As a broker, Charles Schwab has been around for quite some time. The brokerage was founded in 1971, and it has grown to become the United States’ fourteenth-largest bank. It has over $3.3 trillion in client account assets. So, why is it so trusted? This review will look at the ins and outs of this banking institution.
Charles Schwab had a very good year in 2019, cutting fees and commissions. That has proven to be a huge asset for the company. The broker is a full-service firm. It has technology for a wide variety of investors, from active traders to managers. Its StreetSmart Edge platform is one of its main highlights.
The broker offers an All-In-One Trade Ticket across all of its platforms. It offers long and short stocks, penny stocks, bonds, mutual funds, futures, forex (currently seven currencies), and commodities, among other assets. Listed below are the pros and cons of this broker.
Pros and Cons
Pros
- Its mobile web platforms/apps have a high level of functionality
- Its StreetSmart Edge platform is customizable, with a robust ETF screener
- Low fees/commissions (particularly after last year)
Cons
- If you don’t have StreetSmart Edge, you’ll find the website to be bare bones
- The broker offers no automatic cash sweeps
Recommended For
Why These Pros
Pretty much every broker out there has a trademarked platform. The StreetSmart Edge is an important part of Charles Schwab’s pros because it is a premier trading platform. You have a customizable workflow, charting tools, and advanced educational resources. The platform’s ETF has over 150 screening criteria. There are sixteen pre-defined screens. The platform allows you to personalize it in a way that puts everything you need right at your fingertips. However, the ETF screener on StreetSmart Edge is not the same one on the website.
Why These Cons
An automatic cash sweep occurs when the broker automatically sweeps uninvested money into a money market account with a low interest rate. Charles Schwab does not do this automatically—you have to move the money yourself. Additionally, if you’re averse to downloading StreetSmart Edge, you will be less-than-impressed with the the broker’s website. The ETF screener is limited.
Who Is Charles Schwab Recommended For?
Like many of the other top-notch firms out there, Charles Schwab knows that it has to appeal to a wide variety of traders in order to be successful. If you’re a beginning investor or an advanced trader, you can use this site. Also, investors who are specifically looking for no-minimum index funds and commission-free trades will like this broker.
Regulated By
- Securities Investor Protection Corporation (US)
Top Features
No Commissions/Minimums
There are not many times where you want to see and hear the word “0” in investment banking, but commissions and minimum investments are two of the main ones. Charles Schwab offers zero-commission stock trading, option trading and ETFs. Options are not free, but they do have a $0.65 fee per contract.
That’s about average among brokers. Additionally, this broker has no required account minimum. Over 4,000 of its funds have minimum investment requirements that are under $100.
Research Tools
This firm offers its investors equity ratings from its own company, as well as reports from Ned Davis, Market Edge, Credit Suisse, Morningstar, and more. Its investment screeners are very comprehensive, and it provides a lot of in-house expert commentary on the market. If you’re a Schwab member, you’ll get a magazine every quarter—no charger. Google Assistant is also integrated within the site.
Mutual Funds and Fractional Shares
When you’re a member at this brokerage firm, you will be able to access more than 3,500 fee-free mutual funds (no fees on transactions). More than 600 mutual funds on the website have ratios of under 0.50%. Additionally, despite the high numbers, the selection of mutual funds is navigable.
Fractional shares are another area where this broker shines. The broker offers fractional shares for all of the S&P 500 stocks. Investors are able to buy part of a stock, as opposed to the full price. You can own a slice of stock and pay as little as $5.
StreetSmart Edge
Of course, no mention of Charles Schwab would be complete without its trading platform, StreetSmart Edge. Downloading this platform gives you StreetSmart Central, which is a suite of programs for options trading. With this platform, you get access to research tools, trade, and all of the features, whether basic or sophisticated. You can monitor your trading portfolio and view technical data, too.
Account Types
As a broker, Charles Schwab has been around for quite some time. The brokerage was founded in 1971, and it has grown to become the United States’ fourteenth-largest bank. It has over $3.3 trillion in client account assets. So, why is it so trusted? This review will look at the ins and outs of this banking institution.
Charles Schwab had a very good year in 2019, cutting fees and commissions. That has proven to be a huge asset for the company. The broker is a full-service firm. It has technology for a wide variety of investors, from active traders to managers. Its StreetSmart Edge platform is one of its main highlights.
The broker offers an All-In-One Trade Ticket across all of its platforms. It offers long and short stocks, penny stocks, bonds, mutual funds, futures, forex (currently seven currencies), and commodities, among other assets. Listed below are the pros and cons of this broker.
Trading Platforms
- StreetSmart Edge by Charles Schwab
Trading and Investment Tools
- 24hr Trading: No
- Streaming News Feed: Yes
- Charting Package: Yes
Compliance & Regulation
Charles Schwab, like many of the other brokers in America, is a member of the SIPC. The Securities Investor Protection Corporation is federally required, and it is member-funded, non-profit, and acts as a watchdog over brokers and brokerage firms. Charles Schwab, on its website, also has a list of the ethics rules that it personally mandates for its directors.
Fees & Commissions
- Rollover Fee: $25-$50
- Margin Interest: 7.575-9.325%
Pricing
To start, there are no fees required to open a broker account. There are also no minimums. When it comes to trading, you can trade stocks and ETFs online for free. Broker-assisted trades cost $25.00. Options cost $0.65 per contract, and futures and futures options cost $1.50 per contract. The $25 broker-assistance fee still stands.
At Charles Schwab, you can trade treasuries for $0. Bonds and other secondary trades cost $1 per bond. There is a $250 maximum in place. For REITs and preferred stocks, you’ll pay $0. Once again, there is a $25 broker assistance fee.
Service Details
- Supported Languages: English, Chinese
- Customer Service Hours: 9:00AM-9:00PM
- Email Response Time: 48 Hours
- Telephone Orders: Yes
- Personal Account Manager: Yes
Reliability & Security
Charles Schwab’s StreetSmart Edge platform appears to be free of glitches, for the most part. Also, the broker’s membership in the SIPC means that its assets are insured for up to $500,000 per account. This includes up to $1 million in cash. This high insurance rate should give you peace of mind.
User Experience
The broker’s StreetSmart Edge platform has a highly-rated user experience. It is intuitive and customizable, adjusting to your workflow and tasks. The website for the broker is a different story, and customers have found that to be far more limited. If you want the top user experience, be prepared to download the StreetSmart Edge.
Final Thoughts
All in all, Charles Schwab is a high-quality broker. There is a reason that it has trillions in client assets, as people seem to really trust the broker. Its StreetSmart Edge platform is its best feature, and its recent slashing of fees and commissions is another big plus. The only downsides are its lack of automatic cash-sweeping and the limited nature of its website. Otherwise, traders of all experience levels should be pleased with this broker.
Contact Info
211 Main St San Francisco, CA
FAQs
Q: How do I place a trade?
A: Placing a trade is easy. You use the Trade Stocks & ETFs “order entry” to submit an order. With this order entry page, you can sell or buy a short stock or ETF. Enter the order specifics, including the symbol. Then, enter the quantity and order type. Verify your order and click to submit.
Q: I have tax questions. What do I do?
A: If your tax question is common, you can visit Charles Schwab’s Tax Center, as it gives you information about common questions. If you can’t find your answer there, you can call the customer service number, which is: 1 (866) 855-9102.
Q: After an order has been filled, can I change or cancel it?
A: Once you have executed an order, you cannot cancel or change it. Only limit and stop limit orders are changeable during market hours. Mutual funds orders cannot be changed—you have to cancel and enter a new on. However, market orders are usually executed too quickly to be changed or canceled.
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