1. Home
  2. IRAs
  3. Charles Schwab Review

Rating: 9.7 / 10 (Excellent)
Disclosure: We receive advertising revenue from some partners. Learn more.
Charles Schwab & Co. is a banking and brokerage firm that offers a variety of financial services ranging from retirement planning services to financial advisory and investing, among its many offerings. Founded in San Francisco in 1971, the firm is one of the largest brokers in the entire U.S. with over $3 trillion assets under management.
 
View Top 10 List

How Do We Rate Charles Schwab?

Breakdown

0.0/5
IRA Types
0.0/5
Investment Options
5.0/5
Account Features
5.0/5
Fees and Discounts
5.0/5
Reputation & Customer Support

Our Overall Rating: 4.9 / 5 (Excellent)

Whether you’re getting close to retirement or planning ahead, Charles Schwab’s wealth of retirement products can offer investors flexible, customizable investing at a competitive price. As an industry leader, it’s no surprise Schwab offers all the major types of IRAs – and a few lesser-known options – for individual investors and business owners alike. Perhaps what really makes Schwab’s IRA accounts shine is that there are no fees to open or maintain an account. Plus, Schwab offers a range of stock, bonds, ETFs, mutual funds and CDs clients can choose from, including low-cost funds.

Charles Schwab Account Features

Account Features - 5 / 5

Schwab offers clients the ability to roll over a 401(k) into an IRA, as well as traditional and Roth IRAs. Investors can also open up a custodial or inherited IRA account – both of which can either be a traditional or Roth IRA. Custodial IRAs are primarily for children under the age of 18 who have earned an income and the funds can be used for college. An inherited IRA is for those who inherit a non-spousal IRA. For small businesses, Schwab offers both SEP-IRAs and SIMPLE IRAs. The company offers professional management solutions, including a complimentary consultation with a financial expert.
Types of IRAs
Rollover IRA
Roth IRA
Traditional IRA
SEP IRA
SIMPLE IRA
Account Minimum
Varies by account type.
Minimum Balance Requirement
No minium.
Mobile App
Yes

Investment Options

Mutual Funds
Index Funds
Stocks
Bonds
Money Market Accounts
CDs
ETFs
Options

Online Experience

Getting started with a Schwab IRA is as simple as applying online or mailing in an application. Client’s will need their social security, driver’s license, employer's name and beneficiary information handy when opening an account. Users will have access to Schwab's StreetSmart Edge, the firm's leading trading platform, that features real-time data streaming. This includes market news, quotes, charts, and other helpful features. StreetSmart can be used online or as downloadable software. The firm's app also stacks up to others in the field, offering trading and account management on the go. One feature of the app that investors may particularly enjoy is access to breaking news from CNBC and real-time notifications. In addition to its phone and local branch support, Schwab overs 24/7 online support via its chat feature.

Charles Schwab Fees and Penalties

Fees and Discounts - 5 / 5

There are no fees to open or maintain a Schwab IRA, SEP-IRA, SIMPLE IRA, or a Schwab Custodial IRA. Withdraws from an IRA that don't meet certain criteria or exceptions are subject to a 10% federal tax penalty which is the case with all IRAs. Commissions for an online equity per trade are $4.95 while online trades with Schwab ETFs are free.
Schwab Intelligent Portfolio, the firm’s robo offering, has a minimum balance of $5,000. However, tax-loss harvesting is only available for clients with over $50,000 in assets and for those who have specifically enrolled in the service. Schwab Intelligent Advisory, which is a robo-advisor hybrid that offers access to Certified Financial Planners, carries a minimum of $25,000 and an advisory fee of 0.28%. Other fees may apply. We highly recommend investors carefully research investment products and companies on their own before making important financial decisions.
Trading Fees
Online trade commissions for stocks and ETFs is $4.95. Schwab also offers hundreds of commission ETFs and transaction-free mutual funds.

Charles Schwab Financial Strength and Reputation

Reputation & Customer Support - 5 / 5

For over 40 years, Charles Schwab has enjoyed an established reputation as an industry leader. With over 3 trillion net client assets under management and one of the largest brokerage dealers in the entire country, Schwab is at little risk of going under. Additionally, Schwab’s brokerage products are SIPC insured up to $500,000, while its deposits and lending products offered through its banking services are FDIC insured. However, it’s worth noting that any investments come with a potential for risk. We continue to recommend that consumers conduct their own research before choosing an investment product.
Year Founded
1971
Moody's Financial Rating
A2
FDIC Member
Yes
SIPC Membership
Yes
BBB Rating
B-
Trust Pilot Rating
6.4 out of 10
Date Collected
2018-12-21
Live Help 24/7
Yes
Customer Support Hours
24/7

Contact Methods

Phone
Email
Chat
Social Media
Text

FINRA Arbitrations

According to BrokerCheck, Charles Schwab is listed as having 52 regulatory events with FINRA, as well as three civil events, 220 arbitrations, and two bonds.

Company Profile

Full Name
Charles Schwab IRAs
Company Website
https://www.schwab.com/
Headquarters
211 Main Street, San Francisco, CA, 94105
Top Rated
VISIT SITE

  • Offers Roth IRA certificates of deposit (CDs)
  • Interest rates are higher than many competitors'

Discover offers a dedicated Roth IRA CD, which can be purchased with maturity dates ranging from 3 months to 10 years. Although Discover does not offer other Roth IRA options, it can be a good choice for people who want CDs to be part of their Roth IRA portfolio.

READ FULL REVIEW >

Latest Charles Schwab Reviews

ccyago

12/12/2024
Stay away from Schwab. It's taken over five weeks to transfer money from one Schwab account to another Schwab account. I had am IRA with Schwab and wanted to transfer it to my company sponsored 401k that was also with Schwab. Five weeks ago I received a confirmation email confirming my request was received and no further action was needed and my funds have still not been credited to my account. I've tried to get information from Schwab and they can only tell me they see the transfer and it's being processed. Why does it take over 5 weeks to transfer money from one Schwab account to another Schwab account. During this time I've missed out on substantial gains in the market.

Related to IRAs

Top Articles