Charles Schwab / Online Brokerage with $0 Commission Trades

Charles Schwab Online Brokerage review quick take: An online brokerage account to buy and sell equities with commission-free trades.

What is Charles Schwab Online Brokerage?

Charles Schwab Brokerage Accounts is for DIY investors looking to buy and sell stocks, bonds, ETFs, mutual funds, options, and other financial products. There are no account minimums and commission-free trading.

The self-directed trading accounts available are:

• Individual
• Joint
• Custodial
• Retirement accounts: Traditional, Roth, Rollover IRA

Charles Schwab & Co. Inc. is a broker-dealer member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).

How Charles Schwab Works

• No account minimum to get started.
• Buy and sell stocks, bonds, mutual funds, ETFs, and other investments (options, futures, Forex).
• Trade or invest for long-term goals like retirement, college, or major purchases.
• Fractional share investing is available.

Key Features

• Commission-free trading: Pay zero commission fees when you buy and sell stocks, ETFs, bonds, mutual funds, and options.
• Fund selection: Large selection of funds with low expense ratios.
• Trading platforms: Use web, software, and mobile platforms to manage your brokerage account.
• Research: Get market stats, news, detailed metrics, and Schwab’s own equity ratings.
• Analysis: Read analysis and commentary from top research firms, from Morningstar, Argus, and S&P.

Schwab Stock Slices

Fractional share investing is called Schwab Stock Slices. Instead of paying the full share price, you can buy a small slice of a stock. For example, if a stock costs $50 a share, and you buy a $5 slice, you’d own 10% of a share. Single slices are available for as little as $5, and investors can buy up to 10 slices at a time. However, this feature is only available for stocks of S&P 500 companies.

Pros and Cons

Pros

• No account minimums
• Commission-free trades
• Four trading platforms
• Extensive research tools

Cons

• Low interest rate on uninvested cash

Fees

• Monthly service fee: $0
• Trading fee: $0

Who is it best for?

Charles Schwab Online Brokerage is best for beginners and advanced traders who want access to commission-free trading with top-level features and research.

Charles Schwab Review

Charles Schwab online brokerage is a legitimate service for investors who want zero-commission trading, interactive tools, and no minimum deposit requirements.

In researching Charles Schwab reviews, we found that the online brokerage has a 4.8 out of 5-star rating in the App Store, with 870k reviews. However, it receives a poor rating of 1.6 out of 5 on Trustpilot, with most reviews sharing issues with website functionality and technical issues.

Charles Schwab Brokerage Review Conclusion: Offers competitive pricing, useful trading tools, and an enhanced platform. With no account minimum and commission-free trading, it’s ideal for beginners, while active investors will value access to research tools and analysis.

How to Start Using Charles Schwab

Minimum Requirements

• Must be at least 18 years old
• Verifiable personal information
• Social Security or Tax Identification Number

Step-by-Step to Open a Charles Schwab Brokerage Account

The time needed: 3 minutes.

1. Getting started
   • Download the app or visit the website.
2. Select Self Directed Investing
   • Submit your personal information, such as name, email, and password.
3. Fund your account
   • Add money to your new brokerage account.
4. Choose your investments
   • Start investing and build your portfolio.

Charles Schwab Alternatives

Charles Schwab alternatives for active investors, such as Webull, Robinhood, SoFi Active Investing, and Public.com.

Find more online brokerages in the marketplace.