Charles Schwab Review 2025
400+ branches. thinkorswim platform. Best investor education. Schwab is the full-service broker that doesn't charge full-service prices.
The Bottom Line
Schwab is the best all-around broker for investors who want everything: commission-free trading, physical branches, professional-grade platforms, and excellent education. The TD Ameritrade acquisition brought thinkorswim—arguably the best trading platform available.
The catch? Their cash sweep rate is terrible (0.45%), and they use payment for order flow. But for most investors, these drawbacks are minor compared to the comprehensive package.
What Schwab Does Best
thinkorswim Platform
Schwab inherited thinkorswim from TD Ameritrade, and it's still the gold standard for active traders. Advanced charting, customizable layouts, options analysis, paper trading—it's genuinely powerful software that competitors can't match.
Physical Branches
With 400+ locations, Schwab is the only major broker where you can walk in and talk to someone. For complex situations (estate planning, large transfers, account issues), face-to-face service matters.
Investor Education
Schwab Coaching offers personalized guidance. Their Learning Center covers everything from "What is a stock?" to advanced options strategies. For beginners, this is genuinely valuable.
$50 Starter Kit
New accounts get $50 in fractional shares of top S&P 500 stocks. It's a nice bonus for getting started—free money to learn with.
Where Schwab Falls Short
Cash Sweep Rate
Schwab pays about 0.45% on uninvested cash—while earning 4%+ on it themselves. On $50,000 cash, you're losing $1,775/year in potential interest. This is Schwab's biggest profit center, and it's at your expense.
Payment for Order Flow
Unlike Fidelity, Schwab sells your orders to market makers. The execution quality difference is small for most investors, but it's a philosophical issue for some.
Limited Fractional Shares
Schwab offers fractional shares only for S&P 500 stocks. Fidelity offers 7,000+. If you want to buy $10 of a small-cap stock, you can't at Schwab.
Android App Issues
The Schwab Android app has a 2.7-star rating with persistent complaints. iOS is fine (4.6 stars), but Android users suffer.
Fees & Pricing
| Fee Type | Cost |
|---|---|
| Stock/ETF Trades | $0 |
| Options (per contract) | $0.65 |
| Margin Rate | 10.00% |
| Account Minimum | $0 |
| Outgoing Transfer | $50 |
| Cash Sweep APY | ~0.45% |
Current Promotions
$50 Starter Kit: Open any account and get $50 in fractional shares of S&P 500 stocks.
Who Should Use Schwab
- Beginners who want comprehensive education and guidance
- Investors who value branches for face-to-face service
- Active traders who want thinkorswim
- TD Ameritrade customers (you're already being migrated)
Who Should Look Elsewhere
- Cash holders: The 0.45% sweep rate is unacceptable. Move cash to a money market.
- Android users: The app experience is poor.
- Those who care about PFOF: Fidelity doesn't sell orders.
The Verdict
Schwab is the most complete package in the industry. Between thinkorswim, physical branches, and education resources, they offer more than anyone else. Just be aware of the cash sweep trap—move uninvested cash to SWVXX or a high-yield savings account.