At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Charles Schwab
Charles Schwab's acquisition of TD Ameritrade, completed in 2020, created something the brokerage industry has never seen: a single firm holding over $8.5 trillion in client assets with both the largest branch network among discount brokers (400+ locations) and the best active-trading platform in the industry (thinkorswim, inherited from TD Ameritrade). The integration, which finished migrating all TD Ameritrade accounts in 2023, was not seamless -- some thinkorswim power users reported feature regressions and workflow changes that disrupted their trading setups. But the end result is a brokerage where a retiree managing a simple three-fund portfolio and a day trader executing 50 options contracts per day can both be served by the same institution without compromise. The economics of Schwab's business model explain why they can offer $0 commissions while maintaining 400+ branches with human advisors. Schwab earns the majority of its revenue from net interest income -- the spread between what they pay you on uninvested cash (currently 0.45% in the default sweep) and what they earn lending that cash out (roughly 5.0%+). On $8.5 trillion in client assets, even a small cash percentage generates billions in interest income. This is why Schwab's default cash sweep rate is conspicuously low: your uninvested cash is their primary profit center. You can manually move cash to Schwab's money market funds (SWVXX yields 4.5%+), but most clients never do, which is exactly what Schwab's business model depends on. Two things Schwab does better than anyone: index fund pricing and physical branch access. The Schwab S&P 500 Index Fund (SWPPX) charges 0.02% -- tied with Fidelity's FXAIX as the cheapest S&P 500 fund available. Schwab Total Stock Market Index (SWTSX) is 0.03%. These are not loss leaders; Schwab's scale makes these expense ratios profitable. And the 400+ branches mean you can walk in and get help with an estate transfer, IRA rollover, or complex trade that you would not trust to a phone call. No other discount broker offers both.
Key Features
Thinkorswim Trading Platform
Thinkorswim is widely considered the best active-trading platform available to retail investors. It includes real-time streaming quotes, advanced charting with 400+ technical indicators, options strategy builders with probability analysis, and paper trading accounts for strategy testing. The platform runs as a desktop application (Java-based) and offers capabilities that rival Bloomberg terminals costing $24,000/year. There is no additional fee to use thinkorswim as a Schwab client.
Schwab Intelligent Portfolios (Robo-Advisor)
Schwab's robo-advisor has a unique fee structure: $0 advisory fee with a $5,000 minimum, but requires a 6-10% cash allocation that earns the low default sweep rate. The "free" advisory fee is effectively subsidized by the interest Schwab earns on your cash allocation. On a $50,000 portfolio with 8% in cash ($4,000), Schwab earns roughly $180/year on your cash at the current spread -- functionally a 0.36% fee, though Schwab never bills you directly.
Schwab Stock Slices (Fractional Shares)
Stock Slices lets you buy fractional shares of S&P 500 companies starting at $5. You can select up to 30 stocks per order. This makes dollar-cost averaging into individual stocks practical for smaller accounts, though fractional share positions cannot be transferred to another brokerage -- you must sell them before transferring, which creates a taxable event.
Branch Network and In-Person Advisory
Schwab's 400+ branches staffed with licensed financial consultants provide something no online-only broker can match: face-to-face help for complex transactions. Estate transfers, beneficiary designations, trust account setup, and IRA rollover decisions all benefit from sitting across a desk from someone. Walk-in consultations are free; no appointment required for most services.
How It Works
Open Your Account Online or In-Branch
Individual brokerage, IRA, joint, or trust accounts can be opened in under 10 minutes online. For trust and estate accounts, in-branch setup is recommended because the document requirements are complex. There is no minimum deposit to open, but some features (like Intelligent Portfolios) require $5,000+.
Fund via ACH, Wire, or ACAT Transfer
ACH transfers take 1-3 business days. Wire transfers are same-day ($0 incoming, $25 outgoing). ACAT transfers from another brokerage take 5-7 business days and are free. Schwab will often reimburse the transfer-out fee from your old brokerage for accounts over $25,000.
Move Cash Out of the Default Sweep
Immediately after depositing, move uninvested cash from the Schwab Bank Sweep (0.45%) to the Schwab Value Advantage Money Fund (SWVXX, currently 4.5%+). This single step can save hundreds of dollars per year on a large cash position. It takes 30 seconds in the app.
Install Thinkorswim (If Active Trading)
Download the thinkorswim desktop platform from Schwab's website. Spend time in paper trading mode before using real money -- the platform's learning curve is steep but the capabilities are worth the investment.
Select Your Approach
Self-directed gives you full control with $0 commissions. Intelligent Portfolios automates everything with $0 advisory fee but mandatory cash drag. Schwab Wealth Advisory ($25,000 minimum, 0.80% fee) adds a dedicated human advisor. Choose based on your time and portfolio complexity.
What They Do
- Stock & ETF Trading ($0)
- Options Trading ($0.65/contract)
- Mutual Funds (4,200+ no-load, no-fee)
- Fixed Income
- Futures Trading
- Intelligent Portfolios (Robo)
- Wealth Advisory
- Private Client ($1M+)
- Banking (Checking, Savings)
- International Trading (12 markets)
Debt Types They Take On
- Individual Brokerage
- Joint Brokerage
- Traditional IRA
- Roth IRA
- SEP IRA
- SIMPLE IRA
- Rollover IRA
- 529 Plan
- Custodial (UGMA/UTMA)
- Trust
- Estate
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
TD Ameritrade Migration and Thinkorswim Retention
An active options trader with 15 years on TD Ameritrade was forced to migrate to Schwab during the 2023 account transition. Primary concern was losing thinkorswim customizations including 47 saved chart layouts, custom studies, and options scanning filters.
Retiree Portfolio Consolidation
A recently retired couple held assets at 4 brokerages (Vanguard, Fidelity, an old 401(k) at Empower, and a legacy Edward Jones account paying 1.2% AUM). Total combined assets: $1.3 million. Consolidated everything to Schwab via ACAT transfers.
Index Fund Portfolio for Long-Term Accumulation
A 26-year-old opened a Schwab brokerage and Roth IRA, investing $500/month split between SWPPX (S&P 500, 0.02%), SWISX (International, 0.06%), and SWAGX (Aggregate Bond, 0.04%). Automatic monthly investments via recurring investment feature.
Pros & Cons
Pros
- Thinkorswim is the best active-trading platform available to retail investors, included free for all Schwab clients
- 400+ branches with licensed consultants provide in-person help for complex transactions no online-only broker can support
- Index fund expense ratios (0.02-0.06%) are tied for lowest in the industry, and 4,200+ mutual funds trade commission-free
- $0 account minimum, $0 commissions on stocks/ETFs, and no inactivity fees
- Client assets of $8.5 trillion provide institutional stability; SIPC plus excess coverage up to $600M per account via Lloyd's of London
Cons
- Default cash sweep rate of 0.45% is a hidden profit center -- uninvested cash earns far below market rate unless you manually move it to SWVXX
- Intelligent Portfolios' mandatory 6-10% cash drag creates a hidden fee equivalent to 0.30-0.50% annually, despite the $0 advisory fee marketing
- The TD Ameritrade migration caused real disruption for some users who lost custom settings or experienced workflow changes
- International trading is limited to 12 markets -- significantly less global coverage than Interactive Brokers (150+ markets)
User Reviews (10)
Schwab checking too
The Schwab checking account is underrated. No ATM fees worldwide, no foreign transaction fees. I use it when I travel internationally.
SWVXX tip saved me money
Didn't realize my cash was sitting in their sweep earning basically nothing. Read online to move it to SWVXX and now I'm earning 4.5% on my cash. Schwab should tell people about this but obviously they won't.
TD Ameritrade migration was rough
I'm still annoyed about the forced migration from TD Ameritrade. Yes thinkorswim still works but they broke some of my custom scripts and the web version is worse than what TDA had. Took me weeks to get my layouts right again.
ok
Works fine. No issues.
Branch visit sold me
Walked into a Schwab branch to ask about rolling over my 403b. The consultant spent 45 minutes with me, no sales pressure, explained everything clearly. Ended up moving everything over. You can't get that at Robinhood.
Cash sweep is a scam
The fact that they default your cash to 0.45% when money market is paying 4.5% is borderline predatory. They make BILLIONS on this. Most people don't know to switch.
Transferred from Edward Jones
Was paying my Edward Jones advisor over 1% on a large portfolio. Moved to Schwab, put it in index funds, and the annual savings are substantial. Schwab even reimbursed the transfer fee. Should have done this years ago.
Best all-around broker
Been with Schwab since 2015. Zero complaints. Free trades. Great index funds. Branches nearby. Thinkorswim for when I want to trade options. What else do you need.
CUSTOMER SERVICE WAIT TIMES ARE INSANE
Tried to call about a transfer issue and was on hold for 2 HOURS. This is a company with trillions in assets and they can't hire enough phone reps?? I eventually got someone who was helpful but the wait was unacceptable. This happened right after the TDA migration when everyone was calling in with problems.
Solid for buy and hold
SWPPX at 0.02% expense ratio. Hard to beat that. I just buy and hold and ignore the market.
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Important Investing Disclaimers
- All investing involves risk, including loss of principal. Past performance does not guarantee future results. Returns and yields quoted are historical and not indicative of future performance.
- Brokerage accounts are not FDIC insured. Securities held in brokerage accounts are protected by SIPC up to $500,000 (including $250,000 for cash claims). SIPC does not protect against market losses.
- Robo-advisor and managed account performance depends on market conditions, asset allocation, and individual circumstances. Advertised returns reflect backtested or historical model performance and may not reflect actual client returns after fees.
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