I Tried Charles Schwab: My Full Review
Review
Updated
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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. The brokerage 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 this Charles Schwab review, we'll look at 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. No fees to buy fractional shares.
$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 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
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,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
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 mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
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. |
When it comes to a variety of investment choices and account types, Charles Schwab is a clear standout. Here's a quick rundown of what is available
To be sure, Charles Schwab wasn't the first investment platform to offer commission-free stock trades, but it was the first big brokerage to eliminate commissions on online stock and ETF trades, and it certainly helped spark 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 self-directed trading fees based on the type of investment.
| Investment type or service | Commission/fee |
|---|---|
| Stocks and ETFs | $0 |
| Options | $0.65 per contract |
| Mutual Funds | Up to $74.95 (thousands for free) |
| Futures | $2.25 per contract |
| Cryptocurrencies | Not available |
As of May 2024, here are Charles Schwab's effective margin rates by margin balance:
| Margin balance | Margin rate |
|---|---|
| Less than $25,000 | 12.825% |
| $25,000 - $49,999 | 12.325% |
| $50,000 to $99,999 | 11.375% |
| $100,000 to $249,999 | 11.325% |
| $250,000 to $499,999 | 11.075% |
| $500,000 or more | Call 877-752-9749 for rate details |
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. It isn't a particularly cheap place to trade with margin, but the costs are in line with most of its peers.
Charles Schwab sometimes offers promotions that could save you money. Click below to go to our dedicated page covering current Charles Schwab promotions:
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. Here are a few notable research and screening tools available to Schwab brokerage customers.
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.
Tap into a wealth of information by reading daily market reports from your online account. Offerings include Credit Suisse First Edition, Morningstar Morning Notes, Market Edge Daily Commentary, and more.
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. That applies to virtually any of the household-name discount brokers.
Schwab also offers an extensive library of educational resources. For example, if you want to learn the basics of options trading or how to buy stocks that trade on international exchanges, Schwab has you covered.
This discount broker has several platforms aimed at different types of investors. Basic trading functionality is available through its web-based trading platform, and it also offers a mobile app that facilitates trading on the go.
In addition, Schwab offers the thinkorswim advanced trading and charting platform on both desktop and mobile. Schwab acquired this from TD Ameritrade in 2022 and has integrated it into the Charles Schwab platform. It's known for its charting, which helps traders make data-informed investing decisions, especially options trades.
As long-term buy-and-hold investors, I don't actively trade in my account and therefore don't need many of the bells and whistles. If a robust platform is especially important to you, I'd recommend using a demo account to try Schwab's platforms out for yourself.
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 2.3 out of 5 stars is lower than average, our research has found the ratings aren't aligned with the app's 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, and banking.
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.
Here are the various ways you can contact Schwab's customer service:
Schwab uses some of the most advanced methods in the industry to keep client accounts secure. While accounts are protected by SIPC insurance in the event of the firm's failure, just like any other brokerage account, Schwab takes things a step further and guarantees that the firm will cover any losses due to unauthorized activity in your account.
Charles Schwab (the person) started an investment newsletter in 1963 and formed a broker-dealer securities business in 1971.
The company's current form truly began in 1975, when the SEC deregulated brokerage commissions. Schwab did the opposite of what most full-service brokerage firms were doing and decided to create the first discount brokerage. It has achieved several other industry firsts since then, such as the first 24-hour quotation service and the first 24/7 order entry interface.
Schwab ended up being acquired by Bank of America in 1983, but management bought the company back in 1987 and completed an IPO the same year. The company's discount model grew rapidly in popularity, and today Schwab is one of the largest brokerage firms in the world, with $8.85 trillion in client assets.
Keep reading about Charles Schwab on these pages:
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J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
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.
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Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
