Why choose Charles Schwab
Charles Schwab, one of the largest stockbrokers in the US, may be the perfect choice for you if you’re interested in commission-free stock and ETF trading on US markets.
Apart from stocks and ETFs, Charles Schwab also offers funds, bonds, options and futures. It has solid trading platforms, the account opening is easy, and there’s no minimum deposit for US residents.
Among its drawbacks, fees for futures and some funds are high and the $25,000 minimum deposit requirement for non-US residents is a tall order for many investors.
Charles Schwab completed its acquisition of TD Ameritrade in 2020, and is currently in the process of moving all TD clients to Charles Schwab. The move is currently expected to be completed in the first half of 2024. This means few changes for existing Schwab clients, but one advantage is that they can already access TD's excellent Thinkorswim trading platform.
- Free stock and ETF trading
- Outstanding research
- Great customer service
Fees
- Free stock/ETF trading
- Free trading for some funds/bonds
- Low non-trading fees
We compared Charles Schwab's fees with two similar brokers we selected, E*TRADE and Fidelity. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of Charles Schwab alternatives.
Commission-free stock and ETFs
It’s extremely great as Charles Schwab has commission-free US stock trading.
Broker | US stock |
---|---|
Charles Schwab | $0.0 |
E*TRADE | $0.0 |
Fidelity | $0.0 |
High margin rates
Charles Schwab USD margin rate fees are higher than the industry average. USD margin rate fees are calculated as follows: Base rate + 1.825% for loan balance below $25.000
Broker | USD margin rate |
---|---|
Charles Schwab | 13.6% |
E*TRADE | 14.2% |
Fidelity | 13.6% |
Low options commission
Charles Schwab US stock index options fees are about half of the industry average. US stock index options fees are calculated as follows: $0.65 per contract
Broker | US stock index options |
---|---|
Charles Schwab | $6.5 |
E*TRADE | $6.5 |
Fidelity | $6.5 |
Charles Schwab charges a $0.65 fee per contract.
No inactivity fee, no withdrawal fee
There are no inactivity or account fees. IRA accounts are also free and there are no minimum balance requirements for any of those accounts.
Broker | Inactivity fee | Withdrawal fee |
---|---|---|
Charles Schwab | $0 | |
E*TRADE | $0 | |
Fidelity | $0 |
There is no withdrawal fee if you use ACH transfer. Withdrawals to other banks by wire transfer cost $25.
Other commissions and fees
High mutual fund commission: trading mutual funds involves the following charges - Standard fee of $49.95, but up to $74.95 for buying, while selling is free; there are also around 4,000 free mutual funds.
High futures fees: US index futures fees are as follows - $2.25 per contract.
Low bond commission: US treasury bonds come with the following charges - $0 for Treasury bonds; $1 per bond for corporate bonds with $10 minimum and $250 maximum.
Broker | Mutual fund | US micro e-mini stock index futures |
---|---|---|
Charles Schwab | $25.0 | $22.5 |
E*TRADE | $20.0 | $15.0 |
Fidelity | $37.5 | - |
Safety
- Majority of clients belong to a top-tier financial authority
- High level of investor protection
- Banking background
Deposit and withdrawal
- Free withdrawal
- No deposit fee
- User-friendly
Account opening
- Fast
- Fully digital
- No minimum deposit
Mobile app
- User-friendly
- Touch/Face ID login
- Order confirmation
Desktop platform
- Clear fee report
- Good customizability (for charts, workspace)
- Good variety of order types