Charles Schwab 2021 Review: Robust Investment Offerings and 24/7 Customer Service
Charles Schwab is one of the largest discount brokerage firms in America and offers something for investors of all levels of experience and needs. New investors will appreciate that there is no minimum for opening most accounts, and customer service representatives are available to help 24/7 by phone or chat.
NextAdvisor named Charles Schwab as one of the top online brokers of 2021 due to its high quality trading platform, commission-free trading and research guides. “We chose Schwab as our lead custodian,” said Asher Rogovy, chief investment officer at Magnifina, LLC, an investment advisory firm. “The Schwab team are exceptional, and when it comes to your money, you shouldn’t settle for less.”
Charles Schwab 2021 review
Founded in 1971, Charles Schwab is a full-service investment brokerage firm that provides both an online platform and in-person support at over 400 of its branches across the United States.
Schwab offers an online trading platform for those who wish to invest on their own, a robo-advisor with the ability to be guided by professionals, and personalized plans for actively managed human portfolios.
There are also strong investment offerings, including over 2,000 index funds and ETFs, and over 200 index mutual funds that bear no transaction fees. Additionally, all index ETFs, whether from Charles Schwab Investment Management or third party vendors, have no commission fees.
Index funds are a basket of stocks that track a portion of the stock market. Investing in an index fund, like the one that tracks the S&P 500, can help you diversify your investments among many different companies, rather than just one. This helps protect your investments in case a business experiences a downturn.
Advantages and disadvantages of Charles Schwab
No fees to open and maintain an account for brokerage or trading services
No minimum to keep accounts open
Robust suite of investment tools, educational resources, trading platforms and access to in-depth market research
24/7 customer service by phone
Broker-assisted transactions can be up to $ 25
A myriad of options, while exciting, can be overwhelming for first-time investors
Charles Schwab at a glance
Charles Schwab offers a comprehensive set of accounts and investments.
- Online brokerage accounts, robo advisors and professionally managed accounts
- Roth IRAs, Traditional IRAs, Rolling IRAs, Custodial IRAs, 529 Education Savings Plans, Education Savings Plans (ASEs), Individual 401 (k) s, Corporate 401 (k) s, SEP IRA , Simple IRA
- Marketable securities include: stocks, bonds, fractional shares, CDs, mutual funds, index funds, options ETFs, futures contracts. There are over 4,200 no-charge mutual funds.
- Mobile investment application available on iOS and Android
- 24/7 customer service by phone or chat
Investments available on Charles Schwab
Charles Schwab has a wide range of investments, from stocks to margin loans and money market funds. According to its website, it is the third largest provider of index funds, with more than 2,000 index funds and ETFs. The average annual fee for index funds is 0.15%, which is a low expense ratio.
- Fixed income products
- Futures contracts
- Mutual fund
- AND F
- Money market funds
Charles Schwab fees
For a full list of fees, readers can check out Charles Schwab’s pricing page.
|Trading and commission fees||Online equity and ETF trading – $ 0
Online options – $ 0.65 per contract
Automated telephone transactions – $ 5
Broker-assisted transactions for stocks, ETFs and options – $ 25
Future businesses (online and broker-assisted transactions) – $ 1.50 per contract
Mutual funds via Schwab Mutual Fund OneSource – $ 0 for online and automated telephone transactions, $ 25 for broker-assisted transactions OneSource Non Schwab Mutual Fund Negotiations – $ 49.95 per purchase, $ 0 redemption fee for online and automated phone transactions
Schwab’s OneSource Mutual Fund Service – $ 49.95 short-term redemption fee
|Minimum account for brokerage and trading services||$ 0|
|Account maintenance fees for brokerage and trading services||$ 0|
|Account Fee||No annual fees or inactivity; $ 25 per transfer; $ 15 per transfer if submitted online|
|Investment management fees||Schwab Smart Wallets – no consulting or commission fees, $ 5,000 minimum to start
Schwab premium smart wallets – Monthly fee of $ 30, one-time planning fee of $ 300, minimum of $ 25,000 to start
Schwab private customer – Starts at 0.80% of assets under management, $ 1 million to start
Schwab Advisory Network – no fees if referred, counselor fees vary, $ 500,000 to start
Who is Charles Schwab for?
Charles Schwab is a full-service discount brokerage firm that provides online brokerage accounts, robotics advisors, and professionally managed accounts and services. Charles Schwab is robust in its offerings and with no minimum account or annual fees or inactivity. This makes Charles Schwab a great option for all types of investors, from the beginner to the experienced.
Although the basic robo advisor does not incur any fees, there is a minimum account of $ 5,000. For those who want automated AI-powered guidance, they can find a robo-advisor with lower minimums to start.
How to open an account with Charles Schwab
- Determine what you want from a broker. Knowing whether you intend to trade and manage your portfolio and do the research yourself, hire a robot advisor, or get professional advice can help you determine if Charles Schwab is right for you.
- Do your homework on fees, available investments and resources. Learn about the fees and costs associated with trading and maintaining an account. It’s also important to know what types of investments are available, as well as the resources, tools and research to help you make informed investing decisions.
- Open an account online. According to Charles Schwab’s website, it will take about 10 minutes to complete the application and open a brokerage account. Make sure you have your social security number. If you are an employee, you will also need your employer’s address. Other information you will need to provide includes personal information such as your address, date of birth, email address, and phone number.
Unlike some digital-only discount brokerages, you can walk into a physical store to get your questions answered or get help opening an account. There’s also 24/7 support via chat or phone.
Charles Schwab compared to others
|Charles Schwab||Avant-garde||TD Ameritrade *|
|Types of investment accounts||Brokerage and trading, IRA and other retirement accounts, managed accounts, education savings and savings plans||Brokerage and trading, IRAs and other retirement accounts, education savings and savings plans||Brokerage and trading, IRA and other retirement accounts, managed accounts|
|Costs||$ 0 trading commission fee for online transactions in stocks and ETFs; other fees vary||$ 0 trading commission fee on online transactions for Vanguard stocks, ETFs and mutual funds; other fees vary||$ 0 trading commission fee on online trades for stocks, ETFs and options trades; other fees vary|
|Account Fee||No annual fees, inactivity, maintenance||$ 20 annual fee on most accounts with balances under $ 10,000||No annual fee|
|Mobile app||Investment application available||Investment application available||Investment application available|
|Customer service||24/7 via phone and app, physical locations||Representatives available by phone from 8 a.m. to 8 p.m. EST weekdays||Representatives available by phone from 8 a.m. to 7 p.m. EST weekdays|
Frequently Asked Questions
How much money do I need to open a Charles Schwab account?
For its brokerage and trading services platform, there is no minimum account.
Why is Charles Schwab famous?
Charles Schwab is known to be a full-service brokerage firm that offers online transactions, a variety of retirement accounts, and in-depth research and tools for investors. There is no minimum account or account maintenance fee and thousands of free mutual funds.
What is the minimum deposit for Charles Schwab?
There is no minimum deposit to open an account through Charles Schwab.
Are there any hidden charges for Schwab?
While there are no account maintenance or account opening fees, and online commission fees on Schwab stocks, ETFs, and mutual funds, there are trading fees. for options and non-Schwab mutual funds.
There may be additional fees, such as fund fees, brokerage commissions, and other account fees. You can check out Charles Schwab’s pricing page online for a full overview.