This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
Charles Schwab is one of the largest and most complete brokers in the United States, serving over 34 million brokerage accounts. Its acquisition of TD Ameritrade in 2020 brought the thinkorswim platform into the Schwab ecosystem, creating a broker that serves both beginners and active traders.
Fees
| Fee Type | Cost |
|---|---|
| Stock/ETF commission | $0 |
| Options | $0.65/contract |
| Margin rate (USD) | 10.75% (up to $25K) to 8.25% ($1M+) |
| Inactivity fee | $0 |
| Account minimum | $0 |
| Broker-assisted trades | $25 |
Schwab's pricing is competitive for mainstream investors. Margin rates are higher than Interactive Brokers, and options contracts are standard at $0.65. The broker offers over 4,000 no-transaction-fee mutual funds.
Platform and tools
Schwab now offers two primary platforms. thinkorswim (from the TD Ameritrade acquisition) is a professional-grade desktop platform with advanced charting, hundreds of technical studies, options analysis, and a paper trading mode. Schwab.com and the Schwab mobile app are simpler, designed for research-driven investors.
StreetSmart Edge, Schwab's legacy active trader platform, is being phased out in favor of thinkorswim. The Schwab mobile app supports trading, research, and banking in one interface.
Product range
Schwab offers stocks, ETFs, options, futures, bonds, mutual funds, and CDs. Crypto is not available directly through Schwab. The Schwab Intelligent Portfolios robo-advisor provides automated investing with no advisory fee.
Regulation and safety
Schwab is regulated by the SEC and FINRA. SIPC coverage protects up to $500,000, plus an additional $600 million aggregate excess SIPC policy through Lloyd's of London. Schwab Bank deposits carry FDIC insurance. The firm has been publicly traded since 1987. Read the full safety analysis.
Pros and cons
Pros: Excellent research and educational content, thinkorswim platform, banking integration, 4,000+ no-transaction-fee mutual funds, strong customer support (phone, chat, branches).
Cons: Higher margin rates than IBKR, no direct crypto trading, cash sweep rates are low, options commissions are not the cheapest.
Is Charles Schwab right for you?
Schwab is the best all-around broker for US investors who want a single place for banking, investing, and research. Active traders get a professional platform in thinkorswim. Beginners get educational content and a simple app.
Compare Schwab against Interactive Brokers in the head-to-head comparison. If you are evaluating multiple brokers, start with the broker reviews hub.
Common questions
What happened to TD Ameritrade? Schwab acquired TD Ameritrade in 2020. TD Ameritrade accounts are being migrated to Schwab. The thinkorswim platform continues to be supported under Schwab.
Does Schwab have an account minimum? No minimum to open a brokerage account.
Is thinkorswim free? Yes, thinkorswim is included with any Schwab brokerage account at no extra cost.