (as well as commission-free ETFs), which allow investors to buy diversified funds without paying a fee to do so. Besides, the fee only applies to purchases, whereas other brokers with lower fees charge a fee to buy or sell a mutual fund.
Fund investors will find that Charles Schwab boasts a massive selection of mutual funds, including mutual funds that can be purchased without paying a load, transaction fee, or commission.
Total mutual funds | More than 10,100 |
No-load, no-transaction-fee mutual funds | More than 4,300 |
This discount broker has several platforms aimed at different types of investors. In addition to a basic browser-based solution, Charles Schwab offers a streamlined web trading tool (thinkorswim) plus a desktop platform (StreetSmart Edge) for advanced traders and sophisticated investors.
thinkorswim: An advanced trading and charting platform on desktop and mobile. Schwab acquired this from TD Ameritrade in 2022 and is integrating it into the Charles Schwab platform. It's known for its charting, which helps traders make data-informed investing decisions, especially options trades.
StreetSmart Edge: Schwab's platform for active traders. As a desktop-based platform, it offers more functionality than you'd expect from a true trading platform. Features include advanced stock charting, quick access to fundamental research, an all-in-one trade ticket (for placing conditional orders), and a customizable layout so you can modify your screen to show only what's most important to you. The platform can also be fired up from the cloud, allowing you to open it through a browser if you'd prefer not to install another program on your desktop or laptop computer.
As long-term buy-and-hold investors, we don't actively trade in our accounts and therefore don't need many of the bells and whistles. If a robust platform is especially important to you, we'd recommend using a demo account to try a broker's platform out for yourself.
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If you're interested in comparing IRA accounts, you're not alone! You can get the list of the best IRAs we've found (and compare them side-by-side) on these pages:
As of February 2024, here are Charles Schwab's effective margin rates by margin balance:
Investors who use margin as a key part of their trading or investing strategy will find that Charles Schwab margin rates are toward the middle of the brokerage pack.
Discount brokers can offer cutthroat commission prices because they eliminate many of the expenses associated with traditional brokerages. But big brokers still provide all the customer service you might need, whether over the phone, online, or through a branch office.
Schwab offers 24/7 support over the phone, as many discount brokers do. But thanks to its vast brick-and-mortar branch network, customers can also get help in person at offices scattered across the U.S. It has more than 340 branches in 46 states, so the vast majority of Americans live within a short drive of one of its offices.
Whereas large wirehouse brokers have large research arms to supply their research internally, most discount brokers instead offer research from third-party services like Morningstar and S&P, for example. Below, we'll run through a few notable research and screening tools available to Schwab brokerage customers.
Several equity research reports: Schwab has research from several major providers. Brokerage customers get access to Schwab ratings and research, plus access to research from Argus, Credit Suisse, Morningstar, MarketEdge, and Reuters, among others.
Daily market reports: Tap into a wealth of information by reading daily market reports, including Credit Suisse First Edition, Morningstar Morning Notes, Market Edge Daily Commentary, and more from your online account.
Screeners: Charles Schwab is no slouch when it comes to fundamental and technical screeners for stocks, ETFs, and funds. Notably, its screening tools are available on its website and through its SmartEdge desktop trading platform.
Most large discount brokers offer more research and screening tools than ever before. It's fair to say that if you wanted to spend hours each day reading stock market research or tinkering with screeners, you wouldn't run out of research to read or screeners to play with, a statement that applies to virtually any of the household-name discount brokers.
We think Schwab has a product offering that will suit the needs of most investors. If any of the following statements apply to you, then Schwab may be a good fit for your portfolio:
Wondering how Charles Schwab stacks up to the competition? Check out our reviews:
At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.
See our full methodology here: Ratings Methodology
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.