Charles Schwab Review
Charles Schwab Corporation is a multinational financial services company established in the United States of America by its namesake, Charles R. Schwab. It offers an electronic trading platform, commercial banking, and wealth management advisory services. It is mainly based in the United States and the United Kingdom. The company was initially founded and headquartered in San Francisco. It is 13th largest banking institution in the United States, and the third largest asset manager in the world, falling only behind BlackRock and Vanguard.
Features
Minimum deposit |
$0 for US based clients/$25, 000 for non US clients |
Stock trade commissions |
$0 |
ETF trade fees |
$0 |
Options trade fees |
$0.65 per contract |
Account fees |
$0 for annual and inactivity fee, $50 for full transfer out of assets, $25 for partial transfer of assets |
Number of no transaction fee mutual funds |
4,300 |
Tradable securities |
Bonds, Stocks, CDs, Fractional shares, ETFs, Options, Mutual funds, Futures |
Cryptocurrency |
No |
Trading platform |
StreetSmart Edge, Schwab.com, StreetSmart Central |
Mobile app |
Yes |
Customer support |
Online chat support, 24/7 phone support, and 300 branches all over the United States to provide in-service support |
Fractional shares |
Yes |
Countries with access |
Australia, Canada, Belgium, Finland, France, Germany, Italy, Netherlands, Hongkong, Japan, Norway, United Kingdom, United States, United Arab Emirates |
Extended trading hours |
9:30 AM – 4:00 PM ESR regular trading hours/ 7:00 AM – 9:25 AM EST early morning session trading hours/ 4:05 PM – 8:00 PM EST after-hours trading |
Services Offered
The company offers various services to its users and clients, which can be accessed through their mobile application services and through their online services
- Minimum deposit – Charles Schwab offers different rates of minimum deposits, depending on the region they are coming from. For those clients or users coming from the United States, the company offers $0 minimum deposit whereas for non-US clients, a minimum fee of $25, 000 is charged.
- Web trading platform – Charles Schwab offers a web based trading platform with an easy to use interface and is user friendly.
- Mobile application – Charles Schwab also has its own mobile application for its users which are accessible to both Apple and Android users. The mobile app offers easy to use and user friendly offers for their clients to access anywhere they are.
- Fractional Shares – the company offers fractional shares to its clients which is a great feature of this platform. This allows its users to be able to invest without having to pay for the whole share cost. A stock index can be bought for as low as $5 up to $50.
- Different trading platforms – Charles Schwab offers different trading platforms namely StreetSmart Edge, StreetSmart Central, and Schwab.com, which caters to the diverse needs and preference of each user and clients.
- Mutual funds – One feature Charles Schwab also features in its platforms is its mutual funds for its users and clients. All transaction fees for mutual funds charges a total of $49.95 per trade.
- Futures trading – Charles Schwab offers futures trading as one of its features in its platform. However there is a catch with this feature. Despite it being provided in its platform, it can only be accessed through its StreetSmart Central platform alone. It means that trying to access and conduct future trades cannot be accessible using StreetSmart Edge or the main Charles Schwab website.
- Variety of investments offered – Charles Schwab offers various types of investments for its clients and users in its platform. This includes retirement planning, options trading, 529 plans, Custodial IRA, Inherited IRA, Traditional IRA, Roth IRA, Inherited IRA, Individual and Joint IRA, charitable accounts, estate accounts, and trust accounts among others.
- Retirement – one feature offered in the Charles Schwab platform is its retirement planning investment. Clients and users are are offered a one on one guidance for only $30 per month after a $300 one time planning fee from a Certified Financial Planner (CFP).
- Demo account – one unique featured in this platform is its demo account. This allows new users and interested clients to have a personal feel and experience of most, if not all, of the services and features offered in this platform. This allows them to have an idea on what to expect and what not to expect when using this platform for their trade and investment transactions.
- Schwab Intelligent Portfolio – this is a type of robo-advisor which helps users to monitor, build, and automatically rebalance a diversified portfolio. There is no account management fee charged in this service, however it is required that a user must first have a minimum investment of $5,000 to access it.
- Schwab Intelligent Portfolio Premium – this is an upgrade of the original Schwab Intelligent Portfolio. An additional feature offered in this platform is the unlimited access to Certified Financial Planners (CFP). To be able to upgrade tp a premium portfolio account, a user must first have a minimum investment of $25,000 or more. A one time initial fee of $300 will be charged, and a $30 monthly fee will be charged for continuous access.
Trading Platforms
At present, Charles Schwab offers three trading platforms to its clients and users:
- StreetSmart Edge – This platform can be downloaded via cloud-based technology or a downloadable software online. It is an advanced platform which allows the user to monitor orders, place limit orders, view options chains, and analyze charts. One unique feature in this platform is that it is customizable based on the user’s preference. This platform provides most of the features essential to options traders and day traders.
- Schwab.com – This is a platform that allows its users to view technical data, check for access research, and monitor portfolio and markets. This platform also only offers basic trades.
- StreetSmart Central – this is a platform designed for options trading.
Account Types
- Checking and savings account – it is a kind of individual savings account with variable interest rates or unlimited ATM rebates
- Brokerage individual account – a single individual owns and uses the account
- Brokerage joint account – two or more individuals owns and uses the account
- Corporate account – a legal entity owns and uses the account
- Trust and estate accounts – a trustee (separate legal entity) holds an account for the advantage of a client. Managing and distributing estate assets are assisted by estate accounts
- Schwab charitable account – accounts available only in the United States, which is mainly a tax-efficient account for charitable purposes
- Education and custodial accounts – education savings plan and custodial accounts
- Small business retirement account – retirement plans dedicated for small to medium sized businesses
- Schwab intelligent portfolios – accounts available only for clients based in the United States which utilizes the service of robo-advisors
How to start with Charles Schwab?
To avail of the features and services offered by Charles Schwab, a user first have to open an account at Charles Schwab. The process overall is easy and can be done online using a mobile phone or a desktop browser. Furthermore, the whole application process can be finished in just a couple of minutes. If using the mobile application, the user must first download the Charles Schwab in their phones, or if using the desktop browser, open the Charles Schwab official website. Click here, to open a new Schwab account and earn up to $500 in bonus award after making qualifying net deposits of cash or securities.
To sign up with Charles Schwab, the user must first follow these short and easy instructions:
To avail of the features and services offered by Charles Schwab, a user first have to open an account at Charles Schwab. The process overall is easy and can be done online using a mobile phone or a desktop browser. Furthermore, the whole application process can be finished in just a couple of minutes. If using the mobile application, the user must first download the Charles Schwab in their phones, or if using the desktop browser, open the Charles Schwab official website. Click here, to open a new Schwab account and earn up to $500 in bonus award after making qualifying net deposits of cash or securities.
To sign up with Charles Schwab, the user must first follow these short and easy instructions:
- The user must first select an account type.
- Once the account type is chosen, the user will be asked to provide some personal information details like their full name, email address, birth date, and social security number (SSN).
- After the personal information details asked have been provided, the user will have the option to select account features.
- After an account feature has been set or selected, the user should acknowledge the terms and conditions and then verify identity by uploading an identification card or driver’s license.
Education
One feature of this platform is its Schwab’s Learning Center where various topics are covered and clearly explained. The topics includes stock trading up to retirement. Furthermore, Charles Schwab offers various free webinars for all its users and clients, which are also archived for future viewing references.
That being said, it is safe to say that Charles Schwab is a platform favorable for a pro or intermediate users. This also caters to beginners and new users who have limited knowledge in this kind of industry. This allows more people to put more interest in this platform because it does not limit itself to those who already have prior knowledge of the dos and don’ts and how-to of this kind of platform and its services.
One feature of this platform is its Schwab’s Learning Center where various topics are covered and clearly explained. The topics includes stock trading up to retirement. Furthermore, Charles Schwab offers various free webinars for all its users and clients, which are also archived for future viewing references.
That being said, it is safe to say that Charles Schwab is a platform favorable for a pro or intermediate users. This also caters to beginners and new users who have limited knowledge in this kind of industry. This allows more people to put more interest in this platform because it does not limit itself to those who already have prior knowledge of the dos and don’ts and how-to of this kind of platform and its services.
Pros and Cons
Pros |
Cons |
24/7 Customer support |
Too costly for non-US clients |
Mobile app |
Limited futures trading access |
No additional fee for mutual funds trades |
Limited base currency |
$0 Commissions for online stock trades |
Low cash sweep rate |
Extended trading hours |
High fees for some mutual funds |
New account bonus |
Covers only North American markets |
Extensive research |
PROS
- 24/7 Customer service support – to further address the concerns of its users and clients, Charles Schwab offers a 24/7 customer support in its system. The customer service support can be accessed through their in-service support at approximately 300 branches all across the United States, online chat support, and 24/7 phone support. Although there might have been some issues regarding the urgency of their online response, the company however makes sure to improve its services and makes it up with their other support services. The company also boasts of its customer-friendly representatives who are available all day, all year round.
- Mobile app – Charles Schwab offers its clients and users a mobile app platform with an easy-to-use interface. This allows its users to have access to the services offered and transactions wherever they may be.
- No additional fee for mutual funds trades – one positive feature that Charles Schwab offers in its platform is when it comes to their mutual funds trading. Unlike other brokerage platforms which charges additional costs for mutual funds trading transactions, Charles Schwab only charges for the additional purchase for each trade.
- Zero deposit fee – Clients and users coming from the United States can deposit funds in their accounts using electronic (ACH), check, and wire transfers in their transactions. However, for clients coming from foreign countries outside the United States, the option is limited only to wire transfers.
- Extended trading hours – one upside in using Charles Schwab as a trading platform is that it offers extended trading hours for its users and clients. Aside from the 9:30 AM – 4:00 PM EST regular trading hours, it also offers an early morning session trading which starts at 7:00 AM until 9:25 AM EST, and after-trading hours which starts at 4:05 PM – 8:00 PM EST. This gives their account users more trading opportunity under this platform.
- New accounts bonus – Charles Schwab offers a $100 bonus for new account users who makes a qualifying deposit, and the rate goes higher depending on the initial amount a user can deposit. However this is only available through the referral of a previously registered Schwab account user.
- Extensive research – Charles Schwab provides its users extensive research and updates through its platform. It provides its users with up to date reports on stock trading, ratings, and other related topics. The company accesses its data from Morningstar, MarketEdge, Ned Davis and many more.
CONS
- Too costly for non-US clients – Although Charles Schwab offers minimal to zero fees for clients and users based in the United States, it can be quite expensive for those coming from foreign countries who have to over a few hundred dollars for certain transactions.
- Limited futures trading access – Although there is a futures trading feature offered in the Charles Schwab platform, it is unfortunately accessible only alone through its StreetSmart Central platform. This specific feature cannot be accessed through the official Charles Schwab website or through StreetSmart Edge.
- Limited base currency – as of present, Charles Schwab is only limited to having US dollar as its base currency in its platform. This means that users or clients most especially coming from other countries using foreign currencies must first open an account at a digital bank in a multi-currency bank to save on currency conversion fees.
- Low cash sweep rate – Charles Schwab unfortunately has low cash sweep rate. Compared to other brokers, Charles Schwab only earns 0.01% annually. The ability to automatically move funds from a brokerage account to a bank account is not provided in this platform. A user must manually move cash to bank account instead in order to do so.
- High fees for some mutual funds – whilst the platform offers free stock trading and ETF trading, the same cannot be said for some mutual funds. Charles Schwab is somewhat known for having high fee charged for some of their mutual funds, particularly their non-free mutual funds. A fee of $49.5 is initially charged for mutual fund purchases.
- Covers only North American markets – one downside found in this platform is the limited geographical coverage it has in terms of stock trading. Stocks in this platform can only be traded through NYSE, NASDAQ, MKT, and OTC. For Canada based traders, stocks can only be traded via phone through the assistance of an online broker, or online. The Toronto Stock Exchange provides online quotes on most Canadian securities and is in US dollars.
Is Charles Schwab safe?
Charles Schwab offers security services that are up to date with the required standards to assure its clients and users of the security of their accounts and transactions. A face or fingerprint recognition can be applied by users when logging in to their accounts. A two-factor authentication can also be activated to ensure the identity and provide additional security to the user. Account encryption is also provided to avoid unauthorized access to a personal account. Furthermore, the platform is backed up by Securities Investor Protection Corporation (SIPC), with an insurance of $149, 500, 000 per account and a $600 million aggregate for un-invested cash included. To provide further assurance of its security system, Charles Schwab boasts of having no significant data breaches as of present. That being said, it can be established that users and clients can be assured of the safety of their personal accounts as well as their account funds.
Charles Schwab pricing
Charles Schwab offers security services that are up to date with the required standards to assure its clients and users of the security of their accounts and transactions. A face or fingerprint recognition can be applied by users when logging in to their accounts. A two-factor authentication can also be activated to ensure the identity and provide additional security to the user. Account encryption is also provided to avoid unauthorized access to a personal account. Furthermore, the platform is backed up by Securities Investor Protection Corporation (SIPC), with an insurance of $149, 500, 000 per account and a $600 million aggregate for un-invested cash included. To provide further assurance of its security system, Charles Schwab boasts of having no significant data breaches as of present. That being said, it can be established that users and clients can be assured of the safety of their personal accounts as well as their account funds.
Charles Schwab pricing
FEATURE |
PRICING |
ETF trade fee |
$0 |
Mutual fund trade fee |
$49.95 |
Stock trades |
$0 |
Minimum deposit |
$0 |
Options (base fee) |
$0 |
Options (per contract) |
$0.65 |
Broker assisted trade fee |
$25.00 |
Futures (per contract) |
$1.50 |
Inactivity fee |
$0 |
Bond fees |
$0 |