Charles Schwab investments review: brokerage firm fees and commissions, pros and cons, minimum requirements for opening a new stock trading account or an IRA.

Charles Schwab Rating: 

• Stocks & ETFs: $0
• Options: $0.65 per contract
• Mutual Funds: $49.95 to buy, $0 to sell
• Minimum to open: $0
• Website: Satisfaction guarantee and $0-fee trades at Charles Schwab.

Overview of Charles Schwab

Charles Schwab offers a comprehensive approach to financial management, providing a wide range of services that go beyond just brokerage accounts.

Available Accounts and Products

At Schwab, investors can choose between two main types of accounts: brokerage or advisory. Brokerage accounts are self-directed, while advisory accounts include investment advisors who handle trading decisions for clients.

Schwab’s advisory service comes in two forms: robo and full service. The robo-advisory service uses ETFs to build portfolios, while the full-service advisory offers more investment options but with higher fees and account minimums.

Self-directed accounts have the widest selection of asset types, including:

• Bonds and other fixed-income securities
• Stocks
• Futures
• Options
• Mutual funds
• ETFs
• Closed-end funds

The stock category covers foreign stocks and OTC (over-the-counter) instruments, though these may have higher costs. Schwab does not currently offer direct cryptocurrency trading.

Both advisory and brokerage accounts at Schwab offer a range of tax-advantaged account options, including:

• Coverdell accounts
• 401k plans
• Charitable accounts
• 529 plans
• Custodial accounts
• Individual retirement accounts
• Business accounts
• Annuities

Securities, excluding futures, in Schwab accounts are protected by SIPC, with Schwab providing additional insurance coverage up to $150 million per client.

Customer Support

Schwab provides strong customer support, available at over 300 branch locations across the U.S. and Puerto Rico, including in some mid-sized towns like Radnor, Pennsylvania, and Carmel, Indiana.

For those who cannot visit a branch, Schwab offers 24/7 phone support with different numbers for various services, including support for non-English speakers and international clients.

The Schwab website also offers online chat and a messaging tool with a document upload feature. Schwab’s mobile app includes the same chat widget, which starts with automated assistance but can be switched to human support if needed.

A “How To” section on the website has many helpful resources, including instructional videos, and the customer service menu (shown by a headset icon) provides links to downloadable forms and documents.

Charles Schwab Bank

Charles Schwab Bank offers additional banking services that complement investment accounts, including checking and savings accounts, a Pledged Asset Line, and mortgages (via Rocket Mortgage®). Key features include:

- Free debit card with checking or savings accounts
- Unlimited ATM fee refunds worldwide
- Free checks with checking accounts
- Zelle transfers
- No foreign transaction fees with the checking account debit card
- Mortgage preapproval options
- Travel benefits with Schwab American Express cards

Margin Service

Charles Schwab Bank also offers margin services for brokerage accounts. Rates are competitive though not the lowest.



The Schwab website and app display margin requirements for assets. For most stocks, the maintenance requirement is 30%, though some may require more. The initial margin requirement for long positions is 50%. Stocks under $3 per share are not marginable.

Charles Schwab Brokerage Commissions

Investments	Price
Stocks and ETFs	$0
Broker-assisted stocks and ETFs	$25.00
Schwab ETF OneSource™	Online trades $0, phone trades $5.00 service charge, broker-assisted $25.00 service charge
Options	$0.65 per contract
Mutual Funds (Transaction-Fee)	$49.95 per buy, $0 per sell. OneSource® Mutual Funds - free to buy and sell.
CDs, Bonds, Government Agencies, Treasuries, STRIPS, Mortgage-Backed Securities	$1 per bond, $10 minimum, $250 maximum

Open Charles Schwab Account

Satisfaction guarantee and $0-fee trades at Charles Schwab.

Open Schwab Account

Other Fees

Fee	Amount
IRA Setup Fee	$0
Annual IRA Fee	$0
IRA Termination Fee	$0
Full Account Transfer Out	$50
Partial Account Transfer Out	$25
Outgoing Wire Fees	$25
Account Closing Fee	$0

In addition to margin loans, Schwab charges $25 for a representative-assisted trade and $50 for a full outgoing transfer. Online trades of U.S.-listed stocks and ETFs are commission-free. OTC stocks are $6.95, and foreign stocks traded directly on local exchanges cost 0.75% of principal. Options cost $0.65 per contract, and futures are $2.25 per contract.

Self-directed accounts have no minimum balance requirements. Advisory accounts have varying minimums, from $5,000 to $1 million, with management fees under 1.0% for most plans. Robo-advisory services are free.

Mobile App

Schwab clients can manage accounts, research assets, and place trades using two apps. The main app covers account management and market news. It includes a free CNBC stream and news articles from various sources, along with Schwab’s chatbot.





Stock profiles on this app include option chains (for calls and puts) and horizontal charting with useful tools. The order ticket offers five trade types, two time durations, and a toggle for dividend preferences. This ticket can also be used to place mutual fund orders.

The second app, thinkorswim, is designed for futures trading but also supports stocks, closed-end funds, ETFs, and options. Option chains in this app offer spreads like butterflies, iron condors, and strangles.

Though this app lacks some features, it provides good options research tools, including Idea Hub and The DragonSM, both useful for finding trade opportunities.

Website Tech

For a more detailed view, Schwab’s website provides larger screen capabilities. Using thinkorswim, charts can be expanded to full screen, featuring many tools, including a quick-entry trade ticket, numerous drawing tools, and multiple plot styles.





Outside of the chart view, the Central tab offers a detailed trade ticket with advanced order types such as:

- Market on close
- Stop limit
- OTO (one triggers the other)
- Contingent on volume

The main website also has a trade ticket, though only basic orders like limit and trailing stop are available. Additionally, a trade bar sits at the bottom of the site, but it doesn’t have a complete trade ticket.

Bonus Services

Fully-paid Securities Lending Program: Clients with at least $100k in household assets can earn income by loaning out shares.

DRIP Service: Automatic dividend reinvesting is available for individual securities or an entire account. Settings can be adjusted anytime on the website’s positions page.

Periodic Mutual Fund Investing: Schwab allows recurring investments in various mutual funds.

IPO Access: Schwab provides access to upcoming equity offerings. This feature is found under the Trade tab on the website.

Fractional-share Trading: Available for the 500 stocks in the S&P 500 Index and all mutual funds.

Individual Retirement Accounts: Schwab offers no-fee IRAs for both individuals and small businesses.

Extended Hours: Futures are available nearly 24/6, while stock and ETF trading at Schwab begins at 7:00 am and extends until 8:00 pm, Eastern Time.

Our Recommendations

Active Stock Trading: Schwab is a good choice for frequent stock trading, though Edge doesn’t offer fractional trading for S&P stocks.

Beginning Investors: Schwab’s advisory accounts, especially those with access to human advisors, are suitable for beginners. The robo-advisory service also has a hybrid plan with limited human advisor support.

Mutual Funds: Schwab offers thousands of mutual funds along with helpful tools on its website.

Long-Term Investors & Retirement Savers: Schwab is an excellent choice due to a wide range of financial products, including annuities, wealth management, and planning calculators.

Small Accounts: Schwab’s robo service, Intelligent Portfolios®, requires a $5k minimum, so it may not be ideal for small investors. However, self-directed accounts have no minimums and very few fees, making Schwab a solid choice.

Free Charles Schwab Account

Satisfaction guarantee and $0-fee trades at Charles Schwab.

Open Schwab Account

Charles Schwab Review Summary

Schwab delivers a wide range of services for all types of investors. From beginners to experienced traders, Schwab has something to offer.