Charles Schwab Review
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Commissions
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Trading Platforms
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Mobile Trading Platforms
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Education and Research
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Executions and Routes
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Ease of Use
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Customer Service
Summary
Charles Schwab is one of the original discount brokerages who paved the way for trading as we know it today. Schwab offers competitive commission pricing, modern trading platforms, and a variety of other benefits. Read this review to see if this is the right broker for you.
About Charles Schwab
Charles Schwab is a United States discount brokerage in operations for over 40 years. While it’s brokerage operations started in 1975, it’s history goes back to 1963 when founder Charles R. Schwab launched investment newsletter Investment Indicator.
Over time, Schwab grew in the brokerage world, becoming one of the “big five” brokerage firms. As of 2015 the company had $2.5 trillion in net client assets under management.
Type of Broker
Charles Schwab is a discount brokerage firm, with no true direct market access. It does, however, offer limited direct order routing with a very limited choice of ECNs. As you can see in their direct access documentation, the only routes offered are:
- Schwab Pre-Market
- SmartEx (Schwab owned)
- Schwab Post-Market
- NSDQ
- ARCA
Account Minimums
The minimum deposit for a regular Schwab brokerage account is $1,000.
Commissions & Fees
Stock Trading
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Stock Trades |
$4.95 |
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Schwab ETF OneSource (commission free ETFs from 16 providers) |
$0.00 |
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All other ETFs |
$4.95 |
Options Trading
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Options Trades |
$4.95 + $0.65 per contract 🏆 Top Rated Services 🏆Our team has reviewed over 300 services. These are our favorites:
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Futures Trading
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Futures Trades |
$3.50 per contract |
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Futures Options Trades |
$3.50 per contract |
Software Fees
All of Schwab’s trading software options are free to all clients enrolled in the no-charge Schwab Trading Services program. The platforms include:
- StreetSmart Edge
- Schwab.com Web Trading
- Charles Schwab Mobile
Account Fees
Money Transfers
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Transfer Type |
Fees to Transfer |
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Online between Schwab accounts |
$0 |
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Online between outside accounts and Schwab investment accounts via Schwab MoneyLink |
$0 |
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Schwab Mobile Deposit |
$0 |
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Check |
$0 🏆 Top Rated Services 🏆Our team has reviewed over 300 services. These are our favorites:
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Wire (from Schwab account) |
$25 |
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Wire (into your Schwab account) |
Depends on sending institution |
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Direct Deposit |
$0 |
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Automatic Investment Plan |
$0 |
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Schwab Bank Bill Pay |
$0 |
Automated Investing & Financial Advice
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Investing Plan |
Minimums |
Annual Fees |
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Schwab Intelligent Portfolios |
$5,000 |
No advisory fees No commissions No account service fees |
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Schwab Intelligent Advisory |
$25,000 |
0.28% of assets under management |
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Schwab Private Client |
$500,000 |
Starts at 0.90% for equities Starts at 0.75% for fixed income |
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Schwab Advisor Network |
$500,000 |
No charge for referrals |
Platforms & Tools
Platform Options
Schwab offers three unique trading platforms, all with their own benefits and drawbacks. All three are free to all Schwab clients.
StreetSmart Edge
StreetSmart Edge is Schwab’s premier trading platform, it essentially their ThinkOrSwim competitor, an all-encompassing trading platform with a suite of advanced features for active traders, all while keeping a free price-tag.
Recently desktop only, Schwab recently added a cloud-based web version of StreetSmart Edge.
Features
Stock and ETF Screeners
Search for stocks using descriptive measures like Volume, Price Change, Sector, Momentum, etc.
CNBC Live
24 hour, ad-free broadcast of CNBC
Real-time News Feed
Aggregated feed of stock market related news
Advanced Charting
Real-time charting with multiple chart types available. From candlesticks to line charts, from monthly to tick charts, the charting package is robust enough for most traders
Fundamental Research
A condensed view of a company’s fundamentals including earnings, analyst ratings, short interest, list of executives, etc.
Alerts
Manage risk using StreetSmart Edge’s alert system, setting alerts for specific prices, or other technical signals.
Custom Layouts
Drag and drop layouts to different monitors while using a multi-monitor setup, or just set up your platform in the fashion you prefer.
Schwab Web Trader
Schwab has two web trading options: their run-of-the-mill web trading platform, and their cloud based version of StreetSmart Edge. Your average investor is unlikely to need more than the regular web trader, however, the active trader benefits greatly from StreetSmart Edge.
Schwab Mobile
Schwab’s mobile app, while practical, is pretty unremarkable. Its features are almost identical to the mobile apps of the rest of the “big five” brokerage firms, with TD Ameritrade’s ThinkOrSwim app far surpassing Schwab Mobile, feature wise.
The one standout feature of Schwab Mobile is their Deposit Check feature, allowing you to immediately scan a check and deposit into your brokerage account.
This is a handy feature, offered by a few other brokers, like ETRADE.
Margin/Leverage
Base Rate = 7.00%
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Debit Balance |
Margin Rate |
Effective Rate |
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$ 0- $24,499.99 |
Base Rate + 1.825% |
8.825% |
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$25,000 – $49,999.99 |
Base Rate + 1.325% |
8.325% |
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$50,000 – $99,999.99 |
Base Rate + 0.375% |
7.375% |
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$100,000 – $249,999.99 |
Base Rate + 0.325% |
7.325% |
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$250,000 – $499,999.99 |
Base Rate + 0.075% |
7.075% |
Research Tools
Schwab offers a wealth of third-party research tools and sources, more than enough for even the most astute of traders/investors.
In addition to Schwab’s Proprietary Research, they supply multiple third-party research sources including:
- Market Edge
- Credit Suisse
- Morningstar
- Ned Davis Research
- Briefing.com
- Argus
- Standard & Poor’s
- Vickers
- Reuters Research
Schwab was rated a “Best Online Broker” for research tools by Investor’s Business Daily in 2017.
Customer Service
While Charles Schwab has phone and live chat support, their customer service record is pretty bad.
In the last year, 38 ratings have been submitted to Consumer Affairs with an average rating of 1.2 stars out of 5.
What Type of Trader is Schwab Best For?
Schwab is ideal for the trader who also invests long term, and requires a wealth of research to aide said investing. With their robust trading platform StreetSmart Edge, their huge library of research, and competitive industry rates, it is hard to go wrong with Schwab unless you have very specific trading needs like direct market access.
Pros & Cons
Pros
- Huge library of research
- Advanced trading platform
- Limited direct market access (better than many brokers that have none at all)
- Diverse selection of trading opportunities. All types of securities are offered, as well as international securities
- Piece of mind of a top five brokerage firm
Cons
- Customer service has a bad reputation for not solving issues
- The hyperactive trader might want more functionality out of their trading platform, and may opt for TD Ameritrade’s ThinkOrSwim
