Charles Schwab Rating: 
Overview of Charles Schwab One
Charles Schwab is more than just a broker. This company offers a complete approach to money management that matches the best in the industry.
Available Accounts and Products
At Schwab, you can choose between a brokerage account or an advisory account. With brokerage accounts, you trade on your own. With advisory accounts, Schwab’s team helps manage your investments and makes trades for you.
Schwab’s advisory service comes in two types:
automated (robo) and full service. The robo service uses ETFs to build portfolios, while full service includes more investment choices, but also higher account minimums and fees.
The widest choice of investments is found with a self-directed brokerage account at Schwab. These accounts let you invest in:
- Bonds and other fixed-income securities
- Stocks
- Futures
- Options
- Mutual funds
- ETFs
- Closed-end funds
You can also trade
foreign stocks and OTC (over-the-counter) securities in the stock section, but these come with extra costs. Schwab does not let you trade cryptocurrencies directly.
Schwab offers many tax account types to both brokerage and advisory clients. These include:
- Coverdell
- 401k
- Charitable
- 529
- Custodial
- Individual retirement
- Large and small business accounts
- Annuities
Securities held in any Schwab account
are protected by SIPC, the main protector of investment accounts in the US. Schwab also has extra insurance that adds up to $150 million in coverage per customer.
Customer Support
You can find customer service at more than 300 Schwab branches across the US and Puerto Rico. These are not just in big cities but also in smaller towns like Radnor, Pennsylvania and Carmel, Indiana.
If you cannot visit a branch, you can call Schwab at any time, day or night. They have different phone lines for different departments, plus lines for Chinese speakers and people outside the US.
Schwab’s website offers online chat and a messaging tool that lets you upload documents. The mobile app has the same chat, which starts with a robot but can connect you to a person if needed.
You’ll find many self-help resources under the ‘How To’ tab on the website. There are also links to forms and documents (in pdf format) under the customer service (headset) icon.
Charles Schwab Bank
Schwab is not just about investing. They also run Charles Schwab Bank, which provides many cash management services. These include checking and savings accounts, a Pledged Asset Line, home loans (in partnership with Rocket Mortgage®), credit cards, and other benefits. Some highlights are:
* Free debit card with any savings or checking account
* Unlimited ATM fee refunds worldwide
* Free checks with checking
* Zelle transfers
* No foreign exchange fees when using the debit card
* Preapproval for home loans
* Travel rewards with Schwab American Express cards
Margin Service
Schwab also offers margin loans for brokerage accounts. The margin rates are decent but not the lowest.
|
Debit Balance
|
Margin Rate
|
|
$0 - $24,999.99
|
12.325%
|
|
$25,000 - $49,999.99
|
11.825%
|
|
$50,000 - $99,999.99
|
10.875%
|
|
$100,000 - $249,999.99
|
10.825%
|
|
$250,000 - $499,999.99
|
10.575%
|
|
$1,000,000+
|
call 877-752-9749
|
Schwab’s website and app show you the maintenance requirement for each investment. For most stocks, it’s 30%, but some stocks need more. The starting margin for long positions is 50%. Stocks under $3 cannot be bought on margin.
Charles Schwab Brokerage Commissions
| Investments | Price |
|---|
| Stocks and ETFs | $0 |
| Stocks and ETFs broker assisted | $25.00 |
| Schwab ETF OneSource™ | online trades $0, automated phone trades - $5.00 service charge, broker assisted $25.00 service charge |
| Options | $0.65 per contract |
| Mutual Funds Transaction-Fee Funds | $49.95 per buy, $0 per sell. OneSource® Mutual Funds - free to buy, to sell. |
| CDs, Corporate Bonds, Municipal Bonds, Government Agencies, Zero-Coupon Treasuries, including STRIPS and Mortgage-Backed Securities |
$1 per bond, $10 minimum, $250 maximum |
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Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
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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 |
Besides margin loans, Schwab charges a few other service fees. For example, a trade with help from a representative is $25, and a full account transfer out is $50. Online trades of U.S.-listed stocks and ETFs cost $0. OTC stocks are $6.95. Buying foreign stocks directly on a local exchange costs 0.75% of the trade amount. Each options contract is $0.65, and trading futures is $2.25 per contract.
Self-directed accounts at Schwab have no minimum requirements. Managed accounts have minimums that range from $5,000 to $1 million. Management fees also vary. Schwab’s robo-advisor is free, while most other managed programs charge under 1.0%.
Mobile App
Schwab clients can use two mobile apps to manage their accounts, research investments, and trade. The main app offers most account tools and market news. CNBC streams for free on the app, along with news articles from several sources. Schwab’s chatbot is available on this app, too.
On the mobile app, stock profiles show option chains for calls and puts, and you can view charts in landscape mode with several tools. The trade ticket offers 5 order types, 2 duration options, and a toggle for dividend choices. You can also use it to trade mutual funds.
The second app is thinkorswim. It is made mainly for futures trading but also supports stocks, closed-end funds, ETFs, and options. The options chains on this app let you trade spreads, including butterflies, iron condors, and strangles.
While this second app does not have every feature, it includes some good options research tools, like Idea Hub and The DragonSM, which help scan for possible trades.
Website Tech
The Schwab website works well for most users and makes good use of larger computer screens. Using thinkorswim on the website, you can expand charts to fill your monitor. There are many chart tools, a quick trade ticket, lots of drawing tools, and many chart types.
Beyond the charts, the Central tool provides a more advanced trade ticket with extra order choices. These include:
* Market on close
* Stop limit
* OTO (one triggers the other)
* Contingent on volume
The website also has its own trade ticket, but only limit and trailing stop are available beyond basic orders. There’s a trade bar at the bottom of the site, which can do several things, but it does not have a full trade ticket.
Bonus Services
Fully-paid Securities Lending Program: Schwab lets clients with $100,000 or more in assets earn extra money by loaning out their shares.
DRIP Service: You can set up automatic dividend reinvesting for single securities or your whole account. Settings can be changed any time on the positions page of the website.
Periodic Mutual Fund Investing: Schwab allows you to invest in mutual funds on a regular schedule.
IPO Access: You can join upcoming initial public offerings at Schwab. Look under the Trade tab on the website.
Fractional-share Trading: Schwab offers fractional trading for the 500 stocks in the S&P 500 Index, and for all mutual funds.
Individual Retirement Accounts: Schwab offers IRAs with no annual fees. There are several types, including plans for small businesses.
Extended Hours: Futures can be traded almost 24/6. Schwab clients can trade securities from 7:00 am to 8:00 pm (New York time) on regular trading days.
Our Recommendations
Active Stock Trading: Schwab is a solid choice for frequent equity trading, though the Edge platform does not support fractional trading of S&P stocks.
Beginning Investors: A Schwab advisory account is a good start for new investors. You can choose a human advisor or use the robo program’s hybrid plan.
Mutual Funds: Schwab offers thousands of mutual funds, with many research tools on its website.
Long-Term Investors & Retirement Savers: Schwab is highly recommended for long-term and retirement investors, thanks to its wide range of products, including annuities, wealth management, and retirement planning tools.
Small Accounts: Schwab’s robo service, Intelligent Portfolios®, has a $5,000 minimum, so it may not suit small investors. Self-directed trading at Schwab has no account minimums and few fees, making it a great choice for all investors.
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Charles Schwab One Review Summary
It’s difficult to find problems with Schwab. Both beginners and experienced traders will find a lot to like at this well-known financial company.
Updated on 7/20/2025.
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